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Ammg Business Model Aug 1 08


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  • 1. Standing Out in the Crowd Associated Manufacturing Marketing Group - Mike Bowes ” August 1, 2008
  • 2. The Associated Manufacturing Team Sunny Corner Enterprises Hachey Johnson Construction Enterprises - Fabrication All-Tech A Landry Mechanical Fabrication & Hydraulic
  • 3. Our Services: Custom fabrications (build to print and design service) On-site installations and maintenance services Custom CNC machining, waterjet, thermal coating Gear box overhauls, hydraulics and related Full mechanical assembly, including electrical and installation Contract manufacturing Large metalworking projects, including pressure vessels and piping systems Material Handling Systems, including conveyors & compacting systems Construction services for heavy industry. Project management expertise Equipment Refurbishment and Repair
  • 4. Understanding how we’re different
  • 5. How we differentiate ourselves in a crowded marketplace
  • 6. VALUES......
  • 7. ....... Inclusivity ....... Possibility ....... Opportunity ....... Capability ....... Sustainability ....... Responsibility
  • 8. With trust & patience, We’ll learn about collaborating effectively
  • 9. AMMG Strategic Partnership STRATEGIC ASSETS BROADER SERVICE OFFERING Specific, dedicated business development agency Shared Services Partnership offers significant Better Business Process Management Wider savings to our customers Customer Capabilities Experience Supplier Development Faster time to market Long-term partnership offering a new export-based service model TRACK RECORD & QUALITY GLOBAL DELIVERY Proven Ready to Experience Export Access to port, rail and road Build on track record & experience portfolios of members Proximity to Eastern US and Atlantic ISO 9000:2000, CWB, U-stamp Lean certified , Export experience Supported by full range of services
  • 10. Benefits of working as strategic partners Offering a holistic view across sectors and creating a shared learning approach COST RISK “ Reduction in existing cost through “ Develop delivery and transition sharing process “ Automation of processes “ Governance support Consolidate Improve into & Mentoring Processes Teams Long-term partnership offering a new export-based service model FLEXIBILITY QUALITY Cross Train Stabilise “ Quick ramp up and ramp down Resources Systems “Standardized processes “ Modularised support “ High quality resources Continuous cycle of process improvement, system stabilisation, cross training & consolidation of support teams to drive our proGRess
  • 11. Moving Forward in the Winds of Change Supplier Development Day Mike Bowes Associated Manufacturing Restigouche January 28, 2008
  • 12. We are prepared • To LEAD • To SHARE • To COLLABORATE • To SUPPORT • To BUILD a team
  • 13. STRENGTHS Resiliency Adaptability Forward Thinking Culture of Entrepreneurship Motivated, experienced Workforce Favourable Investment Climate Government support
  • 14. Plan, Review, Revise Don’t just Problem Solve ‚Problem solving often functions as a way of maintaining the status quo rather than enabling fundamental change‛
  • 15. Inductive Problem-Solving to Innovate • Apply all 4 Dimensions of Inductive P-S – Social (Find, Collaborate, Close Networks, Extended Networks, Dialogue) – Analytical (Interpret, Envision, Apply, Creat, Context) – Information (Source, Assess, Organize, Aggregate, Communicate) – Learning (Sense, Reflect, Develop, Improve, Extend)
  • 16. ‚The definition of insanity is doing the same thing over and over again and expecting different results each time.‛ Albert Einstein
  • 17. Communication will be key Partners informed All Stakeholders involved Open Sourcing Communicate details All share in opportunities Brainstorming Quarterly business reviews Be the Best
  • 18. Steps Underway •approve market plan •Supplier Development strategy •culture of Kaizen internally •Single Contact Point on major Projects •E-Marketing Strategy •new Brand, Tools & Resources
  • 19. Strategic Marketing and Benefits Roadmap Strategic “Be the Best Marketing and Benefits Roadmap “ Measureable Benefits “ E-Commerce strategy “ Target market segments and geographic priorities “ Network development “ Collaborative innovation framework “ Partnership Governance “ Supplier Development “ Commercial model
  • 20. E-marketing (under development) Google AdWords Networking - LinkedIn Website development Slideshare Customer Access Enterprise 2.0 - ERP
  • 21. Be the Best Elements “ Supplier Development “ Process standardization “ Process improvements “ Value added services “ Share best demonstrated practices “ Able to compete on global stage “ Certifications ” Lean, ISO, ASME Be the Best
  • 22. 2008 marketplace ● Must be there Global ● Emerging markets market ● Technology transfers USA  Economy weaker ” BUT opportunities because of weaker US$  Emerging energy markets  Continue to be the most important market ● Large capital projects Canada ● More integrated supply chains ● Mining and energy industries booming Volatile times & high uncertainty ” with this comes opportunity
  • 23. business model framework INFRASTRUCTURE OFFER CUSTOMER PARTNER CUSTOMER NETWORK RELATIONSHIPS CORE VALUE CUSTOMER CAPABILITIES PROPOSITION SEGMENTS ACTIVITY DISTRIBUTION CONFIGURATION CHANNELS COST FINANCE REVENUE STRUCTURE STREAMS a business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and sustainable revenue streams [Osterwalder (2004) The Business Model Ontology]
  • 24. what value proposition do we offer, to which customer segments?
