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Growth Toolkit

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Growth Toolkit

  1. 1. Hypercompetition <ul><li>The 7 S’s of Hypercompetition </li></ul><ul><ul><li>Vision for Disruption </li></ul></ul><ul><ul><ul><li>Superior Stakeholder Satisfaction - Customers and Employees </li></ul></ul></ul><ul><ul><ul><li>Strategic Soothsaying - To envision the future - and move beyond to create it </li></ul></ul></ul><ul><ul><li>Capabilities for Disruption </li></ul></ul><ul><ul><ul><li>Speed - like that employed by Rammel initially in the blitzkrieg across Europe, and later Patton, with their tank brigades </li></ul></ul></ul><ul><ul><ul><li>Surprise - in the context of Pearl Harbor and the Normandy Invasion </li></ul></ul></ul><ul><ul><li>Tactics for Disruption </li></ul></ul><ul><ul><ul><li>Shifting the Rules - as Dell accomplished in the PC market </li></ul></ul></ul><ul><ul><ul><li>Signaling - as IBM and Microsoft to hold off competitive innovation </li></ul></ul></ul><ul><ul><ul><li>Simultaneous and Sequential Attacks - attacking on more than one front, on a continuous basis where your competitor least expects it - leads to disorientation and disruption of their plans </li></ul></ul></ul>
  2. 2. Strategic Leverage <ul><ul><li>Concentrating scarce resources given industry structure and company’s competitive position </li></ul></ul><ul><ul><li>Precisely identifying company’s area of leverage </li></ul></ul><ul><ul><ul><li>What are feasible strategies ? </li></ul></ul></ul><ul><ul><ul><li>What are constraints to ability to maneuver? </li></ul></ul></ul><ul><ul><ul><ul><li>Powerful buyers/suppliers, high degree of competition, mobility barriers </li></ul></ul></ul></ul><ul><ul><ul><li>Competitive position and past behavior </li></ul></ul></ul><ul><ul><ul><ul><li>Position - leader, #2 or 3, follower, new entrant </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Nature of conflict - win/win, limited warfare, win/lose, lose/lose </li></ul></ul></ul></ul><ul><ul><li>Objective strategies and tactics </li></ul></ul><ul><ul><ul><li>What capabilities or enabling competencies are required in order to exploit the leverage </li></ul></ul></ul><ul><ul><li>Outcome </li></ul></ul><ul><ul><ul><li>Definition of attainable objectives </li></ul></ul></ul><ul><ul><ul><li>Determination of required competencies </li></ul></ul></ul><ul><ul><ul><li>Enabling of “creative disruption” - changing rules of game to your advantage </li></ul></ul></ul>
  3. 3. Target Marketing/Segmentation <ul><li>Define long-term vision (10 year plan) - what business want to be in as market evolves, how want to play and where </li></ul><ul><ul><li>Look for potential areas of growth, to expand </li></ul></ul><ul><ul><ul><li>New uses of product, new users, bundles for particular customer </li></ul></ul></ul><ul><ul><ul><li>Critical mass vitally important to compete long-term </li></ul></ul></ul><ul><ul><li>Establish segmentation plan - Goal #1 in Segment (Highest ROI) </li></ul></ul><ul><ul><ul><li>Define types of products/services </li></ul></ul></ul><ul><ul><ul><li>Focus on satisfying and owning a segment or a niche - not the whole market, look for unoccupied niches </li></ul></ul></ul><ul><ul><ul><li>Stay in constant contact with customers and markets - moving targets </li></ul></ul></ul><ul><ul><li>Timing - which segments in what order with what entry timing </li></ul></ul><ul><ul><ul><li>Strategic - enter early to establish competitive position </li></ul></ul></ul><ul><ul><ul><li>Play to strengths - concentrate strength at point of competitor’s weakness </li></ul></ul></ul><ul><ul><ul><li>Use element of surprise - don’t alert competitors to your moves </li></ul></ul></ul><ul><ul><ul><li>Introduce fewer products with higher likelihood of success </li></ul></ul></ul><ul><ul><ul><li>Divide and conquer segments - one by one , niche by niche , making constant improvements </li></ul></ul></ul>
