【正文】 Key question Subquestions Issues to be considered * KPIs are a handful of levers that drive the value of the industry/business 15 ? CAPABILITY PLATFORM: ASSESSMENT OF SOURCES OF COMPETITIVE ADVANTAGE (1/2) Physical asset Location/space Distribution/sales work Brand/reputation Patent Relationship with license allocator ? BHP’s lowcost mines ? Telem/media pany with rights radio spectrum ? Avon’s representatives ? CocaCola ? Pharmaceutical pany with a wonder drug” ? Favored nation status with a key minister in liberalizing economy Innovation Crossfunctional coordination Market positioning Cost/efficiency management Talent development ? 3M with new products ? McDonald’s with QSCV ? JJ with branded consumer health products ? Emerson Electric’s Best Cost Producer program ? PG brand management program Privileged assets Distinctive petencies Necessary capabilities in order to succeed in the industry Example 16 ? Step 1: Ensure that these are the capabilities required to succeed in the industry. Use this list as a thought starter, add and delete as you see appropriate BU Overall Segments A B C Step 2: Assess your overall position relative to the capabilities required to succeed in the industry. Also, determine if these capabilities are relevant to the segments you serve Physical asset Location/space Distribution/sales work Brand/reputation Patent Relationship with license allocator Innovation Crossfunctional coordination Market positioning Cost/efficiency management Talent development Privileged assets Distinctive petencies Necessary capabilities in order to succeed in the industry CAPABILITY PLATFORM: ASSESSMENT OF SOURCES OF COMPETITIVE ADVANTAGE BY SEGMENT (2/2) ILLUSTRATIVE Extremely relevant Somewhat relevant Irrelevant 17 ? BU Overall Competitors A B C Step 3: Compare the strengths and weaknesses of your petitive position vs. the necessary skills Physical asset Location/space Distribution/sales work Brand/reputation Patent Relationship with license allocator Innovation Crossfunctional coordination Market positioning Cost/efficiency management Talent development Privileged assets Distinctive petencies Necessary capabilities in order to succeed in the industry ? ? ? ? COMPETITOR CAPABILITY COMPARISON ILLUSTRATIVE 18 ? Necessary capabilities in order to succeed in the industry Privileged assets Distinctive petencies CAPABILITY PLATFORM APPLIED TO LEXMARK Distribution/sales work Brand/reputation Innovation Crossfunctional coordination Market positioning Cost/efficiency management Laser Inkjet (Sales work) (Distribution) (Reputation) (Brand) Segments Extremely relevant Somewhat relevant Irrelevant 19 ? Necessary capabilities in order to succeed in the industry Privileged assets Distinctive petencies COMPETITOR CAPABILITY COMPARISON APPLIED TO LEXMARK Distribution/sales work Brand/reputation Innovation Cost/efficiency management Lexmark HP Epson ? ? ? ? ? ? ? ? ? Formed own account teams。9 7 39。9 6 39。0 0020040060039。9 9 39。9 8 39。9 7 39。9 6 39。0 005101539。9 9 39。9 8 39。9 7 39。9 6 39。0 03132333439。9 9 39。9 8 39。9 7 39。9 6 39。0 0020406039。9 9 39。9 3 39。9 3 39。9 3 39。9 3 39。9 3 39。9 3 39。9 3 39。9 3 39。S VALUE PROPOSITION FOR LASER PRINTERS 35 ? ? Flash memory allowing instantaneous printing and updating of forms in multiple locations ? Duplex printing – ability to print on both sides of paper ? Paper trays to handle three or more sizes of paper and forms ? Technical service support to help with systems design and product problems ? Targeted to segment needs ? High quality ? Technologically advanced ? Competitive price Slight premium Banking Price Benefits Why choose Lexmark? Slight premium Pharmacy TAILOR VALUE PROPOSITION TO VARIOUS CUSTOMER SEGMENTS ? Ability to print prescription labels without jamming (due to spacing of rollers) ? Technical service support to help with system design and product problems LEXMARK EXAMPLE Segment 36 ? BUSINESS MODEL Understand value desires Select target Choose the value Value proposition Design product/ process Procure, manu facture Distri bute Provide the value Service Price Define benefits/ price Sales message Communicate the value Business model: ? Integrated set of actions to provide and municate the value proposition to customers Segmentation Value proposition Adver tising Promo tional/PR Value delivery system (VDS) Each BU must address these 2 issues to define their business model Illustration of how the value proposition will be provided and municated Identification of existing strengths that can be leveraged and required capabilities that need to be built to be distinctive in chosen value delivery system 1 2 37 ? LEXMARK LINKED VALUE PROPOSITION TO CHANGES IN BUSINESS SYSTEM Product Design Process Procurement Manufacturing Distribution Marketing Sales AfterSale Service Provide the Value Communicate the Value ? Highlycustomized to customer segments ? 12 month design cycle ? Fully crossfunctional ? Limited to specific target segments ? Inhouse control of critical technologies ? Outsourced only noncritical ponents ? Utilized preferred suppliers ? Kept high value added processes inhouse ? Improved flexibility and reduced product cycle time ? Minimized changes in produ