Crises, societal progress, governmental intervention, global economics, and technology are the driving forces behind dramatic change in business. How does your business strategy address these factors today, tomorrow, and down the road? During this webinar, our experts will help you assess your readiness to react to an ever-changing business environment, and arm you with the tools you need to plan for continued success.
Learning Objectives:
At the conclusion of this session, you will be able to:
■Identify how technology and other factors will affect your organization in the short and long term.
■Communicate how change will affect your strategy regarding products and services, markets, customers, and other variables.
■Determine what level of investment you’ll need to make, as well as the impact on your capital structure and what the return on investment will be.
■Understand the value of real-time information to gain competitive advantage
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Daron Gifford, Partner, Plante Moran
Daron 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 Moran
Stan 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 firm’s 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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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
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Strategic Approaches and Related Case Studies
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Key Characteristics of an Effective Strategy
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Charting the Course: Developing Your Strategy
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Linking Data to Strategy
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Framework for Business Intelligence
Agenda
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21% of global population over age 60 by 2050
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Cost of social programs (Social Security, health care, etc.) and funding of pensions grows
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While the workforce ages, population growth will drive an increased demand for scarce resources
Megatrends
1. Shifting Population Demographics
Source: PwC, 2014 6
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Mature industrial markets become less attractive for investment
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Capital investment flows increase to emerging markets
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Economic dominance of Western countries moves to emerging regions
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Manufacturing costs decline (relatively) in U.S., leading to reshoringof production
Megatrends
2. Changing Economic Power
Source: AlixPartners, McKinsey, Hackett, 2013; Plante Moran
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Climate change continues to disrupt weather patterns
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Population increases fuel more demand for resources
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Political conflicts over access to resources such as food, energy, and water
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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)
Megatrends
3. 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
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Nanomaterials provide ever smaller devices
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Connected technologies expand from individuals to cars to homes to cities to industries
Megatrends
4. 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)
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Connection of devices to cloud networks will gather enormous amounts of data on a continuous basis
Megatrends
4. Technology Accelerates Even More
Source: Cisco 2011 10
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Everything using a device leaves a digital trace (or data)
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Potential to capture and analyze data has advanced capabilities available
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a.k.a. Big Data, Business Intelligence (BI), Analytics, or Data Analytics
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Increased concerns about the privacy of data
Megatrends
5. Explosion of Data
Source: Microsoft 2014 11
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Volume, variety, and velocity of data are increasing at exponential speed
Megatrends
5. 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 Strategy
Smart 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 Apple’s supplier base indicating Apple’s 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 Positioning
Historical 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
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Clear and concise vision for where the company is going and the plan to get there
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Identification of capabilities and required core competencies of the organization –either existing or to be developed
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Constant understanding of the company position through reporting information to support management decision-making (market, competitors, operational performance, and financial)
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Action-oriented plans for management to guide the organization and measure progressive improvement
Problematic Strategy
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Misunderstanding goals for strategy
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Soft rationale for plans and goals
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Unspecific identification of planned milestones and timing
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Long list of unrelated objectives
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Unclear and overly lengthy “vision”
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Wavering commitment to strategic investments and decision-making
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Lack of understanding of challenges and culture changes required
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Charting the Course
Developing Your Strategy
Megatrends
Company Assessment
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Capabilities
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Plans
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Performance
“Vision” Creation
Market Dynamics
MarketAttractiveness
Competitive Position
Product/ServiceTechnologies
Distribution/ Supply Chain
Core Competencies
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Charting the Course
Developing Your Strategy
Megatrends
Strategy Synthesis
Company Assessment
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Capabilities
•
Plans
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Performance
“Vision” Creation
Market Dynamics
MarketAttractiveness
Competitive Position
Product/ServiceTechnologies
Distribution/ Supply Chain
Core Competencies
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Charting the Course
Developing Your Strategy
Megatrends
Strategy Synthesis
Company Assessment
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Capabilities
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Plans
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Performance
Alternatives/
BusinessModels
“Vision” Creation
Market Dynamics
MarketAttractiveness
Competitive Position
Product/ServiceTechnologies
Distribution/ Supply Chain
Core Competencies
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Charting the Course
Developing Your Strategy
Megatrends
Strategy Synthesis
Company Assessment
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Capabilities
•
Plans
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Performance
Alternatives/
BusinessModels
Strategic Plan
Actionable Plans
Progress Monitoring
“Vision” Creation
Market Dynamics
MarketAttractiveness
Competitive Position
Product/ServiceTechnologies
Distribution/ Supply Chain
Core Competencies
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