  4. 4. Differentiating/Positioning <ul><li>Differentiation - Key to Profitability </li></ul><ul><ul><li>No other strategic decision has larger profit impact than superior differentiation </li></ul></ul><ul><ul><li>Has to register to customer that you are </li></ul></ul><ul><ul><ul><li>Better, faster, newer, more cost-effective than competition </li></ul></ul></ul><ul><ul><ul><li>Me-too products/services don’t capture share of mind, poor ROI </li></ul></ul></ul><ul><ul><li>Must develop meaningful differences - that matter to customer </li></ul></ul><ul><ul><ul><li>Give customers what they want - when they want it </li></ul></ul></ul><ul><ul><ul><li>Focus on one or two differentiators to be clearly superior </li></ul></ul></ul><ul><ul><ul><ul><li>Build upon them and sustain them over time </li></ul></ul></ul></ul><ul><ul><ul><li>Be first to market with them </li></ul></ul></ul><ul><li>Positioning - designing and communicating your distinct personality in the marketplace </li></ul><ul><ul><ul><li>Positioning is what you do to the mind of the customer </li></ul></ul></ul><ul><ul><ul><ul><li>Volvo - safety, IBM - service, BMW - performance </li></ul></ul></ul></ul><ul><ul><ul><ul><li>SA - Leading the Way in the Information Age </li></ul></ul></ul></ul><ul><ul><ul><li>Customers need to clearly describe your position with great consistency </li></ul></ul></ul><ul><ul><li>Needs to be rooted in understanding of how Target market: </li></ul></ul><ul><ul><ul><li>Defines value and makes choices among products and competitors </li></ul></ul></ul>
  5. 5. Options to Differentiate <ul><ul><li>Speed - React quickly. Capture the leadership position by being first to market. </li></ul></ul><ul><ul><ul><li>Get it to customer faster - Perform series of programs and processes simultaneously </li></ul></ul></ul><ul><ul><li>Reliability - Earn customer loyalty. Deliver products and services of consistent quality. </li></ul></ul><ul><ul><ul><li>Give the customer what they want, the way they want it, when they need it. </li></ul></ul></ul><ul><ul><ul><li>Do what you say you are going to do. Do it consistently. If something happens - don’t make it the customer’s problem. </li></ul></ul></ul><ul><ul><li>Service - Satisfy the customer - meet their needs for service. </li></ul></ul><ul><ul><ul><li>Augment the product - can achieve premium price for commodity product. Key to competing where there is product parity. </li></ul></ul></ul><ul><ul><ul><li>Driving down level of dissatisfied customers also improves level on satisfied ones </li></ul></ul></ul><ul><ul><li>Technology - Innovate. Find new applications for emerging technologies and identify customer value. </li></ul></ul><ul><ul><ul><li>Bigger, faster, cheaper, new approach, disruptive </li></ul></ul></ul>
  6. 6. Options to Differentiate <ul><ul><li>Relationships - Nurture them. Everyone in the organization must be market-driven. </li></ul></ul><ul><ul><ul><li>Devote more effort on keeping profitable customers </li></ul></ul></ul><ul><ul><ul><ul><li>Cost much more to get new one than keep old one - up to five times more </li></ul></ul></ul></ul><ul><ul><ul><li>Not good enough to have the most technologically advanced product, provide good service - when everyone else can </li></ul></ul></ul><ul><ul><ul><li>Objective - Keep customers you have and maximize lifetime value </li></ul></ul></ul><ul><ul><ul><ul><li>Focus on delighting the customer so they are not interested in leaving </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Fix the problems - highest leverage area </li></ul></ul></ul></ul><ul><ul><li>Design - Perception is everything. Design the look and feel of products to standout in marketplace. </li></ul></ul><ul><ul><ul><li>User -friendly - to start-up, to use, repair </li></ul></ul></ul><ul><ul><ul><li>Deliver on dimensions important to customer </li></ul></ul></ul><ul><ul><li>Features - know what attributes customers value, will pay for and focus here. </li></ul></ul><ul><ul><li>Personality - define yourself. Create distinct image. </li></ul></ul><ul><ul><ul><li>Achieve brand image for positioning and corporate personality that represents set of values customers are interested in </li></ul></ul></ul>
  7. 7. Innovation <ul><ul><li>Gain innovative advantage - shorter innovation cycles capture new opportunities: SPEED KILLS </li></ul></ul><ul><ul><ul><li>Build relationships with major directional customers </li></ul></ul></ul><ul><ul><ul><li>Anticipate customer needs given changes in technology and lead them in development of information management solutions </li></ul></ul></ul><ul><ul><ul><ul><li>Keep abreast of emerging, and potentially disruptive technologies </li></ul></ul></ul></ul><ul><ul><ul><li>Improve product and process innovation capabilities that support concept development and overall performance and cost enhancements </li></ul></ul></ul><ul><ul><ul><ul><li>Leverage