WEBVTT 00:10.650 --> 00:19.500 OK, great third example, which I hear called the language legacy case, and this is also something 00:19.500 --> 00:23.610 I see all the time, and that is when language gets stuck in organization. 00:23.910 --> 00:29.340 But they actually need to change it because they might have a completely new strategic situation. 00:30.270 --> 00:31.650 But it's so stuck. 00:31.710 --> 00:34.720 So it's very hard to break out of. 00:36.150 --> 00:44.340 So let's say that back in the old days in an asset finance company, a couple of people declares that 00:44.340 --> 00:48.990 our customer needs to list or asset, which they buy from their supplier. 00:50.790 --> 00:57.090 So that's a number of different important concepts in an asset finance business where customers and 00:57.090 --> 01:01.230 they lease something and they list their assets, which they have bought from a supplier. 01:01.530 --> 01:05.000 OK, so they're saying that this is our business model. 01:05.010 --> 01:08.370 We sell leasing products to customers. 01:10.380 --> 01:18.330 So in this simple conceptualisation, we have a customer who has an agreement regarding a leasing product 01:19.260 --> 01:24.660 which is used to finance an asset that is sold by a supplier. 01:25.020 --> 01:26.490 OK, very simple. 01:27.300 --> 01:27.960 Fair enough. 01:27.960 --> 01:31.260 And probably works very good in that concrete situation. 01:32.130 --> 01:37.370 But time goes by and the person is to declare to say these functions are retired and long. 01:37.470 --> 01:40.730 So systems like this could be easily be 25 or 30 years old. 01:40.790 --> 01:48.960 I've seen that in a couple of places, but for strategic reasons, the end customer sales was actually 01:48.960 --> 01:49.830 put out of business. 01:50.160 --> 01:54.270 So now it's pushed out to brokers and asset funds, asset managers. 01:54.870 --> 02:01.230 So it's actually the the asset vendor that is selling the asset, who's also selling the financing. 02:02.550 --> 02:09.630 And they are doing that because they would like to sell more services, of course, but also they would 02:09.630 --> 02:12.870 like to help their customer to buy their goods. 02:14.880 --> 02:23.130 So what to happen here for from the asset of finance companies perspective is that the customer is not 02:23.130 --> 02:25.620 no longer just the end customer of the leasing. 02:25.620 --> 02:31.740 It's actually the asset supplier because they are buying what is usually called vendor finance. 02:32.430 --> 02:38.070 So one of the more important customers for this asset finance business is now actually the acid supplier 02:38.430 --> 02:40.230 who needs vendor finding solution. 02:40.920 --> 02:48.000 And in the earlier conceptualisation, that person party was never treated as a customer. 02:49.140 --> 02:56.130 So from what I've seen, that old language could get stuck in organization and they keep referring and 02:56.130 --> 03:02.960 treating actually this crucial customer who's very crucial for the new business model as a supplier. 03:03.990 --> 03:12.840 And that became becomes very strange, at least not speak for the crucial customer himself, the ousted 03:12.840 --> 03:15.840 vendor, that they would like to be treated as a customer. 03:17.580 --> 03:18.210 And this. 03:18.420 --> 03:19.410 Yeah, as you see. 03:19.410 --> 03:25.200 So this could produce a lot of waste, not just communication waste, but it might be that the business 03:25.200 --> 03:29.730 aren't flourishing as they should because they aren't actually getting right. 03:29.730 --> 03:31.740 Who's the customer and who's not the customer. 03:33.180 --> 03:38.400 What needs to happen here is that new is functions that are implied in this new strategy needs to be 03:38.400 --> 03:45.630 declared explicitly, because even if they define this implicit strategy change or explicit strategy 03:45.630 --> 03:51.090 change, they actually haven't changed the domain language that goes with the old strategy. 03:51.540 --> 03:58.440 So they would the the person who had the declaration power in this business need to make the declaration 03:58.440 --> 04:04.010 explicitly and then make sure that the whole organization accepts this new language. 04:04.620 --> 04:11.130 So they need to slightly change the terminology here and say, OK, you have an agreement regarding 04:11.130 --> 04:16.800 leasing product, but that agreement is for the customer and the customer is just a rule that apparently 04:16.810 --> 04:17.190 place. 04:17.700 --> 04:19.530 Then we have another type of agreement here. 04:19.530 --> 04:24.750 We can call it a broker agreement regarding the other very important product that is sold, the Vendor 04:24.750 --> 04:25.590 Finance Service. 04:26.490 --> 04:31.130 And when we make it when we create a broker agreement, we also created with a customer who supported. 04:31.620 --> 04:32.040 Right. 04:32.370 --> 04:40.380 So we have another type of customer here who could broker agreements with when they are buying actually 04:40.380 --> 04:47.010 our service, the Vendor Finance Service here, and then that vendor finance service actually results 04:47.010 --> 04:48.660 in those normal types of agreement. 04:48.750 --> 04:53.970 And those normal type of agreements are still connected to assets and the assets are connected to a 04:53.970 --> 04:58.050 party which act as a supplier in that acetylation. 04:58.050 --> 04:58.380 Right. 04:58.480 --> 05:00.480 So they are still sold the asset as well. 05:00.870 --> 05:06.930 But as you see here, the party who was the customer in the broker agreement is the supplier in the 05:06.930 --> 05:09.000 leasing agreement, and that's fine. 05:09.150 --> 05:15.540 So we had kind of decoupled from the role from the parties and we introduced a broker agreement where 05:15.540 --> 05:17.220 the supplier is the customer. 05:20.250 --> 05:20.730 Very good. 05:21.000 --> 05:22.320 And that lecture as well. 05:22.320 --> 05:27.660 So that examples showed you how you actually could could get stuck in an old language and how that could 05:27.660 --> 05:30.660 prevent you from implementing a new business strategy. 05:31.560 --> 05:32.070 Very good.