View
216
Download
2
Category
Preview:
Citation preview
Chapter 6 Enhanced Version
Implementation
Exhibits/Tables
October 22, 2000
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
2
Supporting Slide 6-A:
Two Integral Components of Implementation
ObjectivesDeliver the promised
customer experience
Turn strategic intent / concepts into results
ObjectivesMaintain fit between
Marketspace evolution and the company’s delivery system and product offering
Build theinfrastructure to
deliver on the brand promise
Innovate / Renew the customer experience
Source: Monitor Analysis
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
3
Supporting Slide 6-B: Two Components of Implementation
Delivery System
InnovationProcess
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
4
Exhibit 6–1: Marketspace Evolution and Need for Continuous Innovation
BRAND PROMISE Branding Marketing Communications Customer Interface
BRAND PROMISE Branding Marketing Communications Customer Interface
IMPLEMENTATION
Deliver on the promised
experience
Renew/Innovate thecustomer experience
Source: Monitor Analysis
Objectives Achieve strategic goals Adjust product offering
and delivery system to rapidly changing Marketspace environment
INNOVATION PROCESS
DELIVERY SYSTEM
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
5
Source: Modified version of materials in The Marketing Edge by Thomas V. Bonoma. 1985. New York: The Free Press.
Exhibit 6–2: Why Does Implementation Matter?
Success
All that can be done to assure success has been done
Success
All that can be done to assure success has been done
Roulette
Good execution can mitigate poor strategy, forcing management to success
or Same good execution
can hasten failure
Roulette
Good execution can mitigate poor strategy, forcing management to success
or Same good execution
can hasten failure
Trouble
Poor execution hampers good strategy - Management may never become aware of strategic soundness because of execution inadequacies
Trouble
Poor execution hampers good strategy - Management may never become aware of strategic soundness because of execution inadequacies
Failure
Diffibult to diagnose - bad strategy masked by poor execution
More difficult to fix - two things are wrong
Failure
Diffibult to diagnose - bad strategy masked by poor execution
More difficult to fix - two things are wrong
Poor
Good
Appropriate Inappropriate
Strategy
Implementation
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
6
Essential challenges of On-line Implementation
Customer Driven
Customer Driven
Organization Driven
Organization Driven
More visibility of errors = stronger
competitive implications of errors
More visibility of errors = stronger
competitive implications of errors
Lower switching barriers = increased importance of good
implementation
Lower switching barriers = increased importance of good
implementation
More complex linkages = increased
complexity of implementation
More complex linkages = increased
complexity of implementation
More fluid organizational boundaries =
increased complexity of implementation
More fluid organizational boundaries =
increased complexity of implementation
More dynamic market environment =
increased complexity of implementation
More dynamic market environment =
increased complexity of implementation
Exhibit 6-3: Challenges of On-Line Implementation
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
7
Built to Last:
The Offline World
Built to Rebuild (Fast):
The On-line World Name of the game is to consistently outplan the
competition elaborate strategic planning process important for long term success
No time for elaborate planning (‘Be fast or be last’) frequent experimentation and adaptability, as well as locking in alliances earlier than competitors keys for success
Organizational growth is based on organic growth with selective use of acquisitions to fill pockets of deficiencies (slow post-merger integration-processes)
Acquiring competencies, assets and customer-base far more important than organic growth definition of ‘the organization’ more flexible and hence, same goes for design of organizational architecture
Scaling up requires years of building up physical assets and brand equity
Scaling up takes months and is based on information-assets
Growth is constrained by the limited number of available market opportunities
Growth is constrained by the company’s ability to capitalize on the overload of opportunities out there (people, infrastructure)
Most successful companies are not founded on ‘Great Idea’
Most successful companies are based on “great ideas”
Sources: Brooks, Frederick P. 1994. Built to Last. New York: Harper Business. Business 2.0. 2000. Smart Way to Start, 10 Principles of the New Economy (March).
Supporting Slide 6-C:
Point-Counterpoint: From Built to Last to Built to Rebuild
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
8
ProcessesProcesses
AssetsAssets
SystemsSystems
PeoplePeople
Source:Christensen, Clayton M. 2000. Meeting the Challenge of Disruptive Change. Harvard Business Review 78, no. 2 (March-April).
MAPPING THERESOURCE SYSTEM
DELIVERY SYSTEM
Supply ChainsSupply Chains
Exhibit 6-4: The Delivery System Needs to Support and Reinforce the Resource
System
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
9
B2C - Business to ConsumerB2C - Business to ConsumerB2C - Business to ConsumerB2C - Business to Consumer
Stock it Yourself.
