3. The World Is Flat ?
A View of the World
Trade:1993
Yes
?
Countries
WorldScale
Markets
India
China
Brazil
Russia?
No
USA
Japan
Germany (EC)
Finland
Switzerland
Sweden
Holland
S. Korea
Taiwan
A View of the World
Trade:2005
USA
Japan
Germany (EC)
India
China
Yes
Countries
WorldScale
Markets
India
China
Brazil?
Russia?
No
No
Yes
Countries who are
home to World-Class
Competitors
No
Finland
Switzerland
Sweden
Holland
S. Korea
Taiwan
Yes
Countries who are
home to World-Class
Competitors
3
4. To Move Or Not to Move…
…FROM FIRST CURVE TO SECOND CURVE
First Curve
Second Curve
MARKET
Capital
Knowledge
Producer
Consumer
Atlantic
Pacific
Japan
China
International Trade
Electronic Commerce
Computers
Internet
Money
People
ORGANIZATION
Mechanistic
Organic
Engineering
Ecology
Corporations
Individuals and Networks
Horizontal and Vertical Integration
Virtual Integration
Business Processes
Culture
THE INDIVIDUAL
Hard Work
Hyper effectiveness
Security
Uncertainty
Current Career
Future Career
Faith
Hope
Loyalty
Courage
5. Is There…BOP Fortune ?
PPP Market Size
BRIICS + Thailand + Mexico + Turkey
3 billion people, 70% of Developing World
$ 12.5 Trillion GDP, 90% of Developing World
Within economy
Item
Dharavi
Warden
Road
12-18%
Poverty
Premium
53
Credit
6001000%
$ 1.12
$ 0.03
37
Phone
$0.04-0.05 $0.025
1.8
Diarrhea
Medical
$ 20
10
Annual Interest
Water
m3
$2
5
9. How to Grow When Markets Don’t
Growth Crisis
Demand Innovation
• Opportunity SURROUNDING the product, not
product improvement
New-gen demand focus generates powerful
Opportunities for core product
Combine multiple products / services into
more valuable integrated offers
Improvements in customers value chain
transmutes into new revenue streams
9
10. …Every Business is Theatre
High
Relevance
Optimum
Experiences
High
Differentiation
Essential
Services
CUSTOMER
NEEDS
Basic
Goods
Low
Differentiation
Low
Core
Relevance Commodities
Cost Driven
POSITIONED
COMPETITIVELY
PRICING STRATEGY
Premium
10
11. …Every Business is Theatre
High
Relevance
Optimum
Experiences
High
Differentiation
Essential
Services
CUSTOMER
NEEDS
Basic
Goods
Low
Differentiation
Low
Core
Relevance Commodities
Cost Driven
POSITIONED
COMPETITIVELY
PRICING STRATEGY
Premium
11
18. The Theory That Shook the World
Survival of the Fittest
“Natural Selection is
daily…scrutinizing…rejecting
bad…adding up good…
whenever and wherever
opportunity
offers…improvement…in
relation to…conditions of life”
http://www.amazon.com/gp/product/0517123207/103-1572344-4939802
18
20. Into One Broad Weave
Flatter world
People the scarce resource, not capital per se
Information, the critical edge
Rapid Commoditization, the ‘new normal’
Consumer rapidly ,really moving to the Centre
Agility of response key
21. MR Opportunity
Profitable niches designed around emergent needs-agile
methods, rapid proto-typing
Develop deep delivery expertise/knowledge to leverage
globally
Design/experimental skills to return to the fore
Expand products into services
21