capabilities with internal development group, suppliers, customers, associations, universities and partners </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Target design-to-prototype cycle time reduction of 25%+ </li></ul></ul></ul></ul><ul><ul><li>Define and Achieve Leadership with Directional Customers </li></ul></ul><ul><ul><ul><li>Establish strategy for each Directional Customer </li></ul></ul></ul><ul><ul><ul><ul><li>Strategy defines needed products, services, marketing and selling strategies and efforts to achieve operational excellence in the eyes of this customer </li></ul></ul></ul></ul><ul><ul><ul><li>If satisfy the “most difficult” customers - this will pull organization to higher level for rest of customer base </li></ul></ul></ul>
  8. 8. Top and Bottom Line Enhancements <ul><li>Ways Sales and Marketing can boost sales and profits </li></ul><ul><ul><li>Identify market trends to access accurately the future profit potential of a business </li></ul></ul><ul><ul><ul><li>Analytical scenario of future market conditions </li></ul></ul></ul><ul><ul><li>Develop business strategy, marketing strategy and plan that </li></ul></ul><ul><ul><ul><li>Creates strategic leverage and builds upon strengths/core competencies of the firm </li></ul></ul></ul><ul><ul><ul><li>Identifies new competencies needed to achieve/sustain leadership </li></ul></ul></ul><ul><ul><ul><li>Utilizes customer profiling, segmentation, and target marketing to </li></ul></ul></ul><ul><ul><ul><ul><li>Grow current customer base and market segments </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Identify and build profitable new market segments and niches </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Better match of product/service bundle to customer needs </li></ul></ul></ul></ul><ul><ul><ul><li>Achieves a differentiated market position - competitive advantage in product/service offering, way you do business with customer </li></ul></ul></ul><ul><ul><ul><ul><li>Helps grow their business and impact their bottom line </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Provides higher value to reduce price competition </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Positions you as the best in category in the mind of the customer </li></ul></ul></ul></ul>
  9. 9. Top and Bottom Line Enhancements <ul><li>Identify new product/service capability to add to product portfolio </li></ul><ul><ul><li>Serve current customers - reduce cost of sales </li></ul></ul><ul><ul><li>Serve new customers </li></ul></ul><ul><ul><li>Improve margins </li></ul></ul><ul><li>Identify and develop new channels to attract more customers and better serve them </li></ul><ul><ul><li>E-commerce </li></ul></ul><ul><li>Determine profitability of specific </li></ul><ul><ul><li>Products/Services, Sales territories, Customer groups, Accounts within them, Trade channels or channels to market, Order sizes </li></ul></ul><ul><ul><li>Fully assign expenses associated with serving those accounts </li></ul></ul><ul><ul><li>Understand which contribute how much to your profit </li></ul></ul><ul><li>Eliminate “losers” </li></ul><ul><ul><li>Prune unprofitable product/services and customers </li></ul></ul>
  10. 10. Top and Bottom Line Enhancements <ul><li>Increase profits by spreading Sales and Marketing costs over larger sales volume </li></ul><ul><li>Achieve differentiated product/service offering to make selling efforts easier and less expensive </li></ul><ul><ul><li>Develop effective support programs - Customer Service and E-commerce </li></ul></ul><ul><ul><li>Support implementation of new sales, marketing and customer service approaches - Customer Relationship Management </li></ul></ul><ul><ul><ul><li>Large Account Management, Strategic and Conceptual Selling </li></ul></ul></ul><ul><ul><ul><li>Sales and Marketing Automation </li></ul></ul></ul><ul><li>Sales and Marketing activity profitability analysis - </li></ul><ul><ul><li>Improve productivity, spending efficiency and impact of marketing tools - Sales Force, Advertising, Sales Promotion </li></ul></ul><ul><li>Sales and Marketing efficiency studies - how can sales and marketing activities be carried out more efficiently - Sales & Marketing Audit </li></ul><ul><ul><li>Critically examine overall marketing and sales plan - objectives, policies, strategies and programs in light of changing market conditions </li></ul></ul>
