Modelo delta hax

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Modelo delta hax

  1. 1. El Modelo DELTA: Estrategia Digital April 24, 2008 Arnoldo C. HaxAlfred P. Sloan Professor of Management Emeritus M.I.T.
  2. 2. EL MODELO DELTA Tres alternativas de posicionamiento estratégico Consolidación del Sistema • Economía del Sistema • Dominio del Mercado • Participación de empresas complementarias … a través de un uso efectivo de la tecnologíaSolución Integral al Cliente Mejor Producto • Economía del cliente • Economía del producto • Cooperación • Rivalidad • Participación del cliente • Participación del producto
  3. 3. EL TRIANGULO Casos de posicionamiento estratégico CONSOLIDACIÓN DEL SISTEMA Mercado dominante Estándares de propiedad registrada eBay, Yellow Pages Microsoft, Intel Canal exclusivo rural Wal-Mart Liderazgo en costo Southwest Airlines, Amplitud horizontal Nucor FidelitySOLUCIÓN INTEGRAL Integración MEJOR PRODUCTO con el cliente AL CLIENTE EDS Redefir la relación con el cliente Diferenciación Saturn Sony Wega
  4. 4. Desde la Segmentación de Clientes a la Agenda Estratégica Propuesta de valor Conjunto Integrado de competencias System Lock-In Posicionamiento estratégico Total Customer Best Product Solution 1 Misión 2 5 3 6 4 Scope Clasificación “From” “To” de clientes Agenda estratégica Segmentación de clientes Tier 1: Exclusive Partner Tra Tier 2: Strategic/Integrated Partner Tier 3: Project Solution Seekers Tier 4: Body Shoppers
  5. 5. Current Sony VC Competencies and Desired Sony VC Competencies Tier 1: Total Office Solution Seeker System • International & large firms, large educational Lock-In firms who need “total office solution” • Sony could provide all solutions including many Tier 6: Price Seeker kinds of products besides VC products, • Large, middle, small size firms who need customized system software, system design with affordable products system integrators • These seekers pursue product price rather • Long run service & maintenance for all system than quality • Customized VC products • Necessary for wide product line-up range for • Very long term relationship many affiliated offices Ideal Customer Segmentation Best Total Product Customer Solutions Tier 5: High Quality VC Seeker Tier 2: Total VC Solution • Large, middle, small size firms Seeker Tier 3: Negotiated Solution Seeker Tier 4: Heavy-Use Seeker who need “differentiated & best• International & large firms, • Large, middle, small size firms, • Large, middle, small size firms products with very high quality”large educational firms, & large large education firms, & large who need “heavy product usage” • These seekers pursue not heavyexhibitions who need “total VC exhibitions who need “customized • Effective customer service for usage but very high quality &solution” solution or products” products rather than system differentiated functions• VC vendors could provide • VC vendors could provide • VC vendor could provide long • Wide product line-up range forsolutions including appropriate customized solutions or products run product support including many affiliated officesVC products in each office, including appropriate or software version-up & updated • Needs guarantees of connectivitycustomized system software, customized VC products in each functions between old VC model & new VCsystem design with system office, customized system • Needs guarantees of modelintegrators software, system design with connectivity between old VC • Product reputation & brand power• Long run service & system integrators. model & new VC model necessarymaintenance for all system • Long term relationship • Collaboration with potential• Customized VC products • Occasional special projects customers to fix VC• Long term relationship specifications
  6. 6. Competencies of Sony VC Business Dominant exchange System Proprietary standard • Patents & dominant manufacturing CCD Lock-In • Patents camera for all competitors’ products Low cost Exclusive Channel • Powerful Sony procurement system • Advantage with regulators of 80 countries • Economies of scale with other Sony through world-wide developed sales consumer products channels • Efficient supply chain system • Advantage with IETF & IEEE that make • High yield manufacturing technology specification of video transmitting • Experienced electronics technology to technology reduce components • Offering products, system software & system integration all together will Sony • High development capability to reduce product development time discourage switching • Sales & service channel for 80 countries Competencies • Experienced quality assurance systemHorizontal breadth Total Best• Multiple channels (direct, Customer Productresellers, distributors, Solutionssystem integrators)• A complete set of product Customer engagement Customer integration Differentiation& service offerings with • Collaborative product • Joint forecasting & planning • Strong brand powerSony VC, other Sony development with with suppliers, distributors & • Totally well-balanced product line-upproducts, system software & potential customers resellers • Advanced Audio & Video technologysystem integration • Event to hear customer • Collaboration with distributors & • Sophisticated product design• Complementor needs through periodic resellers • Connectivity with other Sony products (I.e.development promotion events • Collaboration with System memory stick) • Sales campaign to sales software integrators • Sophisticated CCD Video camera (All channels over the world • Periodic introduction & competitors purchase it from Sony) • Special sales promotion seminars for customers • Time to market to potential large • Continuous customer support • Launch product for 80 countries customers by dedicated web page for • Quality (Video, audio, & product itself) customers • Collaboration with huge potential customers • High R&D spending
