4. Define when you have failed
• World is chaotic
• Launch risks
• Numerous
• Business plan never actually happens
• New knowledge once you start
• Development always seems to take more resource
• Define at what point strategy needs to change or be
reviewed formally
• Before you start
• Not on the fly
5. Change example
• 2 products
• 1 new with latest technology, etc
• 1 old, mature, incremental development, technically demanding
• No skills in house so outsource new one
• Staff de-moralised
• Outsource partner doesn’t quite get it
• Speed of reaction too slow
• Strategy change-outsource old, invest in staff and develop
internally
• Decision to kill product once revenue dipped below a set level
• Sufficient time to notify customers of end of life
6. Strategy on the fly
• New owner meets major customer
• Major customer demands many new things
• New owner agrees
• Highly contained maintenance level project becomes an
unfunded development with no RoI
• Can’t meet needs, customer now very dissatisfied, close
down product
7. Resources
Become the most respected and
Vision profitable global Widget
manufacturer
Best
Strategy customer
service
Increasing
Profits
Global
Presence
Most Best After Reduce Outsource
Premium
Reliable Sales Add Value unit Variable Acquire Grow Brand
Pricing
product Service costs costs
Designers Operations Cust Serv Manf Procurement Marktg M&A Sales Marcom
8. Resources
Become the most respected and
Vision profitable global Widget
manufacturer
Best
Strategy customer
service
Increasing
Profits
Global
Presence
Most Best After Reduce Outsource
Premium
Reliable Sales Add Value unit Variable Acquire Grow Brand
Pricing
product Service costs costs
Designers Operations Cust Serv Manf Procurement Marktg M&A Sales Marcom
9. Resources
Become the most respected and
Vision profitable global Widget
manufacturer
Best
Strategy customer
service
Increasing
Profits
Global
Presence
Most Best After Reduce Outsource
Premium
Reliable Sales Add Value unit Variable Acquire Grow Brand
Pricing
product Service costs costs
Program
Designers Operations Cust Serv Manf Procurement Marktg M&A Sales Marcom
10. Resources
Become the most respected and
Vision profitable global Widget
manufacturer
Best
Strategy customer
service
Increasing
Profits
Global
Presence
Most Best After Reduce Outsource
Premium
Reliable Sales Add Value unit Variable Acquire Grow Brand
Pricing
product Service costs costs
Program
Designers Operations Cust Serv Manf Procurement Marktg M&A Sales Marcom
11. Buy v build
• Market looks ready for consolidation
• E.g. no real gorilla, several equal companies
• Similar technical ability, core overlap with enhancements
• Raise finance (v. easy)
• Approach targets
• BAU
• Except we win technical part of bid every time
12. Buy v build
• Strategy change-buy for market share only
• IPR integration risk
• Valuation consideration
• Except we start to win long standing customers from competitors
• Strategy change-organic growth
• Low value “take it or leave it” offer
• Increase R&D, expand marketing, price to kill