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THE DELTA MODEL:

THE DELTA MODEL:. Discovering New Sources of Profitability in a Networked Economy. Arnoldo Hax Alfred P. Sloan Professor of Management. The Tenets of Strategy. 1.The creation of economic value 2. The development of customer bonding 3. The achievement of the “Spirit of Success”.

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THE DELTA MODEL:

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  1. THE DELTA MODEL: Discovering New Sources of Profitability in a Networked Economy Arnoldo Hax Alfred P. Sloan Professor of Management

  2. The Tenets of Strategy 1.The creation of economic value 2. The development of customer bonding 3. The achievement of the “Spirit of Success”

  3. The Delta Model – Three Distinct Strategic Options

  4. The Triangle: Options for Strategic Positioning

  5. The Challenge to Decommoditization: Transforming the organization from best product to total customer solutions

  6. Transforming the Organization Change your mindset The transformation is not straight forward The case of Codelco and the International Copper Association

  7. Transforming the Organization 􀁺 Redefine the game you are playing Transforming the CSN Organization Decommoditize your customer The case of Castrol

  8. What is Castrol Logic? A customized lubrication solution involving products and services that results in documented: Cost Reductions & Productivity Improvements

  9. Transforming the Organization Rethink the customer engagement process

  10. • The Best Product Positioning is not necessarily the most profitable or the best way to serve your customer.

  11. Segmentation:

  12. Transforming the Organization

  13. The Paint and Coating Industry

  14. The Food Service Industry

  15. Transforming the Organization Use technology wisely: This is a very hard task The case of Advanced Micro Devices

  16. Transforming the Organization Beware of the organizational structure implications You have to change dramatically the way you: manage, assign responsibilities, reward people, monitor the business progress, and most important, the way you “sell” The transformation has to be accomplished by a change in both the front--end as well as the back-end of the organizational structure.

  17. Transforming the Organization Beware of the organizational structure implications The back-end should be segmented according to the way we segmented Products and Technologies: Administration functions, Supply chain functions, New product development technologies, Process technologies, Information technologies, Functional activities related to product marketing

  18. Transforming the Organization Beware of the organizational structure implications The front-end should be segmented according to the way in which we segment the markets: Clients, End-users, Solutions and services, Geographical areas, Functional activities related to customer marketing

  19. Transforming the Organization

  20. ACHIEVING YOUR POTENTIAL

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