  7. 7. Competencies of Polycom VC Business Dominant exchange Proprietary standard • Patents & dominant manufacturing CCD • Patents System camera for all competitors’ products • Communication protocol so that all Lock-In • Lead to fix next generation’s other competitors should adapt that communication protocol Low cost Exclusive Channel • Powerful Sony procurement system • Advantage with regulators of 80 countries • Economies of scale with other Sony through world-wide developed sales consumer products channels • Efficient supply chain system • Advantage with IETF & IEEE that make • High yield manufacturing technology specification of video transmitting • Experienced electronics technology to technology reduce components • Offering products, system software & system integration all together will Polycom • High development capability to reduce product development time discourage switching • Sales & service channel for 80 countries Competencies • Experienced quality assurance systemHorizontal breadth Best• Multiple channels (direct, Productresellers, distributors, system Totalintegrators) Customer Differentiation• A complete set of product & Solutions • Strong brand powerservice offerings with Sony • Totally well-balanced product line-upVC, other Sony products, Customer engagement Customer integration • Advanced Audio & Video technologysystem software & system • Collaborative product • Joint forecasting & planning with • Sophisticated product designintegration development with potential suppliers, distributors & resellers • Connectivity with other Sony products (I.e.• Complementor development customers • Collaboration with distributors & memory stick)• Very detailed sales manual • Event to hear customer needs resellers • Sophisticated CCD Video camera (Allbook for multiple channels through periodic promotion events • Collaboration with System competitors purchase it from Sony)• Detailed comparison chart • Sales campaign to sales software integrators • Time to marketto compete with Sony & channels over the world • Periodic introduction & seminars • Launch product for 80 countriesTandberg • Special sales promotion to for customers • Quality (Video, audio, & product itself)• Attractive cash back system potential large customers • Continuous customer support by • Collaboration with huge potential customersCompany policy “customer’s • A lot of innovative programs to dedicated web page for customers • High R&D spendingsatisfaction first” make good relationship with • Hundreds of employees for sales • Outstanding experiences for VC & Audio• Annual big event to motivate distribution channels & customer services conference as communication companyhorizontal players • Company policy “good • Not product business but • Long history dedicating VC business relationship with customers!” “solution business” • Sophisticated functions for customer satisfaction • Great connectivity to other products
  8. 8. HP - Viewed Through the Delta ModelDominant Exchange Proprietary Channel• Owning the industry’s largest IT Supply Chain havs • Non-Stop (Tandem) Platform proprietary; e.g. 95% ofthe ability to “mandate” suppliers to out-perform, set World Stock exchanges, 2 out of 3 credit cardstandards, meet other IT needs by transactions, mobile & telecomm exchanges, publicchallenge/motivation safety 911 systems• Tough bargainer with suppliers/partners • Printers & supplies• Play a leading part in many standards-setting bodies • Customers using specialized system flavors like(e.g. RFID, EPC Global, W3C, etc.). HPUX, Tru 64 and FAX have a lot invested in it & are System Lock-In locked-in. Exclusive Channel • Sold direct, online, & via technology, Low Cost Pricing software, systems integration & channel partners • Consumer goods & even low-end servers, PCs & other systems are priced very low - Dell & HP/Compaq play a see-saw game almost every quarter when itHorizontal Breadth comes to pricing & overall revenue• PDA, PC, Notebook, camera, printer, ink, scanner, hp • Printers are practically given awayserver - big & small, storage, software, solutions & • Services & solutions sold used a global deliveryservices to name a few model using a combination of in-store, off-store & near-• Financial services & leasing options offered for store to offer the best price for customercustomers in need., Total Customer Best Product SolutionsCustomer Integration• Long-term vision Differentiation• Exceed customer expectation Reduce Customer Experience • Achieve high sales by offering broad assortment of• Strong regional, national & growing international innovative products, services solutions at relatively • Total-customer experience is something HP prides low pricespresence - doing business in 178 countries itself on & it actively measures this using metrics• Community involvement - grants to schools & other • Offer specific targeted solutions to each customer • Go to market using the best solution which may be a segment - consumer, enterprise, public-sectorinstitutions, charities, scholars, etc. partner’s product on HP platform• Rise to occasions like the recent Tsunami, Katrina, • Focus on catering to regional requirements, e.g. • Create the best customer experience using the best N. American solution offering maybe different than oneSE Asian Earthquake, etc. by donating cash & team - one face to the customer & one throat to choke for Asia-Pacific or Europe.products & by encouraging employees to donate & ideamatch their contributions. • Demo-days & other shows to help people understand & enjoy the technology coming out of HP Labs Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
