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New Approach of Organization
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Diskussion PaperOct 2014
Simplifying complex work.The Platform Organization:
Creating Growth with a different Buyer
Leveraging the HubSpot Technology
The TMG Approach
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For Sales & Marketing Managers who need to create value in complex business environments TMG provides an Organization Platform that delivers results by existing Digital Technologies.
For Company Managers who have to meet cross-country performance requirements, TMG provides a Platform Organization that enables creating Growth through simplifying of complex work
Creating cross-country Growth
Ziel
Business Goal
Technology Layer
Producers Consumers
Seeds
Governance Layer
The Platform Organization
Meet the cross-country Performance Requirement…
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Growth
Speed Reliability
Global Scale
Local Responsiveness
Efficiency
Innovation
Profit
A new Requirement… …adds new Structure, Process, Systems
The Strategy The Organization
The traditional Approach:
• Unavoidable• Underserved
• Unproductive• Urgent
• More Boxes• More Coordination
• More Reporting Lines• More Procedures
More Productivity
More Engagement+Stagnant
ProductivityDis-
Engagement+
Classic ApproachPlatform Approach
Result-Focused Communities
More Complicatedness Leveraging Complexity for competitive advantage
Before After
New Performance Requirement emerges:
Two Pillars of Management• Hard: Structure, Processes, Systems ,
• Soft : Feelings, Relationships, Traits,..
Interplay of the Parts• Connections, Interaction, Synapsis• Nervous system of adaptability• Cooperation & Autonomy
Functional Areas
Why Platform Organizations?
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The „Doom“ Loop The Virtuous Circle
Alternative to meet new Performance Requirements in the age high Business Complexity
New Performance Requirement emerges:
Set-up new Function: Put more Experts on the Job to produce the Output(Capacity: 60FTE)
Enable „User-generated Content“: Let everyone of Company with specific Subject Knowledge produce the output(Capacity: 2FTE)
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The Platform Organization Difference Freeing Resources for value-creating Activities and Growth
Res
ou
rces
(co
sts,
em
ail t
ime.
.)
Cooperation
Classic Organization
Platform Organization
The Effect on Business Performance
Digital Transformation
Time-Reduction
30 -50%
SpeedFast Responses
Reduction of
non-value added expenses
25 -30%
Efficiency Work Productivity
Additional Value-Creation
by Cooperation between “Boxes”
20 -25%
GrowthCollective Creativity
Limits of Growth: Knowledge Resources
Growth Effect
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Transition from Process to Networks to remain competitive The Platform Organizations moves Companies from linear Processes to Networks
Value-adding Process: The Classical OrganizationGet functional area to do the work.
Value-creating Interactions: The Platform OrganizationLet Users do the Work by leveraging the Company Ecosystem
Think Roles, not Functional Areas
Marketing Production Distribution Sales Consumer
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The Platform Organization for Marketing & Sales
Business Layer
Marketing Shopper
RetailerSalesPharmacy Profile• OTC Potential
• BI Share of Wallet• Share of the Brands• Share of Competitive Brand• Pharmacy Key Success Factors• Shopper Segments• Potential Brand Synergies• Objectives: Higher Share/ Pharmacy sells more• …
Pharmacy Profile• OTC Potential• BI Share of Wallet• Share of the Brands• Share of Competitive Brand• Pharmacy Key Success Factors• Shopper Segments• Potential Brand Synergies• Objectives: Higher Share/ Pharmacy sells more• …
Customer Blog
• OTC Potential of Customer • Shopper Segments• BI Share of Wallet• Share of the Brands• Share of Competitive Brand• Pharmacy Key Success Factors• Potential Brand Synergies• Objectives: Higher Share/ Pharmacy sells more• …
Shopper Marketing Blog
Interaction ITop-down view
Interaction IIBottom-up view
Digital Cooperation Platform
Mastering the complex cross-functional and cross-country cooperation with platform enabled Interactions for achieving the collective goal
Governance Layer
Producers ConsumersSeeds
Technology Layer
Social
TailorOnline Interaction
By customizing of the Technology Layer
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As Work get more complex, 4 Steps to simplify
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The Platform Organization Journey
NewPerformance-Requirements
OrganizationDesign
Building the Platform
Organization
Running the Platform
Organization
A B C D
• Goal/Purpose• Strategy• Diagnostic• Execution
• Classic vs. Platform• Online Community• Platform Architecture• Implementation Plan
• Governance• Interactions• Deliverables• Tasks/Actions
• Community Integrator• Online Reviews• Social Accountability• Leveling-up
Management Support: Platform Organization Builder
Implementation PhaseDesign Phase
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Client CEO Statement
• I personally believe this is the interaction model of the future.
• Most of our core business goals can only be achieved in a complex cross-functional, cross-country cooperation with clear central governance/coordination and strong local engagement and feed-back loops as well as execution.
• We operate in a constantly changing and increasingly competitive environment were business success cannot be managed anymore in a either central or de-central fashion, but rather a high level of agility while leveraging knowledge and resources – faster, better, cheaper.
Platform Power:Installing the high performance global Ecosystem
Channels Customers
HQ
Country--Org Prospects
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