the ammg business model (august 2008)
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Standing Out in the Crowd
Associated Manufacturing Marketing Group - Mike Bowes ” August 1, 2008
Sunny Corner Enterprises
Johnson Enterprises
A Landry Fabrication
All-Tech Mechanical & Hydraulic
Hachey Construction - Fabrication
The Associated Manufacturing Team
Our Services:
Custom fabrications (build to print and design service)On-site installations and maintenance servicesCustom CNC machining, waterjet, thermal coatingGear box overhauls, hydraulics and relatedFull mechanical assembly, including electrical and installationContract manufacturingLarge metalworking projects, including pressure vessels and piping systemsMaterial Handling Systems, including conveyors & compacting systemsConstruction services for heavy industry. Project management expertiseEquipment Refurbishment and Repair
Understanding how we’re different
How we differentiate ourselves in
a crowded marketplace
VALUES......
....... Inclusivity
....... Possibility
....... Opportunity
....... Capability
....... Sustainability
....... Responsibility
With trust & patience,
We’ll learn about
collaborating effectively
AMMG Strategic Partnership BROADER SERVICE OFFERING
Shared Services
Business Process Management
Supplier Development
GLOBAL DELIVERY
STRATEGIC ASSETS
Specific, dedicated business development
agency
Partnership offers significant
savings to our customers
Faster time to market
TRACK RECORD & QUALITY
Build on track record & experience
portfolios of members
ISO 9000:2000, CWB, U-stamp, Lean certified
Supported by full range of services
Access to port, rail and road
Proximity to Eastern US and Atlantic
Export experience
Better
Customer
Experience
Wider
Capabilities
Proven
Experience
Ready to
Export
Long-term
partnership offering
a new export-based
service model
Benefits of working as strategic partners
RISK
“ Develop delivery and transition
process
“ Governance support
& Mentoring
QUALITY
COST
“ Reduction in existing cost through
sharing
“ Automation of processes
FLEXIBILITY
“ Quick ramp up and ramp down
“ Modularised support
“Standardized processes
“ High quality resources
Consolidate
into
Teams
Improve
Processes
Cross Train
Resources
Stabilise
Systems
Offering a holistic view across sectors and creating a shared learning approach
Continuous cycle of process improvement, system stabilisation, cross training & consolidation of
support teams to drive our proGRess
Long-term
partnership offering
a new export-based
service model
Supplier Development Day
Moving Forward in the Winds of Change
Mike Bowes
Associated Manufacturing
Restigouche
January 28, 2008
We are prepared
• To LEAD
• To SHARE
• To COLLABORATE
• To SUPPORT
• To BUILD a team
STRENGTHS
Resiliency
Adaptability
Forward Thinking
Culture of Entrepreneurship
Motivated, experienced Workforce
Favourable Investment Climate
Government support
‚Problem solving often functions
as a way of maintaining the
status quo rather than
enabling fundamental change‛
Plan, Review, Revise
Don’t just Problem Solve
Inductive Problem-Solving to Innovate
• Apply all 4 Dimensions of Inductive P-S
– Social (Find, Collaborate, Close Networks, Extended Networks, Dialogue)
– Analytical (Interpret, Envision, Apply, Creat, Context)
– Information (Source, Assess, Organize, Aggregate, Communicate)
– Learning (Sense, Reflect, Develop, Improve, Extend)
‚The definition of insanity is doing the same thing over
and over again and expecting different results
each time.‛ Albert Einstein
Partners informed
All Stakeholders involved
Open Sourcing
Communicate details
All share in opportunities
Brainstorming
Quarterly business reviews
Be the Best
Communication will be key
Steps Underway
•approve market plan
•Supplier Development strategy
•culture of Kaizen internally
•Single Contact Point on major Projects
•E-Marketing Strategy
•new Brand, Tools & Resources
Strategic Marketing and
Benefits Roadmap “Be the Best
“ Measureable Benefits
“ E-Commerce strategy
“ Target market segments and geographic priorities
“ Network development
“ Collaborative innovation framework
“ Partnership Governance
“ Supplier Development
“ Commercial model
Strategic
Marketing and Benefits Roadmap
E-marketing(under development)
Google AdWords
Networking - LinkedIn
Website development
Slideshare
Customer Access
Enterprise 2.0 - ERP
Be the Best Elements
Be the Best
“ Supplier Development
“ Process standardization
“ Process improvements
“ Value added services
“ Share best demonstrated practices
“ Able to compete on global stage
“ Certifications ” Lean, ISO, ASME
2008 marketplace
● Large capital projects
● More integrated supply chains
● Mining and energy industries booming
Canada
USA Economy weaker ” BUT opportunities because of weaker US$
Emerging energy markets
Continue to be the most important market
● Must be there
● Emerging markets
● Technology transfers
Global
market
Volatile times & high uncertainty ” with this comes opportunity
VALUE
PROPOSITION
COST
STRUCTURE
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
ACTIVITY
CONFIGURATION
CORE
CAPABILITIES
PARTNER
NETWORK
REVENUE
STREAMS
INFRASTRUCTURE CUSTOMEROFFER
FINANCE
a business model describes the value an organization offers
to various customers and portrays the capabilities and
partners required for creating, marketing, and delivering this
value and relationship capital with the goal of generating
profitable and sustainable revenue streams
DISTRIBUTION
CHANNELS
[Osterwalder (2004) The Business Model Ontology]
business model framework
what value proposition do we offer,
to which customer segments?
