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THE DELTA MODELTHE DELTA MODEL
Discovering New Sources of Discovering New Sources of Profitability in a Networked Profitability in a Networked EconomyEconomy
Arnoldo Hax
Alfred P Sloan Professor of Management
The Tenets of StrategyThe Tenets of Strategy
1The creation of economic value1The creation of economic value
2 The development of customer 2 The development of customer bondingbonding
3 The achievement of the ldquoSpirit 3 The achievement of the ldquoSpirit of Successrdquoof Successrdquo
The Delta Model ndashThe Delta Model ndash
Three Distinct Strategic OptionsThree Distinct Strategic Options
The TriangleThe Triangle
Options for Strategic PositioningOptions for Strategic Positioning
The Challenge to DecommThe Challenge to Decommoditizationoditization
Transforming the organization Transforming the organization from best product to total from best product to total customer solutionscustomer solutions
Transforming the OrganizationTransforming the OrganizationChange your mindsetChange your mindset
The transformation is not straight forwardThe transformation is not straight forward The case of Codelco and the International Copper AssociationThe case of Codelco and the International Copper Association
Transforming the OrganizationTransforming the Organization
1048698 Redefine the game you are playingRedefine the game you are playing
Transforming the CSN OrganizationTransforming the CSN Organization
Decommoditize your customer Decommoditize your customer The case of CastrolThe case of Castrol
What is Castrol Logic What is Castrol Logic A customized lubrication A customized lubrication
solution involving products and solution involving products and
services that results in documented services that results in documented
Cost Reductions Cost Reductions
ampamp
Productivity ImprovementsProductivity Improvements
Transforming the OrganizationTransforming the OrganizationRethink the customer engagement processRethink the customer engagement process
bull bull The Best Product Positioning is The Best Product Positioning is not necessarily the most profitable not necessarily the most profitable or the best way to serve your or the best way to serve your customercustomer
SegmentationSegmentation The Key to Superior Strategy and ManagementThe Key to Superior Strategy and Management
Segment everything but most important segment your customers and consumers (eg Unilever Asia)
ConsumersConsumers ConsumersConsumers
Tier 1 Modern Trade Established Systems and Business Scale often International Reaction and Conflict Anticipation and Collaboration
Tier 1 The affluent high LSM (Life style management) across Asia focusing on Aging SingleWorking Women and Teenagers Satisfy their needs and vitality Quality Time Customized Product and Solutions
Tier 2 Modern Trade Smaller more cash driven largely local Shape and Win
Tier 2 The middle LSM focused on upward mobility and social migration Upgradation to higher aspirational brands and affordable price
Tier 3 Including Retailers Wholesalers Drugstores Small Retailers System Lock-In by being only Supplier to produce ECR (Efficiency Customer Response) principles
Tier 3 Lower (but not bottom) LSM less affluent emerging consumers in developing parts of the region Purchasing basket primarily of essentials
Transforming the OrganizationTransforming the Organization Prevent the customer from commoditizing youPrevent the customer from commoditizing you
The case of Eastman Chemicals Coating businessThe case of Eastman Chemicals Coating business
Channels are essential they ldquoownrdquo the customersChannels are essential they ldquoownrdquo the customers The case of Hindustan Lever and Unilever de MexicoThe case of Hindustan Lever and Unilever de Mexico
The Paint and Coating IndustryThe Paint and Coating Industry
The Food Service IndustryThe Food Service Industry
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
The Tenets of StrategyThe Tenets of Strategy
1The creation of economic value1The creation of economic value
2 The development of customer 2 The development of customer bondingbonding
3 The achievement of the ldquoSpirit 3 The achievement of the ldquoSpirit of Successrdquoof Successrdquo
The Delta Model ndashThe Delta Model ndash
Three Distinct Strategic OptionsThree Distinct Strategic Options
The TriangleThe Triangle
Options for Strategic PositioningOptions for Strategic Positioning
The Challenge to DecommThe Challenge to Decommoditizationoditization
Transforming the organization Transforming the organization from best product to total from best product to total customer solutionscustomer solutions
Transforming the OrganizationTransforming the OrganizationChange your mindsetChange your mindset
The transformation is not straight forwardThe transformation is not straight forward The case of Codelco and the International Copper AssociationThe case of Codelco and the International Copper Association
