© 2011 by strategic business insights. all rights reserved. our consulting philosophy january, 2011...

© 2011 by Strategic Business Insights. All rights reserved.© 2011 by Strategic Business Insights. All rights reserved.

Our Consulting Philosophy

January, 2011

Dave ButtonVice President

[email protected]

www.strategicbusinessinsights.com

2

SBI’s Consulting Is at the Front End

SBI

Scope Assess Develop Execute Operate

Value Leverage

(Typical Project Management Process)

3

The Future is Uncertain

Analysis, Strategy, and Plans Must Lead to Action

There’s Too Much Information

You Can’t Perform Detailed Analysis on Everything

Look for “Show Stoppers” First

It is Easier to Grow from Current Capabilities than to Jump to “New Horizons”

Don’t Confuse Brainstorming with Analysis

Look for Synergies

Our Philosophy

5

The Future Is Uncertain and the External Environment is Beyond your Control

• In the face of an uncertain future, the best one can do is— Consider a range of possible external developments

(Scenarios)— Evaluate your options (Strategy Initiatives)— Decide on a course of action (Roadmaps)— Monitor what actually goes on (Intelligence System)— Adjust as appropriate

• Scenario Planning covers the uncertainty surrounding the most important strategic issues governed by the external environment.

6

Scenarios are Designed to Address Uncertainty

• Several different scenarios provide a sound basis for addressing uncertainties in the external environment.

• Single point estimates, including most likely cases, don’t work.

Possible External Environments

Scenario A Scenario B

Scenario C

Single-PointForecast

7

Recent Scenario Engagements

For two different International Electronics Companies• Three scenarios• Strategic initiatives • Corresponding roadmaps

For two different departments in a major Consumer Products Company• Three planning scenarios for each department (Topics and scenario

names confidential)

For SCARD (Society of Chairman of Academic Radiology Departments)• Three planning scenarios

— Socialized Medicine— Entrepreneurialism— Freefall

• Four strategy initiatives selected from a set of twenty

For the National Intelligence Council (NIC)• “Energy Acceleration” scenario for U.S. Climate Change Mitigation

8

Recent Scenario Engagements

For the National Oceanic Atmospheric Administration (NOAA)• Three scenarios

— Too Little Too Late?— Green Chaos— Carbon Junkies

• Policy initiatives• Corresponding roadmaps

For a North American Telecommunications Company• Three scenarios• Five strategic initiatives selected from a set of twenty

For an Auto Company• Updated existing scenarios

For a Chemical Company • Three scenarios

— Fractured World— Double Dip— Innovators

10

Issues:• Growth

•Markets

• Internal Synergy

Issues:• Growth

•Markets

• Internal Synergy

Strategyand

Action

Strategyand

Action

Evaluate

Analyze

A Wide Variety of Tools Can Be Used to Develop Strategy—Plans Need Action

Expand Perspectives Rank, Sort, and SelectScenarios

A

B

C

D

Strategy Alignment

Strategy Tables

Portfolio Selection

Threats & Opportunities

Critical Success Factors

Strengths & Weakness

Competitor Analysis

Forecasts

Outlooks Driving Forces

Influence Maps

Roadmaps Plans

11

Strategic Roadmaps Cover More Ground than Traditional Plans

“Industry-Level” roadmaps (the landscape)• Display technology, products/services, and other business

information that surrounds the strategy• Are important for understanding competition and

identifying other external developments

Company roadmaps ( pathway or strategy)• Highlight the technologies, functionalities, products,

services, and markets that the company intends to develop• Identify which external developments are critical and need

to be monitored (signposts)

12

“Industry-Level”, “Company” and “Action” Roadmaps Aid Strategy Implementation

“Industry-Level” roadmaps display the overall playing field and participants “Company” roadmaps identify the

specific technologies, functional requirements, and products/services

Services

FunctionalRequirements

Technologies

Now 2 Years 5 Years

BusinessConsiderations

Need MarketCompetition

A B C

41 2 3

Pathway MilestoneThis way

Signpost

This wayThis way

A B C

“Action” roadmaps display a set of

prioritized activities

Services


Technologies

BusinessConsiderations

Now 2 Years 5 Years

Need MarketCompetition

A B C

41 2 3

A B C

Additional Analysis

Strategy Description

•••••

B2

Services

Functions/Technologies

BusinessConsiderations(signposts)

