Business Innovation in a Global Economy - PowerPoint PPT Presentation

Loading...

PPT – Business Innovation in a Global Economy PowerPoint presentation | free to view - id: ea7c3-Njk2M



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Business Innovation in a Global Economy

Description:

Retail: CPG, Durables, Apparel. Media / Entertainment: Publishing, TV, Animation ... Value Chains ... Value Chain Evolution - II. Buy-Side Globalization ... – PowerPoint PPT presentation

Number of Views:142
Avg rating:3.0/5.0
Slides: 34
Provided by: soeU
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Business Innovation in a Global Economy


1
Business Innovation in a Global Economy
  • Srikanth Kannapan, PhD
  • May 5, 2005

2
Outline
  • Some Working Definitions
  • Industry Domains
  • Business Drivers
  • Enablers Challenges
  • Value Chains
  • Value Chain Evolution
  • Patterns of Business Innovation
  • Dimensions of Complexity
  • Examples - Discussion

3
Some Working Definitions
  • Globalization
  • 17 million hits with a search engine
  • Economic integration/interdependence of countries
  • Trade liberalization (increased circulation of
    goods)
  • Financial liberalization (expanded circulation of
    capital)
  • Expansion of travel patterns
  • Business Innovation
  • 0.5 million hits with a search engine
  • A socio-techno-economic business evolution
  • Internet Commerce
  • Outsourcing

4
Industry Domains
  • Major Domains
  • IT/Software Enterprise Software, Embedded
    Software
  • Manufacturing Electronics, Automotive, Aerospace
  • Telecom Wireless, Data/Video
  • Financial Services Banking, Insurance, Asset
    Management
  • Emerging Domains
  • Retail CPG, Durables, Apparel
  • Media / Entertainment Publishing, TV, Animation
  • Boundaries of Influence
  • Onsite physical action
  • Emotional connection
  • Cultural affinity

5
Business Drivers
  • Financial Imperatives
  • Profitability growth expectations
  • Increasing global purchasing power
  • Highly diverse global cost bases
  • Growing Competition

6
Enablers Challenges
  • Enablers
  • Trade and finance liberalization
  • High speed communication links
  • Spreading competence
  • Expanding partnerships
  • Challenges
  • Bridging language and culture
  • Transcending physical, political, social factors
  • Managing global partnerships
  • Building and operating distributed infrastructure
  • Attracting and retaining talent

7
Value Chains
  • Value chains A valuable conceptual tool to
    understand the effects of business innovation and
    globalization
  • Map flow and dependencies of value-added
    activities in businesses
  • Track flow of parts/products from source to
    consumption
  • Identify activities performed/to-be performed
    within/outside the enterprise
  • Explore build/buy/expand options for enterprise
    components in different global locations
  • Value chains have different patterns for
    different industries
  • The Manufacturing Industry (Electronics,
    Automotive, Aerospace)
  • The Service Industry (Telecom, Financial, Retail)
  • The Information Industry (IT/Software, Media)

8
Value ChainsManufacturing Industry
Offering/Process Development
Supply Chain (Indirect)
CustomerRelationship
Market Insight
Production
Supply Chain (Direct)
Distribution Chain
InfrastructureManagement
  • Buy-Side
  • Direct, Indirect
  • Sell-Side
  • Market, Customer, Product
  • In-Side
  • Development, Production, Infrastructure

9
Value ChainsServices Industry
Offering/Process Development
Supply Chain (Indirect)
CustomerRelationship
Market Insight
Service Provisioning Operations
InformationSources
Distribution Chain
InfrastructureManagement
  • Buy-Side
  • Information, Indirect
  • Sell-Side
  • Market, Customer, Offering
  • In-Side
  • Development, Operations, Infrastructure

10
Value ChainsInformation Industry
Offering/IP Development
Supply Chain (Indirect)
CustomerRelationship
Market Insight
Professional Services
InformationSources
Distribution Chain
InfrastructureManagement
  • Buy-Side
  • Information, Indirect
  • Sell-Side
  • Market, Customer, Offering
  • In-Side
  • Development, Services, Infrastructure

11
Manufacturing IndustryValue Chain Evolution - I
Offering/Process Development
Supply Chain (Indirect)
CustomerRelationship
Market Insight
Production
Supply Chain (Direct)
Distribution Chain
InfrastructureManagement
  • Sell-Side Globalization
  • Assess addressable market size and maturity
  • Identify target segments and develop business
    plans
  • Build global partnerships and distribution
    channels
  • Expand sales in new geographies

12
Manufacturing IndustryValue Chain Evolution - II
Offering/Process Development
Supply Chain (Indirect)
CustomerRelationship
Market Insight
Production
Supply Chain (Direct)
Distribution Chain
InfrastructureManagement
  • Buy-Side Globalization
  • Identify best sourcing strategy from global
    suppliers
  • Build supplier partnerships and logistics
  • Consolidate/Integrate supply chains into
    production system
  • Continuously explore further sourcing optimization

