paine webber

Leaders in Managing Technology Change

Leaders in Managing Technology Change

The The

CoreTech StoryCoreTech Story

www.CoreTech.com

AgendaAgenda

• Introductions• CoreTech Overview ( 5 Min.)• Partnership Approach (30 Min.)

– e-Business Methodology

• Brainstorming (25 Min.)• Wrap-Up

www.CoreTech.com

First Off, We’re Clients!!First Off, We’re Clients!!

CoreTech’s BackgroundCoreTech’s Background

• Founded in 1992– New Technology Focus– Privately-held

• Expanded Regional Presence in 1996

• $40M Projected Sales in 1999– 400+ Employees

• And, Coincidentally….We’re Profitable

Our CharterOur Charter

CoreTech excels at helping companies achieve e-business through the application of new technologies,

maximizing business value while minimizing risk.

www.CoreTech.com

What makes us What makes us e-special -special ??

BusinessApplications

• Requirements• Development• Testing

TechnologyInfrastructure

• Networks• PC’s• Support

Strategy &Management

Services• Strategic Planning• Migrations• Technology Migrations“Our background

provides anecessary and solid foundation for the

Internet”

I/T People Services • I/T HR• Retention• Transformation

We added the “We added the “e””

• Creative• Front-End• e-Strategy

e

• Marketing Strategy/Positioning• Branding• Creative Design/Development• “Human Engineering”User

• Program/Project Management• Assimilation/Cultural Change• Organizational Design

• Web Architecture/ Development• Networks & Security• Legacy Systems Integration• Collaborative & Messaging

• Business Process Modeling• Competitive Analysis• Financial Modeling• Business Analysis

BUSINESS STRATEGY CREATIVE

TECHNOLOGY TRANSFORMATIONAL

Our Our e-business -business capabilitiescapabilities

now include…...now include…...

Finally…what do our Finally…what do our clients say ?clients say ?

• Use CoreTech - they’re good at what they do and you can trust them.

CIO, A Multi-national Pharmaceuticals Company headquartered in New Jersey

• When you’re at 100,000 feet talk to Gartner, when you’re at 50,000 feet talk to Andersen, when you want to get it done talk to CoreTech.

Director, Advanced Technologies, A Multi-national Pharmaceuticals Company headquartered in PA

Some of our Clients….Some of our Clients….

• American Home Products

• Comcast Cellular• Citibank Global Asset

Management• Credit Suisse Asset

Management• Electronic Payment

Systems • First USA

• Martha Stewart Living

• Pennsylvania Power & Light

• Pfizer

• SmithKline Beecham

• SunTrust Bank

• Sylvan Learning Centers

• Towers Perrin

• USX Corporation

Defining e-business Defining e-business

e-business represents the transformation of key business activities

by networking together employees, customers, suppliers and investors

through the use of internet technologies and traditional business systems.

How do we do the “How do we do the “ee”?”?

• Framework

• Methodology

• Timing

StrategyStrategy

PlanningPlanning

ConstructionConstruction

AssimilationAssimilation

STRATEGY

PLANNING

CONSTRUCTION

ASSIMILATION

Organizational

Implications

Process

Implications

People

Implications

Technical

Implications

TM

Continuous

Continuous

Improvement

Improvement

Our FrameworkOur Framework

www.CoreTech.com

StrategyStrategy = e-metricsSM

Our Methodology: Our Methodology: e-metricsSM

• Merges strategic thinking & e-business

• A forum to change traditional thinking

• Adds structure and rigor

• Provides metrics

www.CoreTech.com

PlanningPlanning

Transformation Transformation

InnovationInnovation

Strategy Development &Strategy Development &Competitive AnalysisCompetitive Analysis

Day 1 - Facilitation

Day 2 - Facilitation

• Off-Site Analysis• Follow-Up Meetings

StrategyStrategy

Strategy Strategy ComponentsComponents

E-Metrics ComponentsE-Metrics Components

Next phase:

www.CoreTech.com

Day 1

1. Defining the e-business direction

Vision, Mission, Values, CSF’s,objectives/metrics.

2. Defining the Current State

Market Position, Capabilities Position

- In the year 2003, Who will we be? Whom do we serve? What will we be known for? How will we know when we get there?

- What are our values? Financial Strength, Industry Knowledge, Creativity, Adaptability/Flexibility...

- What are our Success factors? New Customer Accounts, Brand Recognition, Income Growth?...

PersonallyTailored

Craft

Commodity Quality

Custom

Standard

Price Value

MassCustomization

Innovation

MassProduction

ContinuousImprovement

Dynamic

Static

Static Dynamic

Market PositionMarket Position Capabilities PositionCapabilities Position

Where does Paine Webber fit now?Where does Paine Webber fit now?

TransformationTransformatione-businesse-business

www.CoreTech.com

Day 1: Continued

3. Transforming to e-business state

Market Position, Capabilities Position

Transforming to “Strategic Transforming to “Strategic State”State”Transforming to “Strategic Transforming to “Strategic State”State”

If we could establish this market positioning, what would happen?What would Change?

PersonallyTailored

Craft

Commodity Quality

Custom

Standard

Price Value

Market PositionMarket Position

MassCustomization

Innovation

MassProduction

ContinuousImprovement

Dynamic

Static

Static Dynamic

Capabilities PositionCapabilities Position

Pull the e-business lever(s) and…Information Marketing & Transactional ContentCategory KillerChannel TransformationTransaction ProcessingEvent AggregationMarket Segment AggregationValue Net IntegrationOperational Efficiency

TransformationTransformatione-businesse-business

www.CoreTech.com

TransformationTransformatione-businesse-businessDay 1 Continued

4 Alignment and Action Steps

Between direction and state Transformation steps

Alignment

• Does the strategic state change the way we interaction with our marketplace?

