Big Think Strategy

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Big-Think StrategyProf. Datuk Dr. John Antony Xavier MBA GSM-UPM 2011

(c)Prof. Datuk Dr. John Xavier

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Please remember! No class on 27th May Research paper by 3th June Thank you.

(c)Prof. Datuk Dr. John Xavier

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STRATEGIC PLANNING : THE BIG PICTUREEXTERNAL ENVIRONMENT E co n o m i c Clients/ S o ci l a Customers Po l ti l i ca Competitive / Te ch n o l g i l o ca C o l a b o ra ti fo rce s l ve REVISE AND CHANGE AS NEEDED

Develop Vision & Mission

A sse ss O rg a n i ti n s za o C u rre n t a n d Fu tu re S i a ti n tu o

S e t Lo n g Te rm O b j cti e ve s

C ra ft S tra te g i es

Im p l m e n e t S tra te g i s e

E va l a te u Pe rfo rm a n ce

R e so u rce s C a p a b ii e s l ti Te ch n o l g y o

Pre se n t stra te g y Pe rfo rm a n ce To p M a n a g e m e n t

REVISE AND CHANGE AS NEEDED

INTERNAL ENVIRONMENT

(c) Prof. Datuk Dr. John Xavier

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ELEMENTS OF STRATEGIC MANAGEMENTExpectations , -mission, vision, objectives The external environment STRATEGI C ANALYSIS The internal environmen t

Review, Followup actionSTRATEGIC IMPLEMENTATIO N & EVALUATION HR and Resource planning

Generatio n of options

STRATEGI C CHOICE

Evaluatio n of options

Selecti on of strateg y

Action Plan Initiative s, KPI(c) Prof. Datuk Dr. John Xavier

Systems and Organization structure

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Strategy-Formulation Framework

Stage 1 - Input Stage Stage 2 - Matching Stage SWOT SPACE matrix EFE matrix IFE matrix Competitor analysis

BCG matrix

Big Think

GE/McKinsey matrix

Grand strategy matrix IE matrix

Stage 3 - Decision Stage

Consolidation, prioritisation and selection (QSPM)(c) Prof. Datuk Dr. John Xavier 5

Big-Think StrategyFormulated by Bernd. H. Schmitt Thinking out of the box Creating bold ideas and disruptive strategies that change markets and make companies competitive Creative and visionary thinking

(c)Prof. Datuk Dr. John Xavier

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Big-Think Strategy ModelAn opportunity to Learn, Explore and Implement new & creative ways of approaching business challenges, so that it can thrive as a business. Creative Vehicle- helps to build meaningful connection between company and their business targets. Think out of the box

(c)Prof. Datuk Dr. John Xavier

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Big Think vs. Small Think Small Think Big ThinkInertia and resistance Narrow-mindedness Risk aversion Silo-mentality Short-term focus Creativity and change Visionary leadership Bold ideas and actions Integration across core ideas Lasting impactCf. Group think!(c)Prof. Datuk Dr. John Xavier 8

The Big-Think Strategy Model

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How to Create and Implement Big Think Strategies1.Idea generation through brain-storming 2.Ideas classification 3.Evaluating ideas 4.Refining ideas 5.Executing the Big Think strategies 6.Monitor implementation

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How to think outside the box? from the standpoint of the customer Think(ask, step into his shoes, complaints) Schmitts four generic strategies1.Opposition creating the opposite of established strategies (PC, Ford car) 2.Integration bringing seemingly incompatible concepts together (Mass customisation) 3.Essence the essential parts of an entity taken to the extreme (Palm oil cooking fuel) 4.Transcendence going far beyond the established boundaries of a business or industry (Dell,IBM) 5. 6.(c)Prof. Datuk Dr. John Xavier 11

How to think outside the box?1.Innovative benchmarking (internal, competitive, functional [innovative] Bedi, dabbawalas) 2.Quantum leap willing to kill the sacred cow (data storage servers thumbdrives) 3.Stepping out of the time frame or current strategy (scenario planning)

(c)Prof. Datuk Dr. John Xavier

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Idea generation: 1.JAXB Game: BankMonopoly

What is a bank? How do banks make money? Terrific tools for enhancing a person's understanding of: Financial responsibility Smart spending Money management Learning from JAXBankMonopoly Assign tasks Count Manage Invest money

Objective:

(c)Prof. Datuk Dr. John Xavier

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Idea generation: 1.JAXB Game: BankMonopolyCustomers

Marketing Employees

JAXB Manager

Customer Service

Financial(c)Prof. Datuk Dr. John Xavier 14

Idea generation: 1.JAXB Game: BankMonopolyJAXB Branch

JAXB Headquarter

JAXB Branch

JAXB Branch

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Idea generation: 2.Online ATMs: Cash Delivery

Allow customers to received cash within 24 hours by sending the request with few steps in JAXB Clicks.

(c)Prof. Datuk Dr. John Xavier

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Idea generation: 2.Online ATMs: Cash Delivery

(c)Prof. Datuk Dr. John Xavier

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Idea generation: 3.JAXB Drive Through ATMsJ AX BANK

JAX BANKJAX BANK

JAX BANK

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Idea generation: 3.JAXB Drive Through ATMsDesigned for convenient use from the secure and comfortable environment of an automobile. Allows quick cash withdrawals for people on the go. Advantages:

Saves time No parking Convenient Fast No waiting

(c)Prof. Datuk Dr. John Xavier

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Classifying IdeasGood to have Differentiation Wow type

transcendence or distinctive ideas going against the trend or only one of its kind new discovery or something new

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Turning ideas into strategyNew CAPABILITIES

Existing

Weak

Strong

COMPETITIVE REACTION(c)Prof. Datuk Dr. John Xavier 21

Evaluation Criteria

Creativity and change how bold and visionary? Lasting Impact Sustainability Do we have the resources, capabilities, market potential? Suitability Affordability Value creation and profitability Implementability - Integration across functions Competitive advantage Difficulty of imitation

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Ideas EvaluationCategories Creativity Business Impact JAXB Game: BankMonopoly 2 1 Online JAXB ATMs: Cash Delivery 3 3 2 JAXB Drive Through ATMs 3 3 1

Communication Impact 1

Feasibility Dependability Internal Fit TOTAL High=3 Middle=2

2 2 1 9 Low=1

1 1 2 12

3 3 2 15

(c)Prof. Datuk Dr. John Xavier

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Executing the Big Think StrategyR&D Resources Integration across functions Action plan

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Executing the big thinkDevelop the R&D and Financial Analysis to determine strategy implementation costs. Install and improve Security System. JAXB should monitor progress.

(c)Prof. Datuk Dr. John Xavier

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Monitoring ProgressReview targets achievement periodically Customer surveys/market research Product modification

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ConclusionMaking Big Think sustainable is the hardest task of all. To succeed, we need the right environment and organisational structure. (7S) We must have the right people - Big Think heads who get excited about new ideas with a childlike fervour.

(c)Prof. Datuk Dr. John Xavier

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