“ If I had asked the people what they wanted, they would have said a faster horse”
Needs of Business - Examples Challenge Area Specific Challenges Start-up Stage Fast-growth Stage Sustainability stage Global Enterprise Business development Managing the finance gap Seed funding Financing growth Retaining earning and/or exit Financing evolution and change Management development Upgrading management skills Entre-preneurship Management Leadership Executive Vision Organisa-tional development Growth and organisa-tional change Manage chaos Alignment Operational improve-ment Re-engineering Influencing factors Financing availability Owner equity Debt financing Private equity Public equity
Re-configure, Re-invent, Re-think
Re-configure your value chain – what is your unique selling proposition ?
Re-invent your business model – how do you structure your business to interact with business partners and suppliers to offer your USP to your clients?
Re-think your business process – could it be done differently in a more effective and efficient manner which add more value to clients?
Re-configure, Re-invent, Re-Think
Do You Have Enough Brainpower?
Not all the smart people in the world work for you!
Talents are more mobile than before
Gen-Y has different ideas about life
Capturing the Opportunities Business Services Firm Business Partner Business Partner Existing Clients New Clients New Clients Existing services based on existing capabilities New services based on partner’s capabilities New services based on newly acquired capabilities New services to new clients based on partner’s capabilities New services to new clients based on partner’s capabilities and new distribution channels
What Are Your Strategic Options? Business Services Firm Market 1 Market 2 Market 3 Direct present Vertical Integration? Direct present Direct present
What Are Your Strategic Options? Business Services Firm Market 1 Market 2 Market 3 Direct present Network- Centric? Network Partner Network Partner Service Platform Owner
What Are Your Strategic Options? Clients Problems Business Services Firm 1 Business Services Firm 2 Sorry, no capability Yes, we have solutions! Knowledge provider Subject Matter Expert Business Services Firm 3
A Case Study – The Big-4
The Big-4 accounting firms are competing on Network-to-Network basis
Global leadership but innovative structure to accommodate various domestic regulation
Offers diversified range or services and some do not identify themselves as accounting practices but just by their brands
Experts need not necessarily reside in all firms but could be brought into the picture from various offices and jurisdictions
Share knowledge-base, intellectual assets, business platforms but RISKS are confined to respective jurisdictions
Network-Centric Competition Features Network-Centric Elements Features Network leadership Orchestrating the behaviour of network members and network activities in creating value to clients Network governance A clear articulation of the roles and responsibilities of the members in the network Supporting infrastructure Knowledge management, project management, technology platforms, business tools etc which are core to the USP of the network Intellectual property management and value appropriation protocols Cover how intellectual property is developed, owned and shared as well as the value created through the use of the IPs are shared
Critical factors to Consider
How to ensure excellent service experience and quality across the network?
How do you manage risks when more parties are involved?
Need to overcome “Not-Invented-Here” and “We Know Everything” attitudes
The Way Forward
With changing business environment, professional business services firms need to consider various options in delivering higher value to clients
As knowledge is the driver for value for professional business services firms, access to the right talents is critical for business competitiveness and sustainability
Competing on a network-centric structure may enable professional business services firms to provide solutions to the needs of their clients effectively and efficiently