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Who is Arash Haidari?Leader, Strategic Marketing Engineer
Jul. 2011
Applications Eng.
SerDes
Marketing & Applications
SerDes
Marketing WRLS BTS
Marketing WRLS
Backhaul
Marketing Carrier
Ethernet
2003 My 1st Cell phone
2008 My 1st BB
2006
Oct. 2000
Product Validation
Eng.
2004
WHAT IS A BUSINESS STRATEGY?
Arash Haidari, September 2011
"People should not be unfamiliar with strategy,Those who understand it will survive,
Those who do not understand it will perish“
The Art of War by Sun Tzu, 600 B.C.
Structure of a Typical Business Organization
= Business Unit Develops products Earns revenue Pays for horizontal groups (in allocation)
CEO
GM GM GM
BU BU BU
CTO
VP
COO
Technology Advisors
Sales, Finance, etc.
Operations, IT, etc.
GM = General Manager
BU
BU is a Mini Company within a Company
Example: PMC-Sierra
CEO = Greg Lang
GM = Daryn Lau
Communications Product Division
(CPD)
Technology Advisors
GM = Tom Sun
Broadband Wireless Division
(BWD)
GM = Kobi Ben-Zvi
Wireless Infrastructure
Networking (WIN)
GM = Travis Karr
Enterprise & Storage Division
(ESD)
CTO = Tom Snodgrass
VP of Sales = Rob LisztRegional Sales, Field Application Engineers
CFO = Mike ZellnerFinance, Treasury
COO = Colin HarrisOperations, IT, Mixed Signal Design, Layout, …
Structure of a Typical Business Organization
GMR
&D
Marketing
Applications
VP VP
Marketing owns BU’s revenue/profit & Strategy for its growth Mgmt/Sr. Staff Strategy definition & planning New product definition, execution management,
& take to market Interm. Staff Take to market new products Junior Staff Sales of existing products
Principle #1:Every decision, action, priority call, etc.
MUST result in revenue/profit growth
Applications = Customer Technical Support
Why does my Organization Need a Strategy?
Growth is the critical objective of a business!
“Your bias as a leader can’t be for stability, predictability, for policy conformance. The passion of leadership has to be to grow a business. You just have to wake up every day thinking about how you are going to grow it.”
- Dan Burnham, CEO Allied Signal Aerospace
The Essence of Strategy (Professor Burgelman)
Gaining and maintaining control of destiny Identifying the forces that affect destiny Dependence/influence &
Ecosystem Changing and/or using the forces to create degrees of freedom to act Defines how the organization will win Defines how the organization will grow Defines how the organization will differentiate itself from the competition
Principle #2:If your CEO cannot articulate your strategy, start writing up your resume!!!
Lets Learn how to Spell Strategy!
Source: Michael Porter (Godfather of Strategy), 2004, Burgelman
Best practice improvement
Aspirations or goals A vision Price Learning Agility
Flexibility Innovation Any technology Restructuring Mergers /
Consolidation Alliances / Partnering
A unique value proposition versus competitors
A differentiated, tailored value chain Clear tradeoffs, and choosing what not to do
Principle #3:Strategy defines how the organization will differentiate, win and grow.
Is Not a Strategy
Is a Strategy
Three Poles in Defining a Strategy
Bourna (my nephew)
January 14, 2011
1) Quantifiable Objective: Earn Minimum $1M+/yr by the time he is 35
support a family own a home afford a car go on vacation twice a year
Your Objective Frames the World for your Strategy
2) Vision: Professional Tennis player (Mom) Professional Hockey player (Dad) Professional Soccer player (uncle) Doctor/Surgeon Lawyer
3) Direction: Differentiated education plan
Let’s Get Technical
Example: Grow my BU to $50M/yr by 2015 My gross margin target is 80% I will invest in Remote RadioHead Market I must win 30% Market share
Principle #4:Objective of a Strategy MUST be1. Financially Quantifiable 2. Time Restricted3. Framed to a Market
Principle #5:Vision is your Market Offering Stay high-level Vision doesn't’t have to be a product
Example: I will offer a 3-chip product family that:
1. Is developed in 65nm CMOS (low power)2. Implements a full RRH (low cost)3. Can be configured for all air interfaces
Principle #6:Direction is your Path to Victory Must show winning Must show sustainable value proposition
Example: RRH today use 10+ BiCMOS chips
Too costly & very power hungry Chips used today are single band
Customer RRH is customized to air I/F I enable a 3-chip CMOS RRH for all bands
1/3 the cost & power of competition Customer designs ONE universal RRH Competition must switch to CMOS to compete
Remote RadioHead (RRH) is the radio of a Basestation (BTS), talking wirelessly over the air to your cell phones
Strategy vs. Tactics
"Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.“
The Art of War by Sun Tzu, 600 B.C
" All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.“
The Art of War by Sun Tzu, 600 B.C
Principle #7:While Strategy & Tactics go hand in hand, your Simplest & Biggest Mistake is to Confuse them!!!
Principle #8:Tactics is your Execution Plan
Example (from previous slide): Resource, Development, Take to Market Plans for bringing the products to the market
Developing a Strategic Thought Process
Soft Skills “Your” Principles
Business Experience
Expand Knowledge base through
Education
Sit back and look at things from 10,000 feet Be logical Don’t be emotional Learn to read people Influence their thinking Think three steps ahead Be diplomatic and maneuver in a political environment Learn to present Learn to fail and to recover from failure AND many many more ……..
You must develop a thick skin for strategic planning. Take the time to do so!
Pitching a Strategy
Principle #9:Treat your Audience as Investors
Principle #10:Sniff Test: Would you Invest your own Money in your own Strategy?
You need money (investment) to launch a strategy
If not, then “why are you standing here and talking to me?”
Principle #11:Know your Audience. Different Investors, need to Hear Different Pitches
CEOs, VC’s, Angel investors, family & friends are different investors Require different level of details Require different focus areas
Presenting a Strategy
1. Show me the Money – Get my attentioni. Identify your target market & show me how big it is!ii. What piece of the pie are you going after?iii. Who is your main target customers, and why are they a target?
2. Show me the opportunity – Convince me I can make moneyi. Disruptive economic forces in your target marketii. Key market Trendsiii. Market Opportunity & window of opportunity
3. Show me what’s going on!!! – What are the Challenges/Requirements?i. Customer chain challenges / Key requirements / Strategyii. Ecosystem challenges / Key requirements / Strategyiii. Competition challenges / Strategyiv. Your Challenges/Barriers to entry
4. How do we enter, win, and stay competitive?i. Statement of Strategy “Direction“ to Enter & Winii. Solution/Roadmap strategyiii. Target Customers & Key Platforms & Requirementsiv. Sustainable Value Propositionv. Competitive Analysis (your strategy vs. theirs)
5. What’s your execution plan?i. Key architectural requirements/innovationsii. Critical core competencies & gaps to filliii. Take to Market planiv. Risk mitigation
Books to Read
ISBN-10: 1613820844
ISBN-13: 978-1613820841
ISBN-10: 1591840562
ISBN-13: 978-1591840565
