taking care of 'the business

27
TAKING CARE OF ‘THE BUSINESS’ Paul Monks VIC.NET SIG, January 2013

Upload: paul-monks

Post on 20-Jul-2015

245 views

Category:

Business


0 download

TRANSCRIPT

TAKING CARE OF ‘THE BUSINESS’

Paul Monks

VIC.NET SIG, January 2013

FROM THE ECONOMYDOWN TO THE ENTERPRISE

“IT’S THE ECONOMY, STUPID”

Source: Clinton Election Campaign 1992; Intergenerational Report 2002, Treasury/Ken Henry

Population, Participation, Productivity

INDUSTRY SECTORSAustralia and NZ Standard Industrial Classification SectorA — Agriculture, forestry, fishing and hunting

PrimaryB — MiningC — Manufacturing

SecondaryD — Electricity, gas and water supplyE — ConstructionF — Wholesale tradeG — Retail trade

Tertiary

H — Accommodation, cafes and restaurantsI — Transport and storageJ — Communication servicesK — Finance and insuranceL — Property and business servicesM — Government administration and defence

‘Quarternary’N — EducationO — Health and community servicesP — Cultural and recreational services

‘Quinary’Q — Personal and other services

Source: 1292.0 ANZSIC 2006, Australian Bureau of Statistics

EVOLVING ECONOMIES

Source: Conditions of Economic Progress, Clark, 1940

A HUGE IMPACT ON (FROM!) MOST OF US

Source: Digital Disruption – Short Fuse, Big Bang, Deloitte, 2012

Political

Economic

Social

Technology

Legal

Environ-mental

Existing Compet-

ition

New Entrants

Buyer Power

SubstituteProducts

Supplier Power

MANY SOURCES OF ONGOING TURBULENCE

Source: PEST(LE) Analysis, ???; Competitive Forces, Porter, 1979

STRUCTURES AND STRATEGIES

THE SAME BASIC STRUCTURE/FUNCTIONS,REGARDLESS OF SIZE/INDUSTRY

Source: Competitive Advantage, Porter, 1985

WITH THE SAME BASIC GROWTH STRATEGIES

Market Penetration

(Existing Product, Existing Markets)

New Product Development

(New Product, Existing Market)

Market Development

(Existing Product, New Market)

Diversification

(New Product, New Market)

Source: Corporate Strategy, Ansoff, 1965

AND THE SAME BASIC TACTICS

Increase Sales

Market Penetration

Grow the Market / Increase Usage

Win Competitors Customers

Win New Buyers / Repeat Purchasers

New Product Development

Extend Product Line (Up/Down/Side)

Market development

Convert non-users

Enter new segments

Enter new geographies

Related Diversification

Develop new products for new related markets

Source: Adapted from ‘Products and Strategies’, Brownlie, 1985

Reduce Costs

Improve Productivity

Outsource Operations

Reduce Investment Base

Redeployment of Capital

Innovation, Divestment, Unrelate Diversification

INFLUENCED BY TYPE OF PURCHASE

Low Involvement, Informational

(Detergent, Fuel, Credit Cards, Pet

Care, Basic Foods)

Low Risk, Commodity

Low Involvement, Transformational

(Snacks, Soft Drinks, Fast Food, TV Shows,

Computer Games)

Low Risk, Self Expression

High Involvement, Informational

(Whitegoods, Loans, Insurance, Advice,

Computers, Medical)

High Risk, ‘Commodity’

High Involvement, Transformational

(Fashion Clothing, Cars, Motorcycles,

Cosmetics, Holidays)

High Risk, Self Expression

Source: Marketing Communications, Rossiter et al, 2005

AND DISTRIBUTION CHANNEL EMPLOYED

• Business to Consumer (B2C)– Producer → Consumer– Producer → Retailer → Consumer– Producer → Wholesaler → Retailer → Consumer– Producer → Agent → Wholesaler → Retailer → Consumer

