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Standing Out in the Crowd Associated Manufacturing Marketing Group - Mike Bowes August 1, 2008

The AMMG Business Model (August 2008)

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Page 1: The AMMG Business Model (August 2008)

Standing Out in the Crowd

Associated Manufacturing Marketing Group - Mike Bowes ” August 1, 2008

Page 2: The AMMG Business Model (August 2008)

Sunny Corner Enterprises

Johnson Enterprises

A Landry Fabrication

All-Tech Mechanical & Hydraulic

Hachey Construction - Fabrication

The Associated Manufacturing Team

Page 3: The AMMG Business Model (August 2008)

Our Services:

Custom fabrications (build to print and design service)On-site installations and maintenance servicesCustom CNC machining, waterjet, thermal coatingGear box overhauls, hydraulics and relatedFull mechanical assembly, including electrical and installationContract manufacturingLarge metalworking projects, including pressure vessels and piping systemsMaterial Handling Systems, including conveyors & compacting systemsConstruction services for heavy industry. Project management expertiseEquipment Refurbishment and Repair

Page 4: The AMMG Business Model (August 2008)

Understanding how we’re different

Page 5: The AMMG Business Model (August 2008)

How we differentiate ourselves in

a crowded marketplace

Page 6: The AMMG Business Model (August 2008)

VALUES......

Page 7: The AMMG Business Model (August 2008)

....... Inclusivity

....... Possibility

....... Opportunity

....... Capability

....... Sustainability

....... Responsibility

Page 8: The AMMG Business Model (August 2008)

With trust & patience,

We’ll learn about

collaborating effectively

Page 9: The AMMG Business Model (August 2008)

AMMG Strategic Partnership BROADER SERVICE OFFERING

Shared Services

Business Process Management

Supplier Development

GLOBAL DELIVERY

STRATEGIC ASSETS

Specific, dedicated business development

agency

Partnership offers significant

savings to our customers

Faster time to market

TRACK RECORD & QUALITY

Build on track record & experience

portfolios of members

ISO 9000:2000, CWB, U-stamp, Lean certified

Supported by full range of services

Access to port, rail and road

Proximity to Eastern US and Atlantic

Export experience

Better

Customer

Experience

Wider

Capabilities

Proven

Experience

Ready to

Export

Long-term

partnership offering

a new export-based

service model

Page 10: The AMMG Business Model (August 2008)

Benefits of working as strategic partners

RISK

“ Develop delivery and transition

process

“ Governance support

& Mentoring

QUALITY

COST

“ Reduction in existing cost through

sharing

“ Automation of processes

FLEXIBILITY

“ Quick ramp up and ramp down

“ Modularised support

“Standardized processes

“ High quality resources

Consolidate

into

Teams

Improve

Processes

Cross Train

Resources

Stabilise

Systems

Offering a holistic view across sectors and creating a shared learning approach

Continuous cycle of process improvement, system stabilisation, cross training & consolidation of

support teams to drive our proGRess

Long-term

partnership offering

a new export-based

service model

Page 11: The AMMG Business Model (August 2008)

Supplier Development Day

Moving Forward in the Winds of Change

Mike Bowes

Associated Manufacturing

Restigouche

January 28, 2008

Page 12: The AMMG Business Model (August 2008)

We are prepared

• To LEAD

• To SHARE

• To COLLABORATE

• To SUPPORT

• To BUILD a team

Page 13: The AMMG Business Model (August 2008)

STRENGTHS

Resiliency

Adaptability

Forward Thinking

Culture of Entrepreneurship

Motivated, experienced Workforce

Favourable Investment Climate

Government support

Page 14: The AMMG Business Model (August 2008)
Page 15: The AMMG Business Model (August 2008)

‚Problem solving often functions

as a way of maintaining the

status quo rather than

enabling fundamental change‛

Plan, Review, Revise

Don’t just Problem Solve

Page 16: The AMMG Business Model (August 2008)

Inductive Problem-Solving to Innovate

• Apply all 4 Dimensions of Inductive P-S

– Social (Find, Collaborate, Close Networks, Extended Networks, Dialogue)

– Analytical (Interpret, Envision, Apply, Creat, Context)

– Information (Source, Assess, Organize, Aggregate, Communicate)

– Learning (Sense, Reflect, Develop, Improve, Extend)

Page 17: The AMMG Business Model (August 2008)

‚The definition of insanity is doing the same thing over

and over again and expecting different results

each time.‛ Albert Einstein

Page 18: The AMMG Business Model (August 2008)

Partners informed

All Stakeholders involved

Open Sourcing

Communicate details

All share in opportunities

Brainstorming

Quarterly business reviews

Be the Best

Communication will be key

Page 19: The AMMG Business Model (August 2008)