Transforming the OrganizationTransforming the Organization
1048698 Redefine the game you are playingRedefine the game you are playing
Transforming the CSN OrganizationTransforming the CSN Organization
Decommoditize your customer Decommoditize your customer The case of CastrolThe case of Castrol
What is Castrol Logic What is Castrol Logic A customized lubrication A customized lubrication
solution involving products and solution involving products and
services that results in documented services that results in documented
Cost Reductions Cost Reductions
ampamp
Productivity ImprovementsProductivity Improvements
Transforming the OrganizationTransforming the OrganizationRethink the customer engagement processRethink the customer engagement process
bull bull The Best Product Positioning is The Best Product Positioning is not necessarily the most profitable not necessarily the most profitable or the best way to serve your or the best way to serve your customercustomer
SegmentationSegmentation The Key to Superior Strategy and ManagementThe Key to Superior Strategy and Management
Segment everything but most important segment your customers and consumers (eg Unilever Asia)
ConsumersConsumers ConsumersConsumers
Tier 1 Modern Trade Established Systems and Business Scale often International Reaction and Conflict Anticipation and Collaboration
Tier 1 The affluent high LSM (Life style management) across Asia focusing on Aging SingleWorking Women and Teenagers Satisfy their needs and vitality Quality Time Customized Product and Solutions
Tier 2 Modern Trade Smaller more cash driven largely local Shape and Win
Tier 2 The middle LSM focused on upward mobility and social migration Upgradation to higher aspirational brands and affordable price
Tier 3 Including Retailers Wholesalers Drugstores Small Retailers System Lock-In by being only Supplier to produce ECR (Efficiency Customer Response) principles
Tier 3 Lower (but not bottom) LSM less affluent emerging consumers in developing parts of the region Purchasing basket primarily of essentials
Transforming the OrganizationTransforming the Organization Prevent the customer from commoditizing youPrevent the customer from commoditizing you
The case of Eastman Chemicals Coating businessThe case of Eastman Chemicals Coating business
Channels are essential they ldquoownrdquo the customersChannels are essential they ldquoownrdquo the customers The case of Hindustan Lever and Unilever de MexicoThe case of Hindustan Lever and Unilever de Mexico
The Paint and Coating IndustryThe Paint and Coating Industry
The Food Service IndustryThe Food Service Industry
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
The Delta Model ndashThe Delta Model ndash
Three Distinct Strategic OptionsThree Distinct Strategic Options
The TriangleThe Triangle
Options for Strategic PositioningOptions for Strategic Positioning
The Challenge to DecommThe Challenge to Decommoditizationoditization
Transforming the organization Transforming the organization from best product to total from best product to total customer solutionscustomer solutions
Transforming the OrganizationTransforming the OrganizationChange your mindsetChange your mindset
The transformation is not straight forwardThe transformation is not straight forward The case of Codelco and the International Copper AssociationThe case of Codelco and the International Copper Association
Transforming the OrganizationTransforming the Organization
1048698 Redefine the game you are playingRedefine the game you are playing
Transforming the CSN OrganizationTransforming the CSN Organization
Decommoditize your customer Decommoditize your customer The case of CastrolThe case of Castrol
What is Castrol Logic What is Castrol Logic A customized lubrication A customized lubrication
solution involving products and solution involving products and
services that results in documented services that results in documented
Cost Reductions Cost Reductions
ampamp
Productivity ImprovementsProductivity Improvements
Transforming the OrganizationTransforming the OrganizationRethink the customer engagement processRethink the customer engagement process
bull bull The Best Product Positioning is The Best Product Positioning is not necessarily the most profitable not necessarily the most profitable or the best way to serve your or the best way to serve your customercustomer
SegmentationSegmentation The Key to Superior Strategy and ManagementThe Key to Superior Strategy and Management
Segment everything but most important segment your customers and consumers (eg Unilever Asia)
ConsumersConsumers ConsumersConsumers
Tier 1 Modern Trade Established Systems and Business Scale often International Reaction and Conflict Anticipation and Collaboration
Tier 1 The affluent high LSM (Life style management) across Asia focusing on Aging SingleWorking Women and Teenagers Satisfy their needs and vitality Quality Time Customized Product and Solutions
Tier 2 Modern Trade Smaller more cash driven largely local Shape and Win
