More Related Content Similar to Presentation_1367015510550 Similar to Presentation_1367015510550 (20) More from Alexander Nevidimov More from Alexander Nevidimov (20) Presentation_13670155105501. Alex@coman.org Tel:(972)3-510-1768 -1- Fax:(972)3-516-8960 www.coman.org ARENA
Management-Of-Technology Copyright © 2001 Alex Coman
The ARENA Genome: Harmonic Strategic Planning
Arena Layers:
Corporate,
Business
Function-
Define Hierarchy
Refinement Stages:
Arena, Focus, Action
Create Strategy
Business
ACTION
Dynamic Vectors:
Change, Vision, Scenario.
Leader Navigates
Corporate Layer:
Portfolio Businesses
Maximize Value
Function Layer:
Process, Project and Product
Agile value drive
Business Layer:
Positioning Products by
Market Strategy
Prof. Jacob A. Frankel, Chairman of Sovereign Advisory Group and Global Financial Institutions Group,
Merrill Lynch: JIT inventory management will help quick recovery.
2. Alex@coman.org Tel:(972)3-510-1768 -2- Fax:(972)3-516-8960 www.coman.org ARENA
Management-Of-Technology Copyright © 2001 Alex Coman
Business Action: Skimming (Type I disruptive
Innovation)
PC Processors
$ D
P IV
$819->$352
Athlon
P III
486
Cyrix K6
Celeron
Power PC
Diversification,
Cow Cannibalization
VCRs
$ D
Chasm
Ampex
$50K
Sony
Beta
Matsushita
VHS
Cell Phone
$ D
Beeper
Pelephone
Niche
Products Satellite
Iridium`
Skim
Niche
Mass
Market
Distributors
Hedged Skimming:
Tang, RDC, Velcro
Adoption Rate
Utility
Capacity
Time/
Quantity
Learning Curve
Moor’s Law
Cost
Hong Kong
Effect
Time/
Quantity
Cost
Leader
Follower
Advantage
Orange
Cellcom
Focus: Returning R&D investment, Constrained production capacity, Limited demand
IBM
Effect
Gillette
Costs-4%/Y
3. Alex@coman.org Tel:(972)3-510-1768 -3- Fax:(972)3-516-8960 www.coman.org ARENA
Management-Of-Technology Copyright © 2001 Alex Coman
Business Action:
Storming
Storming
Pharmaceutical
$ D
Divide
1.
Ethical
Viagra
Prozak
2.
Generic
Storming
$ D
1.Leader: Apple
Closed Architecture
Self sufficient
2.Follower: IBM effect
Open Architecture
Outsourcing
3.
Me Too:No Name
Hong Kong Effect Compaq
Devoted Follower
Time
1st
50%
Price
2nd
50%
Patent
Apple
Peripherals
Apple
Computer
Education
Mac OS
SW
Apple
Distributors
Motorola
HP
IBM Cluster
IBM
Computer
Business
MS, Lotus
DOS/SW Peripherals
IBM++
Dealers
Intel
Compaq
Digital
Focus: Maximizing revenues during patent duration; Rigid demand
Storming
$ D
Sensor
Excel
(+60%)
Mach3
+35%
Atra
4. Alex@coman.org Tel:(972)3-510-1768 -4- Fax:(972)3-516-8960 www.coman.org ARENA
Management-Of-Technology Copyright © 2001 Alex Coman
Business Action:
Flooding
1. Server
Navigator
Acrobat
Total Cost
Users
Utility/User
Bob Metcalf’s
Network Externalities
Focus: Market share leadership (Eyeballs, Hits); Lock-in+Oligopoly+Value added
Hybrid Car
Dumping
$ D
1.
I
B
M
W
hi
Flooding
$ D
Ford
Levittown
Diners’
Zara
IKEA
McDonalds
2.Toyota
Honda
Leveraged
Dumping
$ D
1. Client
Navigator2.