Now 5 Years3 Years1 Years

B1B3

B4

P3P1

P5

T4

P2

T6T7

P4

T5T3

T2T1

Example

Priority Actions

14

Decision Focus

Diverse Information Framework

Customer Priorities

Internet

Sales Channels Chip Manufacturers

Supply Capacity

EnvironmentCost of Goods Sold

Crime and Security

Public Attitudes

Design/CAD Technology

CustomerExperiences

Social Priorities

Competitive Structure

Use of Media

PoliticalLeaders

Work Patterns

Capital

Healthcare

New ProductsTechnology

Education andLearning

ElectronicCommerce

Populations Shifts

Price

New Media Techniques

Health of OECDEconomies

Perceptions of Risk

Privacy

IndustrializationPatterns

Corporate Demographics

Change Leader Attitudes

Value Chains

The Problem Is Making Sense of the Complex External Environment

High ImpactLow

Uncertainty

Imp

ac

t

Uncertainty

High ImpactHigh

Uncertainty

The Trick is to Identify the Most Important Forces and

Drivers

15

Intelligence System Challenges

• Monitor the “right” information• Effectively integrate vast amounts of data in “real time”

— Too much information— Diverse information— Rapidly changing information— Varied sources of information— Distributed expertise— Misinformation

• Add meaning to data in light of strategic focus• Capture unique benefits of human judgment and

perspective• Allow numerous inputs and opinions to be represented

(and not lost)• Make analyses and information sources transparent• Be easy to use for a wide range of users and decision

makers• Clear line of sight to actionable results

16

The Organization

Knowledge Systems Differ from Intelligence Systems

Knowledge systems promote efficiency (doing things well)

Intelligence systems promote effectiveness (doing the right things)

Search Search

Add

• Ask “right” questions

• Search outside of system

• Results

Intelligence System(Analysis)

• Retain “right” information

• Search inside system

Knowledge Base(Information)

You Can’t Perform Detailed Analysis on

Everything

18

Ideas to Commercialization

IdeaGeneration

InitialDescriptions

Rankingand

Selection

Profilingand

Analysis

Business Case

Strategic Roadmap

FundingAction Plan

andExecute

Activities

Number of Ideas

Effort per Idea

Look for “Show Stoppers”

First

20

Companies Want to Turn Good IdeasInto Commercial Businesses

Markets

Products&Services

Technology

Resources

Organization&Governance

Develop BusinessIdentify Opportunities Operate Business Migrate Success

Ideas

Val

ue

Rea

liza

tio

n

Est

ab

lish

ed

Bu

sin

ess

21

Markets

Opportunity Discovery Workshop

Developing New Business is Complicated and Messy

Products&Services

Technology

Resources


Targets

Applications

Develop BusinessIdentify Opportunities

Ideas

Value Assessment

Sponsorship and Funding

CustomerAssessment

Launch

Create Organization

Alliances

Champion/Team

IP

1st Sale

ClearValue

Proposition

CompetitiveAssessment

BusinessCase

Product Design

Research and Development

Value Assessment

Establish Business

• ValueProposition

• Strategy

• IP

• Marketing

• Operations

• GovernanceBusiness Model

Profiles

•Markets

•Customers

• Product

• Service

•Competition

• Technology

22


Consumer Products Companies Begin with Customer Assessment and Product Design

Markets

Products&Services

Technology

Resources


Targets

Applications


Ideas

CustomerAssessment

Launch

Create Organization

Alliances

Champion/Team

IP

1st Sale

ClearValue

Proposition

CompetitiveAssessment

BusinessCase

Product Design

Research and Development

Value Assessment

Establish Business

• ValueProposition

• Strategy

• IP

• Marketing

• Operations

• GovernanceBusiness Model

Sponsorship and Funding

Profiles

•Markets

•Customers

• Product

• Service

•Competition

• Technology

23


Identify “Show-stoppers” As Early and Cheaply As Possible

Markets

Products&Services

Technology

Resources


Targets

Applications


Ideas

CustomerAssessment

Profiles

•Markets

•Customers

• Product

• Service

•Competition

• Technology

It is Easier to Grow from Current Capabilities than

to Jump to “New Horizons”

25

New MarketNew Technology

Tec

hn

olo

gie

s New TechnologyExisting Market

Current PortfolioNew Market

Existing Technology

Markets

Opportunity Discovery Moves Companies Beyond Their Current Portfolio

Don’t Confuse Brainstorming with

Analysis

27

The Opportunity Discovery Workshop is an “Orchestrated” Brainstorming Process

Problem Definition and Scope

Generate Ideas technologies/capabilitiesproducts/services, markets/customers

components that go together

Screenbusiness criteria (strategic fit,resources required, etc.)

Select

which are most promising?

Set Objectives

Form Clusters

opportunities to be examined further

Create OpportunityProfiles


create background material

Review･xxxxxxxxx･xxxxxxxxx･xxxxxxxxx background information,

objectives, current situation, etc.

