MANAGING in the

NEW WORLD

Corporate Strategy

Two Wharton Professors have written a new book, that just got published. The writers are Christian Terwiesch and Nicolaj Siggelkow, while the book is titled Connected Strategy: Building Continuous Customer Relationships for Competitive Advantage. One of the concepts introduced via this book is of frictionless transactions. This is best explained through the evolution of experiences at Disney theme parks from merely a ticket to now a Magic Band, that allows for far deeper connectivity. There are two elements to connected strategies. One is the connected customer relationship, while the other is the connected delivery model. Nike offers another similar apt example of this connected corporate strategy. Once implemented, this helps in fostering a competitive and sustainable advantage over others. One also does not have to develop all technologies themselves, but can also use the same already developed by others. Google Maps and 5G technologies are key examples of those that may be broadly used up.

Source:https://knowledge.wharton.upenn.edu/article/connected-strategy-book/

Uploaded Date:29 January 2020

Trade- offs have become a necessary part of the business process now, thanks to the constant churn in technology, workforce, and business modes. In order to derive optimum value out of such trade- offs, there are four modes of action that have been suggested. Firstly, one needs to know the trade- offs, before implementing them. It will also help understand beforehand who wins or loses in this particular round. Next, one needs to periodically review the trade- offs selected. The outcome of implementing them, must go beyond mere incremental transition. Business innovation has to be worked out around these trade- offs, in order to deliver maximum value. This will help the organization thrive within this trade- off space. Long- term goals now need to be pursued without compromising much on near- term targets.

Source:https://www.strategy-business.com/article/The-upside-of-trade-offs?gko=3468f

Uploaded Date:28 January 2020

Any attempts at business transformations needs to go “all in”, or rather comprehensively, and not piece- by- piece. This will help remake the business portfolio of the organization. Thus, business transformation programmes need to go beyond the usual maxim of trying to merely make process better, cheaper and faster. Such a comprehensive approach is needed all the more now as the economic profit is rather unevenly distributed globally. A lot of this can be better understood from a reading of the book Strategy Beyond the Hockey Stick. In a study anchored by management consulting giant McKinsey, it emerged that about forty- seven percent of the organizations went for a static transformation. Another twenty- six percent opted for one based around performance alone. A further fifteen percent chose to go the portfolio only approach. That leaves a mere twelve percent to follow the “all in” strategy. These companies turned out to be the most successful ones. Sun Pharmaceutical is an example of one such successful strategy execution.

Source:https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/why-your-next-transformation-should-be-all-in

Uploaded Date:06 January 2020

The global economy is now underway one of the most uncertain periods in terms of macro economy and businesses. At the recent twenty- second Annual Global CEO Survey, conducted by management consulting giant PwC, more than a thousand business leaders were surveyed. While the figure stood at only eight percent last year, this year, fifteen percent were unable to name any exciting growth market beyond their own. The likes of USA, Germany and China that were on top of this list last year, found themselves lowered, while Canada, India and Brazil came up in it. Another concern is that last year about a third of the CEOs answered positive in their worry towards the ongoing trade wars, this year the figure jumped to forty- five percent, who are already trying to shift their corporate strategy and the supply chains alongside. Manufacturing costs are rising, with stronger suppliers in emerging markets. New consumer markets are also rising, at places often embedded with regulatory and political uncertainties. New market entry isn’t always so straightforward, so companies will need to cleverly realign their respective footprints.

Source:https://www.strategy-business.com/article/Growth-strategies-for-an-uncertain-world?gko=6710e

Uploaded Date:27 December 2019

A certain kind of business heads and CEOs are known to be particularly adept at making M & A (Mergers and Acquisitions) turnarounds, using their bold strategies. A study was conducted recently by BCG, which is a management consulting, to understand this occurrence. One such indicator is their willingness to act at pace. Another is how their ambitious targets, gain synergy all over the country. These types of leaders are also fixated at transformation, but ensure that enough investment goes in to it, so it all works out. Sufficient amount of corporate training is doled out to the employees, so they may thrive in the changing scenario. This also helps build a long- term orientation in the company, so that quick- fire solutions are dumped out. A well- defined purpose is drafted right at the start, supported by a mission statement, that spells out the true ambitions of the company.

Source:https://www.bcg.com/publications/2019/bold-ceos-succeed-mergers-and-acquisitions-turnarounds.aspx

Uploaded Date:23 December 2019

At the time of a business merger, companies of course face a number of expected upheavals. To ensure that the impact is minimized, one has to get the operating tool right. An operating model design is comprised of processes, structures and the people. The structure involves the roles and responsibilities, governance patterns, permeable boundaries and the axes of organizational structure. People includes the informal network, the talent management systems, skills, culture and the size of the workforce. The process is comprised of its design, linkages, performance management and the technology being uses. While designing this entire operating process, one has to start by building a baseline, that will help align the priorities. Then the preliminary end- state design needs to be developed. Interim models and plans come thereafter. After all this is done, the company needs to stabilize, integrate and transform.