  11. 11. Marketing Objectives and Tactics <ul><li>Goal - Customer retention , loyalty , share and value maximization </li></ul><ul><li>Customer Targeting and Target Marketing </li></ul><ul><ul><li>Work to build relationships with most profitable customers </li></ul></ul><ul><ul><li>Market concentration - focus on customers where can best improve their profits - reduce their costs, improve their sales or productivity </li></ul></ul><ul><ul><ul><li>Make your joint growth a partnership </li></ul></ul></ul><ul><ul><li>Specific strategy for each market and specific offer for each customer </li></ul></ul><ul><ul><li>Win the battle for Customer Loyalty - Commit resources to win </li></ul></ul><ul><ul><ul><li>Set “extremely high” standards and make customer satisfaction everybody’s business - everyone is responsible and its “my problem” </li></ul></ul></ul><ul><ul><ul><li>Be obsessive in knowing, even better than the customer, what he wants </li></ul></ul></ul><ul><ul><ul><ul><li>Enables you to anticipate product/service needs </li></ul></ul></ul></ul><ul><ul><ul><li>Design products/services to maximize customer satisfaction -delight them </li></ul></ul></ul><ul><ul><ul><ul><li>Focus on demands of most demanding customers </li></ul></ul></ul></ul><ul><ul><ul><li>Create and manage expectations - manage performance to achieve it </li></ul></ul></ul><ul><li>Strategic Alliances/Acquisitions - take the offensive, do it faster </li></ul><ul><ul><li>Provide complete package desired by customer </li></ul></ul><ul><ul><ul><li>Compete effectively against “large” competitors </li></ul></ul></ul><ul><ul><li>Use alliance to position for future acquisition - eliminate fears/barriers </li></ul></ul>
  12. 12. Plan of Attack - Top/Bottom Line Growth <ul><li>Prepare the Marketing and Sales programs </li></ul><ul><ul><li>Identify market trends to access future profit potential of a business </li></ul></ul><ul><ul><ul><li>Scenario of future market conditions - potential areas of change, growth </li></ul></ul></ul><ul><ul><li>Perform Customer Profiling, Need & Competitive Assessment </li></ul></ul><ul><ul><ul><li>Market and Customer Segmentation opportunities, Directional Customers </li></ul></ul></ul><ul><ul><ul><li>Identify New Opportunities/Needed Competencies to achieve/sustain competitive advantage, leadership position </li></ul></ul></ul><ul><ul><ul><li>Understand how to help grow customer sales and profits, meet their needs </li></ul></ul></ul><ul><ul><li>Profitability Analysis - products/services, territories, customers, accounts within them - what/who contribute how much to profits </li></ul></ul><ul><ul><li>Identify strategy that creates strategic leverage and builds upon the strengths/core competencies </li></ul></ul><ul><ul><li>Create Product/Service/Technology Roadmap </li></ul></ul><ul><ul><ul><li>Investigate potential of disruptive technologies, products, approaches </li></ul></ul></ul><ul><ul><li>Define Differentiation and Positioning strategy that provides </li></ul></ul><ul><ul><ul><li>Competitive advantage in product/service offering, way do business </li></ul></ul></ul><ul><ul><ul><li>Best in category position in mind of customer </li></ul></ul></ul><ul><ul><ul><li>Reduction in selling efforts, expense and emphasis on price </li></ul></ul></ul><ul><ul><li>Establish products/service portfolio, pricing, promotion and sales approach to serve market and customer targets, improve profitability </li></ul></ul>
  13. 13. Plan of Attack - Top/Bottom Line Growth <ul><li>Communicate/Execute the Marketing and Sales programs </li></ul><ul><ul><li>Grow and maintain current customer base </li></ul></ul><ul><ul><ul><li>Develop high-level relationships with key customers </li></ul></ul></ul><ul><ul><ul><li>Move away from unprofitable products/services, segments and customers </li></ul></ul></ul><ul><ul><li>Identify and build position within profitable new market segments and niches </li></ul></ul><ul><ul><li>Pursue new product/service and market opportunities , customers to diversify sales base </li></ul></ul><ul><ul><ul><li>Become customer and region neutral </li></ul></ul></ul><ul><ul><li>Investigate and Pursue Strategic Partnerships/Acquisitions </li></ul></ul><ul><ul><li>Improve sales force and promotion effectiveness , productivity </li></ul></ul><ul><ul><ul><li>CRM/S&M automation, SS, LAM </li></ul></ul></ul><ul><ul><ul><li>Advertising, Sales Promotion </li></ul></ul></ul><ul><ul><li>Develop effective sales support programs to attract more customers, better serve them </li></ul></ul><ul><ul><ul><li>Customer Service </li></ul></ul></ul><ul><ul><ul><li>Define and execute e-Commerce strategy </li></ul></ul></ul><ul><ul><li>Build an energetic and achievement-oriented Sales and Marketing team </li></ul></ul>
