Plante Moran Strategy Webinar

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Change Is UnavoidableUse It to Gain a Competitive Edge


Daron Gifford, Partner, Plante MoranDaron Gifford is a seasoned professional and respected voice within executive circles providing management consulting services to a wide range of corporate organizations. His versatile experience in several industries, especially in the manufacturing and automotive sectors, has translated into significant strategic insights for executive management. His views on strategy have assisted organizations in their business direction, competitive market positioning, corporate core competencies, operational efficiencies, restructuring, joint ventures, business partnerships, mergers and acquisitions.

Stan Hannah, Senior Manager, Plante MoranStan Hannah blends his skills and experiences in consulting, research, and business management to develop solutions that lead to short- and long-term business success. He has worked with leaders across a variety of industries including retail, financial services, healthcare and energy in the US and on long-term assignments internationally. Stan worked for a Fortune 500 financial services and insurance company as a Product Manager with profit/loss responsibility for a multi-channel $15m business portfolio. He was later tapped by the CEO of the same company to join Customer Insights and Analytics division where he focused on leading big-data projects and integrating solutions to drive organizational change.

Ted Morgan, Senior Manager, Plante Moran (moderator)Ted Morgan co-leads the firm’s plastics industry practice. He has more than 15 years of progressive program management, product launch, business development and consulting experience. Ted has extensive experience in the following areas strategic market intelligence data collection, commercial, operational and financial due diligence, business case analysis, market migration strategy and execution. Ted has supported these activities within the following industry groups: plastics, automotive, recreational products, consumer & industrial HVAC, and automotive aftermarket.

Presenters and Moderator

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Administration

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What management function do you perform in your organization?

a) General or executive management

b) Finance and accounting

c) Operations / supply chain

d) Sales and Marketing

e) Human Resources

f) Other

Polling Question

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• Megatrends Shaping the World

• Strategic Approaches and Related Case Studies

• Key Characteristics of an Effective Strategy

• Charting the Course: Developing Your Strategy

• Linking Data to Strategy

• Framework for Business Intelligence

Agenda

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• 21% of global population over age 60 by 2050

• Cost of social programs (Social Security, health care, etc.) and funding of pensions grows

• While the workforce ages, population growth will drive an increased demand for scarce resources

Megatrends1. Shifting Population Demographics

Source: PwC, 2014 6


• Mature industrial markets become less attractive for investment

• Capital investment flows increase to emerging markets

• Economic dominance of Western countries moves to emerging regions

• Manufacturing costs decline (relatively) in U.S., leading to reshoring of production

Megatrends2. Changing Economic Power

Source: AlixPartners, McKinsey, Hackett, 2013; Plante Moran7


• Climate change continues to disrupt weather patterns

• Population increases fuel more demand for resources

• Political conflicts over access to resources such as food, energy, and water

• Protection of environment and natural resources increases (e.g., recent agreement to return more than a billion liters of water to the U.S. National Forest)

Megatrends3. Environment and Resource Crises

Source: PwC 2014 8


• 3-D printing may be used to manufacture anything from hard parts to human organs

• Nano materials provide ever smaller devices

• Connected technologies expand from individuals to cars to homes to cities to industries

Megatrends4. Technology Accelerates Even More

Source: Goldman Sachs 2014 9


• “Internet of Things” implies a dramatic increase in connected devices (more than the number of people in the world)

• Connection of devices to cloud networks will gather enormous amounts of data on a continuous basis

Megatrends4. Technology Accelerates Even More

Source: Cisco 2011 10


• Everything using a device leaves a digital trace (or data)

• Potential to capture and analyze data has advanced capabilities available

• a.k.a. Big Data, Business Intelligence (BI), Analytics, or Data Analytics

• Increased concerns about the privacy of data

Megatrends5. Explosion of Data

Source: Microsoft 2014 11


Volume, variety, and velocity of data are increasing at exponential speed

Megatrends5. Explosion of Data

Source: Oracle 2012

Data will grow at 40% CAGR

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Passive / Reactive — Organizations that follow the industry leaders and respond defensively. Likely to be more focused on efficient operations. They will not adapt to innovation until proven, and then only after being pressured by customers and the market.

Proactive / Active — Organizations that look ahead and stay aware of change, then are prepared to quickly respond and adapt in their markets. Although more risk averse than innovative or visionary organizations, they may be considered “fast followers.”

Innovative / Visionary — Organizations with a strong emphasis on being an industry leader, using technology and research to gain a “first mover” advantage. These organizations utilize a broad range of data and creative thinking while assessing the level of risk in their investments.