• Do we fill a market void with our stakeholders?

• Can we leverage off of this change to sustain a leadership position?

• If we can validate the viability of this strategy, can we all get behind it?Transformation Steps

• Minimize efforts associated with non-value activities.

• Leverage increased customer knowledge to anticipate future customer needs.

www.CoreTech.com

Day 2

1. Define the Focal Issue Focal Issue (ex.)

How will the Internet be embraced by Paine Webber’s stakeholders

in 2002?

Focal Issue (ex.)

How will the Internet be embraced by Paine Webber’s stakeholders

in 2002?

InnovationInnovatione-businesse-business

www.CoreTech.com

Day 2Continued

2. Identify & Group the Driving Forces

Questions.

What forces are Local to Paine Webber?

What forces are outside of our control?

How do those outside forces drive those we control?

Questions.

What forces are Local to Paine Webber?

What forces are outside of our control?

How do those outside forces drive those we control?

To add rigor to our scenario designs and frame impact to our e-business choices, we need to prioritize and group the forces to validate our thinking.

Competitive, Environmental, PoliticalOrganizational,Technological, Economic

Identify Group

To understand the scope and impact of e-business on our industry we need to take a holistic look at the forces that drive our decision making


www.CoreTech.com

3. The “Wind Tunnel Test”

Validating the strategy

DrivingForce 2Extreme

1

DrivingDrivingForce 2Force 2ExtremeExtreme

11

Driving Force 1Extreme 1

Driving Force 1Driving Force 1Extreme 1Extreme 1

Driving Force 1Extreme 2

Driving Force 1Driving Force 1Extreme 2Extreme 2

DrivingForce 2

Extreme 2

DrivingDrivingForce 2Force 2

Extreme 2Extreme 2

Scenario 1Scenario 1Scenario 1

Scenario 4Scenario 4Scenario 4Scenario 3Scenario 3Scenario 3

Scenario 2Scenario 2Scenario 2

“Wind Tunnel”

Strategic State

“Wind Tunnel”

Strategic State

Scenario Design• Scenario Narratives

• Driving Forces

• Testing the viability of our transformation within the context of plausible futures.

Scenario Design• Scenario Narratives

• Driving Forces

• Testing the viability of our transformation within the context of plausible futures.

Day 2Continued InnovationInnovatione-businesse-business

www.CoreTech.com


4. Define Metrics for Strategic Agility

Need to understand when the course has change

Metrics• What are 3 indicators that would

give us notice of our scenarios coming to fruition

• If these indicators begin to occur, how does it affect our strategic state? Pace of execution? Contingency Plans?

• What would we do if?

Metrics• What are 3 indicators that would

give us notice of our scenarios coming to fruition

• If these indicators begin to occur, how does it affect our strategic state? Pace of execution? Contingency Plans?

• What would we do if?

Day 2Continued

www.CoreTech.com

Strategy Development &Strategy Development &Competitive AnalysisCompetitive Analysis

e-e-businessbusiness

Offsite &Follow-Up

• Paine Webber selects the top 3 competitors within the marketplace.

• CoreTech will perform analysis of competitors reviewing internet content, capability, branding (strength & weakness of their approach)

• CoreTech will meet with Paine Webber to discuss analysis and adjust e-business strategy, where appropriate.

• Paine Webber selects the top 3 competitors within the marketplace.

• CoreTech will perform analysis of competitors reviewing internet content, capability, branding (strength & weakness of their approach)

• CoreTech will meet with Paine Webber to discuss analysis and adjust e-business strategy, where appropriate.

www.CoreTech.com

Planning ComponentsPlanning Components

Current EnvironmentCurrent EnvironmentTM Technology

Organization

Process

People

High-Level Implementation Plans

Strategy Phase OutputStrategy Phase Output

Planning Phase Planning Phase OverviewOverview

StrategyStrategy

1. Match these up 2. Using 3. To Produce

““GAPGAPAnalysis”Analysis”

PlanningPlanning

www.CoreTech.com

Overall Timing and Overall Timing and RequirementsRequirements

Strategy Phase Strategy Phase (15-20 Days)(15-20 Days)

Planning PhasePlanning Phase(10-15 days)(10-15 days)

Transformation Transformation (1 Day)(1 Day)

InnovationInnovation(1 Day)(1 Day)

Strategy Development & Strategy Development & Competitive AnalysisCompetitive Analysis

(13-18 Days)(13-18 Days)

FinalStrategy

ImplementationPlans

Assessment ofAssessment ofCurrent EnvironmentCurrent Environment

(tbd)(tbd)

GAP AnalysisGAP Analysis(tbd)(tbd)

~20-30 Days

www.CoreTech.com

Paine Webber Paine Webber ConsiderationsConsiderations

• Sr. Management Time Is a MUST– 2 Day Facilitation Off-site– On-site Follow-ups

• Establish Tie in to Corporate Initiatives?

• Scheduling Flexibility for Follow-up Meetings

CoreTech Clients Get...CoreTech Clients Get...

• Highest Probability of Success

• Highest Value to the Business

• Lowest Risk of Failure/Disruption

• Realistic Expectations

• Knowledge Transfer Commitment

• An Agile & Flexible Partner

• A Long-Term Trusted Partner

www.CoreTech.com

Path ForwardPath Forward

• Follow-Up Investigation

• Key Documents Available?

• Next Steps

• ____________

• ____________