  9. 9. HP - Viewed Through the Delta ModelDominant Exchange Proprietary Channel• Owning the industry’s largest IT Supply Chain havs theability to “mandate” suppliers to out-perform, set standards, • Non-Stop (Tandem) Platform proprietary;meet other IT needs by challenge/motivation e.g. 95% of World Stock exchanges, 2 out of• Tough bargainer with suppliers/partners 3 credit card transactions, mobile & telecomm• Play a leading part in many standards-setting bodies (e.g. exchanges, public safety 911 systemsRFID, EPC Global, W3C, etc.). • Printers & supplies System Lock-In • Customers using specialized system flavors Exclusive Channel like HPUX, Tru 64 and FAX have a lot • Sold direct, online, & via technology, software, systems integration & channel invested in it & are locked-in. partners Low Cost Pricing • Consumer goods & even low-end servers, PCs & otherHorizontal Breadth systems are priced very low - Dell & HP/Compaq play a see-• PDA, PC, Notebook, camera, printer, ink, scanner, server - hp saw game almost every quarter when it comes to pricing & overall revenuebig & small, storage, software, solutions & services to namea few • Printers are practically given away• Financial services & leasing options offered for customers in • Services & solutions sold used a global delivery modelneed., using a combination of in-store, off-store & near-store to offer the best price for customer Total Customer Best Product SolutionsCustomer Integration• Long-term vision Differentiation• Exceed customer expectation • Achieve high sales by offering broad assortment of Reduce Customer Experience• Strong regional, national & growing international presence - innovative products, services solutions at relatively lowdoing business in 178 countries • Total-customer experience is something HP prides itself on prices & it actively measures this using metrics• Community involvement - grants to schools & other • Offer specific targeted solutions to each customer segmentinstitutions, charities, scholars, etc. • Go to market using the best solution which may be a - consumer, enterprise, public-sector partner’s product on HP platform• Rise to occasions like the recent Tsunami, Katrina, SE • Focus on catering to regional requirements, e.g. N.Asian Earthquake, etc. by donating cash & products & by • Create the best customer experience using the best team - American solution offering maybe different than one for Asia-encouraging employees to donate & match their one face to the customer & one throat to choke idea Pacific or Europe.contributions. • Demo-days & other shows to help people understand & enjoy the technology coming out of HP Labs Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
  10. 10. HP - Viewed Through the Delta ModelDominant Exchange Proprietary Channel• Owning the industry’s largest IT Supply Chain havs the • Non-Stop (Tandem) Platform proprietary; e.g. 95% of Worldability to “mandate” suppliers to out-perform, set standards, Stock exchanges, 2 out of 3 credit card transactions, mobilemeet other IT needs by challenge/motivation & telecomm exchanges, public safety 911 systems• Tough bargainer with suppliers/partners • Printers & supplies• Play a leading part in many standards-setting bodies (e.g. • Customers using specialized system flavors like HPUX, TruRFID, EPC Global, W3C, etc.). 64 and FAX have a lot invested in it & are locked-in. Low Cost Pricing System Lock-In Exclusive Channel • Consumer goods & even low-end • Sold direct, online, & via technology, software, systems integration & channel servers, PCs & other systems are partners priced very low - Dell & HP/Compaq play a see-saw game almost everyHorizontal Breadth quarter when it comes to pricing &• PDA, PC, Notebook, camera, printer, ink, scanner, server - hp overall revenuebig & small, storage, software, solutions & services to namea few • Printers are practically given away• Financial services & leasing options offered for customers inneed., • Services & solutions sold used a Total Customer global delivery model using a Best combination of in-store, off-store & SolutionsCustomer Integration Product near-store to offer the best price for• Long-term vision customer• Exceed customer expectation Reduce Customer Experience• Strong regional, national & growing international presence -doing business in 178 countries • Total-customer experience is something HP prides itself on & it actively measures this using metrics Differentiation• Community involvement - grants to schools & otherinstitutions, charities, scholars, etc. • Go to market using the best solution which may be a • Achieve high sales by offering broad assortment of partner’s product on HP platform innovative products, services solutions at relatively low• Rise to occasions like the recent Tsunami, Katrina, SE pricesAsian Earthquake, etc. by donating cash & products & by • Create the best customer experience using the best team -encouraging employees to donate & match their one face to the customer & one throat to choke idea • Offer specific targeted solutions to each customer segmentcontributions. - consumer, enterprise, public-sector • Demo-days & other shows to help people understand & enjoy the technology coming out of HP Labs • Focus on catering to regional requirements, e.g. N. American solution offering maybe different than one for Asia- Pacific or Europe. Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
