Based on the information provided, here are the key points the professional services expert is making:- There are different positioning strategies for professional services firms based on the type of expertise, ideas or experience they provide and how they are organized to deliver projects. - Firms can position themselves as "brains" firms that provide cutting-edge ideas, "strong-idea" firms that deliver unique expertise on innovative projects, "gray-hair" firms that customize solutions based on experience, or "procedure" firms that focus on efficient execution of routine assignments.- Within each positioning, firms can be either focused more on the expertise/ideas ("brains", "strong-idea") or the reliable delivery of services ("strong-service
The document discusses professional services positioning frameworks proposed by David Maister. It describes six types of professional services firms based on the expertise and services they provide: 1) Brains firms focused on new ideas, 2) Strong-idea firms providing singular expertise on unique projects, 3) Gray-hair firms customizing ideas based on experience, 4) Strong-service firms delivering experience and reliability, 5) Procedure firms focused on quick, low-cost execution, and 6) Strong-delivery firms repeating routine solutions efficiently. It also distinguishes between practice-centered professionals focused on qualitative goals and business-centered professionals with a quantitative bottom-line focus.
Similar to Based on the information provided, here are the key points the professional services expert is making:- There are different positioning strategies for professional services firms based on the type of expertise, ideas or experience they provide and how they are organized to deliver projects. - Firms can position themselves as "brains" firms that provide cutting-edge ideas, "strong-idea" firms that deliver unique expertise on innovative projects, "gray-hair" firms that customize solutions based on experience, or "procedure" firms that focus on efficient execution of routine assignments.- Within each positioning, firms can be either focused more on the expertise/ideas ("brains", "strong-idea") or the reliable delivery of services ("strong-service
Similar to Based on the information provided, here are the key points the professional services expert is making:- There are different positioning strategies for professional services firms based on the type of expertise, ideas or experience they provide and how they are organized to deliver projects. - Firms can position themselves as "brains" firms that provide cutting-edge ideas, "strong-idea" firms that deliver unique expertise on innovative projects, "gray-hair" firms that customize solutions based on experience, or "procedure" firms that focus on efficient execution of routine assignments.- Within each positioning, firms can be either focused more on the expertise/ideas ("brains", "strong-idea") or the reliable delivery of services ("strong-service (20)
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Based on the information provided, here are the key points the professional services expert is making:- There are different positioning strategies for professional services firms based on the type of expertise, ideas or experience they provide and how they are organized to deliver projects. - Firms can position themselves as "brains" firms that provide cutting-edge ideas, "strong-idea" firms that deliver unique expertise on innovative projects, "gray-hair" firms that customize solutions based on experience, or "procedure" firms that focus on efficient execution of routine assignments.- Within each positioning, firms can be either focused more on the expertise/ideas ("brains", "strong-idea") or the reliable delivery of services ("strong-service
11. Revenues of the midsized German SI`s 1,8 Billion Euro.
- 27 % IT Consulting
-16 % standard software projects and systemintegration
- 14 % individual software development
- 7 % project management
- Maintenance, outsourcing and management-consulting played
a minor role
-BI, CRM, process-innovation and security are the top trends
-Their most important customer segments are:
- 32 % Banking and Insurance,
- 21 % Industrial
- 17 % Telcos
- 6 % Energy, Transportation and Logistic
20. Choosing a path to improve
competitive position
McDonalds initially
developed a niche in the
fast-food business
...
Differentiation
Cost leadership
…and then gained a cost
advantage through volume
… and subsequently rationalised
its process so as to improve
productivity while retaining its
differentiation
21. Choosing a path to improve
competitive position
The Japanese automobile
industry initially developed as
a low-cost, narrow-line,
average-quality competitor….
Differentiation
Cost leadership
…and subsequently
invested its cost advantage
into high quality, broader
lines and more versatility
22. Niche strategy
The Allied landing in Normandy was the largest amphibious invasion in history. Allied armies were greatly
outnumbered by the Axis, particularly during the first few days. The Axis armies, however, were spread
over thousands of miles of coastline. By concentrating the invasion on five small beaches, the Allies
developed local superiority. Before the Axis could focus sufficient force on the landing grounds, the Allies
had established a beachhead and had landed sufficient forces to defend it.
What can be
a beachhead
for you?
26. 26
Customer / market oriented SWOT Analysis
Strengths Weaknesses
Opportunities Threats
The New Rules:
Strengths and
Weaknesses must
be recognized by
customers
Opportunities and
Threats exists in
the environment,
not because of us
Matching
strategies
Conversion
strategies
Conversion
strategies
27. Resources and Capabilities
Resources:
• tangible and intangible assets of a firm
» tangible: factories, products intangible: reputation
• four general categories
(Financial, Physical, Human, and Organization
• used to conceive of and implement strategies
Capabilities:
• a subset of resources that enable a firm to
take full advantage of other resources
» marketing skill, cooperative relationships
28. 28
The VRIO Framework
If a firm has resources that are:
• valuable,
• rare, and
• costly to imitate, and…
• the firm is organized to exploit these resources,
then the firm can expect to enjoy a sustained
competitive advantage.
29. 29
The VRIO Framework
Valuable? Rare?
Costly to
Imitate?
Exploited by
Organization?
