septura 2017d handouts
DESCRIPTION
Strategic simulation of an european companyTRANSCRIPT
Professor Bruce PhillipsStrategic & Organizational
Sepura 2017St t i Di ti
Professor Bruce PhillipsStrategic & Organizational Strategic & Organizational Consulting Strategic DirectionsStrategic & Organizational Consulting
Mission• To help make the world safer &
more productive through
Objectives• Reach revenue of 200m bp by
2015 with OP of 18% to 20%more productive through advanced communication systems that combine the advanced services available in
2015, with OP of 18% to 20%• Retain leading MS in Europe
during the transition from Tetra to the new paradigm
consumer devices with the security, reliability, & durability required in the world of PMR.
to the new paradigm• Become a major supplier of
broadband devices to public security services in the U Sq
Vision• To be the world’s leader in
advanced devices for 4G+
security services in the U.S.• Establish clear leadership position
in fast growing emerging markets (b th bli it d advanced devices for 4G+
private mobile networks for– Military
(both public security and enterprise)
– Public security– Enterprise
Industry StructureCyber
SecuritySocial
N t kiCloud Apps BB EverywhereIndustry Structure Security
More Data, More Data, Less Voice
Video on the
Networking
Maps, GPS, Location-based
Services
Cameras Everywhere (inc. Drones)
pp& Data
Economic Shift from West Desire to
y
Chinese Suppliers
Chinese Suppliers
Chinese Suppliers
AnalyticsVideo on the
Device
Push of Data Biometrics
f m Wto “BRIC” US Army
JBC-P
Military Equip Companies
Desire to Expose
GovernmentPublic SafetyPublic SafetyA n i s
TetraIntegrators
TetraDevice
Tetra NetworkComponent
Suppliers
pppp pp& Apps
p
*
AgenciesIntegratorsManufacturersManufacturersSuppliersSuppliers
EU Economic CrisisInternational
Terrorism
Telco LTE Suppliers
Telco LTE Suppliers
iOS & Android Smartphones
A A
EU Economic CrisisTerrorism
App Developers
App Developers
Gen YMerging of Military & Security Markets
*In the case of Sepura, we also have distributors in the value chain
Opportunities ThreatsOpportunities• US
• Specialized commercial markets
Threats• Motorola growing in Europe• European economic crisisSpecialized commercial markets
• “BRIC” emerging markets
• Maps, GPS, location‐based services
p• Forward integration by Tetra
network suppliers and backward integration by Tetra integrators
• Video
• Social networking
• App developers
• Merging of military and security markets
• Military equipment companiesApp developers y q p p• BB everywhere• LTE• iOS & Android Smartphones• iOS & Android Smartphones• Commercial Apps• Cloud Applications• Gen Y
Future Scenarios
Strengths WeaknessesSO StratagemsStratagems that will leverage our competitive advantages to capture external opportunities
WO StratagemsStratagems that will overcome our current weaknesses and enable us to capture external opportunities
InitiatorMost discussions of strategy focus
upon this
Evolution inBusiness
Environment(I d t
Revolution inBasis of
Competition“Rules of the
Game”
Evolution in Basis of
Competition“Rules of the
Game”
(picture)ST StratagemsStratagems that will leverage our competitive advantages to avoid or minimize the impact of external threats
WT StratagemsStratagems that will overcome our current weaknesses and enable us to avoid or minimize the impact of external threats
Initiator
Reactor
Initiator
Reactor
Revolution inBusiness
Environment(Industry Structure)
Reactor
upon this quadrant(Industry
Structure)
Strategic Alternatives
(picture)
Mission & Objectives
(picture)
Next Steps
LAPD & FD
Dimensions of Competition
Description of Strategy
LAPD & FDMotorola Solutions
Competition
(picture)
Evaluation of the StrategyStrengths & Weaknesses••
Description of Strategy
© 2012 Professor Bruce Phillips. ALL RIGHTS RESERVED
•••
(words)Key Success
Factors
Affordability
Reliability / Durability
Customization / Adaptation
Broad Functionality
Rapid Adaptation FunctionalityAdaptation
Samsung
Raytheon
Sepura
Moto
Ou cu nt p fil is t Our current profile is too close to Moto.
