Go for Rakhi Bazaar and Pick the Latest Bhaiya Bhabhi Rakhi.pptx
Pk Momterrey 11 04
1. Building Profitable Business Growth: The IT Leadership Agenda Peter G.W. Keen Professor TU Delft, Netherlands Chairman, Keen Innovations Monterrey November, 2004
2. Managing (versus leading) Degree of change Time “ Natural” change: incremental, inevitable, paced by environment Priority is skilled management and execution Examples: the PC, standard outsourcing
3. Managing Change Degree of change Time Accelerate change, innovate, mobilize – and execute Examples: process innovation, Logistics, cycle time transformation
4. Leadership: announcing a discontinuity Degree of change Time Examples: The new business landscape The new IT conversation A new “reality” New “imperatives” A mission, not a strategy
10. Commoditization Examples (1) Deregulation Globalization Technology Overcapacity Customer power Aggressive new entrants Price erosion Standardized Interfaces Outsourcing ? PCs, standard IT hardware: from “high tech” to consumer electronics
11. Commoditization Examples (2) Deregulation Globalization Technology Overcapacity Customer power Aggressive new entrants Price erosion Standardized Interfaces Outsourcing ? Manufacturing: The global outsourcing scramble
12. Commoditization Examples (3) Deregulation Globalization Technology Overcapacity Customer power Aggressive new entrants Price erosion Standardized Interfaces Outsourcing ? Consumer goods: Weakening of established brands Retailer pricing power
13. Commoditization Examples (4) Deregulation Globalization Technology Overcapacity Customer power Aggressive new entrants Price erosion Standardized Interfaces Outsourcing ? Pharmaceuticals: Generics Challenges to Big Pharma from Canada, Mexico
14. Commoditization Examples (5) Deregulation Globalization Technology Overcapacity Customer power Aggressive new entrants Price erosion Standardized Interfaces Outsourcing ? Airlines: The shattering of the majors’ business models Even low cost players going broke
15. Commoditization Examples (6) Deregulation Globalization Technology Overcapacity Customer power Aggressive new entrants Price erosion Standardized Interfaces Outsourcing ? Telecommunications: Phone call prices trending to zero cents AT&T taken off the Dow Jones
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18. Commoditization Impact Deregulation Globalization Technology Overcapacity Customer power Aggressive new entrants Price erosion Standardized Interfaces Outsourcing ? For customers: commodity heaven Choice, price competition everywhere
19. Commoditization Impact Deregulation Globalization Technology Overcapacity Customer power Aggressive new entrants Price erosion Standardized Interfaces Outsourcing ? For companies: commodity hell Choice, price competition everywhere For customers: commodity heaven Choice, price competition everywhere
20. The commodity trap Deregulation Globalization Technology Overcapacity Customer power Aggressive new entrants Price erosion Standardized Interfaces Outsourcing ? What does a company do? Cut costs? Outsource? Price opportunistically?
21. The commodity trap Deregulation Globalization Technology Overcapacity Customer power Aggressive new entrants Price erosion Standardized Interfaces Outsourcing ? What should a company do? Use IT and process innovation to build value web capabilities and roles
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30. Value webs versus chains Inbound Logistics Operations Outbound Logistics Marketing & Sales Service Procurement Technology & Development Human Resource Management Firm Infrastructure Inbound Logistics Operations Outbound Logistics Marketing & Sales Service Procurement Technology & Development Human Resource Management Firm Infrastructure Value chain: Tidy, linear, Control-centered Supply-driven Value webs: Demand-driven, power laws Nonlinear “ Scale-free” networks Yahoo, UPS as Hubble Space
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36. Business scaling: Up 1995 2000 NOW 2004 Investment Add people, systems, facilities Disruptive, expensive
37. Business Scaling: Down 1995 2000 NOW 2004 I nvestment Cut people, systems, facilities Disruptive, expensive
40. The IT resource SUPERSTRUCTURES Priority targets: customer relationships, supply chain, financial, organizational, operational; Branding Innovation paths Bundling of distinctive capabilities via infrastructure clusters Process edge – differentiation INFRASTRUCTURES: Clusters of services, Networks of providers and partners; business-, industry- or partnership-focused arrangements SUBSTRUCTURES: Highly standardized foundations; “heat, power and light” systems Automatically interconnected via common interfaces The Web as electricity; Largely usage-based variable cost Super Infra Sub
41. The IT resource SUPERSTRUCTURES Priority targets: customer relationships, supply chain, financial, organizational, operational; Branding Innovation paths Bundling of distinctive capabilities via infrastructure clusters Process edge – differentiation INFRASTRUCTURES: Clusters of services, Networks of providers and partners; business-, industry- or partnership-focused arrangements SUBSTRUCTURES: Highly standardized foundations; “heat, power and light” systems Automatically interconnected via common interfaces The Web as electricity; Largely usage-based variable cost Super Infra Sub Can’t innovate here: may rely on others’ innovations
42. The IT resource SUPERSTRUCTURES Priority targets: customer relationships, supply chain, financial, organizational, operational; Branding Innovation paths Bundling of distinctive capabilities via infrastructure clusters Process edge – differentiation INFRASTRUCTURES: Clusters of services, Networks of providers and partners; business-, industry- or partnership-focused arrangements SUBSTRUCTURES: Highly standardized foundations; “heat, power and light” systems Automatically interconnected via common interfaces The Web as electricity; Largely usage-based variable cost Super Infra Sub
43. The IT resource SUPERSTRUCTURES Priority targets: customer relationships, supply chain, financial, organizational, operational; Branding Innovation paths Bundling of distinctive capabilities via infrastructure clusters Process edge – differentiation INFRASTRUCTURES: Clusters of services, Networks of providers and partners; business-, industry- or partnership-focused arrangements SUBSTRUCTURES: Highly standardized foundations; “heat, power and light” systems Automatically interconnected via common interfaces The Web as electricity; Largely usage-based variable cost Super Infra Sub