New 7 vision engineering

On Vision Engineering
Ziya G. Boyacigiller
This presentation was created and given by Ziya
Boyacigiller who was leading Angel Investor and a loved
mentor to many young entrepreneurs in Turkey. We have
shared it on the web for everyone’s benefit. It is free to
use but please cite Ziya Boyacigiller as the source when
you use any part of this presentation. For more about
Ziya Boyacigiller’s contributions to the start-up Ecosystem
of Turkey, please go to www.ziyaboyacigiller.com

Vision - Mission
In Practice
Ziya G. Boyacıgiller
Sabanci Universitesi
Yonetim Bilimleri Fakultesi

The Seven Domains of
Attractive Opportunities
Ziya G. Boyacigiller (c) 2005
EMBA 3
MODIFIED by ZGB, from “The New
Business Road Test”, by J. Mullins
MACROMICRO
MARKET DOMAIN INDUSTRY DOMAIN
VISIO
N
Note: Market is customers, industry is sellers…

Is the Market Attractive?
Assessment Metrics
 Number of customers in the market,
 Aggregate money spent by these customers on
the relevant goods and services,
 Number of units of relevant product or usage
occasions,
 How fast is the market growing (in the past and
future)
EMBA 4

HOW DO WE PICK OUR
“MARKET”?
Creating a Vision…
EMBA 5

EMBA 6
Vision…
… paints a mental picture of the
future.

EMBA 8
To Create a “Compelling* Vision” you need a
Picture of the Future
Vision is about going somewhere
• “Man on the moon”
• How Soviets ruled over the 1976 Olympics…
Where we are now
Vision Where we will be in the future
(* “compelling” means “you have to take action NOW” …)

EMBA 10
ML King speech…
paints a picture of the end-result
I have a dream that one day on the red hills of
Georgia the sons of former slaves and the sons
of former slave owners will be able to sit down
together at the table of brotherhood. ...I have a
dream that my four little children will one day
live in a nation where they will not be judged by
the color of their skin but by the -content of
their character. ...I have a dream that one day
the state of Alabama. ..will be transformed into
a situation where little black boys and girls will
be able to join hands with little white boys and
girls and walk together as sisters and
brothers. ...

EMBA 11
How to Activate
the Power of
Visualization
 Paint in words a detailed description of the end
result, a picture of the future.
 The power of picture works when you focus on
what you want to create not what you want to
get rid of.
 The power of picture works when you focus on
the end result, not the process to achieve it.
 Enhance the visual picture with five-senses, to
make it seem as real as you can

Ziya G. Boyacigiller © 2005
Vision versus Goals
 Vision provides continued guidance
(“leader in space exploration”)
 Goals are focused on specific
achievements (“man on the moon”)
 Goals, once achieved, prompt the
question: “What is next?”

Ziya G.
Boyacigiller ©
2005
Vision Defined:
Vision is knowing
who you are, where
you’re going, and
what will guide your
journey.

EMBA 14
Vision …
…defines what will happen in the
future, and
how you will fit into that picture.
Examples:
 Microsoft – Why Bill dropped out of school…
 Intel – Memories to microprocessors…

Smell
Changes
to
find
Opportunities

EMBA 17
Vision Engineering:
1. Identify “drivers of change” for the industry.
Economic, social/cultural, political, regulatory,
demographic, technological, natural trends that
will change how the industry functions. Which
of these “incoming waves” is strongest?
2. Analyze how these drivers of change will affect
every stage of the value chain for the industry.
Note the threats / opportunities.
3. Decide where you want to be.
4. What capabilities and competencies does your
company need to develop, what assets do you
have or should get - to exploit the
opportunities, dodge the threats, and ride the
waves of change.

EMBA 18
Trends Affecting PC
Industry – Early 1990s
 Economic
 Shift toward service and information economy
 Increased domestic and global competition
 Increased power of low labor-cost Asian countries
 …
 Political
 Globalization of world economies
 Further deregulation of telephone companies
 Legislation of trade barriers (e.g. Japanese tariffs)
 …
 Social
 Increased computer literacy and sophistication
 Need for reschooling and continuing education
 Development of computer stores
 …
 Technological
 Increasingly powerful chips
 Faster and cheaper peripherals
 Increased networking capabilities
 …

EMBA 19
Vision Engineering:
Economic, social, political, technological trends
that will change how the industry functions.
Which of these “incoming waves” is strongest?
waves of change.

EMBA 20
See Both Sides of a Crisis
THREAT
OPPORTUNITY
YING YANG

EMBA 21
U.S. Auto Industry Profit Pool
(Modified from HBR, May 1998, Orit Gadiesh and James L. Gilbert)
auto
manufacturing
new car
sales
used car sales
loans
leasing
insurance
gas
service/repair
aftermarket
parts
auto rental
gas
oil
100%
SHARE OF INDUSTRY REVENUE
OPERATINGMARGIN%
Profit = share$ x OM%

EMBA 22
How will the all-electric car
affect the value chain?
auto
manufacturing
new car
sales
used car sales
loans
leasing
insurance
gas
service/repair
aftermarket
parts
auto rental
gas
oil
100%
SHARE OF INDUSTRY REVENUE
OPERATINGMARGIN%

EMBA 23
Maxim’s Vision (1983)
1. World will be more and more digital in
the future.
2. Digital will need analog to exist.
3. Thus analog growth will be parallel to
microprocessor growth.
4. Maxim will capitalize on the analog.

EMBA 24
Vision Engineering:
waves of change.

EMBA 25
Maxim’s Vision (1983)
1. World will be more and more digital in
the future.
2. Digital will need analog to exist.
3. Thus analog growth will be parallel to
microprocessor growth.
4. Maxim will capitalize on the analog.

