Time pacing - A new strategy in intensely competitive markets

Time pacingProf. Dr. Martin Knahl

Le Minh, PhienTran Minh, Phuoc

Agenda

▣ What’s Time Pacing▣ Managing Transition▣ Managing Rhythms▣ Case Study - Gillette▣ Conclusion

1.What’s Time

Pacing

‘’ Moore's lawThe number of transistors incorporated in a chip will doubles approximately every two years

https://en.wikipedia.org/wiki/Moore%27s_law

Time PacingA strategy for competing in fast-changing,

unpredictable markets by scheduling change in predictable time intervals

Event Pacing

Event pacing is about creating new product when:

▣A promising technology comes out of R&D laboratory

▣Entering a new market in response to a move by a competitor

▣Marking an acquisition

In stable market, event pacing is an opportunistic and effective way to deal with change.

Time PacingMore creative and proactiveImportant psychological impact within corporation.

Time Pacing Vs. Event Pacing

Event PacingMore traditionalResponding to events, seasons, etcMore reactive and often erratic strategy.

2 critical of Time Pacing

ManagingTransitions

ManagingRhythms

2 critical of Time Pacing

2.Managing

Transitions

‘’In fast-paced markets, transitions are like changing the fan belt while the car is still moving

Time pacing: Competing in markets that won’t stand still

by Kathleen M. Eisenhardt and Shona L.Brown

What is the Transitions?

Involves executing and integrating changes into the company.Common transitions:

▣A shift from one product-development project to the next

▣Advertising campaign▣Season of merchandise to the next▣Entering or leaving markets▣Absorbing new acquisitions▣Launching new alliances▣Bringing volume production on-line

Managing Transitions

▣Particularly important in fast-changing markets

▣Often ignored▣The best transitions help managers to learn,

reflect, change direction, and accomplish other goals

▣Transition processes vary from company to company

3.Managing Rhythms

What is the Rhythm?

▣Rhythm helps people plan ahead and synchronize their activities

▣Without rhythm, manager tend to be reactive and to see unwelcome changes

‘’For most companies, getting in step with the market means moving faster. But for some, finding the right rhythm means slowing down.

Time pacing: Competing in markets that won’t stand still

by Kathleen M. Eisenhardt and Shona L.Brown

What is the Right Rhythm?

▣Time pacing should be aligned withs important rhythms of the marketplace

There are natural rhythms that can set tempo for the time pacing

Source of Rhythm

Customer

Supplier

Complementer

Source of

Rhythm

General management has its rhythms

▣The planning and review process altered to one more tailored to the rate of change in specific market

▣Exploit changes by having executives from other businesses within company attend the reviews and influence strategies

Review cycles of some industries

Review cycles

Electronic components Business 6 months

Home appliances business 1-3 years

Heavy industrial Industries 18 months

Computing & Networking industries Weekly/Daily basics

Time pacing: Competing in markets that won’t stand still by Kathleen M. Eisenhardt and Shona L.Brown

Choose a manageable pace

▣As fast as the company internal capacities

▣Time pacing requires not just setting rhythms but executing it

Case study

Case Study

Gillette’s Product pipeline

Volume production Product Prototype Next Product Prototype

4 years

ExcelSensor

3 years

20 new products/year

40% of salesfrom new products

25% of cycle timeslashed down

Conclusion

Time pacing opens strategic options. We can exploit it to:

▣Gaining ground

▣Set competitive pace

▣And keeping up

Reference

▣ Time pacing: Competing in markets that won’t stand still by Kathleen M. Eisenhardt and Shona L.Brown

▣ http://gillette.com/en-us

▣ https://en.wikipedia.org/wiki/Moore%27s_law

Thanks!Any questions?