13
Manufacturing IndustryValue Chain Evolution - III
Offering/Process Development
Supply Chain (Indirect)
CustomerRelationship
Market Insight
Production
Supply Chain (Direct)
Distribution Chain
InfrastructureManagement
  • In-Side Globalization
  • Locate production infrastructure close to markets
  • Optimize product-mix production capacity to
    local markets
  • Decentralize production operations,
    infrastructure management
  • Localize indirect supply chain within global
    standards

14
Manufacturing IndustryValue Chain Evolution - IV
Offering/Process Development
Supply Chain (Indirect)
CustomerRelationship
Market Insight
Production
Supply Chain (Direct)
Distribution Chain
InfrastructureManagement
  • Integrated Globalization
  • Develop technology/products aggregating global
    experience
  • Locate centers for RD closest to concentrations
    of competence
  • Develop shared platforms for global markets
  • Customize platforms to local markets

15
Patterns of Business Innovation
1980s
16
Services IndustryValue Chain Evolution - I
Offering/Process Development
Supply Chain (Indirect)
CustomerRelationship
Market Insight
Service Provisioning Operations
InformationSources
Distribution Chain
InfrastructureManagement
  • Sell-Side Globalization
  • Assess market size and maturity
  • Establish market presence and brand
  • Establish sell-side partnerships and establish
    business plans
  • Monitor market trends, calibrate expansion

17
Services IndustryValue Chain Evolution - II
Offering/Process Development
Supply Chain (Indirect)
CustomerRelationship
Market Insight
Service Provisioning Operations
InformationSources
Distribution Chain
InfrastructureManagement
  • In-Side Globalization
  • Leverage global centers of competence for
    services delivery
  • Develop outsourcing partnerships for
    infrastructure management
  • Implement global standards for indirect supply
    chain esp. HR

18
Services IndustryValue Chain Evolution - III
Offering/Process Development
Supply Chain (Indirect)
CustomerRelationship
Market Insight
Service Provisioning Operations
InformationSources
Distribution Chain
InfrastructureManagement
  • In-Side Globalization
  • Develop offerings/processes aggregating global
    experience

19
Patterns of Business Innovation
1980s
1990s
20
Information IndustryValue Chain Evolution - I
Offering/IP Development
Supply Chain (Indirect)
CustomerRelationship
Market Insight
Professional Services
InformationSources
Distribution Chain
InfrastructureManagement
  • Sell-Side Globalization
  • Assess market size and maturity, establish market
    presence and brand
  • Establish sell-side partnerships, establish
    business plans, monitor expansion
  • In-Side Globalization
  • Leverage global centers of competence (on-site
    remote)
  • Professional Services, Infrastructure Management,
    Support

21
Information IndustryValue Chain Evolution - II
Offering/IP Development
Supply Chain (Indirect)
CustomerRelationship
Market Insight
Professional Services
InformationSources
Distribution Chain
InfrastructureManagement
  • In-Side Globalization
  • Expand scope to collaborative offering/IP
    development
  • RD
  • Product/Services Development, Product/Services
    Management

22
Patterns of Business Innovation
1980s
1990s
2000s
23
Globalized Business Innovation Dimensions of
Complexity
  • People
  • Communication language, idiom, accent
  • Coordination ownership, time zones, hand-offs,
    shifts
  • Competency technical, product, process,
    proprietary
  • Training Classroom, OJT, Experiential
    onsite/remote
  • Culture Work, Play Individual, Group

People
24
Globalized Business Innovation Dimensions of
Complexity
  • Process
  • Data Flow Access, Integration
  • Work Flow Correct, Complete, Timely
  • Travel Set-up, Operations, Revitalize
  • Organizational Practices Career Paths
  • Communication
  • Coordination
  • Competency
  • Training
  • Culture

People
Process
25
Globalized Business Innovation Dimensions of
Complexity
  • Technology
  • Data Connectivity, Hardware
  • Applications/Tools Architecture
  • Software Licensing

Technology
  • Communication
  • Coordination
  • Competency
  • Training
  • Culture

People
Process
  • Data Flow
  • Work Flow
  • Travel
  • Practices

26
Globalized Business Innovation Dimensions of
Complexity
  • Financials
  • Costs, Revenues
  • ROI, Payback Periods

Financials
Technology
  • Communication
  • Coordination
  • Competency
  • Training
  • Culture

People
Process
  • Data Connectivity, Hardware
  • Applications/Tools Architecture
  • Software Licensing
  • Data Flow
  • Work Flow
  • Travel
  • Practices

