A.T. Kearney 82/7478 1 Outside-In Perspectives: Maintaining an outside-in perspective – best...
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Transcript of A.T. Kearney 82/7478 1 Outside-In Perspectives: Maintaining an outside-in perspective – best...
A.T. Kearney 82/7478 1
Outside-In Perspectives:Maintaining an outside-in perspective – best practices in staying current with market trends
Dr. Dale S. RogersNevada Logistics Institute
Reno, NV
11 August 2015
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Outside-In Perspective Overview
Having an inside-out perspective
Developing and maintaining an outside-in perspective
Extending the outside-in perspective
3
HAVING AN INSIDE-OUT PERSPECTIVE
Impact of an internal focus without external understanding
4
Peter Drucker – The Practice of Management
“It is the customer who determines what a business is. For it is the customer, and he alone, who through being willing to pay for a good or for a service, converts economic resources in the wealth, things into goods.”Source: Peter Drucker (1954). The Practice of Management
“If we want to know what a business is we have to start with its purpose…There is only one valid definition of business purpose: to create a customer.”Source: Peter Drucker (1954). The Practice of Management
5
Inside-Out Perspective
“We've been inside-out for over 100 years. Forcing everything around the outside-in perspective will change the game.” Source: Jack Welch, Former CEO of General Electric
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1972 Honda
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Evolution
Oldsmobile Main Plant, Summer 2011, Lansing, Michigan
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Digital Equipment Corporation
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Burroughs Calculating Machines
Over 5,000 parts, with as many as 2000 moving together at any one time.
Most technologically advanced calculator of its time
Price comparable to that of a new car.
Options such as non-add, non-print, and individual clearing keys for each column.
Class 3 - 1911-1929
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DEVELOPING AND MAINTAINING AN OUTSIDE-IN PERSPECTIVE
Embracing an external understanding
1111
Structure Drives Behavior
Structure determines behavior
Behavior does not determine structure
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Constituents
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Outside-In Perspective
Successful companies often suffer from the “Not Invented Here (NIH)” syndrome
A key way to break out of this is to look at the firm from the perspective of customers and potential customers
Making sure that strategies and actions are chosen and implemented from a strong external perspective
14
Coca-Cola Non-Carbonated Beverages
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EXTENDING THE OUTSIDE-IN PERSPECTIVE
Customers in complex supply networks
16
Complex Supply Networks
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Attenuation
Attenuation is a decrease in signal strength during transmission.
Attenuation is the opposite of amplification, and is normal when a signal is sent from one point to another.
If the signal attenuates too much, it becomes unintelligible, which is why most networks require repeaters at regular intervals.
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Customers?
Customer needs?
Do customers want to satisfy
needs? How badly?
Customer perception of
benefits?
Customer knowledge & awareness?
Customer information
sources?
Customer buying
processes?
Customer conversion
costs?
Customer communication
processes & needs?
Customer alignment with organization?
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Outside-In Discipline
Customer Pictures
Analytical Rigor
Marketplace
Opportunities
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Strategy Management
Translate the Strategy
Manage strategic initiatives
Communicate the strategy
Review the strategy
Update the strategy
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Vantage Points
5
Complete Customer
OrderFulfillment
Finance View
Operations View
PartnerView
CustomerView
Competition View
Supplier View
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Dual Perspectives
Inside-out perspective• Internal benchmarking
Outside-in perspective• External benchmarking• Voice of the customer
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Concluding Thoughts
Preservethe core
StimulateProgress