Explorer
NT
Dumping
$ D
Sony
Economies of Scale
Sony: $279+
RealNetworks
Nintendo: Dolphin
IBM+3D by ArtX
MS Xbox
$299.99
($125)
Launch:
800K games,
1.5M@2001
$500M marketing budget
5. Alex@coman.org Tel:(972)3-510-1768 -5- Fax:(972)3-516-8960 www.coman.org ARENA
Management-Of-Technology Copyright © 2001 Alex Coman
1918
Model T
Foreign
1/3
Oil
Crisis
Market
consolidation
20
40
60
80
10
0
Competitors
199019881986198419821980 1991
Disk drive Market
Web surfing in US, 50% of time:
March 1999, 50B Mins: 11 sites (60%=110)
March 2001, 73B Mins: 4 sites (60%= 14)
32% America Online Time Warner
7.5% Microsoft
7.2% Yahoo
3.6% Napster
6. Alex@coman.org Tel:(972)3-510-1768 -6- Fax:(972)3-516-8960 www.coman.org ARENA
Management-Of-Technology Copyright © 2001 Alex Coman
Low Cost Positive
Loop
Quantity
Manufactured
Cost/unitPrice
Quantity
Sold
Market Demand:
Price Elasticity
Production Function:
Economies of Scale
1:Skimming
23
4
5
Low
Cost
Differentiation
Dumping
7. Alex@coman.org Tel:(972)3-510-1768 -7- Fax:(972)3-516-8960 www.coman.org ARENA
Management-Of-Technology Copyright © 2001 Alex Coman
Business Action: Piercing / Guerilla (Type II disruptive
Innovation)
2.Red Hat
Focus: Penetrating through niche, transforming non-entity into recognized brand
Linux Guerilla
$ D
1.Shareware
Copy Left: Gnu, Ada
S.E. Asian Guerilla
$ D
High
Retail Margins
Dependable-Quality Earth-Moving-Equipment
Strong service and Support
Worldwide Availability
Strong, Loyal
Dealer Network
High
Margins
Premium
Price
Full Line of
Quality Products
R&D
Investment
Low
Dividends
Global
Volume
Low
Cost
High Plant
Investment
Low
Debt
Local
Assembly
8. Alex@coman.org Tel:(972)3-510-1768 -8- Fax:(972)3-516-8960 www.coman.org ARENA
Management-Of-Technology Copyright © 2001 Alex Coman
Business Action: Komatsu’s strategic Roll-out – Skinning the
Cat
Maru-C: “Encircle Caterpillar”
Protect home market against Caterpillar (’81:50% world earth-moving equipment vs.16%)
Licensing deals with: Cummins Engine, International Harvester.
Acquire technology and establish benchmarks.
Project Ace: Advance quality of small and medium-sized bulldozers above Caterpillar’s
Quality Circles companywide to provide training for all employees
Reduce cost while maintaining quality
Cost Down
Total Cost Down
Make Komatsu an international enterprise and build export markets
Develop Eastern bloc countries
Komatsu Europe marketing subsidiary established
Komatsu America established
Project B to improve durability and reliability and reduce cost of large bulldozers
Project C to improve payloaders
Project D to improve Hydraulic excavators
Establish presale and service department to assist construction projects in newly
industrializing countries
Respond to external shocks that threaten markets
V-10 program to reduce costs by 10%; reduce parts by 20%.
¥180 program to budget companywide for ¥180/$ when exchange rate was ¥240/$
Response to Oil Crisis: Project E establish teams to redouble cost and quality efforts.
Create new products and markets
Accelerate product development to expand line.
Future and Frontiers program to identify new businesses based on society’s needs
and company know-how.
EPOCHS: reconcile greater product variety with improved production efficiencies.