  11. 11. HP - Viewed Through the Delta ModelDominant Exchange Proprietary Channel• Owning the industry’s largest IT Supply Chain havs the • Non-Stop (Tandem) Platform proprietary; e.g. 95% of Worldability to “mandate” suppliers to out-perform, set standards, Stock exchanges, 2 out of 3 credit card transactions, mobilemeet other IT needs by challenge/motivation & telecomm exchanges, public safety 911 systems• Tough bargainer with suppliers/partners • Printers & supplies• Play a leading part in many standards-setting bodies (e.g. • Customers using specialized system flavors like HPUX, TruRFID, EPC Global, W3C, etc.). 64 and FAX have a lot invested in it & are locked-in. System Lock-In Exclusive Channel • Sold direct, online, & via technology, Low Cost Pricing software, systems integration & channel partners • Consumer goods & even low-end servers, PCs & other systems are priced very low - Dell & HP/Compaq play a see- saw game almost every quarter when it comes to pricing & overall revenueHorizontal Breadth• PDA, PC, Notebook, camera, printer, ink, scanner, server - hp • Printers are practically given awaybig & small, storage, software, solutions & services to name • Services & solutions sold used a global delivery modela few using a combination of in-store, off-store & near-store to offer the best price for customer• Financial services & leasing options offered for customers inneed., Total Customer Best Product SolutionsCustomer Integration Differentiation• Long-term vision• Exceed customer expectation • Achieve high sales by offering broad Reduce Customer Experience assortment of innovative products, services• Strong regional, national & growing international presence -doing business in 178 countries • Total-customer experience is something HP prides itself on solutions at relatively low prices & it actively measures this using metrics• Community involvement - grants to schools & otherinstitutions, charities, scholars, etc. • Go to market using the best solution which may be a • Offer specific targeted solutions to each partner’s product on HP platform• Rise to occasions like the recent Tsunami, Katrina, SE customer segment - consumer, enterprise,Asian Earthquake, etc. by donating cash & products & byCreate the best customer experience using the best team - • public-sectorencouraging employees to donate & match their one face to the customer & one throat to choke ideacontributions. • Demo-days & other shows to help people understand & • Focus on catering to regional requirements, enjoy the technology coming out of HP Labs e.g. N. American solution offering maybe different than one for Asia-Pacific or Europe. Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
  12. 12. HP - Viewed Through the Delta Model Dominant Exchange Proprietary Channel • Owning the industry’s largest IT Supply Chain havs the • Non-Stop (Tandem) Platform proprietary; e.g. 95% of World ability to “mandate” suppliers to out-perform, set standards, Stock exchanges, 2 out of 3 credit card transactions, mobile meet other IT needs by challenge/motivation & telecomm exchanges, public safety 911 systems • Tough bargainer with suppliers/partners • Printers & supplies • Play a leading part in many standards-setting bodies (e.g. • Customers using specialized system flavors like HPUX, Tru RFID, EPC Global, W3C, etc.). 64 and FAX have a lot invested in it & are locked-in. System Lock-In Exclusive Channel • Sold direct, online, & via technology, Low Cost Pricing software, systems integration & channel partners • Consumer goods & even low-end servers, PCs & other systems are priced very low - Dell & HP/Compaq play a see- saw game almost every quarter when it comes to pricing & overall revenue Horizontal Breadth • PDA, PC, Notebook, camera, printer, ink, scanner, server - hp • Printers are practically given away big & small, storage, software, solutions & services to name • Services & solutions sold used a global delivery model a few using a combination of in-store, off-store & near-store to offer the best price for customer • Financial services & leasing options offered for customers in need., Total Customer Best Product SolutionsCustomer Integration Differentiation• Long-term vision Reduce Customer Experience • Achieve high sales by offering broad• Exceed customer expectation assortment of innovative products, services• Strong regional, national & growing international • Total-customer experience is something HP prides itself on & solutions at relatively low pricespresence - doing business in 178 countries • Offer specific targeted solutions to each it actively measures this using metrics customer segment - consumer, enterprise,• Community involvement - grants to schools & public-sectorother institutions, charities, scholars, etc. • Go to market using the best solution which may be a partner’s • Focus on catering to regional• Rise to occasions like the recent Tsunami, product on HP platform requirements, e.g. N. American solutionKatrina, SE Asian Earthquake, etc. by donatingcash & products & by encouraging employees to offering maybe different than one for Asia-donate & match their contributions. • Create the best customer experience using the best team - Pacific or Europe. one face to the customer & one throat to choke idea • Demo-days & other shows to help people understand & enjoy the technology coming out of HP Labs Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
