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OSP™
OptimizeyourStrategicPositioning
May 2017
NéoLogique Consulting
“Back to basics”
USA France1
I nnovAero
INTERNATIONAL
Content
NéoLogique Consulting
“Back to basics”
1. AbandontheDisconnectedWays2. KnowyourStrategicPositioning3. OptimizeyourStrategicPositioning(OSP™)
Tools&records:
ü Cross-Matrixtechnique™
ü Funneltechnique™
ü Records
2
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INTERNATIONAL
Copyright©NeoLogique
NéoLogique Consulting
“Back to basics”
…SALES maylookforthewrongcustomer
inthewrongmarketsegment
withthewrongproduct
AbandontheDisconnectedWays
…PRODUCTION mayworkonthewrongcost
and/orthewrongvolume
…FINANCE wantsmoresalesofthemostprofitableproduct
detrimentallytothemarketshare
orshorttermcashdetrimentallytothemediumtermreturn
…MARKETING maylookforincreasedmarketshare
detrimentallytotheprofitability
orlongtermpositioningdetrimentallytoshorttermcash
Foolaround– Fool’serrand– Fool’sgold– Fool’sparadise3
Whenyoumissasyntheticviewofyourprecisestrategicpositioning…
I nnovAero
INTERNATIONAL
Copyright©NeoLogique
NéoLogique Consulting
“Back to basics”
KnowyourStrategicPositioning
4
Splityourbusinessintomosthomogeneoussegments,syntheticallycombiningproducts&customers
Customer× Product=
BusinessSegmentSplityourP&LoverBusinessSegmentsdowntonetmargin(orEbitda orcash)
ProfitabilitybyBusinessSegment
ü TheFunnelTechnique™
Assesssizeofcorrespondingmarketsegments
MarketsharesbyBusinessSegment
ü TheCross-MatrixTechnique™
andviewtheStrategicPositioningofyourbusinesssegments
➛Profitability
versusMarketShares
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Copyright©NeoLogiqueAverageMarketShare
Averageprofita
bility
0%
5%
10%
15%
20%
25%
30%
35%
40%0% 5% 10% 15% 20% 25% 30%
NetM
argin
Marketshares
NéoLogique Consulting
“Back to basics”
OptimizeyourStrategicPositioning(OSP™)
5
AverageMarketShare
Averag
eprofita
bility
DoubleActions
ProductionActions
ProtectiveActions
Now,OptimizetheStrategicPositioningofyourbusinesssegmentsthroughspecificvaluedactions…
…andmonitorgrowth&profitabilitythruactionsdirectlylinkedtotheP&L
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CommercialActions
Succeedordrop
0%
5%
10%
15%
20%
25%
30%
35%
40%0% 5% 10% 15% 20% 25% 30%
NetM
argin
Marketshares
NéoLogique Consulting
“Back to basics”
TheCross-MatrixTechnique™
6
Useatop-bottomquantificationmethod,iterativelyoverfewmatrixes…
…andgetreliablemarketdata(+/- 5%)andprecisemarketsharesperbusinesssegment.
Prod.1 Prod.2 Prod.3 Prod.n Total Total Prod.1 Prod.2 Prod.3 Prod.nSegment1 38 96 158 153 445 127 23 37 67 Company
customer11 24 92 43 159 110 11 7 92 Competitor1customer12 69 11 32 112 64 9 12 11 32 Competitor2othercust. 14 27 55 78 174 106 6 7 55 38 Competitor3
Segment2 18 20 62 37 137 29 4 5 20 Competitor4customer21 11 7 12 24 54 39 3 12 24 Competitor5customer22 43 13 56 90 31 55 4 Competitor6othercust. 7 13 7 27 17 17 Competitorn
Total 56 116 220 190582
56 116 220 190 Total
Total 56 116 220 190 56 116 220 190 TotalArea1 39 90 142 106 377 145 2 52 91 application1
country11 27 2 79 39 147 167 37 19 111 application2country12 3 64 29 67 163 83 3 16 64 application3
othercount. 9 24 34 67 43 24 19 application4Area2 17 26 78 84 205 107 14 93 application5
country21 5 23 56 75 159 18 2 16 application6othercount. 12 3 22 9 46 19 19 applicationn
Prod.1 Prod.2 Prod.3 Prod.n Total Total Prod.1 Prod.2 Prod.3 Prod.n
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Copyright©NeoLogique
0%10%20%30%40%50%60%70%80%90%100%
Squarefeet(total120,000)
Amortisation($4,500k)
Purchases($70m)
Directlabor(350p.)
Quantity(8.5MP)
Sales($310m)
Grossmargin($180m)
EBITDA($90m)
Netmargin($75m)
Market(vol.)(36MP)
Market(val.)($1.2bn)
Market(netmargin)($180m)
Businesssegment1 Businesssegment2 Businesssegment3 Businesssegment4
NéoLogique Consulting
“Back to basics”
TheFunnelTechnique™
7
Knowyourtotalcontributionschemefrommanufacturingtomarketpenetration…
…andgetpreciseprofitability&leveragesperbusinesssegment.
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ProductionSales
FinanceMarketing
KnowyourleveragesQuantity->GrossMargin
(bybusinesssegment)
ConsideryourMarketSharesinVolume&Margintoo
Donotmakeoverallcostcuttingdecisionswithoutcheckingimpactsonhighlyleverageablemarketsegments
Copyright©NeoLogique
Records – Strategic positioning – Fastener industry since 1999
ExamplesofOptimizedStrategicPositioningü Titaniumpinfacility:revenue+2900BPS,netmargin+1800BPSin4yearsü Automobilenutfacility:revenue+1300BPS,netmargin+1200BPSin3yearsü Boltfacility:revenue+1600BPS,netmargin+600BPSin4yearsü Aerospacenutfacility:+1300BPS,netmargin+1500BPSin3yearsü Somedrasticexample:fromadvancedmaterialstomechanicalassemblies
includingindustrialtransfersü EU>US&US>EUü WesternEU>EasternEU,UK,India,Taiwan,North-Africa,South-Africa
includinginternationalrevenuegrowthü +17%y-o-yover7years
includingplantclosuresü France(2),Portugal(1)
includingacquisitionsü Asia,EU,US
Managed as VP Product Management, Chairman & CEO, Director Strategy & Development or consultant for Arconic, Lisi Aerospace, Align Aerospace, Pattonair, ALA, SPS Technologies and in other industries (automobile, advanced materials, energy, weaponry, etc.), mainly as director.NéoLogique
Consulting
“Back to basics” 8
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Copyright©NeoLogique
NéoLogique Consulting
“Back to basics”
NéoLogique Consulting
“Back to basics”
InnovAero LLC17508 North 79th Avenue
Unit 210Glendale AZ 85308 – USA
Bruno Berard sole member+33 607 011 915
NeoLogique Consulting231 rue Saint Honoré75001 ParisFrance
Bruno Bérard, president+33 607 011 915 [email protected]
I nnovAero
INTERNATIONAL OptimizeyourStrategicPositioning
OSP™
