Developing Global Capabilities
Dr. Elijah Ezendu
FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM,
P...
Requirements for Developing
Global Capabilities
Source: Elijah Ezendu, Global Trends in Business Development
Global Efficiency
Efficiency = Outputs
Inputs
Increase in efficiency can be achieved
by acting on one or both variables.
Cost Efficiency
This gives rise to the following:
Greater opportunity for promotional
responsibility
More product featur...
Sources of Cost Efficiency
Supply Costs
Experience
Economies of
Scale
Product/
Process Design
Cost
Efficiency
Drivers of Global Innovation
i. Increase in Complexity
ii. Customer-centricity
iii. Offshoring
iv. Emergence of Innovation...
Global Intelligence Imperative
This is underscored by extensive web of
inter-relationships connecting key
players, as well...
Responsiveness to
National Differences
Take advantage of local comparative
advantages to improve inputs.
Calibrate outpu...
Global Learning
Optimizing and harnessing learning
systems through processes and
practices that ensure proper
codification...
Distinctive Competencies,
Resources and Capabilities
ResourcesResources
Higher
Profits
Distinctive
Competencies
Capabiliti...
Strategy Model of a Multinational
Organizational
Structure:
Centralized
Decentralized
Management
Processes:
Coordination
C...
Industry Globalization Drivers
Cost Drivers
Good Logistics
ICT
Global Economies of Scale
Competitive Drivers Realizable Co...
Tools for Developing
Global Capabilities
 Value Chain Analysis
 Benchmarking
 Activity System Mapping
 Cost Management...
The Value Chain Concept
Source: M.E. Porter, Competitive Advantage, Creating and Sustaining Superior Performance
Value Chain
The value chain describes activities
that are within and around a firm
which contribute value towards the
crea...
Value Chain Analysis
 Identifies inefficient activities.
 Identifies distinctive roles of activities
 Identifies activi...
Value Network
Value network shows the inter-
organizational links and relationships
which are required to create a product...
A Simple Value Network
Organization's
Value Chain
Supplier
Value Chains
Channel
Value Chains
Customer
Value Chains
Identifying Capabilities Through
Value Network
Profit pool.
Fitting partner.
Activities that should be outsourced.
The...
Benchmarking
It’s the process of identifying, learning and
adapting exceptional practices and
processes with the intention...
Advantages of
Benchmarking
 Useful for identifying best practices.
 Aids in detection of performance gaps.
 Advances kn...
Benchmarking of
Capabilities
i. Historical
ii. Industry/Sector
iii. Best-in-Class
Feasible Questions During
Analysis
 Is this other organization better than we
are?
 Why are they better?
 By how much?
...
Activity System Mapping
i. Provides for consistency
ii. Identifies critical success factors
iii. Gives room for reinforcem...
Techniques for Cost
Management Analysis
 Activity Based Cost Analysis
 Lean Business Analysis
 Process Analysis
 Capac...
Network-Structure Analysis
This focuses on determination of the right
inter-firm network–structure that would
serve as str...
Skandia Concept of Intellectual Capital
Market Value
Financial Capital
value of all physical and monetary assets
Intellect...
Adam and Oleksak Concept of Intellectual Capital
Market Value
Intellectual CapitalFinancial Capital
Human
Capital
Structur...
Current Concept of Intellectual Capital
Market Value
Intellectual CapitalFinancial Capital
Human
Capital
Structural
Capita...
Intellectual Capital Analysis
This provides clear picture of a firm’s
intellectual structure which would
be useful in iden...
SWOT Analysis
This is used for identifying
opportunities and threats in the
business environment as well as
strengths and ...
Dr Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise
in Interim Management, ...
Thank You
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Developing Global Capabilities

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The Imperative of Capabilities Development in high profile wave of globalisation and attendant uncertainties in Business Development

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Developing Global Capabilities