27
Globalized Business Innovation Dimensions of
Complexity
  • Costs, Revenues
  • ROI, Payback Periods

Financials
  • Strategy Change Management
  • Leadership Management
  • Process Owners and Task Owners

Strategy/ Change Management
Technology
  • Communication
  • Coordination
  • Competency
  • Training
  • Culture

People
Process
  • Data Connectivity, Hardware
  • Applications/Tools Architecture
  • Software Licensing
  • Data Flow
  • Work Flow
  • Travel
  • Practices

28
Globalized Business InnovationDimensions of
Complexity
  • Costs, Revenues
  • ROI, Payback Periods

Financials
  • Leadership Management
  • Process Ownersand Task Owners

Strategy/ Change Management
Technology
  • Communication
  • Coordination
  • Competency
  • Training
  • Culture

People
Process
  • Data Connectivity, Hardware
  • Applications/Tools Architecture
  • Software Licensing
  • Data Flow
  • Work Flow
  • Travel
  • Practices

29
Case in Point Toyota Innova
  • New Product - 01/09/2004
  • Toyota Launches Kijang Innova in Indonesia 
  • Kijang  Jakarta
  • PT TOYOTA MOTOR MANUFACTURING INDONESIA (TMMIN)
    and PT TOYOTA-ASTRA MOTOR (TAM) unveil in
    Indonesia today a new Innovative International
    Multipurpose Vehicle (IMV) called Kijang Innova.
  • Kijang Innova will be produced at Toyotas
    Karawang plant in West Java, with annual
    production of 80,000 units a year. In addition to
    Kijang Innova production, TMMIN will also produce
    more than 180,000 gasoline engines per year.
    Aside of being sold in Indonesia, Kijang Innova
    and its gasoline engines will be also exported to
    other countries worldwide soon starting this year
    with total export volume of 10,000 and about
    130,000 units a year respectively. Kijang Innova
    launching is aimed even to further contribute to
    Indonesian economies through investment,
    employment and export.

contd
30
Case in Point Toyota Innova
  • Kijang Innova is the output of Global Quality
    Project (GQ Project) - a business revolution that
    involves breakthrough improvements in the areas
    of development, production, technology and
    services. This is a part of Toyotas efforts to
    provide customers a global qualified MPV, which
    can meet customers expectation both in Indonesia
    and global market.
  • Kijang Innova is one of five IMV models developed
    by Toyota. IMV models will be produced mainly in
    Indonesia, Thailand, Argentina and South Africa.
    Kijang Innova will become a new generation of
    Toyotas legendary multipurpose vehicle (MPV),
    Toyota Kijang, in Indonesia. The new global MPV
    brings revolution in styling, comfort,
    performance, safety, value for money as well as
    production quality at the most beautiful
    appearance.
  • Powered by latest 2.OL VVT-i (Variable Valve
    Timing with Intelligent) engine for gasoline
    types and the newly developed 2.5L D-4D (Direct
    4-Stroke Diesel Turbo Commonrail) engine for
    diesel types, Kijang Innova will provide
    sophisticated power. good fuel efficiency, as
    well as excellence in maneuverability and high
    level of riding comfort. As one of Toyotas
    concern to a greener environment, Kijang Innova
    is ready to comply with European Emission
    Standard Step 2.

contd
31
Case in Point Toyota Innova
  • Toyota Innova launched in India
  • Related stories Innova launch in Philippines
  • 24 Feb 2005
  • The Toyota Innova was launched in India by Toyota
    Kirloskar Motors today.The MPV will be available
    in both petrol and diesel versions. There will be
    a total of 5 versions in seven colours.
  • The company has said that the Toyota Innova will
    compete against the Chevrolet Tavera and the
    Mahindra Scorpio.That is yet to be seen. The
    Chevrolet Tavera and the Mahindra Scorpio are
    both priced much below the new Innova, and both
    may slash their prices further if it proves that
    the Innova will be a threat to them.
  • Toyota officials said that the Innova is one of
    five models that have been designed as part of
    the IMV (innovative international multi-purpose
    vehicle) project, launched in September 2002.
    Innova would be produced at Toyota Kirloskar
    Motor's plants in India.

32
Other Industry ExamplesDiscussion
  • IT/Software
  • Enterprise Software, Embedded Software
  • Manufacturing
  • Electronics, Automotive, Aerospace
  • Telecom
  • Wireless, Data/Video
  • Financial Services
  • Banking, Insurance, Asset Management
  • Retail
  • CPG, Durables, Apparel
  • Media / Entertainment
  • Publishing, TV, Animation

33
Summary
  • Business innovation now has global context
  • Value chains help us understand dynamics
  • Innovation patterns provide perspective
  • Complexity dimensions enables informed response
About PowerShow.com