  13. 13. HP - Viewed Through the Delta ModelDominant Exchange Proprietary Channel• Owning the industry’s largest IT Supply Chain havs the • Non-Stop (Tandem) Platform proprietary; e.g. 95% of Worldability to “mandate” suppliers to out-perform, set standards, Stock exchanges, 2 out of 3 credit card transactions, mobilemeet other IT needs by challenge/motivation & telecomm exchanges, public safety 911 systems• Tough bargainer with suppliers/partners • Printers & supplies• Play a leading part in many standards-setting bodies (e.g. • Customers using specialized system flavors like HPUX, TruRFID, EPC Global, W3C, etc.). 64 and FAX have a lot invested in it & are locked-in. System Lock-In Exclusive Channel • Sold direct, online, & via technology, Low Cost Pricing software, systems integration & channel partners • Consumer goods & even low-end servers, PCs & other systems are priced very low - Dell & HP/Compaq play a see-Horizontal Breadth saw game almost every quarter when it comes to pricing & overall revenue• PDA, PC, Notebook, camera, printer, ink, scanner, server -big & small, storage, software, solutions & services to name hp • Printers are practically given awaya few • Services & solutions sold used a global delivery model• Financial services & leasing options offered for customers in using a combination of in-store, off-store & near-store to offerneed., the best price for customerCustomer Integration Total Customer Best Product Solutions• Long-term vision• Exceed customer expectation Differentiation • Achieve high sales by offering broad• Strong regional, national & growing international Reduce Customer Experience assortment of innovative products, servicespresence - doing business in 178 countries • Total-customer experience is something HP prides itself solutions at relatively low prices on & it actively measures this using metrics • Offer specific targeted solutions to each• Community involvement - grants to schools & • Go to market using the best solution which may be a customer segment - consumer, enterprise, partner’s product on HP platform public-sectorother institutions, charities, scholars, etc. • Create the best customer experience using the best • Focus on catering to regional• Rise to occasions like the recent Tsunami, team - one face to the customer & one throat to choke requirements, e.g. N. American solution idea offering maybe different than one for Asia-Katrina, SE Asian Earthquake, etc. by donating Pacific or Europe. • Demo-days & other shows to help people understand &cash & products & by encouraging employees to enjoy the technology coming out of HP Labsdonate & match their contributions. Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
  14. 14. HP - Viewed Through the Delta Model Dominant Exchange Proprietary Channel • Owning the industry’s largest IT Supply Chain havs the • Non-Stop (Tandem) Platform proprietary; e.g. 95% of World ability to “mandate” suppliers to out-perform, set standards, Stock exchanges, 2 out of 3 credit card transactions, mobile meet other IT needs by challenge/motivation & telecomm exchanges, public safety 911 systems • Tough bargainer with suppliers/partners • Printers & supplies • Play a leading part in many standards-setting bodies (e.g. • Customers using specialized system flavors like HPUX, Tru RFID, EPC Global, W3C, etc.). 64 and FAX have a lot invested in it & are locked-in. Exclusive Channel • Sold direct, online, & via technology, System Lock-In software, systems integration & channel partners Low Cost PricingHorizontal Breadth • Consumer goods & even low-end servers, PCs & other systems are priced very low - Dell & HP/Compaq play a see-• PDA, PC, Notebook, camera, printer, saw game almost every quarter when it comes to pricing & overall revenueink, scanner, server - big & small, hp • Printers are practically given awaystorage, software, solutions & services to • Services & solutions sold used a global delivery modelname a few using a combination of in-store, off-store & near-store to offer the best price for customer• Financial services & leasing optionsoffered for customers in need., Total Customer Best Product Solutions Customer Integration • Long-term vision Differentiation • Exceed customer expectation • Achieve high sales by offering broad assortment of Reduce Customer Experience • Strong regional, national & growing international presence - innovative products, services solutions at relatively low doing business in 178 countries • Total-customer experience is something HP prides itself on prices & it actively measures this using metrics • Community involvement - grants to schools & other • Offer specific targeted solutions to each customer segment institutions, charities, scholars, etc. • Go to market using the best solution which may be a - consumer, enterprise, public-sector partner’s product on HP platform • Rise to occasions like the recent Tsunami, Katrina, SE • Focus on catering to regional requirements, e.g. N. Asian Earthquake, etc. by donating cash & products & by • Create the best customer experience using the best team - American solution offering maybe different than one for Asia- encouraging employees to donate & match their one face to the customer & one throat to choke idea Pacific or Europe. contributions. • Demo-days & other shows to help people understand & enjoy the technology coming out of HP Labs Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