  • 25. Our Message……… Not just a supplier…. A STRATEGIC PARTNER Not just products…. SOLUTIONS
  • 26. what value proposition do you offer, to which customer segments? (model) OFFER CUSTOMER VALUE CUSTOMER PROPOSITION SEGMENTS Strategic partners Major project owners Solutions not products Equipment OEMs
  • 27. what value proposition do you offer, to which customer segments? (example) OFFER CUSTOMER Design to Conveyor users installation Large industry Mining Build to print Equipment OEMs Full Service Maintenance Local Mines Agreements
  • 28. how do we reach our customers?
  • 29. how do you reach your customers? (model) OFFER CUSTOMER COMMUNICATION & VALUE CUSTOMER DISTRIBUTION PROPOSITION SEGMENTS CHANNELS Strategic Partner Networking Project Owners Solutions E-Marketing OEMs … … …
  • 30. how does AMMG reach our customers? OFFER CUSTOMER Networking Full service Trade Shows, Major Project strategic partner Missions Owners One-on-one visits Solutions not E-Marketing OEMs Products Networking
  • 31. how do we build relationships?
  • 32. how do you build relationships with your customers? (model) OFFER CUSTOMER VALUE CUSTOMER CUSTOMER PROPOSITION RELATIONSHIP SEGMENTS value proposition 1 mechanism 1 target customer 1 value proposition 2 mechanism 2 target customer 2 … … …
  • 33. how do we build relationships with our customers? (example) OFFER CUSTOMER Design support / supplier chain Solutions not just Progress and team products Equipment OEM reports Full service Installation and support
  • 34. how do we earn our money with this business model?
  • 35. how do you earn your money with this business model? (model) OFFER FINANCE VALUE CUSTOMER REVENUE STREAMS PROPOSITION SEGMENTS value proposition 1 revenue stream 1 target customer 1 value proposition 2 revenue stream 2 target customer 2 … … …
  • 36. how do we earn our money with this business model? (example) OFFER FINANCE Product development fees Full service Production costs OEM support Product support fees Opportunity Revenue from OEM AMMG
  • 37. Next Steps 180 Day Plan Execute Measure Business Continuous Service Value Strategy Strategic Improvement Business Review Marketing and outcome Benefits Roadmap alignment Adopt & Consolidate Infrastructure Adapt & Converge Transform & Extend Assessment • Transformation plan to Business true partnership Business Outcome Outcome • Measurable benefits Measurement Alignment Service Level • E-Marketing strategy Assessment • Target market segments and geographic priorities • Network development Operational Assessment • Collaborative innovation framework • Governance New Markets, Partners Sharing of • Supplier Development & Customers Sources Best Practices • Commercial model • Reduce Cost Time • Increase Revenue through market growth • Collaborative innovation New Cycle
  • 38. Strategic Marketing and Benefits Roadmap Strategic “Be the Best Marketing and Benefits Roadmap “ Measurable benefits “ E-marketing strategy “ Target market segments and geographic priorities “ Network development “ Collaborative innovation framework “ Partnership Governance “ Supplier Development “ Commercial model
  • 39. how do we measure the success of our business model?
  • 40. Wide Market Strategy “ Serving a wide spectrum of the market by selling differentiated products to different segments in the market ” all based on our current core competencies. “ Requirements: (a) Employ different combinations of price, product, promotion, and distribution strategies in different segments (b) Top management commitment to embrace wide market (c) Strong financial position.
  • 41. Major Projects - Atlantic Eider Rock Refinery VBNC Commercial Nickel Point Lepreau II VBNC Underground IOC ” Labrador Lower Churchill PCS Picadilly Offshore NL -Hebron + ++++++++
  • 42. Market Segments Mining Construction, Development, O & M Renewable Energy Biofuels, Windpower, Hydro Equipment Manufacturers Mining, Pressure Vessel, Hydraulics, Specialty Material Handling Design, Fabrication, Installation, Piping, Conveyors Energy and Industrial Niches for Power Gen, Nuclear, Infrastructure
  • 43. There’s hardly an old abandoned mine that is not being considered for redevelopment
  • 44. Market Entry Strategy 1. Licensing from OEM 2. Technology Transfer 3. Partnership with EPCM groups 4. Canadian subs to reach parents 5. Leverage existing Customers
  • 45. Blue Ocean to Reconstruct Market Boundaries Head-to-Head Strategy Blue Ocean Strategy “ Focus on rivals within “ Looks across alternative industry industries “ Focuses on competitive “ Looks across strategic group position within strategic within industry group “ Redefines the industry buyer “ Focuses on better serving group the buyer group
  • 46. We learned…….
  • 47. We have to be an open book to all what we have learned stakeholders ” customers, suppliers, partners
  • 48. customers want more control but want it to be less risk
  • 49. they want us to demonstrate our experience „ not to use them to gain experience
  • 50. customers want to speak with fewer suppliers but want it to be more Engaged & able to do business with local content
  • 51. the solutions we provide is ‘the product’
  • 52. customers want to deal with a team - a high performing team that delivers
  • 53. A High Performance Team Associated Manufacturing
  • 54. That Stands Out FROM the Crowd Associated Manufacturing Marketing Group - Mike Bowes ” August 1, 2008
  • 55.