Strategy machine an Idea
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
179
On Slideshare
179
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
1
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. RALF.BECKER@CHANGE4BUSINESS.DESTRATEGYMACHINEV 2.5www.change4business.de
  • 2. HYPOTHESIS: STUCKIN THE MIDDLEThe firm stuck in the middle is almost guaranteedlow profitability. It either loses the high-volumecustomers who demand low price or must bidaway it profit to get this business away from lowcost firms. Yet it also loses high-margin targets -the cream – to the firms who are focused on high-margin targets or have achieved differentiationoverall.The firm stuck in the middle also probably suffersfrom a blurred corporate culture and a conflictingset of organizational arrangements and motivationsystemM.E. PorterStrategicadvantageStrategictargetIndustrywideParticularSegment OnlyUniqueness Perceivedby the customerLow Cost PositionDifferentiation Overall CostleadershipFocusWhat is the potential of the business?
  • 3. THE QUEST FORCOMPETITIVENESSRestructuring the Portfolio andDownsizing HeadcountSmallerReengineering Process andContinuous ImprovementBetter DifferentReinventing Industries andRegenerating StrategiesThe Quest forCompetitivenessFat Lazy BlindPursue differentiation and low cost to break the value-cost-trade-off
  • 4. CONSIDERLow cost position may well be crucial, but low-cost position overall is notnecessarily important or the only way to compete.Arching low-cost position overall often involves a sacrifice in other areas ofstrategy, like differentiation, technology, or service on which other competitorstrategic are based.But…Competing on bases others than low cost must be constantly aware of thedifferential between their cost and those of the overall low-cost strategiccompetitors.Although Vision is a scarce commodity, structural analysis can help directthinking toward the areas of change that would yield the highest payoff.… Value Innovation …
  • 5. GENERIC FRAMEWORK OF THESTRATEGY MACHINEThe level of serial movements has animpact of the total quality. The neededQuality define the elements of each theserial level.Map ofstrategyspace insteadof price andvolumeConsolidation Formulation FinalisationFocusComprehension Consensus Consequences CommitmentStructuring the existingData/ Information withthe “Competitorsresponse profile’s”Build up Competitivestrategic frameworkIdentify InformationlacksDefine the vitalDimensions ofCompetitive StrategyCharacterising theStrategic GroupsCustomer Equity,Customer Life timeValueThe Implication forFormulation ofStrategyFormulation of Vision,and Goal.Hand over to the BSCprocess
  • 6. STRATEGY MACHINE –DESCRIPTION OF LEVEL•  Level 1: Key Machine Modules•  Level 2: Detail the Modules•  Level 3: Module ElementsAA1 A2A1.1 A1.2 A1.3The goal is a transformation process that is revolutionary in result, but evolutionary inexecution
  • 7. THE QUALITY LEVERSOF “STRATEGY”If your companys strategic profile does not clearly reveal those qualities, yourstrategy will likely be muddled, undifferentiated, and hard to communicateLevers DriversA Company characteristic profileOwn AgendaLow cost and simplify the businessStrategic profileEmphasise only few factors – Low CostFour action FrameworkNew competitor factorsDifferentiate the profile (from the industryaverage profile)Strategy Canvas among industry playerTruthfullyStrong and AuthenticTrust and interest for CustomerClear cut outClear messageAdvertise an offeringEliminationRaisingReducingCreatingDifferentiate value Curve within the industryDrawn factors form alternative industryFocusDivergenceCompellingTagline
