Rootstrap Blog

Category: Process

Total 3 Posts

The Value Pyramid

A mental framework to identify at which level your organization is generating value to your clients.

The value pyramid is based on the business value chain developed by Michael Porter in 1985. Porter’s detailed version charted the actions and capabilities of a business provides in steps that progress from basic to advanced.

Our tech service pyramid shows the four main levels of the value chain specific to computer service providers: skills, processes, strategy, and vision. Your company might be positioned on any of these levels, depending on your capabilities and your customers’ requirements.

Where value is delivered
Delivering value can be done at a single level or rise to include multiple levels on the pyramid. For example, your client might require the application of your skills to build a software platform as well as a process to achieve the production and integration of the software. But they might not require an advanced strategy or vision from you.

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What is the problem?

As a CTO of a company that runs 20+ projects in parallel, I usually get involved in technical discussions or have to answer questions where I don’t know the answer.

I work with brilliant people. Way smarter than me. They usually know the technology in question better than I do. Often, my role is just helping people to organize their thoughts and find their solutions. However, there’s something about my problem-solving skills that I find very valuable.

Sometimes the questions that I am being asked are very specific, or tricky. I immediately wonder why we have to answer this question in the first place.

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