business strategy [read-only] - jthawesjthawes.com/pdf/business strategy.pdf · business strategy...

Business Strategy Services

Thinking Holistically to Act Specifically

Tom Hawes, JTHawes Consulting, LLC © October 2009

Business Strategy Relationships

Important Linkages

Dimensional Views of Strategy

Strategy Building Blocks

Internal Measures of Success

Tools Examples

Strategy Development Steps

October 2009 Slide 2Copyright 2009, JTHawes Consulting, LLC

Simplified Relationships


CompetitorsPositions

TriggerEvents

MarketTrends

RegulatoryTrends

DemographicTrends

CapabilityTrends

ScenariosChangeDrivers

CompetitorsPositions

CompanyPosition

Products

Relationships

Capabilities

Strategies

Industry Map

EARLY WARNINGCOMPETITIVEINTELLIGENCE

BUSINESS STRATEGY

GapsAnalysis

Business and CompetitiveStrategy Action Cycle


Vision

StrategicAnalysis

Inspiration

Strategy Dimensional Views –Example Issues

Company ViewProduct View

Industry View Competitive ViewMarket View

Pricing Power

Key Trends

Standards

Integration Trends

Innovation Values

Strategy Survey

Competitor Strategies

Ecosystems

Relative Capabilities

Product Comparisons

Disruptive Elements

Segment Competition

Resource Constraints

Enabling Elements

Gaps Analysis


Strategy Dimensional Views

Company View

How do current offeringssatisfy the augmented

product requirements?Gaps Analysis

How can company closethe critical gaps?

Execution Plan

What investments arerequired for desired

return?ROI Analysis

Product View

What is the augmentedproduct?

AugmentedProduct

Definition

Who makes the buyingdecisions? What are their

key values?

CustomerUnderstanding

Study

What are thecharacteristics of the

market leading products?

ProductComparisons

Tables

Industry ViewWho has the pricing

power? Why?Five Forces

Analysis

What are the key forceswhich affect the industry?

Driver Analysis

What environmental,technology, regulatory,

etc., trends areimportant?

Trend Analysis

What is the role ofstandards bodies? Who

shapes the relevantstandards?

StandardsAnalysis

Competitive ViewWhat are the drivers,

assumptions, strategiesand capabilities of each

competitor?

Four CornersAnalysis

What pieces of theaugmented product are

supplied?

AugmentedProductAnalysis

What are the financialperformance and

capabilities?

FinancialAnalysis

Market View

What are the significantcustomer/usage classes?

SegmentationDefinition

What are the valuabledifferentiators?

Market LeaderDescriptions

What is the opportunityfor anyone?

TAM Analysis


Business StrategyBuilding Blocks


What is our basic offerto win?

How do we satisfy customersbetter than our competitors?

How will investments yield superiorreturns?

What business models, relationships,etc., must change?

What specific actions are required to executethe strategies?

Tactics

StrategicInitiatives

ROI Calculations

Customer/ Competitors

Value Proposition

Business StrategyBasic Building Blocks


Tactics

StrategicInitiatives

ROI Calculations

Customer/ Competitors

Value PropositionIndustry View

Competitive ViewMarket View

Company View

Product View

Strategy Characteristics

UnsuccessfulUnsuccessful

“Accumulation of Tactics” –strategy derived from tasks

“Stone Tablets” – strategy fixedand unchallenged

The Magic Slogan –announcements without followthrough

Divorced from Reality – strategythat cannot be implemented

The Constant Fire Drill – reactionspreclude reflection

SuccessfulSuccessful

Overarching, longer termfocus

Adaptable as theenvironment changes

Meaningful inside andoutside the company

Regularly discussed,measured and evaluated

Combination of studiedreflection and opportunisticrevelation

October 2009 Copyright 2009, JTHawes Consulting, LLC Slide 9

Internal Success Measures forStrategy Implementation

Managers are modeling the changesThe changes visibly affect leaders in tangible and consistent ways.

Success measures are being understoodPeople that understand the external measures begin to adapt theinternal reward system accordingly.

Competing strategies are retiredIf a significant new strategy is introduced, a significant old strategymust be retired.

Increasing focus on the futureA strategy starts to work when an organization is energized aboutwhat is possible to achieve.

It is becoming personalA strategy’s effectiveness can be measured by the extent to whichemployees own it. Increasing ownership means increasing alignmentwith the vision, greater problem solving and broader participation.