Outsource Warehousing
Drop Ship
Fulfillment intermediaries
Stock it Yourself.
Outsource Warehousing
Drop Ship
Fulfillment intermediaries
B2B - Business to BusinessB2B - Business to BusinessB2B - Business to BusinessB2B - Business to Business
Customer Centric
Vertical Hubs
Customer Centric
Vertical Hubs
C2C - Consumer to ConsumerC2C - Consumer to ConsumerC2C - Consumer to ConsumerC2C - Consumer to Consumer
Much like a vertical hub, many sites (i.e., eBay) have created a customer-to-customer sales
Provides a forum for buyers and sellers to meet
Buyers and sellers trade directly (eliminating an intermediary)
A global marketplace with a large and interested trading company
Much like a vertical hub, many sites (i.e., eBay) have created a customer-to-customer sales
Provides a forum for buyers and sellers to meet
Buyers and sellers trade directly (eliminating an intermediary)
A global marketplace with a large and interested trading company
C2B - Consumer to BusinessC2B - Consumer to BusinessC2B - Consumer to BusinessC2B - Consumer to Business
C2B include auction services like Priceline.com. Individual consumers place bids with businesses and businesses decide whether to sell.
Also include consumers group buying like Mercata.com. Mercata.com is a trading community where the more people that purchase a product, the lower the price is. Mercata alllows consumers from around the world to achieve group scale economies.
C2B include auction services like Priceline.com. Individual consumers place bids with businesses and businesses decide whether to sell.
Also include consumers group buying like Mercata.com. Mercata.com is a trading community where the more people that purchase a product, the lower the price is. Mercata alllows consumers from around the world to achieve group scale economies.
Exhibit 6-5: Four Types of Supply Chains Found In Marketspace
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
10
Exhibit 6-6: Where to Play On-Line and Off-Line
FULFILLMENT SYSTEMS
CUSTOMERINTERFACE
ON-LINE OFF-LINE
Yahoo!
Amazon.com
BN.com
McD
on
ald
s
Eg
gh
e ad
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
11
Laboratories Primary
Activities Time
Frame Innovation
Type
Division Laboratories
Product development
Product control
Technical service
Today’s business 0–3 Years
Line extension
Sector Laboratories Sector
technology development
3–10 Years
Changing the basis of competition
Central Research New
technology development
10+ Years
New industries
3M’s Research Paradigm
Key TakeawaysKey TakeawaysKey TakeawaysKey Takeaways
Source: Gundling, Ernest. 2000. The 3M Way to Innovation. Tokyo: Kodansha Int. Ltd. And New York, New York: Kodansha America, Inc.
Traditional off-line innovation took years and emphasized sustainable / gradual innovation
Marketspace still offers room for incremental innovation, but emphasis shifts to more drastic innovations
High information content of innovation objects increases speed of innovation: from years to months or even shorter
Short history of Marketspace means new collaborators / complementors become available frequently
Traditional off-line innovation took years and emphasized sustainable / gradual innovation
Marketspace still offers room for incremental innovation, but emphasis shifts to more drastic innovations
High information content of innovation objects increases speed of innovation: from years to months or even shorter
Short history of Marketspace means new collaborators / complementors become available frequently
Table 6–1: Innovation Used to Be Slow and Gradual in the Off-Line World
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
12
Innovation by DoodlingInnovation by Doodling
Innovation by DesignInnovation by Design
Innovation by DirectionInnovation by Direction
Exhibit 6–7: The Off-Line Innovation Process Was Internal To The Firm
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
13
Off-Line Trade-Offs/Principles Supporting Funnel Approach:
Off-Line Trade-Offs/Principles Supporting Funnel Approach:
On-Line Principles
On-Line Principles
Investments required to launch new innovation very high
Limited resources force tradeoffs / choices which innovations to pursue or not
Trade-offs / choices are made inside the organization before product hits the market
Time-to-market / first mover imperative needs to be traded off with extensive time required to gather customer input
Launching early increases risk of flops and flops need to be avoided at all times:
– Costs of flow very high– Significant damage to brand-equity
Investments required to launch new products and services very moderate
Choices about future of new innovations can easily be made by markets, no need to make these choices internally
First mover imperative can be aligned with gathering (more) customer input
Launching beta-versions allows for revisioning / customization, actually benefiting innovator
Keys drivers determining success of innovation / implementation are:
– Customer base– Customer data analysis– Knowledge management
Table 6-2: Off-Line Innovation Process vs. On-Line Innovation Process
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
14
Source: Christensen, Clayton M. 1997. The Innovator’s Dilemma. Boston, MA: Harvard Business School Press.
