MANAGEMENT POLICY AND STRATEGY SESSION - XI

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© 2000 The McGraw
-
Hill Companies, Inc.

Irwin/McGraw
-
Hill

1

MANAGEMENT POLICY AND STRATEGY

SESSION
-

XI

Strategic Control, Continuous Improvement
and E
-
business


Prof. Sushil

Department of Management Studies

Indian Institute of Technology, Delhi

INDIA

Email: sushil@dms.iitd.ernet.in

© 2000 The McGraw
-
Hill Companies, Inc.

Irwin/McGraw
-
Hill

2

What is Strategic Control?

Tracks a strategy as it is implemented,
detects problems or changes in its
underlying premises, and makes
necessary adjustments.

© 2000 The McGraw
-
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Irwin/McGraw
-
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3

Questions Involved in Assessing a Strategy’s
Success

1
.

Are

we

moving

in

the

proper

direction?

Are

our

assumptions

about

major

trends

and

changes

correct?

Should

we

adjust

or

abort

the

strategy?

2
.

How

are

we

performing?

Are

objectives

and

schedules

being

met?

Are

costs,

revenues,

and

cash

flows

matching

projections?

Do

we

need

to

make

operational

changes?


© 2000 The McGraw
-
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Irwin/McGraw
-
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4

Four Types of Strategic Control

Time 1

Time 2

Time 3

Strategy formation

1. Strategic surveillance

2. Premise control

3. Special alert control

4. Implementation control

Strategy implementation

© 2000 The McGraw
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5

Definitions of Strategic Controls



Premise

Control

-

Designed

to

check

systematically

and

continuously

whether

premises

on

which

the

strategy

is

based

are

still

valid


Implementation

Control

-

Designed

to

assess

whether

the

overall

strategy

should

be

changed

in

light

of

the

results

associated

with

the

incremental

actions

that

implement

the

overall

strategy


Strategic

Surveillance

-

Designed

to

monitor

a

broad

range

of

events

inside

and

outside

the

firm

that

are

likely

to

affect

the

course

its

strategy


Special

Alert

Control

-

Thorough,

and

often

rapid,

reconsideration

of

the

firm’s

strategy

because

of

a

sudden,

unexpected

event

© 2000 The McGraw
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6

Characteristics of Strategic Controls

Low

High

Medium

Types of Strategic Control

Strategic
Surveillance

Implementatio
n Control

Premise
Control

Basic
Characteristics

Potential
threats and
opportunities

Low

Key strategic
thrusts and
milestones

High

Planning
premises and
projections

High

Objects of control

Degree of focusing

Data acquisition:


Formalization

Low

Medium

Low


Centralization

Yes

Seldom

Yes

Use with:


Environmental
factors

Yes

Seldom

Yes


Industry factors

Seldom

Yes

No


Strategy
-
specific
factors

Seldom

High

Special Alert
Control

Occurrence of
recognizable
but unlikely
events

High

High

Yes

Yes

Yes

Seldom

Yes

No


Company
-
specific factors

© 2000 The McGraw
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7

What are Operational Controls?

Systems that guide, monitor, & evaluate
progress in meeting short
-
term
objectives, providing post
-
action
evaluation and control over short
periods.

© 2000 The McGraw
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8

Establishing Effective Operational Control
Systems

1.

Set standards of
performance

2.

Measure actual
performance

3.

Identify deviations
from standards set

4.

Initiate corrective
action

Steps
involved in
post action
control
systems

© 2000 The McGraw
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9

Types of Operational Control Systems

Schedules

Budgets


Key success factors

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10

Types of Budgets

1.

Profit and loss budgets:

Monitor sales and
expense categories on a monthly or more
frequent basis

2.
Capital budgets:

Show timing of specific
expenditures for plant, equipment, machinery,
inventories, and other capital items

3.

Cash flow budgets:

Forecast receipt and
disbursement of cash during the budget period

© 2000 The McGraw
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11

Key Success Factors at IBM’s Lotus Notes
Division

Key Success
Factor

1.

Product
quality

2.

Customer
service

Measurable Performance Indicator

a.

Performance data versus specification

b.

Percentage of product returns

c.

Number of customer complaints

a.

Delivery cycle in days

b.

Percentage of orders shipped complete

c.

Field service delays

© 2000 The McGraw
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12

Key Success Factors at IBM’s Lotus Notes
Division


Contd….

Key Success
Factor

3.

Employee
morale

4.

Competition

Measurable Performance Indicator

a.