DRIVERSPC market has maturedLegacy position in handsets fadingNon-cellular wireless communications

to become more importantPC platform model is repeatable Intel is best positioned to organize

MID ecosystem for low cost products

MANAGEMENT ASSUMPTIONSEconomies of scale matterMIDs are path to smartphones ISA and software development are

applicable Intel advantagesArchitectural (power) disadvantages

can be overcomeSilicon competitors from handset

market will focus less on MID’sARM world will remain fragmented

CAPABILTIESWorld class technologiesWiMAX leadershipPC heritage and manufacturer relationshipsProminent open source positionWell financed market development machineExtremely strong brand

STRATEGY “Organize the market” with centralized

leadershipKeep ARM fragmented and on defensiveUse process and design leadership to narrow

architectural gapsFocus on software advantages of ISAWin fourth generation Nokia tablet while

holding on to traditional PC partners

MO

TI

VA

TI

ON B

EH

AV

IO

R


Competitor’s Strategy AnalysisExample

Low PowerProcessors

Communi-cations

HLOS Support

ApplicationSupport

Developers

ReferencePlatform(s)

ChannelInfluence

MarketDevelopment

Ecosystem

Assumption: All day usage on one charge How soon will x86 devices pass minimum

threshold? What are the other key device characteristics

(e.g., screen, connectivity)?

Assumption: WiFi required; 3G cellularnecessary How soon will WiMAX deployment be pervasive

throughout major regions?

Assumption: Initial devices will be Linux for costand control reasons How soon will hardware or software licenses

costs decline to allow MS to compete?

Assumption: Browser is key application When do specific other applications become

critical? How do existing applications integrate internet

connectivity? How can the ARM world address the x86

application developer advantages?

Assumption: Critical software is not availablefrom one source Which sphere (i.e., PCs or handsets) will

supply the critical partners? What is the critical market size required to

gain ecosystem support for MID devices?

1

2

3

4

5

6

7

8

9

ComponentRanking 1 9-

Assumption: Open source developers areimportant for success Will the critical mass come from existing or new

communities?

Assumption: Low cost, easily accessibleplatforms are important Will the platforms come from the silicon

suppliers or the end user devicemanufacturers?

Assumption: The channel to market will bedifferent than for handsets What role will operators and OEMs play in

distributing products? Who will supply the “wide pipe”?

Assumption: The market is small and willneed stimulation to grow What is the risk and reward for a

semiconductor vendor to engage in marketdevelopment activities? What are the strategic aims of companies

entering the UMD market?


Components, Assumptions andKey Questions


Business/Market/CompetitorAnalysis Example

Business Strategy ArchitecturalDecomposition


Software Offerings

Branding

Key Partnerships

Licensing Approaches

IP Analysis

Standards Usage

Hiring Emphasis

Investment Trends

.

.

.

STACK TOPICS VIEWS

Competitive Segment Analysis


Identifying Key Competitive Segments and Products

“Anything about a product, service, technology,capability or market position that puts a company at

a significant disadvantage versus one or morecompetitors.”

Examples

• Another company is about to introduce a faster, better,cheaper, etc., product

• The competitor’s technology capabilities are more efficientlysupporting multiple product lines

• A firm is leveraging its intellectual property position to extractlicensing revenue impacting pricing flexibility and margins

Competitive Gap Definition


Gaps Analysis Flow


Organizing to regularly identify, track andclose competitive gaps

(Gather)News

1. W1. WHATHAT??

(Execute)Closure

2. S2. SOO WWHATHAT?? 3. N3. NOWOW WWHATHAT??

(Track)Known Gaps

(Identify)Potential Gaps

(Isolate)Trends

(Monitor)Triggers

EARLY WARNING GAPS ANALYSIS ACTIONS

Key Concepts in TrendsTracking

Software OperatingSystems

Applications Enablement

Platforms DevelopmentBoards

CommunitySupport

SystemsDevelopment

Devices ArchitecturesCore

CompetenciesInvestment

Priorities

Ecosystem Core PartnersExtendedPartners

BusinessModel(s)

Other Mergers &Acquisitions

VentureInvestments

Financials

Dimensions of Business/Product Strategy Evidence


Strategy DevelopmentGuiding Statement

1. The <business>1. The <business>strategy exists tostrategy exists to

2. supply specific2. supply specificcustomer valuecustomer value

3. and support our3. and support ourbusiness goalsbusiness goals

4. by satisfying4. by satisfying<customer><customer>

6. for the complete6. for the completeproduct solutionproduct solution

5. through5. throughcompany andcompany and

partner solutionspartner solutions

7. with measured7. with measuredresultsresults

8. within our8. within ourfinancialfinancial

constraints.constraints.

Vision Value

Proposition

Target Market Products

InternalAlignment

Synergy

TargetCustomers

CoreCompetencies

Ecosystem

AugmentedProduct

Distribution Support

FinancialTargets

Investments


Contact Information


Type Address

Website www.jthawes.com

Strategically Thinking Blog http://blog.jthawes.com

Phone Number +1.214.620.9366

FAX +1.972.727.2462

SKYPE tomhawes2

Twitter JTHawes

LinkedIn http://www.linkedin.com/in/tomhawes

Mailing Address 818 Sycamore CreekAllen, TX 75002

Email [email protected]

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