Strategic Approaches in Organizations

Source: Innovation Toolbox 13


Where do you see your organization on the strategy continuum?

a) Passive / Reactive

b) Proactive / Active

c) Innovative / Visionary

d) Prefer not to say

Polling Question

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Case Studies on StrategySmart Phones

Product or Company

StrategicApproach

Highlights

Blackberry (RIM)

Passive/Reactive

• Former leader in smartphone market, but focused on past competencies

• Did not recognize impact of iPhone on business market• Attempting to regain market share, but has failed so far

Galaxy (Samsung)

Proactive/Active

• Fast follower of competitor innovations• Modest innovations to existing technologies• Utilized market information to build out product line (e.g.,

creating smart watch in response to data compiled from Apple’s supplier base indicating Apple’s release)

iPhone (Apple)

Innovative/Visionary

• Considered leader in mobile electronics• Creative design established industry leadership and first-

to-market expectations• Focused on understanding individual needs and creating

new innovative products to fulfill needs

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0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012 2013

Annual Shipments of Smartphones(in millions)

Apple Samsung Blackberry

Strategic PositioningHistorical Results

Source: IDC, Gartner, Asymco

Operating Profit from Smartphone Sales

Apple and Samsung captured over 100% of the industry profit

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https://www.google.com/imgres?imgurl=http://i-cdn.phonearena.com/en/user-avatar/70098-icon/samsung-logo.jpg&imgrefurl=http://www.phonearena.com/news/Apple-and-Samsung-together-account-for...-109-of-industry-profits_id49381&docid=kGpTZ5CR5dC3TM&tbnid=Pt1IL6_ccxSrOM:&w=50&h=50&ei=IJxNVIGgD8b-yQSMioL4BQ&ved=0CAIQxiAwAA&iact=c

https://www.google.com/imgres?imgurl=http://www.livehacking.com/web/wp-content/uploads/2013/07/blackberry-logo.jpg&imgrefurl=http://www.livehacking.com/2013/07/31/blackberry-10-sending-email-passwords-in-plain-text/&docid=Xoy5uIdSh7Lm1M&tbnid=s4toD8Vwg0ScsM&w=225&h=225&ei=QJxNVL-LEYj0yAT52YLwBg&ved=0CAMQxiAwAQ&iact=c


Key Characteristics of an Effective Strategy

Effective Strategy• Clear and concise vision for where the

company is going and the plan to get there

• Identification of capabilities and required core competencies of the organization – either existing or to be developed

• Constant understanding of the company position through reporting information to support management decision-making (market, competitors, operational performance, and financial)

• Action-oriented plans for management to guide the organization and measure progressive improvement

Problematic Strategy• Misunderstanding goals for strategy• Soft rationale for plans and goals• Unspecific identification of planned

milestones and timing• Long list of unrelated objectives• Unclear and overly lengthy “vision”• Wavering commitment to strategic

investments and decision-making• Lack of understanding of challenges

and culture changes required

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Charting the CourseDeveloping Your Strategy

Megatrends

Company Assessment• Capabilities• Plans• Performance

“Vision” Creation

Market DynamicsMarket

AttractivenessCompetitive

Position

Product/ServiceTechnologies

Distribution/ Supply Chain

Core Competencies

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Megatrends

Strategy Synthesis





Position



Core Competencies

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Megatrends

Strategy Synthesis


Alternatives/BusinessModels




Position



Core Competencies

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Megatrends

Strategy Synthesis


Alternatives/BusinessModels

Strategic Plan

Actionable Plans

Progress Monitoring




Position



Core Competencies

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Obtaining insights to drive actions is critical to your strategy

Linking Data to Strategy

Source: 2013 People-Centered Strategies LLC 22


When developing a strategy, are key data or metrics considered in the process?

a) Yes

b) No

c) Uncertain

Polling Question

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Linking Data to Strategy

Source: IDG Enterprise 24


Improving Quality, Increasing Speed, and New Customer Acquisition

Source: IDG Enterprise 25


Plante Moran’s Framework forBusiness Intelligence

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Strategic investments in BI drive increasing value

Case StudyAuto Trader

Source: by Work Force Analytics at AutoTrader Group - May, 2013 27


Business Intelligence Services

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Business IntelligenceStages of Adoption

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Ted Morgan, Senior Manager248.223.3675

[email protected]

Thank you for attending

Daron Gifford, Partner248.223.3709

[email protected]

Stan Hannah, Senior Manager248.223.3307

[email protected]

To view a complete calendar of upcoming Plante Moran webinars, visit webinars.plantemoran.com.

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Plante Moran Strategy Webinar

Leadership & Management

Transcript of Plante Moran Strategy Webinar