Tier 2 The middle LSM focused on upward mobility and social migration Upgradation to higher aspirational brands and affordable price
Tier 3 Including Retailers Wholesalers Drugstores Small Retailers System Lock-In by being only Supplier to produce ECR (Efficiency Customer Response) principles
Tier 3 Lower (but not bottom) LSM less affluent emerging consumers in developing parts of the region Purchasing basket primarily of essentials
Transforming the OrganizationTransforming the Organization Prevent the customer from commoditizing youPrevent the customer from commoditizing you
The case of Eastman Chemicals Coating businessThe case of Eastman Chemicals Coating business
Channels are essential they ldquoownrdquo the customersChannels are essential they ldquoownrdquo the customers The case of Hindustan Lever and Unilever de MexicoThe case of Hindustan Lever and Unilever de Mexico
The Paint and Coating IndustryThe Paint and Coating Industry
The Food Service IndustryThe Food Service Industry
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
The TriangleThe Triangle
Options for Strategic PositioningOptions for Strategic Positioning
The Challenge to DecommThe Challenge to Decommoditizationoditization
Transforming the organization Transforming the organization from best product to total from best product to total customer solutionscustomer solutions
Transforming the OrganizationTransforming the OrganizationChange your mindsetChange your mindset
The transformation is not straight forwardThe transformation is not straight forward The case of Codelco and the International Copper AssociationThe case of Codelco and the International Copper Association
Transforming the OrganizationTransforming the Organization
1048698 Redefine the game you are playingRedefine the game you are playing
Transforming the CSN OrganizationTransforming the CSN Organization
Decommoditize your customer Decommoditize your customer The case of CastrolThe case of Castrol
What is Castrol Logic What is Castrol Logic A customized lubrication A customized lubrication
solution involving products and solution involving products and
services that results in documented services that results in documented
Cost Reductions Cost Reductions
ampamp
Productivity ImprovementsProductivity Improvements
Transforming the OrganizationTransforming the OrganizationRethink the customer engagement processRethink the customer engagement process
bull bull The Best Product Positioning is The Best Product Positioning is not necessarily the most profitable not necessarily the most profitable or the best way to serve your or the best way to serve your customercustomer
SegmentationSegmentation The Key to Superior Strategy and ManagementThe Key to Superior Strategy and Management
Segment everything but most important segment your customers and consumers (eg Unilever Asia)
ConsumersConsumers ConsumersConsumers
Tier 1 Modern Trade Established Systems and Business Scale often International Reaction and Conflict Anticipation and Collaboration
Tier 1 The affluent high LSM (Life style management) across Asia focusing on Aging SingleWorking Women and Teenagers Satisfy their needs and vitality Quality Time Customized Product and Solutions
Tier 2 Modern Trade Smaller more cash driven largely local Shape and Win
Tier 2 The middle LSM focused on upward mobility and social migration Upgradation to higher aspirational brands and affordable price
Tier 3 Including Retailers Wholesalers Drugstores Small Retailers System Lock-In by being only Supplier to produce ECR (Efficiency Customer Response) principles
Tier 3 Lower (but not bottom) LSM less affluent emerging consumers in developing parts of the region Purchasing basket primarily of essentials
Transforming the OrganizationTransforming the Organization Prevent the customer from commoditizing youPrevent the customer from commoditizing you
The case of Eastman Chemicals Coating businessThe case of Eastman Chemicals Coating business
Channels are essential they ldquoownrdquo the customersChannels are essential they ldquoownrdquo the customers The case of Hindustan Lever and Unilever de MexicoThe case of Hindustan Lever and Unilever de Mexico
The Paint and Coating IndustryThe Paint and Coating Industry
The Food Service IndustryThe Food Service Industry
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
The Challenge to DecommThe Challenge to Decommoditizationoditization
Transforming the organization Transforming the organization from best product to total from best product to total customer solutionscustomer solutions
Transforming the OrganizationTransforming the OrganizationChange your mindsetChange your mindset
The transformation is not straight forwardThe transformation is not straight forward The case of Codelco and the International Copper AssociationThe case of Codelco and the International Copper Association
Transforming the OrganizationTransforming the Organization
1048698 Redefine the game you are playingRedefine the game you are playing