  14. 14. <ul><li>Define need for increasing product/service coverage, presence to the sale and hit rate to grow market share </li></ul><ul><li>Develop and implement tailored, winnable strategies based upon: </li></ul><ul><ul><li>Growing specific customer satisfaction, sales and profitability </li></ul></ul><ul><ul><li>Achieving meaningful differentiation/positioning in mind of Customer </li></ul></ul><ul><ul><ul><li>When Airframe Manufacturers think of information management solutions - they think of SA </li></ul></ul></ul><ul><ul><ul><li>Will pursue 1-2 differentiators and be clearly superior - technology and reliability, could possibly tie in design or features and speed </li></ul></ul></ul><ul><ul><li>Disrupting the “status quo” and creating a continuous series of temporary advantages </li></ul></ul><ul><ul><ul><li>Speed, Surprise, Change the Rules, Attack on more than one front </li></ul></ul></ul><ul><ul><li>Identification of feasible strategies </li></ul></ul><ul><ul><ul><li>Understanding and utilizing changes in the market and technology </li></ul></ul></ul><ul><ul><ul><li>Leveraging strength and concentrating this strength in attacking weaknesses of major competitors </li></ul></ul></ul><ul><ul><ul><ul><li>Brand image, portfolio of products and technologies, service/support organization </li></ul></ul></ul></ul><ul><ul><ul><li>Understanding differences in purchasing behavior by individuals and regions </li></ul></ul></ul><ul><ul><li>Implementing strategy in sequence to concentrate resources and win </li></ul></ul>Targeted Sales and Marketing Strategy
  15. 15. Sales Strategy <ul><li>Focus entire Company on the customer - to help them achieve their strategy and bottom line </li></ul><ul><ul><li>Focus is on development of customer relationship - not the deal </li></ul></ul><ul><ul><li>Sales works to solve customer’s problems - any and all of them </li></ul></ul><ul><ul><li>Everyone works to secure account revenue/maximize customer service </li></ul></ul><ul><li>Objectives </li></ul><ul><ul><li>Satisfied Customers, Long-term Relationships, Repeat Business, Referrals </li></ul></ul><ul><li>Deliver Value to and Make Customers More Profitable and Successful </li></ul><ul><ul><li>Differentiate on the quality of ideas and tangible bottom-line impact on customer’s business </li></ul></ul><ul><ul><ul><li>Need to understand customer’s industry/business as well as application of products and services </li></ul></ul></ul><ul><ul><ul><li>Can impact Customer Speed and Productivity/Efficiency - receipt of inbound shipments, manufacturing process, shipment, marketing & sale and service of finished goods </li></ul></ul></ul><ul><ul><ul><li>Can build value proposition around business know-how, supply chain optimization, operation support, ease of doing business, organizational strength as well as product/service design </li></ul></ul></ul>
  16. 16. Improving Sales Effectiveness <ul><li>Account Maximization Strategies - 6 ways to win </li></ul><ul><ul><li>Know Customer’s business and market in which they operate </li></ul></ul><ul><ul><ul><li>Position to make them more successful </li></ul></ul></ul><ul><ul><li>Become part of the organization </li></ul></ul><ul><ul><ul><li>Integrate into operations of the customer (have our own badge) </li></ul></ul></ul><ul><ul><li>Become a Consultant </li></ul></ul><ul><ul><ul><li>Layer value onto product & service offering from delivering tangible, bottom-line impact </li></ul></ul></ul><ul><ul><ul><li>Demonstrate how products/services/ideas impact their business results </li></ul></ul></ul><ul><ul><li>Create good operational processes </li></ul></ul><ul><ul><ul><li>Easy to do business with - technical service, order placement, invoices, etc. </li></ul></ul></ul><ul><ul><li>Work account at all levels </li></ul></ul><ul><ul><ul><li>Within a function and across functions </li></ul></ul></ul><ul><ul><li>Leverage relationships </li></ul></ul><ul><ul><ul><li>Utilize success in one dept to others in company, other locations, subsidiaries, JV’s and outside the company (referrals) </li></ul></ul></ul>

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