• Business to Business (B2B)– Producer → Industrial User– Producer → Industrial Distributer → Industrial User– Producer → Agent → Industrial User– Producer → Agent → Industrial Distributor → Industrial User

• Services– Service Provider → End User– Service Provider → Agent/Broker → End User– Service Provider → Retailer → End User

Source: Strategic Marketing, Reed, 2010

AND UNDERPINNED BY FUNDAMENTALLY THESAME TECHNOLOGIES

Source: Adapted from Ovum’s ‘IT Reference Model’, Ovum, 2012

MODERN BUSINESSESEMBRACING CHANGE

NO ORGANISATION IS AN ISLAND

Company

CustomersCollaborators

Source: The 5C Extensions to ‘Mind of the Strategist’, Ohmae, 1991

Value

NEWER VIEWS OF BUSINESS MODELS

Source: Business Model Generation, Osterwalder et al, 2010

BASED ON DIFFERENTIATION

Source: Blue Ocean Strategy, Kim & Mauborgne, 2005

CAPITALISED UPON BY NEW ENTRANTS

Source: Zynga Business Model Canvas

AND CALLING FOR A HOLISTIC VIEW OFTECHNOLOGY ALIGNMENT

Source: Microsoft Business Architecture, Microsoft, 2006+

Business Architecture Solution Architecture

Software Architecture

InformationArchitecture / Interaction

Design

DataArchitecture

/ Domain Design

ApplicationArchitecture / Functional

Design

Infrastructure Architecture

Security Architecture

Every single piece (in both worlds) needs to be alignedand moving in the right direction!

THE CHANGING ROLE OF TECHNOLOGISTS

NO TECHNOLOGY IS ‘STRATEGIC’

Source: Drivers of Cloud Adoption Survey, Host Analytics/Dimensional Research, 2012

“IT did not need to be involved in the purchasing

decision”

REALLY JUST REMOVING COMPETITIVE DISADVANTAGE

Source: Drivers of Cloud Adoption Survey, Host Analytics/Dimensional Research, 2012

Upgraded 2 Years Ago54%

Upgraded 3 Years Ago32%

Upgraded 4 Or More Years Ago - 14%

DIGITAL STRATEGY –EVERYTHING OLD IS NEW AGAIN!

Source: Digital Disruption – Short Fuse, Big Bang, Deloitte, 2012

Umm… invest in customer channels and analytics/intelligence

Err… move all supporting functions and systems into the

cloud or offshore

SO WHAT?• A Matter of Perspective

– It’s never been easier for new entrants to scale up

– Incumbents have never been so entrenched in legacy

• Custom ‘Commodities’ Hinder, not Help– Bespoke operations are now rarely a competitive

advantage – customers tend not to care about nuance.

– Most businesses care more about agility than costs.

• Differentiation and competitive advantage now tends to be based in connected supply chains and effective market channels– Not ‘traditional IT’ for the ‘back office’

– The internet has only accelerated this trend

SO WHAT?• IT is critical for modern businesses, but in a different way

to where the focus has been previously– Organisations will quickly become either ‘Yesterday’s Heroes’,

‘The Survivors’, or ‘The Value Masters’

• To not only survive, but to truly create customer value, we must architect systems for engagement and collaboration– With both Partners and Customers– In ‘real-time’ wherever possible– Think Federated Identity, Cloud Service Bus, SaaS back-office

apps, etc– If you don’t, guaranteed another organisation will…

• You probably know how technology can deliver value better than your boss or ‘the business’ does– Probably just need to express things in a business context– In a software vendor or consultancy, it is double the fun

RECOMMENDED READING

• Positioning: The Battle For Your Mind (1981)• Getting To Yes (1981)• What They Don’t Teach You At Harvard Business School (1984)• Influence: The Psychology of Persuasion (1984)• The Fifth Discipline (1990)• Leading Change (1996)• The Innovator’s Dilemma (1997)• The Tipping Point (2000)• Blue Ocean Strategy (2005)• The World Is Flat (2005)• Reinventing Project Management (2007)• Business Model Generation (2010)• Great By Choice (2011)