Transforming the CSN OrganizationTransforming the CSN Organization
Decommoditize your customer Decommoditize your customer The case of CastrolThe case of Castrol
What is Castrol Logic What is Castrol Logic A customized lubrication A customized lubrication
solution involving products and solution involving products and
services that results in documented services that results in documented
Cost Reductions Cost Reductions
ampamp
Productivity ImprovementsProductivity Improvements
Transforming the OrganizationTransforming the OrganizationRethink the customer engagement processRethink the customer engagement process
bull bull The Best Product Positioning is The Best Product Positioning is not necessarily the most profitable not necessarily the most profitable or the best way to serve your or the best way to serve your customercustomer
SegmentationSegmentation The Key to Superior Strategy and ManagementThe Key to Superior Strategy and Management
Segment everything but most important segment your customers and consumers (eg Unilever Asia)
ConsumersConsumers ConsumersConsumers
Tier 1 Modern Trade Established Systems and Business Scale often International Reaction and Conflict Anticipation and Collaboration
Tier 1 The affluent high LSM (Life style management) across Asia focusing on Aging SingleWorking Women and Teenagers Satisfy their needs and vitality Quality Time Customized Product and Solutions
Tier 2 Modern Trade Smaller more cash driven largely local Shape and Win
Tier 2 The middle LSM focused on upward mobility and social migration Upgradation to higher aspirational brands and affordable price
Tier 3 Including Retailers Wholesalers Drugstores Small Retailers System Lock-In by being only Supplier to produce ECR (Efficiency Customer Response) principles
Tier 3 Lower (but not bottom) LSM less affluent emerging consumers in developing parts of the region Purchasing basket primarily of essentials
Transforming the OrganizationTransforming the Organization Prevent the customer from commoditizing youPrevent the customer from commoditizing you
The case of Eastman Chemicals Coating businessThe case of Eastman Chemicals Coating business
Channels are essential they ldquoownrdquo the customersChannels are essential they ldquoownrdquo the customers The case of Hindustan Lever and Unilever de MexicoThe case of Hindustan Lever and Unilever de Mexico
The Paint and Coating IndustryThe Paint and Coating Industry
The Food Service IndustryThe Food Service Industry
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
Transforming the OrganizationTransforming the OrganizationChange your mindsetChange your mindset
The transformation is not straight forwardThe transformation is not straight forward The case of Codelco and the International Copper AssociationThe case of Codelco and the International Copper Association
Transforming the OrganizationTransforming the Organization
1048698 Redefine the game you are playingRedefine the game you are playing
Transforming the CSN OrganizationTransforming the CSN Organization
Decommoditize your customer Decommoditize your customer The case of CastrolThe case of Castrol
What is Castrol Logic What is Castrol Logic A customized lubrication A customized lubrication
solution involving products and solution involving products and
services that results in documented services that results in documented
Cost Reductions Cost Reductions
ampamp
Productivity ImprovementsProductivity Improvements
Transforming the OrganizationTransforming the OrganizationRethink the customer engagement processRethink the customer engagement process
bull bull The Best Product Positioning is The Best Product Positioning is not necessarily the most profitable not necessarily the most profitable or the best way to serve your or the best way to serve your customercustomer
SegmentationSegmentation The Key to Superior Strategy and ManagementThe Key to Superior Strategy and Management
Segment everything but most important segment your customers and consumers (eg Unilever Asia)
ConsumersConsumers ConsumersConsumers
Tier 1 Modern Trade Established Systems and Business Scale often International Reaction and Conflict Anticipation and Collaboration
Tier 1 The affluent high LSM (Life style management) across Asia focusing on Aging SingleWorking Women and Teenagers Satisfy their needs and vitality Quality Time Customized Product and Solutions
Tier 2 Modern Trade Smaller more cash driven largely local Shape and Win
Tier 2 The middle LSM focused on upward mobility and social migration Upgradation to higher aspirational brands and affordable price
Tier 3 Including Retailers Wholesalers Drugstores Small Retailers System Lock-In by being only Supplier to produce ECR (Efficiency Customer Response) principles
Tier 3 Lower (but not bottom) LSM less affluent emerging consumers in developing parts of the region Purchasing basket primarily of essentials