(’84:Caterpillar=43% world earth-moving equipment vs.Komatsu=25%)
9. Alex@coman.org Tel:(972)3-510-1768 -9- Fax:(972)3-516-8960 www.coman.org ARENA
Management-Of-Technology Copyright © 2001 Alex Coman
Business Action
How Has Compaq Stayed on Top of the Server Industry?, HBR
Relative
Level
High
Low Tim
e1989 1990 1991 1992 1993 1994
Expandability
ApplicationCompatibility
FileandPrintCompatibility
Performance
PriceSystemPro
Expandability
ApplicationCompatibility
FileandPrintCompatibility
Performance
Price
ProSignia
ProLiant 1000
Reliability
Configurability
Manageability
ProLiant 1000
Rack Mountable
Storability
Servicability
Security
10. Alex@coman.org Tel:(972)3-510-1768 -10- Fax:(972)3-516-8960 www.coman.org ARENA
Management-Of-Technology Copyright © 2001 Alex Coman
Business Action: Strategic
Grid
Present
Strategic
Impact of
Technology
High
Factory
ATM, Airline
Strategic
Bank
Low
Support
Restaurant, Municipality,
Hospital
Turnover
Bookstore, Insurance,
Broker
Strategic Grid
Low High
Future
Strategic Impact of Technology
Support
Time
Importance
Turnover
Factory
Strategic
US Office of Patents commissioner: “Everything that can be invented has been invented”,
1899 recommendation that his office be abolished.
Window of
Opportunity
Time
Importance
GreatExpectations
Disappointment
Real Power
11. Alex@coman.org Tel:(972)3-510-1768 -11- Fax:(972)3-516-8960 www.coman.org ARENA
Management-Of-Technology Copyright © 2001 Alex Coman
Qualcomm 1999 annual Report p. 23
Mobile-Station-Modem Phone Chipsets
Time/
Release
Features
1st Generation MSM
R&D begins
90 9291 94 95 96 97 98 9993
2nd Generation MSM
Chipset Developed
MSM1
3rd Generation MSM
Used in QCP800 phone
MSM2
4th Generation MSM
Highly cost effective
MSM2300
5th Generation MSM
200 hours standby
Faster data rates<86kbps
IS-95A/95B Compliant
MSM3000
iMSM Family
High Data Rate technology<2.4Mbps
Internet; support3rd party OS/Apps
MSM5000
2x voice capacity
Faster data rates<153.6kbps
6th Generation MSM
50% Smaller; 300Hrs Sand by
Mixed signal; USB data interface
MSM3100
12. Alex@coman.org Tel:(972)3-510-1768 -12- Fax:(972)3-516-8960 www.coman.org ARENA
Management-Of-Technology Copyright © 2001 Alex Coman
Wave PLM
Time/Release
Features/
Function Points
88: DOS 4
Mar 93:MS-DOS 6
Disk Backup & Compression
Windows CE
93 NT3.1: 32 bit
29K copies
NT3.5: Faster, Stable
SOHO
NT3.51: Web Server
No need for special SW
NT4.0: Large Data Proc.
