Linking Your Business Strategy to Your Technology Strategy

1. Linking Your Business Strategy to Your Technology Strategy Smart man learns from his mistakes Wise man learns from smart man’s mistakes Chinese proverb Webinar

2. Survey • What specifically do you want to learn today? • What are three key components in a good technology strategy?

3. Objectives for this Hour • Communicate proven growth disciplines • Define how to build a good business strategy • Identify how to link the technology strategy to the business strategy

4. Our Differentiators Growth research based consulting firm Has unique and proprietary diagnostic and rapid implementation tools Accomplished Consultants Partners with clients to develop long term, sustainable growth Selected by Inc. magazine to be their growth strategy consulting practice An Introduction to Growth Strategy Partners Value Proposition:We can help you grow your business faster and more efficiently than you can on your own. Our Definition of Growth • Revenues • Profit • Talent

5. 3 Growth Disciplines Research Drives Our Approach What winners do, and how they do it Ten Years of Proprietary Research with over 500 CEOs of America’s Fastest Growing Private Companies Other “growth” lists Over 25 sources Experiences of Growth Strategy Partners’ Consultants who have been highly successful CEOs and business executives

6. Three Growth Disciplines Right People In the Right Seats Implementing Right Practices Ability to Execute • Right Seats • Functional • Level • Right People • Skills • Knowledge • Behaviors • Results • Effective Growth • Planning Process • 2. Advanced Customer • Management • 3. Robust Processes • 4. Differentiated Products • and Services • 5. Strong Core Values • Limited Initiatives • Aligned Resources • Linked Incentives • Culture of Discipline “Over 80% of most companies are not effectively implementing the Three Growth Disciplines. Those who do are growing faster and more efficiently.” Christopher DiCenso

7. Developing An Effective Strategy Strategies Fail to Deliver Due To Failures In Planning “Recent research published in the Harvard Business Review suggests that organizations on average deliver only 60% of what their strategies promise. More than one-third of these companies achieved less than 50%. …Companies are delivering only about two-thirds of their potential due to failures in planning and execution... “ CFO.com Strategies Fail To Deliver Due To Poor Articulation “Surveys show that 70% to 90% of organizations fail to successfully execute their strategies. In most cases, the failure is one of execution, not of the strategy itself. Our own research traces this failure to two causes. The first is that since there is no generally accepted way to describe a strategy, organizations are attempting to execute something that isn’t even articulated.” Balanced Scorecard Collaborative Companies With An Effective And Articulated Strategy Grow “66% of fast growth companies have a strategic plan.…These companies are 40% larger and 45% more productive than comparison companies.” PricewaterhouseCoopers Are you failing to plan or planning to fail?

8. What Are the Keys to a Good Strategy? • Understanding of a company’s core competence/method of competition • Product leader, Customer intimacy, Operational excellence • Understanding of operational strategy • Catalog orders • Custom orders • High volume • Low volume • Clearly defining and communicated objectives, tactics and activities • Financial, customer, process, people • Customer groups, markets, geographies, products, services • Owners of objectives • Leadership team • Incentives linked to objective • PROCESS to react to and implement strategic decisions • Large line item orders • Small line item orders • Mix

9. Method of Competition Definitions “Be Great at One and Good at the Other Two” (based on customer perspective) Product Leadership • Definition: Continuously introduce innovative products and services. Goal of obsoleting their own products or services (before the competition does). • Examples: Intel, Gillette, BMW, J&J Customer Intimacy • Definition: Providing unique and tailored products and services to specific segments of the market. Views lifetime value of customer experience. • Examples: Nordstrom, Disney World, USAA*, Charles Schwab Operational Excellence • Definition: Price and convenience leader. Strategic approach to the production and delivery of products and services. Always seeking ways to reduce inefficiencies and optimize cross function and organizational processes. • Examples: Amazon, Dell, Wal-Mart * also mastered operational excellence

10. Method of Competition Prioritized Where Should You Focus Your Strategies and Resources For Growth? Weighted gap = winning score – current score x weight Sum of weighted gap

11. Linking MOC to Strategy to Technology How Compete Strategy Product/Service Profile Key Processes Tools/Techy • CE • DFMA • PDM • CAE • Product/service dev. • Customer feedback • Techy platforms dev. • Customers • Markets • Geography • Custom • Catalog • Fast follower • Early adopter • Centralized • Disruptive techy • M&A vs internal growth • Core competencies Product Leadership • Transaction volume • high / low • Order Type • Large orders • Small orders • Mixed • Product Type • Custom • Catalog • Mixed • Customer intimacy • Order processing • Customer service Customer Intimacy • CRM • SFA • Supply chain • Order entry • Order build • Order delivery Operational Excellence • ERP • ASP • WMS

12. Sample Strategy Map and Balanced Scorecard

13. Dashboard Performance View

14. Growth Disciplines Scorecard

15. Thank You!! For more information, please contact: Marcia Nita Doron Altico Advisors 508-485-5588 x107 mdoron@AlticoAdvisors.com “Do what you can, with what you have, where you are.” Theodore Roosevelt