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Posts Tagged ‘Off the Box’

Need to Diversify | Extending Organizational Competencies

November 3, 2010 1 comment

Realigning the focus and diversifying has its distinct advantages in any situation and in any market. Diversification from the core provides an opportunity to create additional value to consumers and brings revenue opportunities without much of an ado. Diversification = Growth Strategy.

Market Realities: Organizations have evolved their practices and processes around native offerings; over years of exposure they accumulate strengths to further drill deep into the niche they offer. The vertical bore brings out more quality of service and matures business value. In such a space there will be  many a competitor in the same eco-system with much deeper strengths and maturity; Consumers are spoiled for choice among this competition. Business are cost leaders, have strong brand names, share customers, share characheristics, operate similar, compete nect to neck, share management techniques etc., The candidature sway can only be attributed to external factors like ads, verifyable case studies, consultant backing, customer referrals etc., and not really on ‘whats on offer’ as everyone offers almost the same with very little between. Prolonged existance and anchoring of organizations over the same service vertical will not be wise in the face of growing competition and the thirst to increase revenues.

Framework: Visual Verbatim to be appended

Diversifying from the Core’: When strategies are draw over diversification, there is always a choice. The choice of choosing to build based on your core competency and extend the diversified idea as an offshoot [or] get into a hyper mode by jumping from the native skin adapting in a different landscape altogether. Service companies can diversify from core and feel accomplished as risks are absolutely negligible, there is a strong possibility to utilize native resources over people and infrastructure. Investments and expertise can be applied across establishing a strong backup and support, vital to any new inception. Grade A corporate rung will have the choices to make when diversifying, anywhere down the ladder there is a strong pressure applied over GTM and Operational strategies which will in turn reflect upon exploiting existing relations rather than gearing to launch an all-out open market campaign. Tapping into existing relations will yield good results if you offer solutions and services extensions from the current anchoring. It makes great sense selling and in the conversions.

Pre-Requisites: Diversification can be successful if our core services are at the pinnacle of excellence. We would never want to look at getting caught with poor performance results over our core services; the focus then need to shift back to stabilize the platform from where bread is knead. Selling these ‘Value’ services will be done on the current ‘performance’ platform. Diversify for revenues, diversify over current excellence, when diversifying from core.

Success Factors: Product branding, selling – BD, strong process map, strong service delivery routines, open – case studies, clear engagement routines, leadership awareness.

Case Studies:
1. GE – Jack Welch transformed GE from a purely manufacturing company into a more diversified company. As a result of GE’s corporate strategy and complex diversification, in 1996, GE Capital Services earned US$4 billion. In 2005, GE services agreements increased to $87 billion, up 15% from 2004. In particular, financial services revenues increased 12% to $59.3 billion.
2. ITC – ITC’s non-cigarettes businesses continued to grow at a scorching pace, accounting for a bigger share of overall revenues. “The non-cigarette portfolio grew by 37.6% during 2006-07 and accounted during that year for 52.3% of the company’s net turnover,” an ITC release said. ITC was known for its Tobacco products predominantly, the decision to diversify boosted revenue.

Jesu Valiant

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Principles for Successful Innovation

Successful business innovations that drive growth are guided by the following  principles:

1. An Explosive Vision to create new products, frameworks, business models or processes that make a difference to the dullness of existing business and create new markets, new excitement, infuse high impact visual verbatim for comprehension across the layers in the annals of the organization and to the market. Born in the minds of creative thought owners who always seek out for breaking the routines and take to their own space in an multi layered and hyper dimensional environment. Creativity and Innovations are not wrought by accumulating reservoirs of certifications, digits on the payslip, its all about getting the foundations right. Being a game changer means having a strong personal belief in creativity and innovation coupled with originality of thought.

2. Culture and organizational rigor that stimulate creativity and learning to execute on the vision. Organizations on identifying the innovation engines should learn not “Flog the Hen” to lay a clutch of golden eggs and breed a farm, create a collection of hyper reproductive hens again laying golden eggs. This is planet earth and everything evolves and takes time; failures abound if we do not empower the thought leader to take lead; organizations should provision an environment for shaping the innovative vision. Participation from the organizations leadership is absolutely essential in realizing any innovation, a pilate hand wash over framing concept support – joint development of roadmap to monetization – resource provisioning will set to stifle innovation, vision & concept.

3. Reward and recognition system to take measured risks and experiment. With the birth and growth of corporate power houses like Google, Microsoft, Apple, IBM who thrive on internal innovations rather than adopting a ‘copy – paste’ approach of most 1st level and 2nd level enterprises we witness today. We have people achieving Mach 2 on the way up corporate ladders; with less experience and less expertise, Innovations are stifled and starved by not provisioning appropriate attention and investment, there is a dearth of comprehension skills because there is lack of maturity and understanding. Any organization in the quest for better returns on investment, need to invest; returns on investment means that there is a reaction to an action not any volcano from under the feet. Idea originators and innovators need to be supported and recognized; recognition itself at the organizational level is viewed as a reward; recognition is the key.

4. Focus on clear and present customer needs, the market facts, and the intangible. Any Innovation are so if they are built considering in totality the market needs, operating environment, competition, capability, landscape, technology affiliations, industry standards, business practicalities, organization goals, expertise, etc., among the many. Market needs solutions for the varied complexities that emerge over time; innovation needs to have the strategic depth and width to stay evolving,’close gaping’ all needs, perform savior spinoffs on cost – complexity, quicken results,  create platform for further benefit domino.

5. Growth-oriented and Strategic leadership that is decisive, inclusive, focused, takes risks, and have market expertise. Strategic leaders are always looking ahead and analyzing the present in terms of preparation for what may be ahead for the business. Strategic leaders are adaptable and growth-oriented. Although the strategic style of leadership always keeps the best interests of the business in mind, it’s also appreciative of employees’ unique talents and efforts. Strategic leaders use leadership techniques that empower and motivate rather than bully employees. Another goal of strategic leadership is to create an environment in which employees anticipate the company’s needs in relation to their own job. Employees in a workplace environment led by a strategic leader are encouraged to follow their own initiative.

Jesu Valiant

Business Intelligence

August 7, 2009 1 comment

Business intelligence is the knowledge, skills, capacities, understanding, practices and relative technologies, applications that are used to understand and interpret markets, their behavior, business dynamics and context. Storing, analyzing, and providing access to this data helps enterprise users make better business decisions. This helps companies to make faster, smarter decisions, as well as increase revenue, build customer loyalty, streamline operations, improve risk management and even enable previously impossible business processes.

BI System

A BI System provides facilities to capture data and present it for analysis; data is made available in ‘Historical’, ‘Live’ and ‘Predictive’ forms. We can integrate the wholesome business performance management aspects involving Strategy, Balance Scorecard, Strategy Translation/Cascading them into operations and business intelligence culminating into one integrated business information system which can be used as a Decision Support System.

BI Growing in Importance

The amount of corporate data is doubling every 2-3 years
Barriers of entry (costs/technology) are being removed
Continued pressure on businesses to find efficiencies and new market opportunities, client expectations
More disparate data sources than ever before

BI Usage Statistics – Source: Forrester Research Inc., 2006 survey

BI Use by Small and Mid Market Companies
48% –  Using
10% –  Planning to implement solution in 2007.
40% –  Not using
Don’t know 2%

Jesu Valiant

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