Download - Big Think Strategy

(c)Prof. Datuk Dr. John Xavier 1

Big-Think StrategyProf. Datuk Dr. John Antony Xavier

MBAGSM-UPM

2011


◦ No class on 27th May◦ Research paper by 3th June◦ Thank you.

Please remember!

(c) Prof. Datuk Dr. John Xavier 3

Economic Clients/Social CustomersPolitical Competitive/Technological Collaborative forces

Resources Present strategyCapabilities PerformanceTechnology Top Management

AssessOrganization’sCurrent and FutureSituation

Set Long-Term

Objectives

Craft Strategies

Implement Strategies

Evaluate Performance

REVISE AND CHANGE AS NEEDED

REVISE AND CHANGE AS NEEDED

EXTERNAL ENVIRONMENT

INTERNAL ENVIRONMENT

STRATEGIC PLANNING : THE BIG PICTURE

Develop Vision & Mission

(c) Prof. Datuk Dr. John Xavier 4

STRATEGIC ANALYSIS

STRATEGIC CHOICE

The external environment

Expectations, -mission, vision,

objectives

The internal environment

STRATEGIC IMPLEMENTATION

& EVALUATION

Generation of options

Selection of

strategy

Evaluation of options

Action Plan – Initiatives,

KPI

Systems and Organization

structure

HR and Resource planning

ELEMENTS OF STRATEGIC MANAGEMENT

Review, Follow-

up action

(c) Prof. Datuk Dr. John Xavier

© Prof. Datuk

Dr. Jo

hn Xavier

Strategy-Formulation Framework

Stage 1 - Input Stage◦ EFE matrix◦ IFE matrix◦ Competitor analysis

Stage 2 - Matching Stage◦ SWOT◦ SPACE matrix◦BCG matrix◦Big Think◦ GE/McKinsey matrix◦ Grand strategy matrix◦ IE matrix

Stage 3 - Decision Stage◦ Consolidation, prioritisation and selection (QSPM)


Formulated 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

Big-Think Strategy


Big-Think Strategy Model An 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”


Small Think Big Think

Inertia and resistance Creativity and change

Narrow-mindedness Visionary leadership

Risk aversion Bold ideas and actions

Silo-mentality Integration across core ideas

Short-term focus Lasting impact

Big Think vs. Small Think

Cf. Group think!


The Big-Think Strategy Model

1.Ideas Generation

2.Evaluating Ideas

3.Turning Ideas into Strategy

4.Executing Big Think

5.Leading Big Think

6.Sustaining Big Think


1. Idea generation through brain-storming2. Ideas classification3. Evaluating ideas4. Refining ideas5. Executing the Big Think strategies6. Monitor implementation

How to Create and Implement Big Think Strategies


Think from the standpoint of the customer – (ask, step into his shoes, complaints)

Schmitt’s 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)

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)

How to think outside the box?


Idea generation:1.JAXB Game: BankMonopoly

Objective:◦ 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



JAXB Manager

Customers

Employees

Customer Service Financial

Marketing



JAXB Headquarte

r

JAXB Branch 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


Idea generation:2.Online ATMs: Cash Delivery

Tac Request


Idea generation:3.JAXB Drive Through ATMs

JAXBANK

JAX BANK

JAX BANK

JAXBANK


Idea generation:3.JAXB Drive Through ATMs Designed 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


Good to have Differentiation Wow type

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

Classifying Ideas


Turning ideas into strategy

Transcendence• Online JAXB ATMs• Cash Delivery

Opposition

Essence

Integration• JAXB Drive

Through ATMs

COMPETITIVE REACTION

Weak Strong

CA

PA

BIL

ITIE

S

Exis

ting

New


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

Evaluation Criteria


Ideas Evaluation

CategoriesJAXB Game:

BankMonopoly

Online JAXB

ATMs:

Cash Delivery

JAXB Drive

Through ATMs

Creativity 2 3 3

Business Impact 1 3 3

Communication

Impact

1 2 1

Feasibility 2 1 3

Dependability 2 1 3

Internal Fit 1 2 2

TOTAL 9 12 15

High=3 Middle=2 Low=1


R&D Resources Integration across functions Action plan

Executing the Big Think Strategy

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Executing the big think Develop 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


Review targets achievement periodically Customer surveys/market research Product modification

Monitoring Progress


Conclusion Making 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.