The document discusses key concepts around value creation and management. It covers topics like manufacturing versus marketing mindsets, business models, strategy, organization, measuring performance, innovation and uncertainty, resource allocation, culture and people management. The main themes are how organizations can create and capture value through different approaches to strategy, operations and managing culture.

1. a tour of new features presentingWhat Management is ?

2. 1 2 The book Key Insights Scope

3. Main Themes

4. Pattern used in the book

5. Design

6. Manufacturing Mindset Value Creation Marketing Mindset Value creation - a system

7. Manufacturing mindset Value Creation

8. Marketing Mindset Value Creation

9. Maximizing shareholder value Value Creation

10. Maximizing shareholder value Concept of Value chain # discount brokerage # budget carriers Managing the Supply chain # taking responsibility for the whole flora and fauna # building partnerships beyond organizational boundaries to tap commercial value – value engineering improve efficiency (JIT) Increase predictability /security Value Creation

11. Value Creation – a system Value Creation

12. A successful business model Business Models Some Compelling stories AMEX ,Eastern Exclusives Ebay Business Models for Non-Profit Elderhostel

13. A successful business model – Key players Business Models

14. Eastern Exclusives Business Models

15. Ebay Business Models

16. Elderhostel Business Models

17. Better by being different Strategy Strategy and Performance Game of strategy Strategic trade-offs

18. Key Insights Strategy

19. Key Insights Blue Ocean or Red Ocean - Walmart Key investment decisions to improve logistics A pyrrhic victory Case of Japanese Consumer Electronics manufacturer Too Successful - Dairy Farmers in UK Moderation in success – prolonging success – prolonging the value capture Mission creep TNC Strategy

20. Important Factors Organization Manage or buy Global Scale Non-profit – tackling societies problems

21. Key Insights # Ronald Coase – Make or buy depends on cost effectiveness # Does an efficient market always serve the intended purpose? # NBA # GM vs Ford – Different times, different strokes Ford – Assembly line 1908 - 1912 Sloan – multi-division corporation 1940 # Standardization as design & Backward integration – Aravind Eye Hospital # Design should match the mission Organization

22. Execution – Key to Excellence

23. Making sense of the numbers Facing Reality # Measure should be an integral part # Different stakeholder require different measures # Measurements are a guide # should always be read in context

24. Key Insights In search of the holy grail – the universal measure ROI / EVA/ EBIT et al - measure to fit the context - matching measures to mission – case of Fidelity Insurance ROIC – Case of Dell (return on invested capital) Battling the broken windows – NYPD Mission and Measures

25. Key Insights TNC – Fish creek project Mission – maintain bio-diversity -Save mussels Mission and Measures

26. GE – Mission and Measures Shake up complacence Mission and Measures To improve confidence To ensure that gaming of the system is reduced As core philosophy of the organization

27. Good management is entrepreneurial entrepreneur -> Anti-malthusian – optimistic-upbeat -> self-confident -> good management Apollo13 – using constraints as catalysts – Nano? Surviving the numbers – Payback / NPV/Discounted cash flow etc. – xerox and alto Innovation & Uncertainty

28. Pareto’s law – 80 %results /20 %areas Resource allocation – Fighting inertia– Intel’s story from DRAM to Processors The discipline of letting go – ignoring sunk costs Competing with yourself – beating yesterday # walmart Delivering results

29. Managing the organization culture #setting an example # communications KISS # organizational folklore The golden rule : Trust # verizon– actions and statements Respect for the individual # as current and future stakeholders # improves brand value Self management # feedback & coaching People Management