  15. 15. HP - Viewed Through the Delta ModelDominant Exchange Proprietary Channel• Owning the industry’s largest IT Supply Chain havs the • Non-Stop (Tandem) Platform proprietary; e.g. 95% of Worldability to “mandate” suppliers to out-perform, set standards, Stock exchanges, 2 out of 3 credit card transactions, mobilemeet other IT needs by challenge/motivation & telecomm exchanges, public safety 911 systems• Tough bargainer with suppliers/partners • Printers & supplies• Play a leading part in many standards-setting bodies (e.g. • Customers using specialized system flavors like HPUX, TruRFID, EPC Global, W3C, etc.). 64 and FAX have a lot invested in it & are locked-in. Exclusive Channel System Lock-In • Sold direct, online, & via Low Cost Pricing technology, software, systems • Consumer goods & even low-end servers, PCs & other integration & channel partners systems are priced very low - Dell & HP/Compaq play a see- saw game almost every quarter when it comes to pricing & overall revenueHorizontal Breadth• PDA, PC, Notebook, camera, printer, ink, scanner, server - hp • Printers are practically given awaybig & small, storage, software, solutions & services to name • Services & solutions sold used a global delivery modela few using a combination of in-store, off-store & near-store to offer the best price for customer• Financial services & leasing options offered for customers inneed., Total Customer Best Product SolutionsCustomer Integration• Long-term vision Differentiation• Exceed customer expectation • Achieve high sales by offering broad assortment of Reduce Customer Experience• Strong regional, national & growing international presence - innovative products, services solutions at relatively lowdoing business in 178 countries • Total-customer experience is something HP prides itself on prices & it actively measures this using metrics• Community involvement - grants to schools & other • Offer specific targeted solutions to each customer segmentinstitutions, charities, scholars, etc. • Go to market using the best solution which may be a - consumer, enterprise, public-sector partner’s product on HP platform• Rise to occasions like the recent Tsunami, Katrina, SE • Focus on catering to regional requirements, e.g. N.Asian Earthquake, etc. by donating cash & products & by • Create the best customer experience using the best team - American solution offering maybe different than one for Asia-encouraging employees to donate & match their one face to the customer & one throat to choke idea Pacific or Europe.contributions. • Demo-days & other shows to help people understand & enjoy the technology coming out of HP Labs Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
  16. 16. HP - Viewed Through the Delta ModelDominant Exchange Proprietary Channel• Owning the industry’s largest IT Supply Chain • Non-Stop (Tandem) Platform proprietary; e.g. 95% of Worldhavs the ability to “mandate” suppliers to out- Stock exchanges, 2 out of 3 credit card transactions, mobile & telecomm exchanges, public safety 911 systemsperform, set standards, meet other IT needs by • Printers & supplieschallenge/motivation • Customers using specialized system flavors like HPUX, Tru 64 and FAX have a lot invested in it & are locked-in.• Tough bargainer with suppliers/partners• Play a leading part in many standards-setting System Lock-Inbodies (e.g. RFID, EPC Global, W3C, etc.). Low Cost Pricing Exclusive Channel • Consumer goods & even low-end servers, PCs & other • Sold direct, online, & via technology, systems are priced very low - Dell & HP/Compaq play a see- software, systems integration & channel saw game almost every quarter when it comes to pricing & partners overall revenueHorizontal Breadth hp • Printers are practically given away• PDA, PC, Notebook, camera, printer, ink, scanner, server - • Services & solutions sold used a global delivery modelbig & small, storage, software, solutions & services to name using a combination of in-store, off-store & near-store to offera few the best price for customer• Financial services & leasing options offered for customers inneed., Total Customer Best Product SolutionsCustomer Integration• Long-term vision Differentiation• Exceed customer expectation • Achieve high sales by offering broad assortment of Reduce Customer Experience• Strong regional, national & growing international presence - innovative products, services solutions at relatively lowdoing business in 178 countries • Total-customer experience is something HP prides itself on prices & it actively measures this using metrics• Community involvement - grants to schools & other • Offer specific targeted solutions to each customer segmentinstitutions, charities, scholars, etc. • Go to market using the best solution which may be a - consumer, enterprise, public-sector partner’s product on HP platform• Rise to occasions like the recent Tsunami, Katrina, SE • Focus on catering to regional requirements, e.g. N.Asian Earthquake, etc. by donating cash & products & by • Create the best customer experience using the best team - American solution offering maybe different than one for Asia-encouraging employees to donate & match their one face to the customer & one throat to choke idea Pacific or Europe.contributions. • Demo-days & other shows to help people understand & enjoy the technology coming out of HP Labs Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
  17. 17. Partnerships and alliances Leveraging the best of the industry Technology Partners Software Partners System Integration Partners Channel PartnersSource: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
  18. 18. Gartner Magic Quadrant - December 2006Source: Flavio Fomin, “Strategic Analysis of EMC Corporation”, 15.902 researchpaper, Fall 2007