Steps Underway

•approve market plan

•Supplier Development strategy

•culture of Kaizen internally

•Single Contact Point on major Projects

•E-Marketing Strategy

•new Brand, Tools & Resources

Page 20: The AMMG Business Model (August 2008)

Strategic Marketing and

Benefits Roadmap “Be the Best

“ Measureable Benefits

“ E-Commerce strategy

“ Target market segments and geographic priorities

“ Network development

“ Collaborative innovation framework

“ Partnership Governance

“ Supplier Development

“ Commercial model

Strategic

Marketing and Benefits Roadmap

Page 21: The AMMG Business Model (August 2008)

E-marketing(under development)

Google AdWords

Networking - LinkedIn

Website development

Slideshare

Customer Access

Enterprise 2.0 - ERP

Page 22: The AMMG Business Model (August 2008)

Be the Best Elements

Be the Best

“ Supplier Development

“ Process standardization

“ Process improvements

“ Value added services

“ Share best demonstrated practices

“ Able to compete on global stage

“ Certifications ” Lean, ISO, ASME

Page 23: The AMMG Business Model (August 2008)

2008 marketplace

● Large capital projects

● More integrated supply chains

● Mining and energy industries booming

Canada

USA Economy weaker ” BUT opportunities because of weaker US$

Emerging energy markets

Continue to be the most important market

● Must be there

● Emerging markets

● Technology transfers

Global

market

Volatile times & high uncertainty ” with this comes opportunity

Page 24: The AMMG Business Model (August 2008)

VALUE

PROPOSITION

COST

STRUCTURE

CUSTOMER

RELATIONSHIPS

CUSTOMER

SEGMENTS

ACTIVITY

CONFIGURATION

CORE

CAPABILITIES

PARTNER

NETWORK

REVENUE

STREAMS

INFRASTRUCTURE CUSTOMEROFFER

FINANCE

a business model describes the value an organization offers

to various customers and portrays the capabilities and

partners required for creating, marketing, and delivering this

value and relationship capital with the goal of generating

profitable and sustainable revenue streams

DISTRIBUTION

CHANNELS

[Osterwalder (2004) The Business Model Ontology]

business model framework

Page 25: The AMMG Business Model (August 2008)

what value proposition do we offer,

to which customer segments?

Page 26: The AMMG Business Model (August 2008)

Our Message………

Not just a supplier…. A STRATEGIC PARTNER

Not just products…. SOLUTIONS

Page 27: The AMMG Business Model (August 2008)

VALUE

PROPOSITION

CUSTOMER

SEGMENTS

Strategic partners

Solutions not products

Major project owners

Equipment OEMs

CUSTOMEROFFER

what value proposition do you offer,

to which customer segments? (model)

Page 28: The AMMG Business Model (August 2008)

what value proposition do you offer, to

which customer segments? (example)

Design to

installation

Conveyor users

Large industry

CUSTOMEROFFER

Build to print

Mining

Equipment

OEMs

Full Service

Maintenance

Agreements

Local Mines

Page 29: The AMMG Business Model (August 2008)

how do we reach our customers?

Page 30: The AMMG Business Model (August 2008)

VALUE

PROPOSITION

COMMUNICATION &

DISTRIBUTION

CHANNELS

Strategic Partner

Solutions

Networking

E-Marketing

OFFER

how do you reach your customers? (model)

CUSTOMER

SEGMENTS

Project Owners

OEMs

CUSTOMER

Page 31: The AMMG Business Model (August 2008)

Full service

strategic partner

Networking

CUSTOMEROFFER

how does AMMG reach our customers?

Trade Shows,

Missions

Major Project

Owners

One-on-one visits

Solutions not

Products

E-Marketing

NetworkingOEMs

Page 32: The AMMG Business Model (August 2008)

how do we build relationships?

Page 33: The AMMG Business Model (August 2008)

VALUE

PROPOSITION

CUSTOMER

RELATIONSHIP

value proposition 1

value proposition 2

mechanism 1

mechanism 2

OFFER

CUSTOMER

SEGMENTS

target customer 1

target customer 2

CUSTOMER

how do you build relationships with your

customers? (model)

Page 34: The AMMG Business Model (August 2008)

Solutions not just

products

Full service

Design support /

supplier chain

CUSTOMEROFFER

Progress and team

reportsEquipment OEM

Installation and

support

how do we build relationships

with our customers? (example)

Page 35: The AMMG Business Model (August 2008)

how do we earn our money with

this business model?