･xxxxxxxxx･xxxxxxxxx･xxxxxxxxx

profiles are the basisfor roadmaps

Xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxxx



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Profiles (Analysis) Follows the Workshop

• Following Opportunity Discovery Workshops, opportunity profiles are developed

• Profiles:— are a first-cut description of the opportunity— provide sufficient analysis to determine whether to

pursue the opportunity further— pave the way for next steps such as in-depth market

studies, customer research, and strategic roadmaps

29

Typical Profile Contents

DESCRIPTION• Need• Products/services• Markets• Value chain

NEXT STEPS*• In-depth market study

• Customer research

• Strategic roadmaps* Depends on opportunity characteristics

Business Attractiveness• Potential revenue

• Profitability

• Competition

• Regulations

• Entry barriers

• R&D requirements

• Risk

Key Success Factors• Customers

• Business model

• Product features

• Service required

• Technology

• Channels

• Manufacturing

ANALYSIS

30

Areas in Which Opportunities Have Been Discovered

• Peer-to-peer computing

• Micromachined sensors

• Ceramic materials and implants

• Ceramic and polymer matrix composites

• Nanoparticle applications

• Consumer electronics innovations

• Photoetching and electroforming

• Display technologies

• Thermoelectric devices

• Electronically-commutated motors

• Rapid pathogen testing

• Water and indoor air analysis

• Remote sensing applications

• Heat management

• Thin-film magnetic materials

• Fiberglass insulation and other products

• Ultra-fine iron and graphite fibers

• Laser processing applications

• Value-added consumer products

• Bundled consumer products and services

• E-learning services

• Rapid sensing technologies

• Intermetallic alloy applications

• Powder metallic coatings

• Ultra premium cookware

• Wireless factory displays

• Environmental monitoring for consumers

31

More Areas in Which Opportunities Have Been Discovered

• e-Government services

• Energy optimize adviser

• Media tracking

• Dynamic resource optimization & utilization

• New telecommunication business model

• Traffic system optimization

• Identity management

• Environmental monitoring

• Detection and monitoring for security

• Travel agent service

• Embedded driver training

• Networked/coordinated robots

• Biometric identification for government

• Adaptive teaching

• Micro-business

• Consumer relationship service

• Managing knowledge for workers

• Large area data collection

• Financial services and markets

• Education

• Supper supply chain

• Digital services for public transit users

• Personal situational monitoring

• Novel printing techniques

• Smart packaging

• Digital cross-cultural assistant

Look for Synergies

33

EnvironmentalHealth

and Safety

EnvironmentalHealth

and Safety

CapabilityAlignmentCapabilityAlignment

Corporate R&DFunding

Corporate R&DFunding

TechnologyIntelligenceTechnologyIntelligence

TechnologyVentures

TechnologyVentures

ProjectManagement

Process

ProjectManagement

Process

Strategy Processand Model

Strategy Processand Model

KnowledgeManagementKnowledge

Management

Technology/Business Strategies

Technology/Business Strategies

Performance Improvement Came from a Unique Set of Overlapping Programs

34

Technology Concept Matrix

LEGEND: Gray boxes show the intersections between individual technology concepts and the products/services they support. Multicolored boxes show the strategy initiative(s) for which a product/service is a component.

Yellow highlighting indicates a technology concept that has high leverage across multiple products/services and strategy initiatives.

P/S

1

P/S

2

P/S

3

P/S

4

P/S

5

P/S

6

P/S

7

P/S

8

P/S

9

P/S

10

P/S

11

P/S

12

P/S

13

P/S

14

P/S

15

P/S

16

P/S

17

P/S

18

P/S

19

TC1

TC2

TC3

TC4

TC5

TC6

TC7

TC8

TC9

TC10

TC11

TC12

TC13

TC14

TC15

TC16

TC17

TC18

TC19

TC20

TC21

TC22

TC23

TC24

TC25

TC26

TC27

TC28

TC29

TC30

TC31

TC32

TC33

Initiative 3: Initiative 5: Initiative 6: Initiative 13: Initiative 19:

TECHNOLOGY CONCEPTS

PRODUCTS/SERVICES (1 of 2)

35




You Can’t Perform Detailed Analysis on Everything

Look for “Show Stoppers” First

It is Easier to Grow from Current Capabilities than to Jump to “New Horizons”

Don’t Confuse Brainstorming with Analysis

Look for Synergies

Our Philosophy

36

Overview of Consulting Projects

　

High Level Strategy

Commercialization

Profiles Workshop　

Opportunity Discovery

Scenario Planning

Strategic Roadmaps

Product/Service


Technologies

Now 2 Years 5 Years

BusinessConsiderations Need MarketCompetition

A B C

A B C

41 2 3

This wayThis way

Signposts

This way This way

Milestones

MonitoringSystem

Intelligence

© 2011 by strategic business insights. all rights reserved. our consulting philosophy january, 2011...

Documents

action slide

uncertain slide

different scenarios

action strategy

philosophy slide

existing scenarios

strategic roadmaps

options strategy initiatives