  1. 1. Developing Global Capabilities Dr. Elijah Ezendu FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr
  2. 2. Requirements for Developing Global Capabilities Source: Elijah Ezendu, Global Trends in Business Development
  3. 3. Global Efficiency Efficiency = Outputs Inputs Increase in efficiency can be achieved by acting on one or both variables.
  4. 4. Cost Efficiency This gives rise to the following: Greater opportunity for promotional responsibility More product features without price increase Lower Prices
  5. 5. Sources of Cost Efficiency Supply Costs Experience Economies of Scale Product/ Process Design Cost Efficiency
  6. 6. Drivers of Global Innovation i. Increase in Complexity ii. Customer-centricity iii. Offshoring iv. Emergence of Innovation Networks v. Open Innovation
  7. 7. Global Intelligence Imperative This is underscored by extensive web of inter-relationships connecting key players, as well as the complexities of regionalization, continentalisation, and consumer sophistication.
  8. 8. Responsiveness to National Differences Take advantage of local comparative advantages to improve inputs. Calibrate output with due consideration to differences in tastes, preferences, and channels.
  9. 9. Global Learning Optimizing and harnessing learning systems through processes and practices that ensure proper codification and transfer of knowledge.
  10. 10. Distinctive Competencies, Resources and Capabilities ResourcesResources Higher Profits Distinctive Competencies Capabilities Differentia- tion Low Cost Value Creation Superior •Efficiency •Quality •Innovation •Customer Respon- siveness Source: Jeff Shay, International Business.
  11. 11. Strategy Model of a Multinational Organizational Structure: Centralized Decentralized Management Processes: Coordination Configuration Performance: Market share Profits Formalization: High Low Industry Globalization Drivers: Market Cost Government Competitive Strategy: Multidomestic Global International Transnational
  12. 12. Industry Globalization Drivers Cost Drivers Good Logistics ICT Global Economies of Scale Competitive Drivers Realizable Competitive Advantage Market Drivers Global Customers Global Channels Global Customer Needs & Wants Government Drivers Policies Regulations
  13. 13. Tools for Developing Global Capabilities  Value Chain Analysis  Benchmarking  Activity System Mapping  Cost Management Analysis  Network-Structure Analysis  Intellectual Capital Analysis  SWOT Analysis
  14. 14. The Value Chain Concept Source: M.E. Porter, Competitive Advantage, Creating and Sustaining Superior Performance
  15. 15. Value Chain The value chain describes activities that are within and around a firm which contribute value towards the creation of product or service.
  16. 16. Value Chain Analysis  Identifies inefficient activities.  Identifies distinctive roles of activities  Identifies activities that are value-adding to customers.  Provides room for ascertainment of cost/value of activities.
  17. 17. Value Network Value network shows the inter- organizational links and relationships which are required to create a product or service.
  18. 18. A Simple Value Network Organization's Value Chain Supplier Value Chains Channel Value Chains Customer Value Chains
  19. 19. Identifying Capabilities Through Value Network Profit pool. Fitting partner. Activities that should be outsourced. The most relevant activities.
  20. 20. Benchmarking It’s the process of identifying, learning and adapting exceptional practices and processes with the intention of enhancing an organization's performance.
  21. 21. Advantages of Benchmarking  Useful for identifying best practices.  Aids in detection of performance gaps.  Advances knowledge of competition.  Gives room and reasons for positive change.  Boosts managerial objectivity.  Facilitates discovery of drivers and enablers of top performance.  Provides a baseline for measuring improvement.  Encourages new ideas, innovation and creative thinking.  Aids initiation of effective budget process.
  22. 22. Benchmarking of Capabilities i. Historical ii. Industry/Sector iii. Best-in-Class
  23. 23. Feasible Questions During Analysis  Is this other organization better than we are?  Why are they better?  By how much?  What best practices are being used now or can be anticipated?  How can their practices be incorporated or adapted for use in our organization?
  24. 24. Activity System Mapping i. Provides for consistency ii. Identifies critical success factors iii. Gives room for reinforcement iv. Identifies resource-flow
  25. 25. Techniques for Cost Management Analysis  Activity Based Cost Analysis  Lean Business Analysis  Process Analysis  Capacity Analysis  Customer Value Preference Analysis  Target Cost Analysis  Product/Service Value Analysis
  26. 26. Network-Structure Analysis This focuses on determination of the right inter-firm network–structure that would serve as strategic fit for development of required capabilities, through simple and complex alliances as well as mergers and acquisition.
  27. 27. Skandia Concept of Intellectual Capital Market Value Financial Capital value of all physical and monetary assets Intellectual Capital Human Capital ‘thinking’ • competence (knowledge and skills) • attitude (motivation, behaviour, conduct) • intellectual agility (innovation, imitation, adaptation) Structural Capital ‘non-thinking’ Customer (Relationship) Capital customers, suppliers, shareholders, alliance partners, other stakeholders Organisational Capital • infrastructure • processes • culture Innovation Capital renewal and development value Process Capital Intellectual Property Intangible Assets Developed by Leif Edvinsson
  28. 28. Adam and Oleksak Concept of Intellectual Capital Market Value Intellectual CapitalFinancial Capital Human Capital Structural Capital Relationship Capital Business Model Management Employees Processes Intellectual Property Customers Brand Network
  29. 29. Current Concept of Intellectual Capital Market Value Intellectual CapitalFinancial Capital Human Capital Structural Capital Relationship Capital Spiritual Capital Management Employees Processes Intellectual Property Customers Brand Network Business Model
  30. 30. Intellectual Capital Analysis This provides clear picture of a firm’s intellectual structure which would be useful in identifying unexploited strengths and incontestable openings for global possibilities.
  31. 31. SWOT Analysis This is used for identifying opportunities and threats in the business environment as well as strengths and weaknesses within the firm.
  32. 32. Dr Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in Interim Management, Strategy, Competitive Intelligence, Transformation, Restructuring, Turnaround Management, Business Development, Marketing, Project & Cost Management, Leadership, HR, CSR, e- Business & Software Architecture. He had functioned as Founder, Initiative for Sustainable Business Equity; Chairman of Board, Charisma Broadcast Film Academy; Group Chief Operating Officer, Idova Group; CEO, Rubiini (UAE); Special Advisor, RTEAN; Director, MMNA Investments; Chair, Int’l Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Lead Consultant/ Partner, JK Michaels; Turnaround Project Director, Consolidated Business Holdings Limited; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Chief Advisor/ Partner, D & E; Vice Chairman of Board, Refined Shipping; Director of Programmes & Governing Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Country Manager (Nigeria) & Adjunct Faculty (MBA Programme), Regent Business School, South Africa; Adjunct Faculty (MBA Programme), Ladoke Akintola University of Technology; Editor-in-Chief, Cost Management Journal; Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business Administration and Fellow of Professional Institutes in North America, UK & Nigeria. He is Innovator of Corporate Investment Structure Based on Financials and Intangibles, for valuation highlighting intangible contributions of host communities and ecological environment: A model celebrated globally as remedy for unmitigated depreciation of ecological capital and developmental deprivation of host communities. He had served as Examiner to Professional Institutes and Universities. He had been a member of Guild of Soundtrack Producers of Nigeria. He's an author and extensively featured speaker.
  33. 33. Thank You

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