We need to be able to hit their weaknesses of ff d bilit f ti lit affordability, functionality,
and adaptation
Trends U t i tiTrends• Merging of military and
security
Uncertainties• Public or dedicated networks
S i li d d i ithy
• BB everywhere• Data, video, IM, biometrics as
i t t i
• Specialized devices with specialized operating systems or adaptation of consumer
important as voice• Social networks• Desire to expose
pdevices with standardized operating systems
bl l dDesire to expose
• Cyber• Terrorism
• EU stable ormeltdown
• Smart devices• Cloud
D li f W t & th f• Decline of West & growth of BRIC
EU Relatively Stable EU Meltdown6 % 4 %
Trends• Merging of military and security
• BB everywhere• Data, video, IM,
>80%
Specialized Devices & Operating Systems
Specialized Devices & Operating Systems
60% 40%
50%
Data, video, IM, biometrics as important as voice
• Social networks• Desire to expose• Cyber
orks
rks
wor
ks
orks
Cyber• Terrorism• Smart devices• Cloud• Decline of West & growth of BRIC
icat
ed N
etw
o
ublic
Net
wo
dica
ted
Net
w
Publ
ic N
etw
o
40%60%
Ded
iPDedP
50%Adaptation of
Android DevicesAdaptation of
Android Devices
50%
Trends• Merging of military and security
• BB everywhere• Data, video, IM, EU Relatively Stable EU Meltdown
6 % 4 %Data, video, IM, biometrics as important as voice
• Social networks• Desire to expose• Cyber
Specialized Devices & Operating Systems
Specialized Devices & Operating Systems
60% 40%
50%Cyber
• Terrorism• Smart devices• Cloud• Decline of West & growth of BRIC
orks
rks
wor
ks
Environmental Scenario 2
Forward with LTE
Environmental Scenario 1
Business As Usual
Environmental Scenario 6
New Markets LTE
Environmental Scenario 5
Global
icat
ed N
etw
o
ublic
Net
wo
dica
ted
Net
wUsual
Environmental Environmental Scenario 3
LTE Opportunities
Environmental Scenario 8
Environmental Scenario 7
40%60%
Ded
iPDedScenario 4
Brave New World
Scenario 3
Android on Private
Scenario 8
Disaster Strikes
Scenario 7
New Markets Private Android
50%Adaptation of
Android DevicesAdaptation of
Android Devices
50%
Ideally, the strategy we choose should be robust enough to be effective if:Ideally, the strategy we choose should be robust enough to be effective if: Security services switch from relying on dedicated networks to relying on
public LTE networks and/or Our core EU markets suffer a deep economic crisis or Security services adopt Android or The current situation survivesCan we do all of this, or do we have to make choices?
Industry StructureCyber
SecuritySocial
N t kiCloud Apps BB EverywhereIndustry Structure Security
More Data, More Data, Less Voice
Video on the
Networking
Maps, GPS, Location-based
Services
Cameras Everywhere (inc. Drones)
pp& Data
Economic Shift from West Desire to
y
Chinese Suppliers
Chinese Suppliers
Chinese Suppliers
AnalyticsVideo on the
Device
Push of Data Biometrics
f m Wto “BRIC” US Army
JBC-P
Military Equip Companies
Desire to Expose
GovernmentPublic SafetyPublic SafetyA n i s
TetraIntegrators
TetraDevice
Tetra NetworkComponent
Suppliers
pppp pp& Apps
p
*
AgenciesIntegratorsManufacturersManufacturersSuppliersSuppliers
EU Economic CrisisInternational
Terrorism
Telco LTE Suppliers
Telco LTE Suppliers
iOS & Android Smartphones
A A
EU Economic CrisisTerrorism
App Developers
App Developers
Gen YMerging of Military & Security Markets
*In the case of Sepura, we also have distributors in the value chain
Competitive WeaknessesCompetitive Strengths p• Broad functionality• Affordability• EU focus(b d di i f
p g• Rapid adaptation• Reliability• Customization• Installed base
• (based upon dimensions of competition)
Opportunities• US• CommercialBRIC
• Develop new-gen devices with all of the functionality on smartphones
• Partner w/ Sony Ericsson and/or Samsung to migrate European customer base to security grade Android handsets
ith d l t k biliti (T t d
• Acquire a US-based company and lead the transition from P25 to commercial BB standards
• Partner with an Android supplier and focus upon durable handsets for
i li d i l li ti• BRIC• Data, video & location based
• Social Networking
with dual network capabilities (Tetra and LTE)
• Partner with Acatel Lucint to rapidly bring an non-Android security portfolio (handset, tablet, and PC) to marketFind a Chinese partner and beat
specialized commercial applications• Merge with a company in biometrics and
provide unique capabilities to security systems on commercial BB networks
g• App Developers
• Find a Chinese partner and beat Raytheon to India and APAC
• Partner with low-cost app developers• Focus upon U.S. and emerging markets• Become the Android of choice for
• Sell the business to Motorola or Raytheon while the EU market share is still worth something
Threats• EU meltdown
security• Innovate into cognitive radio for BB
emergency services• Merge with one of the Tetra network
providers help consolidate the market
share is still worth something• US & military competition• Forward / backward integration of Tetra suppliers
• And, Build flexible and customizable networks for rapid deployment
• Provide customized cloud-based apps for security that only require thin clients as evolution from Tetra to LTE systems
pp• BB / LTE / Android / Apps• Cloud• Gen Y
Alternative Directions• Maintain current strategy and build options for LTE and/or Android when the market shifts
• Consolidate the mature Tetra market by merging with Tetra network providers and• Consolidate the mature Tetra market by merging with Tetra network providers and integrators
• Develop and aggressively market a new‐gen LTE (or multi‐network) Android security handset and tablet, primarily for U.S. and developing markets, recognizing that it will cannibalize the EU marketEU market
• Partner with an LTE infrastructure company like Alcatel Lucent in go‐to‐market for security LTE Android offering
• Partner with an Android company like Sony‐Ericsson or Samsung for a security Android ff ioffering
• Exit ASAP
Loyal to TetraStrategic Questions:
Consolidate the mature Tetra market by merging with Tetra network providers and integrators
• Maintain current strategy and build options for LTE and/or Android when the market shifts
Which way should we go?
