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Strategy by Ellis Pitt


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By Ellis Pitt
Wardell Armstrong

Published in: Technology, Business
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Strategy by Ellis Pitt

  1. 1. Some observations & predictions…
  2. 2. Governments & Policymakers• No coherent macro-economic policy• Ad hoc changes in micro-policy• A history of ‘sectors’ and ‘winners’• Little understanding of the role of the state• Short-term view• Laissez-faire approach to wealth creation
  3. 3. Priorities for the state…• Link the networks• A catalyst for action• A customer for innovation• Joined-up thinking between departments• Stronger price signals• Facilitate and subsidise investment• Courage and confidence required
  4. 4. Distribution Channels Customers & Trends changing faster than ever before, supplier-client relationships can be customers buy solutions not products, volatile and difficult to protect, more influenced by multiple sources, channels than ever, alliances are lifecycles shortening, expectations king, loyalty difficult to achieve increasing Competition Changes tosupply massively outstrips demand, the next threat cost-structures to your business may technology redefining costs,come from an unexpected source labour and materials costs declining, energy likely to increase or be volatile Legislation Economic & Political rarely happens overnight, tariffs and quotas dismantled, varies widely, can be fickle, protected markets become free- generally reactive for-all, volatile cost of money (capital movement, not trade)
  5. 5. Changes in UK interest rates 1980–201017 14.8 13.8 7.5 8.5 7.4 5.1 0.5
  6. 6. Reduced cost to the manufacturer Increased value to the customerEnhanced productivity of ; Value is added through ;People ServiceMachines EngineeringMaterials DesignSpace PerformanceSet-ups Inventory Lead-timesDowntime Scrap Quality & deliveryInspection Defects Ordering & developmentOver-production Purchasing Schedule adherenceQueuing Problem-solving Customer-supplier relationshipsMaterials handling Administration Higher quality, improved reliability Structures Systems Attitudes
  7. 7. Competitive Advantage
  8. 8. What business provides its customers Manufacturing Output Notes The cost of material, labour, overhead & other resourcesCost used to produce a product or service. The extent to which materials and operations conform toQuality specifications and customer expectations, and how tight or difficult the specifications and expectations are. The product’s or service’s features and the extent to whichPerformance the features or design permit the product or service to do things that other products and services cannot do.Delivery time & delivery The time between order-taking and delivery to thetime reliability customer. How often are orders late and how late are they when they are late ? The extent to which volumes of existing products orFlexibility services can be increased or decreased to respond quickly to the needs of customers. The ability to quickly introduce new products or services orInnovativeness make design changes to existing products.
  9. 9. Understand the Trade-Offs
  10. 10. Companies well-known for a particular outputCost Quality Performance Delivery Flexibility Innovativeness
  11. 11. • Energy efficiency in buildings• Large-scale farm yields• Food waste• Municipal water leakage 15 =• Urban densification• Iron and steel energy efficiency• Smallholder farm yields• Transport efficiency• Electric and hybrid vehicles• Land degradation• End-of-use steel efficiency 75%• Oil and coal recovery• Irrigation techniques• Road freight shift• Power-plant efficiency
  12. 12. Composition of business Guide investment and divestment decisions atGrowth portfolio portfolio level ; base decisions on resource trends Innovation and new products / Develop resource productivity products, services technologies and / or services to fill both needs of customers and company Build a better understanding of resource-related New markets opportunities in new market segments and geographies and develop strategies to capture them Improve revenue through increased share and / orInternal efficiency Green sales and marketing price premiums by stressing resource efficiencies in marketing messages Improve resource management and reduce Sustainable value-chains environmental impact across value-chain to reduce costs and add perceived value of products and services Reduce operating costs through improved internal Sustainable operations resource management e.g. carbon, energy, hazardous, waste and waterRisk management Operational risk management Manage risk of operational disruptions (caused by scarcity, climate change and community risks) Reputation management Reduce reputational risks and get credit for your actions (stakeholder management) Regulatory management Mitigate risks from pending legislation and capture opportunities from regulation