Page 36: The AMMG Business Model (August 2008)

VALUE

PROPOSITIONREVENUE STREAMS

value proposition 1

value proposition 2

revenue stream 1

revenue stream 2

OFFER

CUSTOMER

SEGMENTS

target customer 1

target customer 2

FINANCE

how do you earn your money with

this business model? (model)

Page 37: The AMMG Business Model (August 2008)

Full service

support

Product

development fees

FINANCEOFFER

Production costs OEM

Product support

fees

Opportunity Revenue from OEM AMMG

how do we earn our money with

this business model? (example)

Page 38: The AMMG Business Model (August 2008)

Next StepsMeasureExecute180 Day Plan

Ad

op

t &

Co

nso

lidat

e

Val

ue

Time• Reduce Cost• Increase Revenue through market growth• Collaborative innovation

Ad

apt

& C

on

verg

e

Tran

sfo

rm &

Ext

en

d

Continuous ServiceImprovement

Business outcome

alignment

Strategic Marketing and

Benefits Roadmap

• Transformation plan to true partnership

• Measurable benefits

• E-Marketing strategy

• Target market segments and geographic priorities

• Network development

• Collaborativeinnovation framework

• Governance

• Supplier Development

• Commercial model

Business Strategy Review

InfrastructureAssessment

Operational Assessment

Service LevelAssessment

Sharing of Sources

Best Practices

BusinessOutcome

Alignment

BusinessOutcome

Measurement

New Markets, Partners & Customers

New Cycle

Page 39: The AMMG Business Model (August 2008)

Strategic Marketing and

Benefits Roadmap “Be the Best

“ Measurable benefits

“ E-marketing strategy

“ Target market segments and geographic priorities

“ Network development

“ Collaborative innovation framework

“ Partnership Governance

“ Supplier Development

“ Commercial model

Strategic

Marketing and Benefits Roadmap

Page 40: The AMMG Business Model (August 2008)

how do we measure the success of our

business model?

Page 41: The AMMG Business Model (August 2008)

Wide Market Strategy

“ Serving a wide spectrum of the market by selling

differentiated products to different segments in

the market ” all based on our current core

competencies.

“ Requirements: (a) Employ different combinations of

price, product, promotion, and distribution

strategies in different segments (b) Top

management commitment to embrace wide market (c)

Strong financial position.

Page 42: The AMMG Business Model (August 2008)

Major Projects - Atlantic

Eider Rock Refinery

VBNC Commercial Nickel

Point Lepreau II

VBNC Underground

IOC ” Labrador

Lower Churchill

PCS Picadilly

Offshore NL -Hebron +

++++++++

Page 43: The AMMG Business Model (August 2008)

Market Segments

Mining

Construction, Development, O & M

Renewable Energy

Biofuels, Windpower, Hydro

Equipment Manufacturers

Mining, Pressure Vessel, Hydraulics, Specialty

Material Handling

Design, Fabrication, Installation, Piping, Conveyors

Energy and Industrial

Niches for Power Gen, Nuclear, Infrastructure

Page 44: The AMMG Business Model (August 2008)

There’s hardly an old abandoned mine that is

not being considered for redevelopment

Page 45: The AMMG Business Model (August 2008)

Market Entry Strategy

1. Licensing from OEM

2. Technology Transfer

3. Partnership with EPCM groups

4. Canadian subs to reach parents

5. Leverage existing Customers

Page 46: The AMMG Business Model (August 2008)

Blue Ocean to Reconstruct Market Boundaries

“ Focus on rivals within

industry

“ Focuses on competitive

position within strategic

group

“ Focuses on better serving

the buyer group

Head-to-Head Strategy Blue Ocean Strategy

“ Looks across alternative

industries

“ Looks across strategic group

within industry

“ Redefines the industry buyer

group

Page 47: The AMMG Business Model (August 2008)

We learned…….

Page 48: The AMMG Business Model (August 2008)

what we have learnedWe have to be an

open book to all

stakeholders ”

customers,

suppliers,

partners

Page 49: The AMMG Business Model (August 2008)

customers want more control

but want it to be less risk

Page 50: The AMMG Business Model (August 2008)

they want us to demonstrate our

experience „ not to use them to gain

experience

Page 51: The AMMG Business Model (August 2008)

customers want to speak with

fewer suppliers

but want it to be more Engaged & able to

do business with local content

Page 52: The AMMG Business Model (August 2008)

the solutions we provide is ‘the product’

Page 53: The AMMG Business Model (August 2008)

customers want to deal with a team

- a high performing team that delivers

Page 54: The AMMG Business Model (August 2008)

A High Performance Team

Associated Manufacturing

Page 55: The AMMG Business Model (August 2008)

That Stands Out FROM the CrowdAssociated Manufacturing Marketing Group - Mike Bowes ” August 1, 2008