harry s. dent, jr. dent research dent business academy business strategies for the winter season
TRANSCRIPT
Harry S. Dent, Jr.Dent Research
Dent Business Academy
Business Strategies for the Winter Season
The New Network Organization: Bottoms-Up
Not Top-Down
Session 9:
Charts
250-Year Revolutionary Cycle
1517
1764
2014
Protestant Revolution Capitalist Revolution
American Revolution French Revolution
Industrial Revolution
2nd American Revolution Emerging World Revolution
Network Revolution
Chart 9-1
Management
Back-Line Servers
Front-Line Browsers
Customer Segments
Source: Dent Research
New Network Organization Chart
Chart 9-2
Key Principles for Designing Your Network
Organization1. Strategic Focus: focus your business only on what you do
best and delegate to partners
2. Organize around your customers and define results by their end benefits
3. Design your organization into front-line browsers and back-line servers
4. Make every front-line team and back-line server a real business with a P&L (Profit and Loss)
5. Management becomes the vision, strategic focus, and legal/political arbiter of the network
Designing the Network
• Strategic Focus… focus on what you do best
• Ask “Is there someone better or lower cost than us at doing this?”… find a partner and outsource
• Break your customers into segments according to different product or service needs
• Design your organization into front-line browsers
• Create back-line servers
Adapting to the Winter Season
• Reconstructing P&Ls in total for each unit to represent the real nature of your business
• Fixed costs have to be covered before profits begin to accrue
• Variable costs determine how much cash flow you generate for every sale
• Contribution margins = money you make from customers minus variable/direct costs (refer back to Session 3)
Business Strategies for the Winter Season
2008-2023
• Incorporate the power of these to see the opportunities vs. the threats– Demographics– Product life cycles– New strategies (at all levels)
• Focused and flexible direct marketing and network organizations are the key to success
• Management should be better than ever, but more invisible and built into the software and information system
• Be the best at what you do
• Customization vs. standardization… deliver greater, real-time, personalized products and services at lower and lower costs