Trends in employee attitude survey

b.
Absenteeism versus plan

c.

Employee turnover trends

a.

Number of firms competing directly

b.

Number of new products introduced

c.

Percentage of bids awarded versus
standard

© 2000 The McGraw
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13

EXAMPLES OF STRATEGIC CONTROL

IMPLEMENTATION

CONTROL

AT

DAYS

INN


When

Days

Inn

pioneered

the

budget

segment

of

the

lodging

industry,

its

strategy

placed

primary

emphasis

on

company
-
owned

facilities

and

it

insisted

on

maintaining

a

roughly

3
-
to
-
1

company

owned/franchise

ratio
.

This

ratio

ensured

the

parent

company’s

total

control

over

standards,

rates,

and

so

forth
.



As

other

firms

moved

into

the

budget

segment
.

Days

Inn

saw

the

need

to

expand

rapidly

throughout

the

United

States

and,

therefore,

reversed

its

conservative

franchise

posture
.

This

reversal

would

rapidly

accelerate

its

ability

to

open

new

locations
.

Longtime

executive,

concerned

about

potential

loss

of

control

over

local

standards,

instituted

implementation

controls

requiring

both

franchise

evaluation

and

annual

milestone

reviews
.

Two

years

into

the

program
.

Days

Inn

executives

were

convinced

that

a

high

franchise
-
to
-
company

ratio

was

manageable,

and

so

they

accelerated

the

growth

of

franchising

by

doubling

the

franchise

sales

department
.

© 2000 The McGraw
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14

EXAMPLES OF STRATEGIC CONTROL







Contd...

STRATEGIC

SURVELLIANCE

AT

CITICORP



Citicorp

has

been

pursuing

an

aggressive

product

development

strategy

intended

to

achieve

an

annual

earnings

growth

15

per

cent

while

it

becomes

an

institution

capable

of

supplying

clients

with

any

kind

of

financial

service

anywhere

in

the

world
.

A

major

obstacle

to

the

achievement

of

this

earnings

growth

is

Citicorp’s

exposure

to

default

because

of

its

extensive

earlier

loans

to

troubled

Third

World

countries
.

Citicorp

is

sensitive

to

the

wide

variety

of

predictions

about

impending

Third

World

defaults
.

© 2000 The McGraw
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15

EXAMPLES OF STRATEGIC CONTROL







Contd...



Citicorp’s

long
-
range

plan

assumes

an

annual

10

per

cent

default

on

its

Third

World

loans

over

any

five
-
year

period
.

Yet

it

maintains

active

strategic

surveillance

control

by

having

each

of

its

international

branches

monitor

daily

announcements

from

key

governments

and

from

inside

contacts

for

signs

of

changes

in

a

host

country’s

financial

environment
.

When

that

surveillance

detects

a

potential

problem,

management

attempts

to

adjust

Citicorp’s

posture
.

For

example,

when

Peru’s

former

president,

Alan

Garcia,

stated

that

his

country

would

not

pay

interest

on

its

debt

as

scheduled
.

Citicorp

raised

its

annual

default

charge

to

20

per

cent

of

its

$

100

million

Peruvian

exposure
.


© 2000 The McGraw
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16

EXAMPLES OF STRATEGIC CONTROL







Contd...


SPECIAL

ALTERT

CONTROL

AT

UNITED

AIRLINES


The

sudden

impact

of

an

airline

crash

can

be

devastating

to

a

major

airline
.

United

Airlines

has

made

elaborate

preparations

to

deal

with

this

contingency
.

Its

executive

vice

president,

James

M
.

Guyette,

heads

a

crisis

team

that

is

permanently

prepared

do

respond
.

Members

of

the

team

carry

beepers

and

are

always

on

call
.

If

United’s

Chicago

headquarters

receives

word

that

a

plane

has

crashed,

for

example,

they

can

be

in

a

“war

room”

within

an

hour

to

direct

the

response
.

Beds

are

set

up

nearby

so

team

members

can

catch

a

few

winks
;

while

they

sleep,

alternates

take

their

places
.



Members

of

the

team

have

been

carefully

screened

through

simulated

crisis

drills
.

“The

point

is

to

weed

out

those

who

don’t

hold

up

well

under

stress,”

says

Guyette
.

Although

the

team

was

established

to

handle

flight

disasters,

it

has

since

assumed

an

expanded

role
.

The

crisis

team

was

activated

when

American

Airlines

launched

a

fare

war
.

