The presentation highlights some trends of today's business and discusses their implications to information technology. The Agenda (2001) by Michael Hammer is reviewed in the light of recent
The presentation highlights some trends of today's business and discusses their implications to information technology. The Agenda (2001) by Michael Hammer is reviewed in the light of recent developments in business and IT.
Today’s business is unprecedentedly fast-paced. In the world of the consumers’ market, new products and services need to be rolled out to market more and more rapidly. Faster business cycles propagate through the entire value chain: planning, forecasting, and replenishment need to be event-driven, just-in-time and on-demand.
Products and services are becoming commodities; they are difficult to be differentiated in functionality and performance. Also, information about products and prices are transparent. Other factors such as quality, reliability, convenience and customization determine what the consumers buy.
Customers in both business and consumer markets are also looking for total solutions. Companies must provide their customers with processes bundling products and services into total offerings. The market leaders of today are systematically digitizing these processes and executing them according to their customers’ immediate priorities.
Trade barriers between nations and regions are being dismantled, while the Internet shrinks time and space of the business environment. Companies have to compete in an essentially global market place.
Companies are looking for economies of scale while concentrating on their core competencies. Virtual organizations and extended value chains are becoming the unit of competition. Consolidation and outsourcing call for means to integrate companies intra- and inter-enterprise.
Traditionally, big has meant economies of scale. Value was added with efficient manufacturing, widespread distribution, a huge sales force and very large R&D staffs. In the wake of the Internet, however, small has become the new big, as Seth Godin puts it. Little companies often make more money than the big ones. Small means agility, it gives the flexibility to change the business model as needed.Small means authenticity that promotes trust. Small means faster decision-making. Small means more personal customer service.
Run your business for your customers Become ETDBWGive your customers what they really wantDeliver MVAPut processes first Make high performance possibleCreate order where chaos reigns Systematize creativityMeasure like you mean it Make measuring part of managing, not accountingManage without structure Profit from the power of ambiguityFocus on the final customer Turn distribution chains into distribution communitiesKnock down your outer walls Collaborate wherever you canExtend your enterprise Integrate virtually, not vertically
Hammer (2001):The Agenda Run your business for your customers Give your customers what they really want Put processes first Create order where chaos reigns Measure like you mean it Manage without structure Focus on the final customer Knock down your outer walls Extend your enterprise