The Danish Management Society AGM, Copenhagen on 2 October ...€¦ · Strategy for a Networked...
Transcript of The Danish Management Society AGM, Copenhagen on 2 October ...€¦ · Strategy for a Networked...
Strategy for a Networked WorldUlf Mannervik
Founding Partner, NormannPartners
Director of Oxford Networked Strategy Lab, Oxford University
The Danish Management Society AGM, Copenhagen on 2 October 2017
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Systems
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Sources: NASA, Lawrence Livermore National Laboratory
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Renewables: Not if, but when and how
“For the second year in a row, renewable
energy accounted for more than half the new
power generation capacity added worldwide.
Sales of plug-in electric vehicles last year were
42 per cent higher than in 2015, growing eight
times faster than the overall market.”
May 18, 2017 FT.COM
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Source: The Beijinger
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Source: Frauenhoffer Institute
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When your system is invadedMusic industry incumbents 15 years ago
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Source: Apple, Napster and Spotify
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80 strategies that failed: why?
“Misleading prejudgments” = 82%
“Misleading experiences” = 64%
“Inappropriate self-interest”, including wanting to be popular = 69%
Source: Think again: Why good leaders make bad decisions – and how to keep it happening to you (Finkelstein, Whitehead, Campbell; 2008)
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Competitive strategyA value chain in automotive…
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Competitive strategyThe value chain view of a customer
A buyer of goods,
pays for it,
and destroys value
Source: Grassrootsmotorsports.com
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Competitive strategyStrategy = how to compete in an industry
Source: Porter (1980, 2014)
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TURBULENCE UNCERTAINTY
NOVELTY AMBIGUITY
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Networked strategySystems thinking, values in use
Sources: Normann (2001), Ramírez & Selsky (2014), Ramírez & Mannervik (2016)
SupplierStake
holder
The client’s system
Value co-created
Client
Stake
holder
Stake
holder
Stake
holder
Stake
holder*
* * *
**
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Networked strategyView of client + other actors
Pays for being
relieved or enabled
to create value(s)
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Networked strategyStrategy = Designing system interactions
Source: Ramírez & Mannervik (2016)
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Networked strategy in healthcareShift from value chain focus, to system
Dominant internal value: Technical performance
Dominant external stakeholder values: Quality of careCostAccess
R&D engineers
Health care providers
Medical specialists
Insurers
Patients
Government
Performance (accuracy, speed) and features
Performance and features
Quality of care
Quality of care and efficiency
Quality of care and comfort
Cost and health outcomes
Cost
Access
Access and cost
Quality of care
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Networked strategy in healthcareShift from competition, to collaboration
PROCESS+
▪ Scientifically validated medical protocols
▪ Efficient internal procedures
▪ Optimisedworkflows
PEOPLE+
▪ Highly qualified medical personnel
▪ Experienced consultants and managers
15%
15%
15%
BETTER OUTCOMES TECHNOLOGY
▪ Better imaging and diagnostic technology
▪ Software system
INFORMATION+
▪ Imaging information
▪ Care system information
▪ Scientific and historical evidence
=
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Systems+
Design
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Networked strategy with design thinking
What ”business”
are we in?
What ”business”
could we be in?
What ”business”
should we be in?
Closing/focusingOpening/distancing
Source: Normann
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A Scania value creating systemWhat business are we in?
Source: Ramírez & Mannervik
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Source: Ramírez & Mannervik
Scenarios stress-test: tensions rising in systemWhat business could we be in?
BIG SYSTEM WASTE +DRIVERS TO MINIMIZE
DRIVING FORCES FORCOMMODITISATION
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LOTS – a new value creating systemWhat business should we be in?
Source: Ramírez & Mannervik
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• Design, set up and operate sustainable logistics systems for recurrent flows
• Minimise waste in flows, and in interfaces between different actors
• Collaborate with local contractors to enhances their operations
• Multi-stakeholder benefits, with profitable sustainable growth for both
customers and their suppliers
Source: Lotsgroup.com
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Roles of system designer:- Identify and quantify waste- Identify and implement improvements- Can also operate the system
TRANSPORTCOMPANIES FORRESTRY
COMPANY
PULPMILL
PAPERMILL
WORKSHOPS
Vis
ual
mgm
tsy
stem
s
Efficient steady flows;Less use of chemicals
Efficient flows;Adapted to demand
€
€€
€€
Source: Lotsgroup.com (ADAPTED)
OEMs
Minimising waste in logistics systemsNetworked strategy design
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Distinct competences (NOT “core”):
• Expertise in road transportation
• Modular products and production systems
• Continuous improvement and lean operations
• Business designSource: Lotsgroup.com
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Source: Ramírez & Mannervik
System vision,and our rolein the system
Visionary leadership – A learning vision, guiding a transformation into a new value creating system
t
Iterative system designGuiding vision + prototyping
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• Stable or TUNA environment?
• Value chains or systems as strategy lenses?
• Main focus on competition or collaboration?
• Understand meaning of value for different actors?
• System leverage on your distinct competences?
Networked strategySome concluding considerations
Thank you!