And

according

to

Guyette,

“We’re

brainstorming

about

how

we

would

be

affected

by

everything

from

a

competitor

who

had

a

serious

problem

to

a

crisis

involving

a

hijacking

or

taking

a

United

employee

hostage
.


© 2000 The McGraw
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Irwin/McGraw
-
Hill

17

KMART GETS SOME BAD NEWS BY BENCHMARKING
INDUSTY SUCCESS FACTOS AGAINST A KEY RIVAL
-

1995

Key Success Factor


Kmart



Wal
-
Mart

to Benchmark

Core customer


Over 55; more than

Under 44K, $ 40 income





$20 k income and no

and kids at home





kids at home

Sales/square foot

$ 185



$ 379

Shopper visits/year

15 times per year

32 times per year

Loyal to the chain

19 per cent of Kmart

46 per cent of Wal
-



customers


Mart customers

Location



36 per cent of


49 per cent of Wal





Americans find their

Mart customers drive





newest Kmart


past a Kmart to go to





inconvenient compared

Wal
-
Mart





to other stores

© 2000 The McGraw
-
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Irwin/McGraw
-
Hill

18

Monitoring and Evaluating Performance
Deviations

Current
Performa
nce

Current
Deviation

Forecast
Performa
nce at
This
Time

Objective
,
Assumpti
on, or
Budget

12%

40%

+3
(ahead)

0%

15%

40%

10%

39%

2.7 days

+0.5
(ahead)

3.2 days

2.5 days

2.1

2.1%

-
0.6
(behind)

-
0.1%
(behind)

2.7

2.0%

3.2

1.0%

Key Success
Factors

Cost control:
Ratio of indirect
overhead cost to
direct field and
labor costs

Gross profit

Customer
service:
Installation cycle
in days

Ratio of service
to sales
personnel

Product quality:
Percentage of
products returned

Analysis

Are we moving too fast, or is
there more unnecessary
overhead than was originally
thought?

Can this progress be
maintained?

Why are we behind here?
How can we maintain the
installation
-
cycle progress?

Why are we behind here?
What are the ramifications
for other operations?

© 2000 The McGraw
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Irwin/McGraw
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19

Monitoring and Evaluating Performance
Deviations (concluded)

Current
Performance

Current
Deviation

Forecast
Performance
at This Time

Objective,
Assumption,
or Budget

80%

$12,10
0

-
12%
(behind)

+$600
(ahead)

92%

$11,50
0

100%

$12,50
0

5

+2
product
s
(ahead)

3

6


3.0%

15%

6


(on
target)

-
8%
(behind)

-
3
(behind)


3.0%

10%

3


2.5%

5%

6

Key Success
Factors

Product
performance
versus
specification

Marketing:
Monthly sales per
employee

Expansion of
product line

Employee morale:


Absenteeism rate


Turnover rate

Competition: New
product
introductions
(average number)

Analysis

Why are we behind here?

Good progress. Is it creating
any problems to support?

Are the products ready? Are
the perfect standards met?

Looks like a problem! Why
are we so far behind?

Did we underestimate timing?
What are the implications for
our basic assumptions?

© 2000 The McGraw
-
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Irwin/McGraw
-
Hill

20

The Quality Imperative: Concepts Related to
TQM



Viewed

as

a

new

organizational

culture

and

way

of

thinking


Foundations

of

TQM


Intense

focus

on

customer

satisfaction


Accurate

measurement

of

every

critical

variable

in

a

business’s

operation


Continuous

improvement

of

products,

services,

and

processes


Work

relationships

based

on

trust

and

teamwork

© 2000 The McGraw
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Irwin/McGraw
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21

Key Elements of Implementing TQM

1.

Define quality and
customer value

2.

Develop a customer
orientation

3.

Focus on company’s
business processes

4.

Develop customer and
supplier partnerships

5.

Take a preventive
approach

6.

Adopt an error
-
free
attitude

7.

Get the facts first

8.

Encourage all levels of
employees to participate

9.

Create an atmosphere of
total involvement

10.