EMBA 26
1983
Maxim starts up
2000
Maxim sales $1B

EMBA 27
Maxim’s Value Growth

EMBA 28
Vision Engineering:
waves of change.

EMBA 29
When the
tide rises,
all the
boats rise
with it…
R I D I N G T H E W A V E

EMBA 30
Maxim’s Vision
Resources & Capacities Needed
(Why You?  Why can you get there…)
Analog expertise ( knowledge) is a scarce resource, which
will allow us to compete effectively ( monopolize).
We already have some of the best analog experts in the
world, and we can find and train more as we grow.
We can create a world class analog company.
We can use excess fabrication capacity available in the
industry for manufacturing, thus we can startup with low
capital investment.
We can get the initial investment from VCs.

EMBA 31
First, Vision  Next, Mission
 If you show the stakeholders
what your vision is, you will
make sure that they are
seeing the exciting “big
picture” as you do.
 Then, they will be excited about
the specific opportunity/threat
you want to pursue.

EMBA 34
Vision vs Mission
 Vision is about where you are going
 Mission is about how you will get there
Where we are now
Where we will be in the future
Mission  What we
do to get from here
to there

Vision is not enough; it must be
combined with venture. It is not
enough to stare up the steps, we
must step up the stairs.
EMBA 35
Vaclav Havel

EMBA 36
Tests of a good
Vision/Mission
Statement
 Imaginable: Describes the future
 Desirable: Benefits for followers
 Feasible: Realistic, attainable goals
 Focused: Shows what to do & not to do
 Flexible: General enough to allow for “individual initiative” and
“alternative response” when conditions change (situation or
information) – allows moving from Plan A to Plan B etc.
 Easy to communicate: Can be explained in less than
2 minutes (elevator-test)
From “Realizing Change CD, P.Kottler)

Copyright (c) Ziya G. Boyacigiller
2003, 2004
To Create Compelling Vision need:
Purpose
 Without purpose, visions are not compelling
enough…
 Purpose defines
 what business we are really in,
 what we are here for,
 why we exist
 Explain “Why we?”
 A good purpose should “serve a greater good”
(Merck)

2003, 2004
From www.Merck.com :
Merck & Co., Inc. is a leading research-driven
pharmaceutical products and services company. Merck
discovers, develops, manufactures and markets a broad
range of innovative products to improve human and
animal health, directly and through its joint ventures.
OUR MISSION
The mission of Merck is to provide society with superior
products and services by developing innovations and
solutions that improve the quality of life and satisfy
customer needs, and to provide employees with
meaningful work and advancement opportunities, and
investors with a superior rate of return.

2003, 2004
Summary of Purpose:
 Purpose is your organization’s reason for
existence – meaning to exist
 It answers the question “Why do you do it?”
rather than just explaining what you do.
 Great organizations have a deep and noble sense
of purpose – a significant purpose – that
inspires excitement and commitment. (stone
cutters story)

EMBA 40
Example:
Maxim’s Vision & Mission
 Vision:
World will be more and more digital in the future. Digital
will need analog to exist. Thus analog growth will be
parallel to microprocessor growth. Analog expertise
(knowledge) is a scarce resource, which will allow us to
compete effectively (monopolize*). We have some of the
best analog experts in the world, and we can find and
train more as we grow.
We will create a world-class analog company and use
innovation to make the world a better place for us all...
 Mission:
We add value to our customers’ products through our
analog definition, design, and manufacturing expertise.
(expertise = knowledge)
(*: At the time Maxim’s gross margin was > 70%…)
FUTURE
(WHERE)
PURPOSE 
(WHY)
HOW 

EMBA 41
Mission has two components
 Mission:
a.We add value to our customers’ products
Benefit for customers (and other stakeholders)
b.through our analog definition, design, and
manufacturing expertise.
How you create/deliver that benefit
 what you will do / will not do

IMPORTANT!
Write your mission
statement after
you have developed
your strategy…
Ziya G.
Boyacigiller (c)
2005 EMBA 42

EMBA 43
Why
do organizations
need to make
their mission
clear to
everyone?

EMBA 44
Vision, Purpose, & Mission
Result in:
 Everyone rows in the same direction.
 People have the power to make important decisions on their
own
 They take charge (proactive) rather than wait (passive or
reactive).
 They find-a-way (creativity) when faced with a problem
 Everyone assumes responsibility and accountability for their
own actions (company gets results)
 Everyone finds a place for themselves to fit in the larger whole
 Company becomes effective and efficient

2003, 2004
For Vision to become Reality:
 It is important:
 How it is created (process of creating it)
 How it is communicated (keep talking, stories)
 How it is lived (courage of commitment, take a
step, always focus on your vision)
As the leader of your company, your job is to
help articulate the vision, to champion the
vision, but not to “own” the vision. Everyone
in the company must own the vision. (Say
“Our vision is …” and NOT “My vision is…”

EMBA 46
Final Words…
Effort to define vision and mission is necessary to show
stakeholders if your business has a reason to exist
now and in the future; to be a
- compelling,
- viable,
- growing, and
- sustainable business.
If stakeholders won’t buy into this reason, they
will not agree to work with you!
They will say “I’m out!”

2003, 2004
Whatever you can do, or
dream you can, begin it.
Boldness has genius, power,
and magic in it.
- GOETHE

2003, 2004
A journey of
ten thousand miles,
starts with a
single step.
-CHINEESE PROVERB

2003, 2004
A journey of
ten thousand miles,
starts with a
vision.
-Ziya’s version of this CHINEESE PROVERB

He who risks and fails can
be forgiven. He who never
risks and never fails is a
failure in his whole being.
Paul Tillich
EMBA 50

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