Our Message………
Not just a supplier…. A STRATEGIC PARTNER
Not just products…. SOLUTIONS
VALUE
PROPOSITION
CUSTOMER
SEGMENTS
Strategic partners
Solutions not products
Major project owners
Equipment OEMs
CUSTOMEROFFER
what value proposition do you offer,
to which customer segments? (model)
what value proposition do you offer, to
which customer segments? (example)
Design to
installation
Conveyor users
Large industry
CUSTOMEROFFER
Build to print
Mining
Equipment
OEMs
Full Service
Maintenance
Agreements
Local Mines
how do we reach our customers?
VALUE
PROPOSITION
COMMUNICATION &
DISTRIBUTION
CHANNELS
Strategic Partner
Solutions
…
Networking
E-Marketing
…
OFFER
how do you reach your customers? (model)
CUSTOMER
SEGMENTS
Project Owners
OEMs
…
CUSTOMER
Full service
strategic partner
Networking
CUSTOMEROFFER
how does AMMG reach our customers?
Trade Shows,
Missions
Major Project
Owners
One-on-one visits
Solutions not
Products
E-Marketing
NetworkingOEMs
how do we build relationships?
VALUE
PROPOSITION
CUSTOMER
RELATIONSHIP
value proposition 1
value proposition 2
…
mechanism 1
mechanism 2
…
OFFER
CUSTOMER
SEGMENTS
target customer 1
target customer 2
…
CUSTOMER
how do you build relationships with your
customers? (model)
Solutions not just
products
Full service
Design support /
supplier chain
CUSTOMEROFFER
Progress and team
reportsEquipment OEM
Installation and
support
how do we build relationships
with our customers? (example)
how do we earn our money with
this business model?
VALUE
PROPOSITIONREVENUE STREAMS
value proposition 1
value proposition 2
…
revenue stream 1
revenue stream 2
…
OFFER
CUSTOMER
SEGMENTS
target customer 1
target customer 2
…
FINANCE
how do you earn your money with
this business model? (model)
Full service
support
Product
development fees
FINANCEOFFER
Production costs OEM
Product support
fees
Opportunity Revenue from OEM AMMG
how do we earn our money with
this business model? (example)
Next StepsMeasureExecute180 Day Plan
Ad
op
t &
Co
nso
lidat
e
Val
ue
Time• Reduce Cost• Increase Revenue through market growth• Collaborative innovation
Ad
apt
& C
on
verg
e
Tran
sfo
rm &
Ext
en
d
Continuous ServiceImprovement
Business outcome
alignment
Strategic Marketing and
Benefits Roadmap
• Transformation plan to true partnership
• Measurable benefits
• E-Marketing strategy
• Target market segments and geographic priorities
• Network development
• Collaborativeinnovation framework
• Governance
• Supplier Development
• Commercial model
Business Strategy Review
InfrastructureAssessment
Operational Assessment
Service LevelAssessment
Sharing of Sources
Best Practices
BusinessOutcome
Alignment
BusinessOutcome
Measurement
New Markets, Partners & Customers
New Cycle
Strategic Marketing and
Benefits Roadmap “Be the Best
“ Measurable benefits
“ E-marketing strategy
“ Target market segments and geographic priorities
“ Network development
“ Collaborative innovation framework
“ Partnership Governance
“ Supplier Development
“ Commercial model
Strategic
Marketing and Benefits Roadmap
how do we measure the success of our
business model?
Wide Market Strategy
“ Serving a wide spectrum of the market by selling
differentiated products to different segments in
the market ” all based on our current core
competencies.
“ Requirements: (a) Employ different combinations of
price, product, promotion, and distribution
strategies in different segments (b) Top
management commitment to embrace wide market (c)
Strong financial position.
Major Projects - Atlantic
Eider Rock Refinery
VBNC Commercial Nickel
Point Lepreau II
VBNC Underground
IOC ” Labrador
Lower Churchill
PCS Picadilly
Offshore NL -Hebron +
++++++++
Market Segments
Mining
Construction, Development, O & M
Renewable Energy
Biofuels, Windpower, Hydro
Equipment Manufacturers
Mining, Pressure Vessel, Hydraulics, Specialty
Material Handling
Design, Fabrication, Installation, Piping, Conveyors
Energy and Industrial
Niches for Power Gen, Nuclear, Infrastructure
There’s hardly an old abandoned mine that is
not being considered for redevelopment
Market Entry Strategy
1. Licensing from OEM
2. Technology Transfer
3. Partnership with EPCM groups
4. Canadian subs to reach parents
5. Leverage existing Customers
Blue Ocean to Reconstruct Market Boundaries
“ Focus on rivals within
industry
“ Focuses on competitive
position within strategic
group
“ Focuses on better serving
the buyer group
Head-to-Head Strategy Blue Ocean Strategy
“ Looks across alternative
industries
“ Looks across strategic group
within industry
“ Redefines the industry buyer
group
We learned…….
what we have learnedWe have to be an
open book to all
stakeholders ”
customers,
suppliers,
partners
customers want more control
but want it to be less risk
they want us to demonstrate our
experience „ not to use them to gain
experience
customers want to speak with
fewer suppliers
but want it to be more Engaged & able to
do business with local content
the solutions we provide is ‘the product’
customers want to deal with a team
- a high performing team that delivers
A High Performance Team
Associated Manufacturing
That Stands Out FROM the CrowdAssociated Manufacturing Marketing Group - Mike Bowes ” August 1, 2008
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