  • 8. STRATEGY MACHINE –LEVEL 1ConsolidationVisual AwakeningFocusVisual ExplorationFormulationStrategy FairFinalisationVisual CommunicationSynthesized the future valuecurve: Draw your "to be" strategycanvases based on insights fromfield observations. Get feedbackon alternative strategy picturesfrom customers, lost customers,competitors customers, and non-customers. Use feedback to buildthe “Best to be" strategy.Value Curve Before/ Aftertbd1 tbd1 tbd1 tbd2 tbd3 tbd4 tbd5 tbd6 tbd7 tbd8 tbd9 tbd10 tbd11 tbd12LevelbeforeLevelafterLowHighLowValue Curve Before/ Aftertbd1 tbd1 tbd1 tbd2 tbd3 tbd4 tbd5 tbd6 tbd7 tbd8 tbd9 tbd10 tbd11 tbd12LevelbeforeLevelafterLowHighLowValue Curve Before/ Aftertbd1 tbd1 tbd1 tbd2 tbd3 tbd4 tbd5 tbd6 tbd7 tbd8 tbd9 tbd10 tbd11 tbd12LevelbeforeLevelafterLowHighLowValue Curve Before/ Aftertbd1 tbd1 tbd1 tbd2 tbd3 tbd4 tbd5 tbd6 tbd7 tbd8 tbd9 tbd10 tbd11 tbd12LevelbeforeLevelafterLowHighLowValue Curve Before/ Aftertbd1 tbd1 tbd1 tbd2 tbd3 tbd4 tbd5 tbd6 tbd7 tbd8 tbd9 tbd10 tbd11 tbd12LevelbeforeLevelafterLowHighLowValue Curve Before/ Aftertbd1 tbd1 tbd1 tbd2 tbd3 tbd4 tbd5 tbd6 tbd7 tbd8 tbd9 tbd10 tbd11 tbd12LevelbeforeLevelafterLowHighLowValue Curve Before/ Aftertbd1 tbd1 tbd1 tbd2 tbd3 tbd4 tbd5 tbd6 tbd7 tbd8 tbd9 tbd10 tbd11 tbd12Level beforeLevel afterLowHighLowDistribute your before-and-afterstrategic profiles on one pagefor easy comparison.Support only those projects andoperational moves that allowyour company to close the gapsto actualize the new strategy.Design Stairway to ValueinnovationVisualizing Strategy at theCorporate Level / BUCreate the new Portfolio Map(PMS) and Focus activitiesFlesh out the founded strategyand validate the ideas toensure their commercialviability.It shows the strategic profile of anindustry by depicting very clearlythe factors that affect competitionamong industry playersThe basic component is the valuecurve. Which shows the strategicprofile of current and potentialcompetitors, identifying whichfactors they invest in strategicallyThe factors of competition for theindustry are listed on thehorizontal axis. The vertical axisindicates the degree to which thecompany and the providers ofalternative services invest in thecompetitive factors.Value Curve Before/ Aftertbd1 tbd1 tbd1 tbd2 tbd3 tbd4 tbd5 tbd6 tbd7 tbd8 tbd9 tbd10 tbd11 tbd12Level beforeLevel afterLowHighLowInputs:•  Customer/ User List•  Competitor Profile•  Factor listOutputs•  Value curveInputs:•  Customer/ User needs•  Different point of view of a newstrategyOutputs:•  Different potential value curveThe way is to catch the resolvingdifferences of opinion about thecurrent state of play.Inputs:•  Six path Framework•  Field observationsOutputs:•  Validate Strategy canvas•  Vision,•  First draft of Goals andObjective-+--Have you addressed adoption hurdles upfrontAdoption-+--Does you cost structure meet the targetcostCost+-+++Is your price easily accessible to themass of buyers?Price-++-Is there exceptional buyer utility in yourbusiness idea? Are there compellingreasons to buy you offering?UtilityCompetitor 3Competitor 2Competitor 1CompanyQuestion-+--Have you addressed adoption hurdles upfrontAdoption-+--Does you cost structure meet the targetcostCost+-+++Is your price easily accessible to themass of buyers?Price-++-Is there exceptional buyer utility in yourbusiness idea? Are there compellingreasons to buy you offering?UtilityCompetitor 3Competitor 2Competitor 1CompanyQuestionValue Curve Before/ Aftertbd1 tbd1 tbd1 tbd2 tbd3 tbd4 tbd5 tbd6 tbd7 tbd8 tbd9 tbd10 tbd11 tbd12Level beforeLevel afterLowHighLowInputs:•  The future strategy canvasOutputs:•  Company strategy•  Action plan•  Strategic aligned action map•  Communication model•  Prepare BSCDraw the companys strategicprofile or value curve showinghow it invests in the factors ofcompetition and how it mightinvest in them in the future.Discover the adoption of hurdlesfor non-customers.Observe the distinctiveadvantages of alternativeproducts and services.See which factors you shouldeliminate, reduce, raise andcreate (ERRC).