  19. 19. The Delta Model: Singapore’s Strategic Positioning Dominant Exchange • Comprehensive networks of Free Trade Agreements Proprietary Channel • Key node in the global network linked to all major • International hubs for specific sectors like economies finance, commerce, trade & R&D 2000-2010s • Gateway into & out of Asia Future: Exclusive Channel System Lock-In • External ties with major economies • Network of Free Trade Agreements • Gateway into & out of Asia Low Cost of Doing Business • Low labor & business cost Horizontal Breadth • Low personal & corporate tax rates • Broad & diversified base of economic • Avoid fiscal budget deficits players • Twin engines of economic growth in manufacturing & services 1960-1980s 1990-2000s Current: Total Customer Solutions Past: Best ProductRedefining Customer Relationship 1980-1990s• High quality human capital• Entrepreneurship & innovative economy Differentiation - Value-Added Proposition• Long-term vision • Pro-market, pro-competition environment• Competitiveness & flexibility Customer Integration • Efficient & effective government• World-class legal, regulatory & • Expand international & regional trade networks • First-class business infrastructuretelecommunications infrastructure • Implement international best practices for accounting • Educated & trained labor force & compliance framework Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore Inc.”, 15.902 research paper, Fall 2005
  20. 20. The Delta Model: Singapore’s Strategic Positioning Dominant Exchange • Comprehensive networks of Free Trade Agreements Proprietary Channel • Key node in the global network linked to all major economies • International hubs for specific • Gateway into & out of Asia 2000-2010s sectors like finance, commerce, trade & R&D Future: Exclusive Channel System Lock-In • External ties with major economies • Network of Free Trade Agreements • Gateway into & out of Asia Low Cost of Doing Business • Low labor & business cost Horizontal Breadth • Low personal & corporate tax rates • Broad & diversified base of economic players • Avoid fiscal budget deficits • Twin engines of economic growth in manufacturing & services 1960-1980s 1990-2000s Current: Total Customer Solutions Past: Best ProductRedefining Customer Relationship 1980-1990s• High quality human capital• Entrepreneurship & innovative economy Differentiation - Value-Added Proposition• Long-term vision • Pro-market, pro-competition environment• Competitiveness & flexibility Customer Integration • Efficient & effective government• World-class legal, regulatory & telecommunications • Expand international & regional trade networks • First-class business infrastructureinfrastructure • Implement international best practices for accounting & • Educated & trained labor force compliance framework Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore Inc.”, 15.902 research paper, Fall 2005
  21. 21. The Delta Model: Singapore’s Strategic Positioning Dominant Exchange • Comprehensive networks of Free Trade Agreements Proprietary Channel • Key node in the global network linked to all major • International hubs for specific sectors like economies finance, commerce, trade & R&D • Gateway into & out of Asia 2000-2010s Future: Exclusive Channel System Lock-In • External ties with major economies Low Cost of Doing Business • Network of Free Trade Agreements • Gateway into & out of Asia • Low labor & business cost • Low personal & corporate tax Horizontal Breadth rates • Broad & diversified base of economic players • Avoid fiscal budget deficits • Twin engines of economic growth in manufacturing & services 1960-1980s 1990-2000s Current: Total Customer Solutions Past: Best ProductRedefining Customer Relationship 1980-1990s• High quality human capital• Entrepreneurship & innovative economy Differentiation - Value-Added Proposition• Long-term vision • Pro-market, pro-competition environment• Competitiveness & flexibility Customer Integration • Efficient & effective government• World-class legal, regulatory & telecommunications • Expand international & regional trade networks • First-class business infrastructureinfrastructure • Implement international best practices for accounting & • Educated & trained labor force compliance framework Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore Inc.”, 15.902 research paper, Fall 2005
  22. 22. The Delta Model: Singapore’s Strategic Positioning Dominant Exchange • Comprehensive networks of Free Trade Agreements Proprietary Channel • Key node in the global network linked to all major • International hubs for specific sectors like economies finance, commerce, trade & R&D • Gateway into & out of Asia 2000-2010s Future: Exclusive Channel System Lock-In • External ties with major economies • Network of Free Trade Agreements • Gateway into & out of Asia Low Cost of Doing Business • Low labor & business cost Horizontal Breadth • Low personal & corporate tax rates • Broad & diversified base of economic players • Avoid fiscal budget deficits • Twin engines of economic growth in manufacturing & services 1960-1980s 1990-2000s Current: Total Customer Solutions Past: Best ProductRedefining Customer Relationship 1980-1990s• High quality human capital Differentiation - Value-Added Proposition• Entrepreneurship & innovative economy• Long-term vision • Pro-market, pro-competition• Competitiveness & flexibility Customer Integration environment• World-class legal, regulatory & telecommunications • Expand international & regional trade networksinfrastructure • Efficient & effective government • Implement international best practices for accounting & compliance framework • First-class business infrastructure • Educated & trained labor force Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore Inc.”, 15.902 research paper, Fall 2005