Accelerate the BB
Disruption
Exit
Industry StructureCyber
SecuritySocial
N t kiCloud Apps BB EverywhereIndustry Structure Security
More Data, More Data, Less Voice
Video on the
Networking
Maps, GPS, Location-based
Services
Cameras Everywhere (inc. Drones)
pp& Data
Economic Shift from West Desire to
y
Chinese Suppliers
Chinese Suppliers
Chinese Suppliers
AnalyticsVideo on the
Device
Push of Data Biometrics
f m Wto “BRIC” US Army
JBC-P
Military Equip Companies
Desire to Expose
GovernmentPublic SafetyPublic SafetyA n i s
TetraIntegrators
TetraDevice
Tetra NetworkComponent
Suppliers
pppp pp& Apps
p
*
AgenciesIntegratorsManufacturersManufacturersSuppliersSuppliers
EU Economic CrisisInternational
Terrorism
Telco LTE Suppliers
Telco LTE Suppliers
iOS & Android Smartphones
A A
EU Economic CrisisTerrorism
App Developers
App Developers
Gen YMerging of Military & Security Markets
*In the case of Sepura, we also have distributors in the value chain
ChangingBasis of
Competition“Rules of the Game”
StableBasis of
Competition“Rules of the Game”
InitiatorMost discussions of strategy focus upon
this quadrant
StableBusiness
Environment(Industry Structure)
InitiatorInitiatorChangingBusiness
Environment
Reactor(Industry Structure)
ReactorReactor(Industry Structure)
ObjectivesObjectives
• Reach revenue of 200m bp by 2015, with OP of 18% to 20%
• Retain leading MS in Europe during the transition from Tetra to the new paradigm of LTE and Android
• Become a major supplier of broadband devices to public security services in the U.S.
• Establish clear leadership position in fast growing emerging markets (both public security and enterprise)
Our strategy …• Disrupting the market, not defending it or waiting for our competition to
drive the changes
L i ll h i i l d h d b i h fi• Leveraging all the innovations already out there and being the first to put them together in the world of security, not trying to invent
• Helping security services move toward public networks not trying to• Helping security services move toward public networks, not trying to convince them to be confined to dedicated networks
• Enabling the transition toward standardized operating systems and all‐IP g p g ynetworks, not making Tetra into a dogma that never dies
• Embracing the concept of Apps, not limiting functionality to what is built h hinto the hardware
• Leveraging partnerships to promote the new paradigm and to enter new geographic markets not trying to change the world on our owngeographic markets, not trying to change the world on our own
R i i th t thi i bl S ill d it i tRecognizing that this is a gamble …. So we will do it in stages
What will be our basic approach?•Disrupting the market•Rapid follower (all the
What will be the speed & sequence of our moves? p (
technologies exist, we just need to be the 1st to put them together)
re
Where will we compete? / Where not?•Tetra and Android handsets for security services and
•Development of dual‐band handsets for LTE and Tetra
• Initiation of negotiations with ALU; search for a second candidate
Post
u
yspecialized enterprise applications
•EU, U.S., and emerging markets based upon
search for a second candidate•OEM of an Android tablet with repackaging for security personnel
Objectives
pcapabilities of new alliance partners
H ill b i & i ?
•Development of an Android handset
• Introduction in the U.S. prior to EU•Consider being an app supplier
hicl
es
How will we be unique & win?•First to introduce advanced handsets and tablets into the security marketHow will we structure the
b i f d th th d
Consider being an app supplier to other Android handsets
How will we get there? How not?I t l d l t f h d t
Ve •Adaptation of all of our experience in Tetra
•Leverage of our leading position in the EU
business, fund the growth, and obtain superior financial returns?•Repositioning in the capital markets as a growth company
• Internal development of handsets•Alliance with one of the leading LTE infrastructure companies
•Outsourced production
p•Attempt to bring new prime investor
•Gradual cannibalization of our EU Tetra business p
•Leverage of app’s developers through IP sharing
Strategic Alternatives
(picture)
Mission & Objectives
(picture)
Next Steps
LAPD & FD
Description of Strategy
LAPD & FDGeneral Dynamics & Raytheon
Evaluation of the Strategy••
Description of Strategy
© 2012 Professor Bruce Phillips. ALL RIGHTS RESERVED
•••
(words)Key Success
Factors