competing for the future
TRANSCRIPT
Nikita JadhavAnkita KokaneSaurabh DigheGurunath SatalePankaj PatilDipesh NayakKunal Bansode
Getting off the treadmill Managers should begin by trying to find answers to questions like: How does the senior management’s point of view about the
future stack up against that of the competitors?Which issue is absorbing more of senior manager’s attention?Within the industry, do competitors view our company as more
of a rule-taker or rule-maker? What percentage of our advantage- building efforts focus on
catching up with competitors versus building advantages new to the industry?
To what extent has our transformation agenda been set by competitors’ actions versus being set by our own unique vision to the future?
To what extent am I, as a senior manager, a maintenance engineer working on the present or an architect designing the future?
Among the employees, what is the balance between anxiety and hope?
The findings suggest that on an average senior management is devoting less than 3% of the time of its time in building corporate perspective on the future. This should ideally be 20-50% over several months.
But if future is not occupying senior management’s time, then what is? It’s restructuring and reengineering.
To create the future a company must:• Change in some fundamental way the rules of engagement
in a long standing industry • Redraw the boundaries between industries • Create entirely new industries
Organizational transformation agenda must be driven by a point of view about the industry transformation agenda:
• How do we want this industry to be shaped in the next five or ten years?
• What must we do to ensure that the industry evolves in a way that is maximally advantageous for us?
• What skills and capabilities must we begin building now if we are to occupy leadership position?
• How should we organise ourselves for opportunities that may not fit neatly in the current business units and divisions?
How Competition for the Future is different
Competition for Today Vs.
Competition for Tomorrow
• Business units Vs. corporate competencies.
• Stand-alone Vs. Integrated system.
• Structured Vs. Unstructured arena.
• Market share Vs. Opportunity share.
• Speed Vs. Perseverance.
When you ask managers across the industry what’s the secret to making money in this industry ,do you get more or less the same answer?
Is the industry reasonably concentrated, with fairly stable market-share position among the incumbents?
Alternately, is the industry highly fragmented?
Have most of the top management teams spent their entire careers in the industry?
Is the industry’s take-up rate for new technology slower than most?
Have the leaders tended to rely on high barriers to entry, rather than product and process innovation, to protect their profitability?
Has the basic concept of the product or service remained unchanged for a significant period of time?
Do regulatory issues preoccupy top managers across the industry?
•The need for foresight•Developing foresight•The foundation of foresight •Empathizing with human needs
Competing for the industry foresight
Crafting strategic architecture
Creating a strategic architecture Committing to the future
Why do great companies failUnparallele
d track record No gap
between expectations
& performanceContentmen
t with current
performance
Accumulation of
abundant resources A view
that resources will win
outResources substitute
for creativity
Inability to escape the past…!!!
Optimized
business sustem
Success confirms strategy
Vulnerability to new
rules
Failure to reinvent
leadership
Deeply etched recipes
Momentum is
mistaken for
independent
Inability to invent the future..!!!
Strategy as stretchStarting resource positions are a very poor predictor of
future industry leadership. A firm can sit atop mountains of cash and command legions of talented people, and still lose its leadership position.
Likewise a firm can sometimes overcome enormous handicaps and successfully scale the heights of industry leadership.
Strategic intent Strategic intent is a term for an animated dream.
Strategic architecture is the brain ,strategic intent is the heart.
Strategic intent implies a significant stretch for the organization.
Strategic intent also implies a particular point of view about the long-term market or competitive position that a firm hopes to build over the coming decade.
Hence it conveys a sense of direction.
Strategy as leverage Resource leverage can be achieved in five ways:
By more effectively concentrating resources on key strategic goals,
By more efficiently accumulating resources, By conserving resources wherever possible, And by rapidly recovering resources by minimizing
the time between expenditure and payback.
Building Gateways to the Future
Core Competence
Argued that a key challenges in competing for the future.
If company wants to capture disproportionate share of profits from tomorrow's market.
Gateways to the Future
Core competencies : the gateways to future opportunities.
Competencies that are most valuable are those that represent a gateway to a wide variety of potential product markets.
Core competence : Bundle of Skills & technologies.
Examples Organization Benefit Core competence
Sony Pocketability miniaturization
Federal Express On time delivery Very high level logistics
EDS Seamless information flows
System integration
Intercorporate competition
Competition for competence
E.g. : American Airlines competes with British Airways.
There are several reasons it makes sense to competition for competence as interoperate competition:
First SecondThird
EMBEDDING THE CORE COMPETENCE PERSPECTIVE
The risk of ignoring Core CompetenciesOpportunities for growth are truncated
Spot new opportunity but no competency
Company divisionalizes and fractures, competencies weakened
Increased dependency
Increased competition
The Core Competence Perspective Identifying existing core competencies
Establishing core competence acquisition agenda
Building core competencies
Deploying core competencies
Protecting and defending core competence leadership
IDENTIFYING EXISTING CORE COMPETENCIES
1. How strongly your customer is getting influenced
2. Core competence should be difficult to imitate
3. Core competencies should open up good no. of potential markets
ESTABLISHING CORE COMPETENCE ACQUISITION AGENDA
BUILDING NEW CORE COMPETENCIES
Consistency of efforts is the Key!
Understand which competencies to build
Stability of management teams
DEPLOYING CORE COMPETENCIES if an individual somewhere in the organization believes that he or she
Can contribute to one of the high priority projects, that individual can
“self promote” himself or herself onto the team.
The team leader may not choose to take the applicant, but if the
skills offered are critical to the project’s success, the team leader
can ask that the individual be transferred.
As one might expect, the existence of such a system helps ensure
that unit managers do their best to keep key people occupied with
truly challenging projects.
It also ensures that the best people end up working on the biggest
potential opportunities’.
DEFENDING AND PROTECTING CORE COMPETENCIES
Core competencies do not diminish with use.
competencies need to be nurtured and protected.
competence base can be attacked or destroyed by crude downsizing and delayering activities
SECURING THE FUTURE
When the goal is to create new competitive space, it is usually
impossible to know in advance :
Configuration of products or service features,
Offered at what price point and
Through what channels, will be required to unlock the potential market.
EXPEDITIONARY MARKETING expeditionary marketing — forging new markets before competitors
It acknowledges that failure might take place, but it is a worth risk taking.
It is based on the question of:
1. Whether your business is there to simply serve customers and create new markets?
2. Do your marketing efforts follow consumer’s wants and needs or does it lead them in new directions?
The practical problem of expeditionary marketing is
how to reduce the time and cost of product iteration .
Expeditionary marketing does not imply launching products that are manifestly unready or inappropriate to the needs of potential customers.
!!Thank You!!