Transforming the OrganizationTransforming the Organization Prevent the customer from commoditizing youPrevent the customer from commoditizing you
The case of Eastman Chemicals Coating businessThe case of Eastman Chemicals Coating business
Channels are essential they ldquoownrdquo the customersChannels are essential they ldquoownrdquo the customers The case of Hindustan Lever and Unilever de MexicoThe case of Hindustan Lever and Unilever de Mexico
The Paint and Coating IndustryThe Paint and Coating Industry
The Food Service IndustryThe Food Service Industry
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
Transforming the OrganizationTransforming the Organization
1048698 Redefine the game you are playingRedefine the game you are playing
Transforming the CSN OrganizationTransforming the CSN Organization
Decommoditize your customer Decommoditize your customer The case of CastrolThe case of Castrol
What is Castrol Logic What is Castrol Logic A customized lubrication A customized lubrication
solution involving products and solution involving products and
services that results in documented services that results in documented
Cost Reductions Cost Reductions
ampamp
Productivity ImprovementsProductivity Improvements
Transforming the OrganizationTransforming the OrganizationRethink the customer engagement processRethink the customer engagement process
bull bull The Best Product Positioning is The Best Product Positioning is not necessarily the most profitable not necessarily the most profitable or the best way to serve your or the best way to serve your customercustomer
SegmentationSegmentation The Key to Superior Strategy and ManagementThe Key to Superior Strategy and Management
Segment everything but most important segment your customers and consumers (eg Unilever Asia)
ConsumersConsumers ConsumersConsumers
Tier 1 Modern Trade Established Systems and Business Scale often International Reaction and Conflict Anticipation and Collaboration
Tier 1 The affluent high LSM (Life style management) across Asia focusing on Aging SingleWorking Women and Teenagers Satisfy their needs and vitality Quality Time Customized Product and Solutions
Tier 2 Modern Trade Smaller more cash driven largely local Shape and Win
Tier 2 The middle LSM focused on upward mobility and social migration Upgradation to higher aspirational brands and affordable price
Tier 3 Including Retailers Wholesalers Drugstores Small Retailers System Lock-In by being only Supplier to produce ECR (Efficiency Customer Response) principles
Tier 3 Lower (but not bottom) LSM less affluent emerging consumers in developing parts of the region Purchasing basket primarily of essentials
Transforming the OrganizationTransforming the Organization Prevent the customer from commoditizing youPrevent the customer from commoditizing you
The case of Eastman Chemicals Coating businessThe case of Eastman Chemicals Coating business
Channels are essential they ldquoownrdquo the customersChannels are essential they ldquoownrdquo the customers The case of Hindustan Lever and Unilever de MexicoThe case of Hindustan Lever and Unilever de Mexico
The Paint and Coating IndustryThe Paint and Coating Industry
The Food Service IndustryThe Food Service Industry
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
What is Castrol Logic What is Castrol Logic A customized lubrication A customized lubrication
solution involving products and solution involving products and
services that results in documented services that results in documented
Cost Reductions Cost Reductions
ampamp
Productivity ImprovementsProductivity Improvements
Transforming the OrganizationTransforming the OrganizationRethink the customer engagement processRethink the customer engagement process
bull bull The Best Product Positioning is The Best Product Positioning is not necessarily the most profitable not necessarily the most profitable or the best way to serve your or the best way to serve your customercustomer
SegmentationSegmentation The Key to Superior Strategy and ManagementThe Key to Superior Strategy and Management
Segment everything but most important segment your customers and consumers (eg Unilever Asia)
ConsumersConsumers ConsumersConsumers
Tier 1 Modern Trade Established Systems and Business Scale often International Reaction and Conflict Anticipation and Collaboration
Tier 1 The affluent high LSM (Life style management) across Asia focusing on Aging SingleWorking Women and Teenagers Satisfy their needs and vitality Quality Time Customized Product and Solutions
Tier 2 Modern Trade Smaller more cash driven largely local Shape and Win
Tier 2 The middle LSM focused on upward mobility and social migration Upgradation to higher aspirational brands and affordable price
Tier 3 Including Retailers Wholesalers Drugstores Small Retailers System Lock-In by being only Supplier to produce ECR (Efficiency Customer Response) principles
Tier 3 Lower (but not bottom) LSM less affluent emerging consumers in developing parts of the region Purchasing basket primarily of essentials