TIME
PR
OD
UC
T P
ER
FO
RM
AN
CE
Disruptive Technological
Innovation
Performance Demanded at the Low End of the
Market
Performance Demanded at the High End of the
Market
Progress Due to Sustaining
Technology
Progress Due to Sustaining
Technology
Exhibit 6-8: New Innovation Frameworks Addressing Co-Evolution Have
Emerged
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
15
33
22
11 44
55
Developer-Driven Development
Technology / Market Coevolution
User-Context Development
User-DrivenEnhancement
New Application or Combination of Technologies
High Low
High
Low
Mat
uri
ty o
f T
ech
no
log
y D
esig
n
Alignment of Product Linewith Current Customer Base
Source: Leonard-Barton, Dorothy. 1996. Wellsprings of Knowledge, Boston, MA: Harvard Business School Press.
Exhibit 6-9: New Innovation Frameworks Addressing Co-Evolution Have
Emerged
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
16
Beta 1Initial Input
Initial Input
Evolution of Customer PreferencesEvolution of Customer Preferences
Product Release
Product Release
Evolution of Technical PossibilitiesEvolution of Technical Possibilities
Exhibit 6-10: Integrating New Technology with Customer Preferences
Beta 2 Beta 3
Source: Iansiti, Marco and Alan McCormack. 1998. New product development on the Internet. In Sense & Respond. Boston: Harvard Business School Press.
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
17
Exhibit 6-11: The Development of Navigator 3.0
FebJan AprMar May Jun Jul Aug
OBJECTIVES
Input from User Feedback
Beta 0 Internal
Beta 1
Beta 2
Beta 3
Beta 4
Beta 5
Beta 6
STABILIZE
INTEGRATION
FEATURE DESIGN AND CODING
FullRelease
SpecificationsCompleteStart
Source: Iansiti, Marco and Alan McCormack. 1998. New product development.
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
18
Exhibit 6-12: Distributed Innovation
CUSTOMERS COLLABORATORS
ENABLERSSUPPLIERS
COMPETITORS COMPANY
. .
..
.= Boundaries of the firm
= Feedback loop
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
19
Exhibit 6-13: Schwab IT Infrastructure
Source: Tempest, Nicole and Warren McFarlan. 1999. Charles Schwab Corporation (A). Case no. 9-300-024, 9 September. Boston: Harvard Business School Publishing.
ZOP-BOK-FinalImp-04-12-00-MRS
Confidential
20
Exhibit 6-14: Timeline for Schwab Innovations
1979 1985 1989 1991 1992 1993 1995 1996 1997 1998 1999 2000
Entire trade clearing system brought in-house
Equalizer: DOS based product enabling PC users to trade stocks on-line
Telebroker: 24x7 quote and order placement by telephone
SchwabLink: Service for fee-based financial advisors
OneSource: Mutual fund program allowing investors to purchase Schwab and non-Schwab funds free of charge
Streetsmart: Windows-based software allowing on-line trading of equities, bonds and mutual funds
October 1995eSchwab:
Electronics software package dialing into Schwab system
June 1995Advisor
Source: Referral service for fee-based advisors
March 1996Upgraded
eSchwab: First major brokerage firm to offer trading via the Internet
September 1997Customized asset
allocation tool available on-line
October 7, 1997SchwabLink
available on the web
October 1, 1997First speech
recognition service for investors
January 27, 1998MoneyLink:
Electronic funds transfer service
May 14, 1998First U.S. website
enabling order placement in Chinese
January15, 1998Schwab.com
launches
January 20, 1998IRA Analyzer
launches
September 21, 1998CD ROM Tool for
retirement setup and monitoring
November 23, 1998Web tool to track and
benchmark investor performance
April 16, 1999New site
based on user input
April 27, 1999Retirement
Planner on-line
August 14, 1999Velocity software
trading system for active investors
September 8, 1999New web tools for
investment advisor offering
May 24, 1999MySchwab launch
August 19, 1999Plans for cross-
platform wireless trading
November 9, 1999Paperless trading with
eConfirms
October 20, 1999After Hours trading
November 23, 1999Velocity 2.0 launch
December 1, 1999Enhanced Analyst
Center
December 22, 1999New on-line mutual
fund tools
February 3, 2000Learning Center:
Interactive education tool for on-line learning
March 7, 2000Schwab and Barclays
announce internet-based foreign exchange service
March 15, 2000Schwab expands advice
offering with Portfolio consultation
March 31, 2000Schwab and Dow
Jones unveil on-line Chinese news and research service
May 7, 2000Stock Analyzer
launched, offering third party equity analyst recommendations and earnings projections
Recommended