In the previous posts, I argued that the value driver tree is the most important and useful tool in strategy, and explained what the drivers are.

Here I give a practical example of one use case.

The example shows how the framework is used to prepare an investment thesis / CDD, or when preparing a strategy process.

The case is an early stage (pre-revenue) company we invested in.

The company builds patient logistics software. Basically software that streamlines operations at hospitals, and enables remote patient care.

It operates in a region with mainly public health care services and targets hospitals in particular.

Hope the rest is relatively self-explanatory.

The next evolution would be to go through, refine and figure out a) what's important, b) what's uncertain, and c) what do we need to analyse to figure out a) and b)