Transforming the OrganizationTransforming the Organization Prevent the customer from commoditizing youPrevent the customer from commoditizing you
The case of Eastman Chemicals Coating businessThe case of Eastman Chemicals Coating business
Channels are essential they ldquoownrdquo the customersChannels are essential they ldquoownrdquo the customers The case of Hindustan Lever and Unilever de MexicoThe case of Hindustan Lever and Unilever de Mexico
The Paint and Coating IndustryThe Paint and Coating Industry
The Food Service IndustryThe Food Service Industry
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
Transforming the OrganizationTransforming the OrganizationRethink the customer engagement processRethink the customer engagement process
bull bull The Best Product Positioning is The Best Product Positioning is not necessarily the most profitable not necessarily the most profitable or the best way to serve your or the best way to serve your customercustomer
SegmentationSegmentation The Key to Superior Strategy and ManagementThe Key to Superior Strategy and Management
Segment everything but most important segment your customers and consumers (eg Unilever Asia)
ConsumersConsumers ConsumersConsumers
Tier 1 Modern Trade Established Systems and Business Scale often International Reaction and Conflict Anticipation and Collaboration
Tier 1 The affluent high LSM (Life style management) across Asia focusing on Aging SingleWorking Women and Teenagers Satisfy their needs and vitality Quality Time Customized Product and Solutions
Tier 2 Modern Trade Smaller more cash driven largely local Shape and Win
Tier 2 The middle LSM focused on upward mobility and social migration Upgradation to higher aspirational brands and affordable price
Tier 3 Including Retailers Wholesalers Drugstores Small Retailers System Lock-In by being only Supplier to produce ECR (Efficiency Customer Response) principles
Tier 3 Lower (but not bottom) LSM less affluent emerging consumers in developing parts of the region Purchasing basket primarily of essentials
Transforming the OrganizationTransforming the Organization Prevent the customer from commoditizing youPrevent the customer from commoditizing you
The case of Eastman Chemicals Coating businessThe case of Eastman Chemicals Coating business
Channels are essential they ldquoownrdquo the customersChannels are essential they ldquoownrdquo the customers The case of Hindustan Lever and Unilever de MexicoThe case of Hindustan Lever and Unilever de Mexico
The Paint and Coating IndustryThe Paint and Coating Industry
The Food Service IndustryThe Food Service Industry
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
bull bull The Best Product Positioning is The Best Product Positioning is not necessarily the most profitable not necessarily the most profitable or the best way to serve your or the best way to serve your customercustomer
SegmentationSegmentation The Key to Superior Strategy and ManagementThe Key to Superior Strategy and Management
Segment everything but most important segment your customers and consumers (eg Unilever Asia)
ConsumersConsumers ConsumersConsumers
Tier 1 Modern Trade Established Systems and Business Scale often International Reaction and Conflict Anticipation and Collaboration
Tier 1 The affluent high LSM (Life style management) across Asia focusing on Aging SingleWorking Women and Teenagers Satisfy their needs and vitality Quality Time Customized Product and Solutions
Tier 2 Modern Trade Smaller more cash driven largely local Shape and Win
Tier 2 The middle LSM focused on upward mobility and social migration Upgradation to higher aspirational brands and affordable price
Tier 3 Including Retailers Wholesalers Drugstores Small Retailers System Lock-In by being only Supplier to produce ECR (Efficiency Customer Response) principles
Tier 3 Lower (but not bottom) LSM less affluent emerging consumers in developing parts of the region Purchasing basket primarily of essentials
Transforming the OrganizationTransforming the Organization Prevent the customer from commoditizing youPrevent the customer from commoditizing you
The case of Eastman Chemicals Coating businessThe case of Eastman Chemicals Coating business
Channels are essential they ldquoownrdquo the customersChannels are essential they ldquoownrdquo the customers The case of Hindustan Lever and Unilever de MexicoThe case of Hindustan Lever and Unilever de Mexico
The Paint and Coating IndustryThe Paint and Coating Industry
The Food Service IndustryThe Food Service Industry
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
SegmentationSegmentation The Key to Superior Strategy and ManagementThe Key to Superior Strategy and Management
Segment everything but most important segment your customers and consumers (eg Unilever Asia)
ConsumersConsumers ConsumersConsumers
Tier 1 Modern Trade Established Systems and Business Scale often International Reaction and Conflict Anticipation and Collaboration
