Understanding TOC Concepts – Building and Capitalizing on a Decisive Competitive Edge – Becoming an ever-flourishing Company

The goal of TOC is to bring companies to become ever flourishing – a company which continuously and significantly increases value for shareholders, customers and security to employees. Companies must find the silver bullets to achieve such objectives. Building, capitalizing and sustaining a Decisive Competitive Edge (DCE) is the key. But how do we find such silver bullets? How do we build a decisive competitive edge and how do we sell it? The Theory of Constraints provides the answers to these mind-bugling questions.

The TOC Dictionary provides the following definition:

Decisive Competitive Edge (DCE)

A significant sustainable market advantage over competitors.

Usage: A DCE exists only if an organization satisfies a significant market need to an extent that no significant competitor can. In many situations, competitors are unaware of the problems their industry or the conventional mode of operation creates for their customers. An examination of the problems the industry creates for its customer is the starting point for identifying a potential DCE. Price is never considered a DCE. Availability, inventory turns, or reliability are potential retailer‘s significant needs and can be turned into a DCE.

A DCE is similar to the traditional concept of competitive advantage but differs in the mechanisms used to identify the DCE. The DCE is identified through an analysis of customer problems created by the suppliers‘ industry.

Cox III, James F., Lynn H. Boyd, Timothy T. Sullivan, Richard A. Reid, and Brad Cartier, 2012, The Theory of Constraints International Certification Organization Dictionary, Second Edition, page 42.

Dr. Eliyahu M. Goldratt explains HOW to find a significant market need that the company can satisfy to an extent that no significant competitor can:

Building a “blue” market strategy

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Marketing – Unrefusable Offers and Market Segmentation

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Identifying and applying the proper solution can bring companies in few years into an ever flourishing state. Dr. Goldratt masterfully explains how and where the TOC solutions fit strategically and tactically to build a decisive competitive edge:

The Gestalt of TOC

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You can find much more about the topic of “Decisive Competitive Edge” on TOC.tv:

Select Decisive Competitive Edge from the Topics Menu on TOC.tv (or click here) click here)

Strategies & Tactics for Selling a Decisive Competitive Edge

by Lisa Scheinkopf

Ellwood City Forge’s Quest to Become Ever Flourishing

by Daniel Hamilton
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