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Page 1: Competing for the Future

Nikita JadhavAnkita KokaneSaurabh DigheGurunath SatalePankaj PatilDipesh NayakKunal Bansode

Page 2: Competing for the Future

Getting off the treadmill Managers should begin by trying to find answers to questions like: How does the senior management’s point of view about the

future stack up against that of the competitors?Which issue is absorbing more of senior manager’s attention?Within the industry, do competitors view our company as more

of a rule-taker or rule-maker? What percentage of our advantage- building efforts focus on

catching up with competitors versus building advantages new to the industry?

To what extent has our transformation agenda been set by competitors’ actions versus being set by our own unique vision to the future?

To what extent am I, as a senior manager, a maintenance engineer working on the present or an architect designing the future?

Among the employees, what is the balance between anxiety and hope?

Page 3: Competing for the Future

The findings suggest that on an average senior management is devoting less than 3% of the time of its time in building corporate perspective on the future. This should ideally be 20-50% over several months.

But if future is not occupying senior management’s time, then what is? It’s restructuring and reengineering.

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To create the future a company must:• Change in some fundamental way the rules of engagement

in a long standing industry • Redraw the boundaries between industries • Create entirely new industries

Organizational transformation agenda must be driven by a point of view about the industry transformation agenda:

• How do we want this industry to be shaped in the next five or ten years?

• What must we do to ensure that the industry evolves in a way that is maximally advantageous for us?

• What skills and capabilities must we begin building now if we are to occupy leadership position?

• How should we organise ourselves for opportunities that may not fit neatly in the current business units and divisions?

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How Competition for the Future is different

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Competition for Today Vs.

Competition for Tomorrow

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• Business units Vs. corporate competencies.

• Stand-alone Vs. Integrated system.

• Structured Vs. Unstructured arena.

• Market share Vs. Opportunity share.

• Speed Vs. Perseverance.

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When you ask managers across the industry what’s the secret to making money in this industry ,do you get more or less the same answer?

Is the industry reasonably concentrated, with fairly stable market-share position among the incumbents?

Alternately, is the industry highly fragmented?

Have most of the top management teams spent their entire careers in the industry?

Is the industry’s take-up rate for new technology slower than most?

Have the leaders tended to rely on high barriers to entry, rather than product and process innovation, to protect their profitability?

Has the basic concept of the product or service remained unchanged for a significant period of time?

Do regulatory issues preoccupy top managers across the industry?

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•The need for foresight•Developing foresight•The foundation of foresight •Empathizing with human needs

Competing for the industry foresight

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Crafting strategic architecture

Creating a strategic architecture Committing to the future

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Why do great companies failUnparallele

d track record No gap

between expectations

& performanceContentmen

t with current

performance

Accumulation of

abundant resources A view

that resources will win

outResources substitute

for creativity

Inability to escape the past…!!!

Optimized

business sustem

Success confirms strategy

Vulnerability to new

rules

Failure to reinvent

leadership

Deeply etched recipes

Momentum is

mistaken for

independent

Inability to invent the future..!!!

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Strategy as stretchStarting resource positions are a very poor predictor of

future industry leadership. A firm can sit atop mountains of cash and command legions of talented people, and still lose its leadership position.

Likewise a firm can sometimes overcome enormous handicaps and successfully scale the heights of industry leadership.

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Strategic intent Strategic intent is a term for an animated dream.

Strategic architecture is the brain ,strategic intent is the heart.

Strategic intent implies a significant stretch for the organization.

Strategic intent also implies a particular point of view about the long-term market or competitive position that a firm hopes to build over the coming decade.

Hence it conveys a sense of direction.

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Strategy as leverage Resource leverage can be achieved in five ways:

By more effectively concentrating resources on key strategic goals,

By more efficiently accumulating resources, By conserving resources wherever possible, And by rapidly recovering resources by minimizing

the time between expenditure and payback.

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Building Gateways to the Future

Core Competence

Argued that a key challenges in competing for the future.

If company wants to capture disproportionate share of profits from tomorrow's market.

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Gateways to the Future

Core competencies : the gateways to future opportunities.

Competencies that are most valuable are those that represent a gateway to a wide variety of potential product markets.

Core competence : Bundle of Skills & technologies.

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Examples Organization Benefit Core competence

Sony Pocketability miniaturization

Federal Express On time delivery Very high level logistics

EDS Seamless information flows

System integration

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Intercorporate competition

Competition for competence

E.g. : American Airlines competes with British Airways.

There are several reasons it makes sense to competition for competence as interoperate competition:

First SecondThird

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EMBEDDING THE CORE COMPETENCE PERSPECTIVE

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The risk of ignoring Core CompetenciesOpportunities for growth are truncated

Spot new opportunity but no competency

Company divisionalizes and fractures, competencies weakened

Increased dependency

Increased competition

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The Core Competence Perspective Identifying existing core competencies

Establishing core competence acquisition agenda

Building core competencies

Deploying core competencies

Protecting and defending core competence leadership

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IDENTIFYING EXISTING CORE COMPETENCIES

1. How strongly your customer is getting influenced

2. Core competence should be difficult to imitate

3. Core competencies should open up good no. of potential markets

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ESTABLISHING CORE COMPETENCE ACQUISITION AGENDA

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BUILDING NEW CORE COMPETENCIES

Consistency of efforts is the Key!

Understand which competencies to build

Stability of management teams

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DEPLOYING CORE COMPETENCIES if an individual somewhere in the organization believes that he or she

Can contribute to one of the high priority projects, that individual can

“self promote” himself or herself onto the team.

The team leader may not choose to take the applicant, but if the

skills offered are critical to the project’s success, the team leader

can ask that the individual be transferred.

As one might expect, the existence of such a system helps ensure

that unit managers do their best to keep key people occupied with

truly challenging projects.

It also ensures that the best people end up working on the biggest

potential opportunities’.

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DEFENDING AND PROTECTING CORE COMPETENCIES

Core competencies do not diminish with use.

competencies need to be nurtured and protected.

competence base can be attacked or destroyed by crude downsizing and delayering activities

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SECURING THE FUTURE

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When the goal is to create new competitive space, it is usually

impossible to know in advance :

Configuration of products or service features,

Offered at what price point and

Through what channels, will be required to unlock the potential market.

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EXPEDITIONARY MARKETING expeditionary marketing — forging new markets before competitors

It acknowledges that failure might take place, but it is a worth risk taking.

It is based on the question of:

1. Whether your business is there to simply serve customers and create new markets?

2. Do your marketing efforts follow consumer’s wants and needs or does it lead them in new directions?

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The practical problem of expeditionary marketing is

how to reduce the time and cost of product iteration .

Expeditionary marketing does not imply launching products that are manifestly unready or inappropriate to the needs of potential customers.

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!!Thank You!!