Source:https://www.mckinsey.com/business-functions/organization/our-insights/realizing-the-value-of-your-merger-with-the-right-operating-model

Uploaded Date: 16th December 2019

Some secrets have been revealed on how business intelligence captured can actually be executed. First of all, the insights captured need to be revealed in real time. The presentation of the same has to be attractive, so that the “aha” moments can be truly captured. Brain science has even revealed that new insights may be deemed as fragile. This has been amplified in detail by Jeffrey Schwartz and David Rock in the article The Neuroscience of Leadership. Another trick is to ensure that the personal systems so curated need to be rigorous about managing commitments and the glare. The “aha” moments spoken of earlier, need to be further reactivated through the frequent deployment of probing questions. One needs to work while keeping track of everyone’s deadlines, as this will ensure a tight work framework.

Source:https://www.strategy-business.com/blog/Four-Secrets-for-Turning-Insight-into-Execution?gko=3d8b9

Uploaded Date: 16th December 2019

When tech giant SAP acquired Qualtrics, which is a research and business analytics firm, for a few many times higher than the latter’s sales figures, many question marks were raised. SAP though justified the acquisition by claiming that new category creators, typically take up about 76% of the market capitalization from the total market. There is a subtle difference between a category creator versus a first mover. While often there may be an overlap, a category creator need not always be the one to first move in the market. It involves educating the public about a problem that is not always on top of their mind, but one which they ought to be concerned about. The first high functioning flywheel would be created by this player, through a radical service or product innovation, a break business model and big data on the future of the segment. Data is today, a currency for power, as Netflix has taken advantage of, knowing its customers more intimately, than Disney would. Tesla, Axon and Hydra facial are three more such companies that are the category creators.

Source: https://hbr.org/2019/11/the-difference-between-a-first-mover-and-a-category-creator

Uploaded Date: 16th December 2019

VUCA stands for Volatility, Uncertainty, Complexity and Ambiguity. This word best describes the present business environment better than any at the moment. In order to tailor the present corporate strategy against this backdrop, some solutions have been identified. First of all, the omnipresence of VUCA does not imply that everything is unpredictable. Rather, some aspects can clearly be demarcated. This includes urban concentrations, demographic shifts, technology advances and of course climate change. One needs to be curious at all times, to experiment, as only then will business innovations take shape. In spite of all the uncertainty that VUCA causes, teams must try to create islands of certainty within whatever bits they may be able to control.

Source:https://www.strategy-business.com/blog/Leading-in-an-Increasingly-VUCA-World?gko=73d76

Uploaded Date: 16th December 2019

A new book has been released titled Designing Experiences, written by the Columbia Business School’s duo of J Robert Rossman and Matthew D Duerden. This book explores how experiences may be designed to ensure they become great, and not merely good. They speak about how the word experience is more than the mere economic activity. It demands conscious attention, action and engagement. Further the book speaks about the five types of experiences, which are- prosaic, transformational, memorable, mindful and meaningful. Talent management and marketing professionals alike need to understand these experiences, so they may put them to use. Disney’s theme parks provide a great example of how such experiences may be run.

Source:https://www.strategy-business.com/article/How-to-build-a-great-experience?gko=34804

Uploaded Date: 16th December 2019

The term unicorn is now well- known, meaning start- ups with a valuation in excess of a billion dollars. China now has about two- hundred such unicorns. Nearly a third of these have either already set up shop abroad, or are on the verge of doing so. These unicorns are spread over thirteen industrial sectors. The four largest of those industries have been shaped by substantial inputs of technology. These have been transportation, media, fintech and enterprise service. The geography has also been an interesting finding. More than a third of these companies are form the capital, Beijing. Shanghai of course has the next highest lot with a fourth of the total. Shenzhen and Hangzhou are the next two important cities, while surprisingly a mere two percent originate from Hong Kong. The size of the Chinese market has been a major reason for the rise of these unicorns. The entrepreneurial spirit of the people to tap in to such business innovations needs to be acknowledged. The rest of the world now knows that it has to live with the existence of these powerful Chinese unicorns and somehow battle them to preserve their own turfs.

Source:https://www.strategy-business.com/article/Chinas-herd-of-unicorns?gko=5a81d

Uploaded Date: 12 December 2019

SKYLINE Knowledge Centre

Phone: 9971700059,9810877385
E-mail: info@skylinecollege.com
© 2017 SKYLINE. All right Reserved.