Tier 1 The affluent high LSM (Life style management) across Asia focusing on Aging SingleWorking Women and Teenagers Satisfy their needs and vitality Quality Time Customized Product and Solutions
Tier 2 Modern Trade Smaller more cash driven largely local Shape and Win
Tier 2 The middle LSM focused on upward mobility and social migration Upgradation to higher aspirational brands and affordable price
Tier 3 Including Retailers Wholesalers Drugstores Small Retailers System Lock-In by being only Supplier to produce ECR (Efficiency Customer Response) principles
Tier 3 Lower (but not bottom) LSM less affluent emerging consumers in developing parts of the region Purchasing basket primarily of essentials
Transforming the OrganizationTransforming the Organization Prevent the customer from commoditizing youPrevent the customer from commoditizing you
The case of Eastman Chemicals Coating businessThe case of Eastman Chemicals Coating business
Channels are essential they ldquoownrdquo the customersChannels are essential they ldquoownrdquo the customers The case of Hindustan Lever and Unilever de MexicoThe case of Hindustan Lever and Unilever de Mexico
The Paint and Coating IndustryThe Paint and Coating Industry
The Food Service IndustryThe Food Service Industry
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
Transforming the OrganizationTransforming the Organization Prevent the customer from commoditizing youPrevent the customer from commoditizing you
The case of Eastman Chemicals Coating businessThe case of Eastman Chemicals Coating business
Channels are essential they ldquoownrdquo the customersChannels are essential they ldquoownrdquo the customers The case of Hindustan Lever and Unilever de MexicoThe case of Hindustan Lever and Unilever de Mexico
The Paint and Coating IndustryThe Paint and Coating Industry
The Food Service IndustryThe Food Service Industry
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
The Paint and Coating IndustryThe Paint and Coating Industry
The Food Service IndustryThe Food Service Industry
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
The Food Service IndustryThe Food Service Industry
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
Transforming the OrganizationTransforming the Organization
Use technology wisely This is a very hard taskUse technology wisely This is a very hard task
The case of Advanced Micro Devices
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
Transforming the OrganizationTransforming the Organization
Beware of the organizational Beware of the organizational structure implicationsstructure implications
You have to change dramatically the way you You have to change dramatically the way you
manage manage
assign responsibilitiesassign responsibilities
reward peoplereward people
monitor the business progress and monitor the business progress and
most important the way you ldquosellrdquomost important the way you ldquosellrdquo
The transformation has to be accomplished by a change in The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizatiboth the front--end as well as the back-end of the organizational structureonal structure
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implications
The back-end should be segmented according to the way we The back-end should be segmented according to the way we segmented Products and Technologiessegmented Products and Technologies
Administration functionsAdministration functions
Supply chain functionsSupply chain functions
New product development technologiesNew product development technologies
Process technologiesProcess technologies
Information technologiesInformation technologies
Functional activities related to product marketingFunctional activities related to product marketing
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
Transforming the OrganizationTransforming the Organization
Beware of the organizational structurBeware of the organizational structure implicationse implicationsThe front-end should be segmented according to the way in The front-end should be segmented according to the way in which we segment the marketswhich we segment the markets
ClientsClients
End-usersEnd-users
Solutions and servicesSolutions and services
Geographical areasGeographical areas
Functional activities related to customer marketingFunctional activities related to customer marketing
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
Transforming the OrganizationTransforming the Organization
Seek System Lock-In OpportunitiesSeek System Lock-In Opportunities
This is very hard to accomplish however if This is very hard to accomplish however if successful the rewards are enormoussuccessful the rewards are enormous
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
ACHIEVING YOUR POTENTIALACHIEVING YOUR POTENTIAL
The way to win is not to beat The way to win is not to beat your competitor but to bond your competitor but to bond with your customerswith your customers