Strive for continuous
improvement

© 2000 The McGraw
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22

External
suppliers

Internal
suppliers
(functions)






Seeking:

Quality

Efficiency

Responsiveness

External
(ultimate)
customer

Other
internal
customer
s
(activities)

Outputs


Function

(like production)


Outputs

The Value Chain Approach to Developing

a Customer Orientation

© 2000 The McGraw
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23

Examples: Ways to Enhance Customer Value

Efficiency

Quality

Responsiveness

Marketing

Operations

R&D

Targets advertising
campaign at
customers, using
cost
-
effective
medium

Minimizes scrap and
rework through high
-
production yield

Uses computers to
test feasibility of
idea before going to
more expensive full
-
scale prototype

Provides accurate
assessment of
customer’s product
preferences to R&D

Consistently
produces goods
matching
engineering design

Designs products
that combine
customer demand
and production
capabilities

Quickly uncovers
and reacts to
changing market
trends

Quickly adapts to
latest demands with
production flexibility

Carries out parallel
product/process
designs to speed up
overall innovation

© 2000 The McGraw
-
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24

Examples: Ways to Enhance Customer Value








Contd...

Efficiency

Quality

Responsiveness

Accounti
ng

Simplifies and
computerizes to
decrease cost of
gathering
information

Provides
information that
managers in
other functions
need to make
decisions

Provides information
in “real time” (as
events described
are still happening)

Purchasin
g

Given required
vendor quality,
negotiates prices
to provide good
value

Selects vendors
for their ability to
join in an
effective
“partnership”

Schedules inbound
deliveries
efficiently, avoiding
both extensive
inventories and
stock
-
outs

Personnel

Minimizes
employee turnover
reducing hiring and
training expenses

Trains work force
to perform
required tasks

In response to
strong growth in
sales, finds large
numbers of
employees and
quickly teaches
needed skills

© 2000 The McGraw
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25

QUALITY IMPROVEMENT PROCESS

Step

1. Select Improvement Opportunity

2. Analyze current situation

3. Identify root causes

4. Select and plan solution


DO

5. Implement pilot solution

Check

6. Monitor results and evaluate solution

ACT

7. Standardize

8. Recycle

Phase

PLAN

© 2000 The McGraw
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26

SELECT IMPROVEMENT OPPORTUNITY



Generate

list

of

opportunities/problems


Select

important

opportunity

based

on

criteria


Redefine

team


Write

problem/opportunity

statement


Summarize

project/define

road

map


Management

review

© 2000 The McGraw
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27

ANALYZE CURRENT SITUATION


Define

process

to

be

improved


Identify

process

output


Identify

customer/supplier

relationships


Identify

customer

needs

and

expectations


Define

performance

indicators


Define

supplier

specifications


Flow

chart

the

process


Collect

baseline

data


Identify

performance

gaps


Validate

problem/opportunity

statement


Management

Review

© 2000 The McGraw
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28

IDENTIFY ROOT CAUSES



Analyze

cause

and

effect

relationships


Identify

potential

root

causes


Collect

data


Verify

cause

and

effect

and

root

causes


Validate/problem/opportunity

statement


Management

Review



© 2000 The McGraw
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29

SELECT AND PLAN SOLUTION


Generate list of potential solution


Select best one based on criteria


Define revised process


Revise process output


Identify expected outcomes


Revise supplier specifications


Modify flow charts


Develop implementation plan


Identify sequence/timing


Define resources/controls


Define responsibility


Identify pilot activities


Identify contigency actions


Management Review

© 2000 The McGraw
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30

IMPLEMENT PILOT SOLUTION

Monitor Results and Evaluate Solution


Monitor results relative to
-


Targets and goals


Process changes


Controls


Evaluation solution


Management review

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31

STANDARDIZE


Cascade

beyond

pilot

activity


Develop

appropriate

training

materials


Monitor

results

and

evaluate

solution


Document

entire

quality

improvement

journey


Management

Review



Recycle



Identify

new

improvement

opportunity

© 2000 The McGraw
-
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-
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32

QUALITY IMPROVEMENT TOOLS


Idea

Generation


Consensus


Process

Definition


Collecting

Data


Analyzing

Cause

and

Effect


Analyzing

and

Displaying

Data


Planning

Tools


Meeting

Management

Tools


Benchmarking


Questionnaires


© 2000 The McGraw
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33

E
-
BUSINESS TRANSFORMATION



E
-
vision
:

Broadening

the

view


E
-
Volution
:

Climbing

the

Ladder


E
-
Strategy
:

Playing

with

LEGOs


E
-
Synchronization
:

Breaking

the

Boundaries


E
-
Infrastructure
:

Opening

the

Hood


E
-
Capitalization
:

Placing

Winning

Bets


E
-
Organization
:

Rallying

the

People

© 2000 The McGraw
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34

THE E
-
BUSINESS SCOPE COMPASS

Who

Where

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35

WHAT E
-
BUSINESS IS NOT


e
-
Business

is

Not

a

Bolt
-
On

to

Your

Business



e
-
Business

is

Not

About

Technology



e
-
Business

is

Not

the

CIO’s

Responsibility




e
-
Business

is

Not

Tied

to

a

Particular

Department

or

Functional

Area



e
-
Business

is

Not

a

Middle
-
Management

Initiative




e
-
Business

is

Not

a

Fixed

Target

© 2000 The McGraw
-
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Irwin/McGraw
-
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36

THE LADDER: THE EVOLUTIONARY
STAGES OF E
-
BUSINESS


Who’ in Charge?