Competitive
Implications
No
Yes
Yes
Yes
Yes
Yes Yes Yes
No
No
No Disadvantage
Parity
Temporary
Advantage
Sustained
Advantage
Economic
Implications
Below
Normal
Normal
Above
Normal
Above
Normal
30. 30
International Application of the VRIO Framework
The International Context
Two Reasons for International Expansion:
1) to exploit current resource and capability
advantages in a new market
2) to develop new resources and capabilities in
a foreign market
31. 31
International Application of the VRIO Framework
The International Context
Critical Caveat:
• resources and capabilities that generate
an advantage in one market may or may
not generate an advantage in a new market
Firms should re-apply the VRIO framework
when entering new markets!!
33. Market / segment selection criteria
Business Strengths
Market/segment
attractiveness
- Size
- Growth
- Profitability
- Competitive intensity
- Product Range
- Product Efficacy
- Service Quality (Including distribution)
- Price
- Associated Services (e.g. Technical advice)
- Reputation / Image
High Low
Low
High
Maintain/
manage for
sustained
earnings
Invest /
Grow
Manage for
Cash /
Withdraw
Selectively
Invest /
Invest in
Capabilities
34. Programme guidelines suggested for different positioning
on the directional policy matrix
Invest selectively
in share
Differentiation - line
expansion
Aggressive - price for
share
Aggressive
marketing
Limited coverage
Tight - but not at expense
of entrepreneurship
Invest
Invest
Invest
Fund growth
Invest
Products
Market Share
Price
Distribution
Promotion
Cost Control
R & D
Production
Personnel
Investment
Working Capital
Opportunistic
development
Business Strengths
High Low
Low
High
Market/segment
attractiveness
36. Value Drivers –
Dimensions of Competence
Customer Intimacy
SUCCESS
PROSPERITY
Operational
Excellence
Product
Leadership
SURVIVAL
37. Value Drivers - Internal competence dimensions
(This tool is not specifically concerned with e-commerce, but
it is an essential starting point for later diagnostic tools)
Customer Intimacy
Targeting markets precisely and
tailoring products and service to
the needs of specific customer
groups, exceeding expectations
and building loyalty (e.g. Cable
and Wireless)
Operational Excellence
Enabling products and services to be obtained reliably, easily and cost-
effectively by customers, implying focus on business processes to outperform
others, delivering low costs and consistent customer satisfaction. (e.g. Dell,
Wal-Mart, Federal Express)
Product Leadership
Continuing product innovation which
meets customer needs. This implies not
only creativity in developing new products
and enhancing existing ones, but also
astute market knowledge to ensure they
sell (e.g. Johnson and Johnson, 3M)
1
2
3
4
5
6
7
8
9
10
10
9
8
7
6
5
4
3
2
1
1
2
3
4
5
6
7
8
9
10
Customer Intimacy
Product
LeadershipOperational
Excellence
Prosperity
Success
Survival
1. Score your company out of 10
on your current position against
each of these three dimensions
and join the lines up.
N.B.
• Score yourself 1-3 if you are
currently below the minimum
level required in your market
• Score your 4-6 if you are
currently as good as the
average in your sector
• Score yourself 7-10 if you
currently exceed the average
in your sector.
2. Score your company out of 10
on the position you would need
to attain in, say, 3 years time against
each of
their dimensions in order to
ensure your continuing
prosperity.
3. On a separate sheet, list some of the
main strategies you will need to
implement to achieve the desired
positions.
These will be useful for completing
the next diagnostic exercises.
38. What is the professional services Expert
saying?
Or
did we do our brainstorming well?
39. Professional Services Positioning
per David Maister et. al.
Brains (expertise) firms, which provide service to clients who wish to retain “the smartest kid on the
block”–at almost any cost. These firms give their clients new ideas.
Strong-idea (brains) firms, which are organized to deliver singular expertise or innovation on unique
projects. The project technology of strong-idea firms flexibly accommodates the nature of any assignment,
and often depends on one or a few outstanding experts or “stars” to provide the last word.
Gray-hair (experience) firms, which customize ideas, but rarely are positioned at the cutting edge. Clients
of these firms recognize that the problems they themselves face have probably been dealt with by other
companies; the client therefore seeks an organization that can offer know-how based on past experience.
Strong-service (gray-hair) firms, which are organized to deliver experience and reliability, especially on
complex assignments. Their project technology is frequently designed to provide comprehensive services
to clients who want to be closely involved in the process.
Procedure (execution) firms, which service clients who know that their problems can be handled by a
broad range of firms and who are seeking a professional firm that can give them a prompt start, quick
disposition and low cost.
Strong-delivery (procedure) firms, which are organized to provide highly efficient service on similar or
more-routine assignments, often to clients who seek more of a product than a service. The project
technology of a delivery firm is designed to repeat previous solutions over and over again with highly
reliable technical, cost and schedule compliance.
40. Professional Services Positioning
per David Maister et. al.
Practice-centered professionals, who see their calling as “a way of life, ”
typically have as their major goal the opportunity to serve others and produce
examples of the discipline they represent. Their bottom line is qualitative: How
do we feel about what we are doing? How did the job come out?
Business-centered professionals, who practice their calling as “a means of
livelihood,” more likely have as their personal objective a quantitative bottom
line, which is more focused on the tangible rewards of their efforts: How did we
do?