1997 update: Cluster
1.6M copies
NT: Most Demanding Tasks
User/Info Dir, Intelli-mirror
92 94 95 96 97 98 99 0093
Apr 92: Win 3.1: Screensaver,
TrueType
95: TCP/IP
98: HTML editor
2000: Premium,
Professional,
Small Business
4.1 5
13. Alex@coman.org Tel:(972)3-510-1768 -13- Fax:(972)3-516-8960 www.coman.org ARENA
Management-Of-Technology Copyright © 2001 Alex Coman
Business Action: Float-glass process substitution
W.Europe
14. Alex@coman.org Tel:(972)3-510-1768 -14- Fax:(972)3-516-8960 www.coman.org ARENA
Management-Of-Technology Copyright © 2001 Alex Coman
Business Action: Supply/Demand Chasm
Approximate Life Cycle of Products (years)
DevelopmentCycle(years)
4 12 200 168
4
12
20
0
16
8
Financial
Services-
Financial
Services-
Silicon
Foundries
Silicon
Foundries Retailing&EntertainmentRetailing&Entertainment
Fashion&
Textiles
Fashion&
Textiles
Transportation
Systems
Transportation
Systems
Communications
Systems
Communications
Systems
TobaccoTobacco
FoodsFoods
Lodging
Hotels
Lodging
Hotels
MiningMining
Forestry, Oil&
Gas Reserves
Forestry, Oil&
Gas Reserves
PharmaceuticalsPharmaceuticals
Military
Weapons
Military
Weapons
SoftwareSoftware
ElectronicsElectronics
ComputersComputers
PublishingPublishing
Medical&DentalMedical&Dental
AutomobileAutomobile
Metal ProductsMetal Products
PhotographicPhotographic
Chemicals,
Paper
Chemicals,
Paper
BiotechnologyBiotechnology
Typical Time Horizons by Industry, Mid-to-Late 1980s
Editor's Notes יהודה זיסאפל Management-by-exceptions, by-walking-around. Jack Weltch, Stock market fluctuations, share splits. Hierarchy: accounting -> Hypertext: zoom in/out: resolution management. Professional, geographic concentration. Arena: Focus Action Haaretz, Yuval dror, 29.4.01, G6: Typical processor launch price>$600. Nov. 2000 P4 Launch $/1000 units: 1.4GHz @$644 , 1.5GHz@$819. Last week: 1.7GHz@$352 : -58% (1.5Ghz more expensive@$519!)+0.18 μ(micron) much more expensive. First Quiriat Gat then 2 plants in US. AMD Q12001sales@$1.2B=increase of 9% vs. last year. Intel market share: 81.5%->77.1, AMD: 17.1%->22.2%. Q42001: Intel@2GHz.2001 Fab investment: $7.5B, R&D: $4.2B. Price of Ampex VCR>$50,000 W.C. Kim and R. Mauborgne, “Knowing a winning business idea when you see one, HBR Sept-Oct 2000: “In 1998, motorola rolled out a product that was supposed to redefine the world of mobile telephony. The iridium, declared the company, would be the first mobile phone to provide uninterrupted wireless communication anywhere in the world, no matter what the terrain our country. …Heavy, needed a host of attachments, couldn’t be used in a car or building. Price: $3,000. Kodak Fortune, 29.3.99 Power struggle. Intel: Pentium from ’93. Celeron vs. AMD, Cyrix. Xeon: modified Pentium II for servers&workstations. AMD K6 & K6-2 K6-3for sub$1,000 PCs: Compaq, HP, IBM, NEC. Cyrix MII (subsidiary of NAS). Power Haaretz, 20.5.01, G8” War games: MS vs. Sony”, Xbox: Intel: 733MHz, 8GB Disk. Merrill: $-125/box. IDC: Sony will probably reduce price to $279. “how to charge money from kids?”: Monthly payment for game channel.MS: 200 developers, Sony:300 experienced. Jupiter Media Matrix:Web surfing in US. 50% of time, Click and Mortar HBR, March-April 1997. Based on data collected by Disk/Trend and analyzed by Jonathan Freeman in “The Determinants of Exit from High Growth, High Technology Markets”, Unpublished, Warwick Business School, Coventry, England, 1994. Skinning the cat Skinning the cat. HBR, Hypercompetition, Chris Bartlett Stafan Sigfried, Understanding Object Oriented Software Engineering , IEEE Press, NJ 1996. “ Special Report – Software – The Long and Winding Windows NT Road”, Business Week, February 22, 1999, P. 54 Daily Build Economist, September 20 1997 Business, p. 78 Innovation Explosion , p. 294, Fig. 11.2: “Approximate mid-1980’s time horizons (based on industry interviews) represent an average of the major planning cycles for these industries. Each company and project may vary…Some development cycles have dropped radically since 1990.