Who Pays?



Who’s Affected



What’s the Integration Level?


© 2000 The McGraw
-
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-
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37

THE LADDER: THE EVOLUTIONARY
STAGES OF E
-
BUSINESS


Who’ in Charge?



Who Pays?



Who’s Affected



What’s the Integration Level?


© 2000 The McGraw
-
Hill Companies, Inc.

Irwin/McGraw
-
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38

FINDING YOUR PLACE ON THE LADDER



Do you Use a Lot of Raw Materials and
Components?



What fraction of Your Customers is Online, and How
Intense are the Interactions?



Do you have Multiple Layers of Resellers and Many
Different Types of Channels?



Do you Spend a Lot of Money on New Product
Development?



Are you a “Knowledge Factory”?


© 2000 The McGraw
-
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Irwin/McGraw
-
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39

THE LADDER OF E
-
BUSINESS INITIATIVES

Inform

Automate

Integrate

Reinvent


Short
-
term


Internal

focus


Bottom
-
line


Activity

level


No

integration


Grassroots

efforts


Efficiency

outcomes


Process

level


Some

integration


E
-
business

team

leads


Effective

outcomes


Enterprise

level


Tight

integration


Line

of

business

leads


Revenue

outcomes


Value

network

level


Real
-
time

end
-
to
-
end



integration


CEO

or

startup



team

leads


Transformation



outcomes

Evolutionary

Initiatives

Revolutionary

Initiatives


Long
-
term


External

focus


Top
-
line

© 2000 The McGraw
-
Hill Companies, Inc.

Irwin/McGraw
-
Hill

40

THE DUALITY OF E
-
BUSINESS INITIATIVES

Characteristic
Evolutionary Initiatives
Revolutionary Initiatives
Objective
Risk-return
profile
Stay in business
Low-risk, low-ret urn, short
time horizon f or payback
Reinvent your business
High-risk, high return, long time
horizon for payback
Major risk
factors
Outcome
metrices
Execution risk, adoption risk
ROI, net present value
Market risk, technology risk
Option value, capital
appreciation, learning payoffs
Financial
impact
Impact on core
business
Cost impact, bott om-line
oriented
Enhance and improve t he
core
Growth impact, top-line oriented
Often threaten the core
Capabilities
needed
Business
processes
impacted
Mostly, available int ernally
Impact s focussed processes,
can be isolated to a business
unit or process level
Ned to be imported
Systemic impact, typically cut s
across business units and
functional boundaries
End-state
Integrate into the core
business
Spin-off from the core business
© 2000 The McGraw
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Hill Companies, Inc.

Irwin/McGraw
-
Hill

41

DIMENSIONS OF THE BUSINESS ARCHITECTURE

Profit

engine

Processes

Growth

engine

Resources

Offerings

Partners

(value network)

Customers

(value proposition)

How we make money


Sources of profits


Quality of profits


Defensibility of profits


Bottom
-
line potential

Who we work with


Suppliers


Resellers



Complementors

What we do



Realization process



Sourcing process



Operating processes



Go
-
to
-
market process

What we make




Products



Services



Information

Who we serve


Customer segments


Customer needs

How we make revenues


Customer leverage


Offering leverage


Market leverage


Top
-
line potential

What we know and own





Human capital



Structural capital



Relationship capital

© 2000 The McGraw
-
Hill Companies, Inc.

Irwin/McGraw
-
Hill

42

CORE PROCESSES


New

offering

realization

process
-
how

it

defines,

designs,

and

brings

new

offerings

to

market


Customer

relationships

management

process
-
how

it

creates

and

builds

relationships

with

its

customers,

and

how

it

interacts

with

its

customers


Fulfillment

management

process
-
how

it

sources

its

inputs

and

goes

to

market

with

its

products

and

services


Human

relations

management

process
-
how

it

attracts,

grooms,

and

retains

talent

in

the

organization

© 2000 The McGraw
-
Hill Companies, Inc.

