Plante Moran Strategy Webinar

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    Change Is UnavoidableUse It to Gain a Competitive Edge

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    Daron Gifford, Partner, Plante MoranDaron Gifford is a seasoned professional and respected voice within executive circles providing management consulting services to a wide range of corporate organizations. His versatile experience in several industries, especially in the manufacturing and automotive sectors, has translated into significant strategic insights for executive management. His views on strategy have assisted organizations in their business direction, competitive market positioning, corporate core competencies, operational efficiencies, restructuring, joint ventures, business partnerships, mergers and acquisitions.

    Stan Hannah, Senior Manager, Plante MoranStan Hannah blends his skills and experiences in consulting, research, and business management to develop solutions that lead to short- and long-term business success. He has worked with leaders across a variety of industries including retail, financial services, healthcare and energy in the US and on long-term assignments internationally. Stan worked for a Fortune 500 financial services and insurance company as a Product Manager with profit/loss responsibility for a multi-channel $15m business portfolio. He was later tapped by the CEO of the same company to join Customer Insights and Analytics division where he focused on leading big-data projects and integrating solutions to drive organizational change.

    Ted Morgan, Senior Manager, Plante Moran (moderator)Ted Morgan co-leads the firms plastics industry practice. He has more than 15 years of progressive program management, product launch, business development and consulting experience. Ted has extensive experience in the following areas strategic market intelligence data collection, commercial, operational and financial due diligence, business case analysis, market migration strategy and execution. Ted has supported these activities within the following industry groups: plastics, automotive, recreational products, consumer & industrial HVAC, and automotive aftermarket.

    Presenters and Moderator

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    You can download todays slides by clicking on the resource widget at the bottom of your console.

    Todays webinar will be added to our website in a few days for on-demand viewing.

    Administration

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    What management function do you perform in your organization?

    a) General or executive management

    b) Finance and accounting

    c) Operations / supply chain

    d) Sales and Marketing

    e) Human Resources

    f) Other

    Polling Question

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    Megatrends Shaping the World

    Strategic Approaches and Related Case Studies

    Key Characteristics of an Effective Strategy

    Charting the Course: Developing Your Strategy

    Linking Data to Strategy

    Framework for Business Intelligence

    Agenda

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    21% of global population over age 60 by 2050

    Cost of social programs (Social Security, health care, etc.) and funding of pensions grows

    While the workforce ages, population growth will drive an increased demand for scarce resources

    Megatrends1. Shifting Population Demographics

    Source: PwC, 2014 6

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    Mature industrial markets become less attractive for investment

    Capital investment flows increase to emerging markets

    Economic dominance of Western countries moves to emerging regions

    Manufacturing costs decline (relatively) in U.S., leading to reshoring of production

    Megatrends2. Changing Economic Power

    Source: AlixPartners, McKinsey, Hackett, 2013; Plante Moran7

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    Climate change continues to disrupt weather patterns

    Population increases fuel more demand for resources

    Political conflicts over access to resources such as food, energy, and water

    Protection of environment and natural resources increases (e.g., recent agreement to return more than a billion liters of water to the U.S. National Forest)

    Megatrends3. Environment and Resource Crises

    Source: PwC 2014 8

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    3-D printing may be used to manufacture anything from hard parts to human organs

    Nano materials provide ever smaller devices

    Connected technologies expand from individuals to cars to homes to cities to industries

    Megatrends4. Technology Accelerates Even More

    Source: Goldman Sachs 2014 9

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    Internet of Things implies a dramatic increase in connected devices (more than the number of people in the world)

    Connection of devices to cloud networks will gather enormous amounts of data on a continuous basis

    Megatrends4. Technology Accelerates Even More

    Source: Cisco 2011 10

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    Everything using a device leaves a digital trace (or data)

    Potential to capture and analyze data has advanced capabilities available

    a.k.a. Big Data, Business Intelligence (BI), Analytics, or Data Analytics

    Increased concerns about the privacy of data

    Megatrends5. Explosion of Data

    Source: Microsoft 2014 11

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    Volume, variety, and velocity of data are increasing at exponential speed

    Megatrends5. Explosion of Data

    Source: Oracle 2012

    Data will grow at 40% CAGR

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    Passive / Reactive Organizations that follow the industry leaders and respond defensively. Likely to be more focused on efficient operations. They will not adapt to innovation until proven, and then only after being pressured by customers and the market.

    Proactive / Active Organizations that look ahead and stay aware of change, then are prepared to quickly respond and adapt in their markets. Although more risk averse than innovative or visionary organizations, they may be considered fast followers.

    Innovative / Visionary Organizations with a strong emphasis on being an industry leader, using technology and research to gain a first mover advantage. These organizations utilize a broad range of data and creative thinking while assessing the level of risk in their investments.

    Strategic Approaches in Organizations

    Source: Innovation Toolbox 13

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    Where do you see your organization on the strategy continuum?

    a) Passive / Reactive

    b) Proactive / Active

    c) Innovative / Visionary

    d) Prefer not to say

    Polling Question

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    Case Studies on StrategySmart Phones

    Product or Company

    StrategicApproach

    Highlights

    Blackberry (RIM)

    Passive/Reactive

    Former leader in smartphone market, but focused on past competencies

    Did not recognize impact of iPhone on business market Attempting to regain market share, but has failed so far

    Galaxy (Samsung)

    Proactive/Active

    Fast follower of competitor innovations Modest innovations to existing technologies Utilized market information to build out product line (e.g.,

    creating smart watch in response to data compiled from Apples supplier base indicating Apples release)

    iPhone (Apple)

    Innovative/Visionary

    Considered leader in mobile electronics Creative design established industry leadership and first-

    to-market expectations Focused on understanding individual needs and creating

    new innovative products to fulfill needs

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    0

    50

    100

    150

    200

    250

    300

    350

    2007 2008 2009 2010 2011 2012 2013

    Annual Shipments of Smartphones(in millions)

    Apple Samsung Blackberry

    Strategic PositioningHistorical Results

    Source: IDC, Gartner, Asymco

    Operating Profit from Smartphone Sales

    Apple and Samsung captured over 100% of the industry profit

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    Key Characteristics of an Effective Strategy

    Effective Strategy Clear and concise vision for where the

    company is going and the plan to get there

    Identification of capabilities and required core competencies of the organization either existing or to be developed

    Constant understanding of the company position through reporting information to support management decision-making (market, competitors, operational performance, and financial)

    Action-oriented plans for management to guide the organization and measure progressive improvement

    Problematic Strategy Misunderstanding goals for strategy Soft rationale for plans and goals Unspecific identification of planned

    milestones and timing Long list of unrelated objectives Unclear and overly lengthy vision Wavering commitment to strategic

    investments and decision-making Lack of understanding of challenges

    and culture changes required

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    Charting the CourseDeveloping Your Strategy

    Megatrends

    Company Assessment Capabilities Plans Performance

    Vision Creation

    M