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MARCON 2009
Citation preview
Dr. Uditha Liyanage
Differentiate or Die
See
Do
Get
• What is Differentiation?
• What is the nexus between S &
D?
• What is Strategy?
Triple Forci
• Competing to be the Best
What’s Not Strategy
• Strategy as Actiono “Our strategy is to merge…” o “… double our R & D spend”
• Strategy as Vision
• Strategy as Mission
o “Our strategy is to be no. 1”o “… to provide superior returns to s/h.”
o “Our strategy is to provide superior products ..”o “… to advance technology for mankind”
• Strategy as Standing ?
Then, what’s Strategy
• Strategy as Steps ?
Strategy as Stand
o “Stand as a Strategic Position taken by an organization on and in an industry/market”.
o Stand tells you, “who you are” and “what you stand for”.
“It is vital that you first define “who you want to be”, before you figure out “where you want to go.”
Because, the latter depends on the former and not vice versa.
Stand
Steps
Standin
g
o In turbulent times, no “deliberate” steps. Only “emergent” steps.
o The need for Complex Adaptive Systems.
o Emergent Steps. All the more reason for a clear Stand.
• Sri Lanka Tourism
• Singer Sri Lanka
Let’s Take …
• Sri Lanka Apparel
• Standing :
• Steps :
One Million tourists by 2012
X program for UK
Y program for India
Z program for …….
• Stand ? :
“Land like no other”
A land like no other …..
o To have ?
o To do ?
o To relate ?
o To see ?
o To be ?
• “being-seeing” compact
• To “be and see”
• Authentic “being-seeing”
• It’s in Asia
• It’s an Island
“Asia’s authentic being-seeing compact island”.
• Six key words that articulate
the Stand of SLT
• Why “Asia” and “Island” ?
• Taking a Position on the market.
So, in essence, strategy is about taking a stand –
a unique stand.
It is also about what you do NOT stand for.
Strategic position and trade-off’s.
Now, what is Differentiation and, what is its nexus with your Stand?
Strategy Differentiatio
n= =Unique
Stand
So, what exactly is Differentiation ?
First, what is not differentiation ?
• Differentiation is Not …
• Operational Effectiveness
• “Doing the same things better”
• C2 > C1
• C2 has CA over C1
• But, C2 is not differentiated from C1
Differentiation vs. Superiority
KPD C2 C1
Z
X
Y
8 10
7 9
6 7
• Better
Differentiation is not about being …
• Different“Differentiation is not doing the same things better”.
But, it is all about being …
• Best practice
Good but not quite!
• Benchmarking
• Outsourcing
• TQM
• Six zigma
o Competitive Convergence
o Zero-sum Competition
• CI
Productivity Frontier (Best practice)
Valu
e
Deliv
ere
d
Relative Cost Position
High
Low High
Low
(Porter, 1996)
Differentiation is Not …
• Operational Effectiveness
“Doing the same things faster and cheaper”
• Operational Efficiency ?
Operational E1 x E2
Operational (Value) Effectiveness (Being better)
(Cost) Efficiency (Being cheaper)
Differentiation and its “sweet spot”
Company Capability
Customer NeedsCompetitor
Offerings
“Differentiation is about doing
different things and/or doing things
differently, and not doing the same
things better, faster and cheaper”.
In Sum
Thank you!