Irwin/McGraw
-
Hill

43

CORE PROCESSES








Contd….


Market

sensing

process
-
hot

it

gathers

intelligence

from

the

market,

disseminates

this

intelligence

within

the

organization,

and

acts

upon

this

information
.


Operations

management

process
-
how

it

transforms

its

inputs

into

outputs


Business

development

process
-
how

it

renews

its

business

and

finds

opportunities

for

growth
.


Strategy

development

process
-
how

it

defines

its

end
-
goals,

and

the

means

for

achieving

the

goals
.


Partner

management

process
-
how

it

identifies,

selects,

coordinates

with,

and

manages

relationships

with

key

partners

and

complementors


Financial

management

process
-
how

it

deploys

its

financial

resources

and

allocates

capital

within

the

business
.


© 2000 The McGraw
-
Hill Companies, Inc.

Irwin/McGraw
-
Hill

44

THE SEAMLESS COMPANY

Customer

Relationship

Repository

(CRR)

Integrated MarComm



Television



Print



Outdoor



Personal selling



Telemarketing



Internet

Integrated channels



Retail stores



Catalog sales



Sales force



Internet

Unified contact management



In
-
person



Telephone



Fax



E
-
mail



Live chat



Voice over IP

© 2000 The McGraw
-
Hill Companies, Inc.

Irwin/McGraw
-
Hill

45

THE NET EFFECT ON CHANNELS

Brand Augmentation


Most

CPG

categories


Fast

food


Convenience

products

Low

High

High

Low

Intensity of information in the buying process

Richness of physical interactions
in the buying process

Channel Augmentation


Most

B
2
B

products


Real

estate


Computer

systems


Industrial

chemicals

Channel Proliferation


Most

shopping

goods


Books


Music


Office

supplies

Channel Deconstruction


Most

low
-
end

services


Domestic

travel


Personal

investing


Prescription

drugs


© 2000 The McGraw
-
Hill Companies, Inc.

Irwin/McGraw
-
Hill

46

TOWARDS THE SEAMLESS COMPANY



Establish

need



Find

sources



Establish

trust



Determine

value



Select

product



Negotiate

terms



Transact



Get

service



Upgrade/repeat

Mail

Fax

E
-
mail

Web

Phone

Person

© 2000 The McGraw
-
Hill Companies, Inc.

Irwin/McGraw
-
Hill

47

Supplier
-
facing Applications
(“Buy
-
side”
-
SCM and ORM)


Suppliers (direct and

indirect materials)


TOWARDS AN ENTITY
-
CENTRIC
INFRASTRUCTURE

ERP

(Transactions Backbone)

Customer
-
facing Applications

(“Sell
-
side”
-
CRM and SFA)


Customers and Salesforce


© 2000 The McGraw
-
Hill Companies, Inc.

Irwin/McGraw
-
Hill

48

Cross

Application

Components

COMPONENT
-
BASED ARCHITECTURE

Common Business Objects

Distributed Object Infrastructure

Legacy Application Objects

Industry

Specific

Components

Applications

Specific

Components

Enterprise

Portal

Partner

Management

Customer

Management

Supplier

Management

© 2000 The McGraw
-
Hill Companies, Inc.

Irwin/McGraw
-
Hill

49


A VISUAL TOOL FOR EVALUATING E
-
BUSINESS INITIATIVES

Competitive

differentiation

Adoption risk

Integrated risk

Anticipated payoff

Time to

payoff

Trainability

Scope of

impact

Capability

risk

© 2000 The McGraw
-
Hill Companies, Inc.

Irwin/McGraw
-
Hill

50

SEVEN ORGANIZATIONAL PROCESSES IN E
-
BUSINESS TRANSFORMATION



Culture



Shared vision



Partners



Suppliers



Education



Mentoring



Traits



Skills



Incentives



Rewards



Organization



Integration

Vision and

Strategy

Catalyzing

Diffusing

Motivating

Training

External
-

izing

Staffing

Structuring

© 2000 The McGraw
-
Hill Companies, Inc.

Irwin/McGraw
-
Hill

51

THE ROLES OF A MATURE E
-
BUSINESS
ORGANIZATION

SBU head leads

Escalating role

Department of

IT leads

Coordinating role

CEO, lead

Venturing role

CIO leads

Matchmaking role

Productivity
-
oriented

internally focused

Growth
-
oriented

externally focused

Enterprise

level

SBU

level

Scope of initiative

Outcome of initiative

E
-
business

organization