1307534748297-the borderless world by kenichi ohmae.doc

8/17/2019 1307534748297-The borderless world by kenichi ohmae.doc

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*. The )uality of that business system will depend to some e%tent on the

company!s ability to leverage skills developed elsewhere or e%ploit synergies

with other parts of its operations. ith fashion items8insiderisation (

assembling a complete or near complete business in the country does not

matter but for consumer goods it matters. Therefore replicating your business

system is crucial for success in consumer goods. +ompanies that do not do somi% up strategies.

-. 9or industrial goods, insiderisation means development of engineering, sales,

finance service etc and linking up with local functions that have these

functions in place is beneficial.

. Globali'ation is driven more by needs and preferences of customers than by

diversification and competition. $anaging effectively therefore means paying

central attention to delivering value to customers.

+hapter :

1. $aking strategy re)uires first and foremost attention to customers needs. 6ink

it to analysis of your company!s ability to respond to those needs. 9ollow thiswith the business systems that that designs, builds and markets them.

;trategies are tested against competitive realities. ;trategy should involve

determination to create value for customers and avoid competition wherever

possible. $ost strategy should be hidden.

2. The past strategy of competitive differentiation has reached a point of no

returns. To get out of this there is urgent need to focus on customer needs. It

also means creating value for customers. The process of discovering value

creating opportunities is contagious. That is strategy. This means working hard

to understand a customers inherent needs and rethinking what a category of

product is all about.

. 6ooking closely at a customers needs are basics of sound management. They

have been neglected because it is assumed that the solution is simply a

reversal of a diagnosis.<refle% action without going into the cause=

+hapter #:

1. 5n inability to see the long term picture represents an unwillingness and an

inclination to treat all problems as others problems. It leads to a disastrous

company centered arithmetic which is ruining industries. This is the strategy

of doing better. This re)uires well rounded strengths.

2. >nfortunately very few companies have such well rounded strengths. If a

company wants to succeed, it needs to operate with a keen and fle%ible senseof direction. 9aulty strategy will always lead to short term focus on beating the

competition. This occurs because of stubbornness and because of companyism

which is to go on doing what you have been doing irrespective of its

conse)uences. It is human nature to resist change and keep doing what success

has been before.

. &ne problem manager!s face is to know when to change course. 5nother

problem is to develop a more fle%ible approach to doing better <not one

dimensional=. The critical issue in both cases is the mind set. This is their

willingness to look at their businesses and customers with fresh outlook. In

many cases rethinking the business can lead to something that produces a

better reward.



#. hat you measure and how you measure is a powerful influence on what you

think and do. The absence of incentive systems tied to strategic performance

makes companyism worse. $easurement and incentive systems are important.

4ut looking only at short term performance is always the rule. It is time that

people looked performance over a period of years. +reating value for

customers is a long term process.

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