FROM “RULES OF THE THUMB” TO DIGITAL ERA MANAGEMENT APPROACH
THE INNOVATION AND DEVELOPMENT PATH TAKEN BY A CONSUMER
GOODS RETAIL DISTRIBUTION SOUTHERN ITALIAN COMPANY:
CASE HISTORY AND PERSPECTIVES
Vito Santarcangelo, Maria Cristina Camporesi, Luca Liccese,
Carmelina Tarantino, Caterina Dalessandri, Alberto Camporesi
PURPOSE OF THE WORK
This paper outlines the strategy adopted by an Italian Company,
(Orizzonti Holding Group) to deal with the long period of economical
crisis and build their own future development perspectives, thanks to a
strategic multidisciplinary approach and
through the use of technology and innovation
To achieve this, the role of its sister
Company (Centro Studi) is
fundamental, purposely designed to
assist and mediate synergically the
dialogue between the Scientific-
University world and the
Business world 3
OUTLINE
ORIZZONTI HOLDING GROUP
THE DEVELOPMENT PATH
BALANCE SCORECARD
• “Golf Grip”
• Measuring the Company Value
CENTRO STUDI ROLE
PROCESS DEVELOPMENT APPROACH
• Process Cycle
• Marketing 3.0
• Information Technology Role (DOOH)
RESULTS AND CONCLUSIONS 4
ORIZZONTI HOLDING GROUP
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STRUCTURAL FEATURES
Medium Size Consumer Goods
distribution Company in
Southern Italy
Store network with different Brands
and diversified distribution
Formats (B2B, B2C, B2B2C)
No export sales market
Core Operating Territory with:
• difficult orography and sparsely
populated areas
• per-capita income in the lower
bracket
ORIZZONTI HOLDING GROUP
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MISSION
“Add value to the company by drawing distinctive strength from the territorial
roots of the group, with respect for our identities and values”
VISION
To face the economical crisis period it is necessary to have a wider consciousness
about the responsibility of everyone to contribute to economic growth,
particularly at the entrepreneurial level
For this reason, the Group directs its action to:
• introducing technology support and innovation strength to process
development for the traditional core business
• promoting mental openness to new ideas, also to innovate its business model
THE DEVELOPMENT PATH
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BALANCE SCORECARD (BSC)
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BSC - FINANCIAL PERSPECTIVE
“GOLF GRIP”
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Main KPIs Financial Economic
thumb Net Financial Debt/Net Cash Flow Gross Margin/Operating Costs
index finger Net Financial Debt / EBITDA EBITDA %
middle finger Net Cash Flow CAPEX
ring finger Debt Maturity EBIT/Financial Costs
little finger Flexibility Factors Extraordinary Items Risk
Companies live on Income,
but they mainly die specifically on financial problems
Our two hands
Financial and Economic management control system (“Golf Grip”)
allows us to direct the key factors towards precise Goals of Value creation correctly
then
Golf Grip
BSC - FINANCIAL PERSPECTIVE
MEASURING COMPANY VALUE
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𝑺𝑽 = 𝑬𝑽 − 𝑵𝑭𝑫
𝑬𝑽 = 𝑬𝒃𝒊𝒕𝒅𝒂 × 𝑴𝒖𝒍𝒕𝒊𝒑𝒍𝒆
Financial and Economic aspects are to be “gripped” together and
Value Creation goals are monitored using “a formula”
•This formula was used in 2003 and 2008 for Venture Capital operations (MPS
Venture), to establish “way in” and “way out” values of the shareholding minority
•The same formula continues to be considered a valid “first glance tool” for evaluating
Enterprise Value growth
SV = Shareholders Value
EV = Enterprise Value
NFD = Net Financial Debt =
Financial Debt – Cash and Cash like, Liquid Assets
Multiple is determined in comparison with
listed companies in the same industry
CENTRO STUDI ROLE
The sister company Centro Studi has a fundamental role in the growth of
the Group's potential value because it conducts Applied Research and
Process Development Projects. It assists and mediates the dialogue,
synergically, with the Scientific World (University of Bologna, University of
Catania, Rimini Center for Economic Analysis)
Centro Studi becomes an
"opportunistic cultural antenna” for
Group activity development
It captures new hints, trends and ideas and helps to strengthen the
competitive potential of the Group
Centro Studi is financed for its activities by considering actual internal
value creation
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PROCESS DEVELOPMENT APPROACH
TRADITIONAL VS NEW PROCESS CYCLE
•The Process Cycle is reversed, substantially modifying the traditional relationship
established previously with Suppliers
•Determining Customer needs correctly directs Marketing decisions and the
relationship strategy with Suppliers 12
PROCESS DEVELOPMENT APPROACH
PROCESS CYCLE AS A HUMAN BRAIN
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• the left hemisphere is more suited
to analytical perception of reality
and is specialized in elaborating
sequential processes (engineer
brain)
• the right hemisphere is more
specialized in perception,
interpretation and elaboration of
emotional processes
(creative brain)
In the Group core-business there are two main processes that can be
assimilated to the two hemispheres of the human brain:
PROCESS DEVELOPMENT APPROACH
APV DEVELOPMENT
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PROCESS DEVELOPMENT APPROACH
BIG CONCEPT
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PROCESS DEVELOPMENT APPROACH
MARKETING 3.0: VALUE DRIVEN MARKETING
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Personal
Values
“Many-to-
many”
World of
social
networks
Digital media
(Dooh)
PROCESS DEVELOPMENT APPROACH
DIGITAL OUT OF HOME
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Digital out of home (DOOH)
symbolizes the dynamic media
distributed across placed-based
networks through digital signage
devices such as addressable
screens, kiosks, jukeboxes and
jumbotrons with the aim of engaging
customers and extending the
effectiveness of marketing
experiences
FUTURA POINT
Patented
PROCESS DEVELOPMENT APPROACH
DOOH = COMPUTER VISION, AI & IOT
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NLP teaches the ability to calibrate or “read” people (sensory
awareness). This means the ability to interpret changes in
muscle tone, skin colour and shininess, lower lip size,
breathing rate and location.
Richard Bandler and John Grinder Approach
“Neuro-linguistic programming (NLP)”
PROCESS DEVELOPMENT APPROACH
COMMUNICATION EFFECTS AND CUSTOMER BEHAVIOR ANALYSIS
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Miller Heiman ("New Strategic Selling") basic concepts have been
extended by us to study the individual customer attitude mode and
purchasing behavior by considering the information flow interaction
effects in the sale point.
RESULTS & CONCLUSIONS
Considering the present
CENTRO STUDI initiative results,
the Group Board is clearly intending
to proceed further with Innovation and
R&D process
Top Management intends to
maintain Strategic Discipline
contribute to the growth of Human
Resources
cooperate in Territory Development
ORIZZONTI HOLDING GROUP
is now structurally ready to face a
dimensional shift, having achieved:
more balanced financial key
indicators
increased know-how in process
development to improve key
competitive factors
greater capacity for dialogue at
international level with other
Distribution Companies
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THANKS!
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