  23. 23. The Delta Model: Singapore’s Strategic Positioning Dominant Exchange • Comprehensive networks of Free Trade Agreements Proprietary Channel • Key node in the global network linked to all major • International hubs for specific sectors like economies finance, commerce, trade & R&D • Gateway into & out of Asia 2000-2010s Future: Exclusive Channel System Lock-In • External ties with major economies • Network of Free Trade Agreements • Gateway into & out of Asia Low Cost of Doing Business • Low labor & business cost Horizontal Breadth • Low personal & corporate tax rates • Broad & diversified base of economic players • Avoid fiscal budget deficits • Twin engines of economic growth in manufacturing & services 1960-1980s 1990-2000s Current: Total Customer Solutions Past: Best ProductRedefining Customer Relationship 1980-1990s• High quality human capital• Entrepreneurship & innovative economy Differentiation - Value-Added Proposition• Long-term vision • Pro-market, pro-competition environment Customer Integration• Competitiveness & flexibility • Efficient & effective government• World-class legal, regulatory & telecommunications • Expand international & regional trade • First-class business infrastructureinfrastructure networks • Educated & trained labor force • Implement international best practices for accounting & compliance framework Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore Inc.”, 15.902 research paper, Fall 2005
  24. 24. The Delta Model: Singapore’s Strategic Positioning Dominant Exchange • Comprehensive networks of Free Trade Agreements Proprietary Channel • Key node in the global network linked to all major • International hubs for specific sectors like economies finance, commerce, trade & R&D • Gateway into & out of Asia 2000-2010s Future: Exclusive Channel System Lock-In • External ties with major economies • Network of Free Trade Agreements • Gateway into & out of Asia Low Cost of Doing Business • Low labor & business cost Horizontal Breadth • Low personal & corporate tax rates • Broad & diversified base of economic players • Avoid fiscal budget deficits • Twin engines of economic growth in manufacturing & services 1960-1980s 1990-2000s Current: Total Customer Solutions Past: Best ProductRedefining Customer Relationship 1980-1990s• High quality human capital Differentiation - Value-Added Proposition• Entrepreneurship & innovative economy • Pro-market, pro-competition environment• Long-term vision Customer Integration • Efficient & effective government • Expand international & regional trade networks • First-class business infrastructure• Competitiveness & flexibility • Implement international best practices for accounting & • Educated & trained labor force• World-class legal, regulatory & compliance frameworktelecommunications infrastructure Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore Inc.”, 15.902 research paper, Fall 2005
  25. 25. The Delta Model: Singapore’s Strategic Positioning Dominant Exchange • Comprehensive networks of Free Trade Agreements Proprietary Channel • Key node in the global network linked to all major • International hubs for specific sectors like economies finance, commerce, trade & R&D • Gateway into & out of Asia 2000-2010s Exclusive Channel Future: • External ties with major economies System Lock-In • Network of Free Trade Agreements • Gateway into & out of AsiaHorizontal Breadth Low Cost of Doing Business • Low labor & business cost• Broad & diversified base of • Low personal & corporate tax rateseconomic players • Avoid fiscal budget deficits• Twin engines of economic growthin manufacturing & services 1960-1980s 1990-2000s Current: Total Customer Solutions Past: Best Product Redefining Customer Relationship 1980-1990s • High quality human capital • Entrepreneurship & innovative economy Differentiation - Value-Added Proposition • Long-term vision • Pro-market, pro-competition environment • Competitiveness & flexibility Customer Integration • Efficient & effective government • World-class legal, regulatory & telecommunications • Expand international & regional trade networks • First-class business infrastructure infrastructure • Implement international best practices for accounting & • Educated & trained labor force compliance framework Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore Inc.”, 15.902 research paper, Fall 2005
  26. 26. The Delta Model: Singapore’s Strategic Positioning Dominant Exchange • Comprehensive networks of Free Trade Agreements Proprietary Channel • Key node in the global network linked to all major • International hubs for specific sectors like economies finance, commerce, trade & R&D • Gateway into & out of Asia 2000-2010s Exclusive Channel Future: System Lock-In • External ties with major economies • Network of Free Trade Agreements Low Cost of Doing Business • Gateway into & out of Asia • Low labor & business cost • Low personal & corporate tax rates • Avoid fiscal budget deficits Horizontal Breadth • Broad & diversified base of economic players • Twin engines of economic growth in 1960-1980s manufacturing & services 1990-2000s Current: Total Customer Solutions Past: Best ProductRedefining Customer Relationship 1980-1990s• High quality human capital• Entrepreneurship & innovative economy Differentiation - Value-Added Proposition• Long-term vision • Pro-market, pro-competition environment• Competitiveness & flexibility Customer Integration • Efficient & effective government• World-class legal, regulatory & telecommunications • Expand international & regional trade networks • First-class business infrastructureinfrastructure • Implement international best practices for accounting & • Educated & trained labor force compliance framework Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore Inc.”, 15.902 research paper, Fall 2005
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