You are now the C aptain…

1. You are now theCaptain… ... How’s your Company doing?

2. Situation/SWOT Analysis Strategic Planning Functional Integration Performance Assessment • Company • Consumers • Competitors • Conditions • PEST Functional Integration • Profits • Mrkt Share • ROA • ROS • ROE • Asset T/O • Stock • Mrkt Cap Marketing Growth &Competitive Strategies R&D Production HR Finance The Big Picture

3. Where are we?

4. Strategic Plan Answers 3 Critical Q’s: 1.Where are we now? 2.Where do we want to go 3.How do we get there? = Situation Analysis

5. Consumer Conditions Company Competitors Begin Situation-Analysis INTERNAL ENVIRONMENT Your Company's Strengths & Weaknesses: EXTERNAL ENVIRONMENT Opportunities & Threats

6. Consumers Competitors Conditions You are finding answers re: • How the market is segmented & the relevant criteria that influence consumers use in their purchasing decisions • The nature & magnitude of the competition • Existing & emerging Economic & Technological trends that will impact demand, pricing, product design & positioning

8. Strategic Thinking- the ten big ideas • Long-range planning-considers the external factors that affect success & integrates the various functional strategies. • Strategic analysis • Industry structure • Market segmentation • The lifecycle. • SWOT analysis.

9. Market Segments: • Big, old & cheap • high-reliability & performance • proven sensors w/ current tech • advanced sensors w/ focus on small size • cutting-edge in both size & performance

10. Consumer Buying Criteria

11. 5 SEGMENTS

12. DEMAND ANALYSIS:How Many Sensors / Segment want to buy across next 8 years: Multiply the Round 0 demand by the growth rate and add the result to the Round 0 demand. This will give you a close approximation of Round 1 demand. Copy this number into the Demand cell for Round 1. If you prefer, you can use the following shortcut. For example, assume the Traditional growth rate is 9.2%. Convert the percentage to a decimal (9.2% = 0.092) and add 1 to it (1.092). Multiply the Round 0 Traditional demand by 1.092 then round to the nearest whole number. This will give you a close approximation of Total Industry Demand for Round 1.

13. SENSOR INDUSTRY ONGOING GROWTH ..the entire market growing at around 14 - 15% per year.

14. Complete Demand Analysis @ CapSim Intro |  Perceptual Map 1 |  Perceptual Map 2 |  Demand Analysis |  Capacity Analysis |  Margin Analysis |  Consumer Report

15. Cheaper too-$.50 drop in price/year Cheaper too-$.50 drop in price/year Drift Demo

16. MARKET SEGMENT DYNAMICS Intro |  Perceptual Map 1 |  Perceptual Map 2 |  Demand Analysis |  Capacity Analysis |  Margin Analysis |  Consumer Report Calculate each Segment's IDEAL SPOT LOCATION -- rounds 1 thru 8 ( @ Getting Started/ Complete Online Situation Analysis/ Perceptual Map 2)

17. Consumers Competitors Conditions You are finding answers re: • How the market is segmented & the relevant criteria that influence consumers use in their purchasing decisions • The nature & magnitude of the competition • Existing & emerging Economic & Technological trends that will impact demand, pricing, product design & positioning

18. The Key Q’s • Where are we at in the scheme of things? • How did we get “here” • What change have we experienced & what change can we expect? • What can I do to optimize/ maximize my (personal/ company’s) probability of success? • What do I need to know? • What do I need to do

20. Steam Power MechanicalEngineering Material Sciences ~250 years ago a technology convergence fueled a new economy The resulting Industrial Economy defined the business landscape for the 20th century

24. New Economy – Information driven New “E”conomy % 100 75 U.S. GDP 50 IndustrialEconomy 25 0 ’72 ’78 ’84 ’90 ’96 ’02 ’08 Source: Marvin Zonis & Associates • Old Economy – Manufacturing driven • Differentiation, customization • Networks & speed-Economies of Scope • Diversified -Adhocracy • Standardization & Duplication • Economies of scale • Hierarchical - bureaucractic

25. Exponential Technologies @ Inflection pt. The Internet of Everything ai/ Cognitive Technologies Today, Another Convergence is Redefining Our Civilization The resulting Techno/Info-sphere is re-defining the business landscape for the 21st century

26. Exponential Technologies @ Inflection pt. Today, Another Convergence is Redefining Our Civilization Law of Accelerating Returns Technological Progress is Exponential The resulting Techno/Info-sphere is re-defining the business landscape for the 21st century

27. If it’s Exponential it’s Predictable

28. “When the rate of change outside your company exceeds the rate of change inside your company, disaster is imminent” Lou Pritchet Senior VP, Procter & Gamble

29. You are about to experience 10,000 years of change In next 40 years

30.  264 − 1 = 18,446,744,073,709,551,615 grains of rice, weighing 461,168,602,000 metric tons, which would be a heap of rice larger than Mount Everest. This is around 1,000 times the global production of rice 

31. IN 1971 -Intel released the 4004, its first ever microprocessor • measuring 12 square millimetres • contained 2,300 transistors • The gap between each transistor was 10,000 nanometres (billionths of a metre) in size, about as big as a red blood cell double something 22 times and you have 4m times more of it, or perhaps something 4m times better. … that is indeed what has happened. .. whereas the 4004 had 2,300 of them, the HaswellE-5, launched in 2014, has 5 billion, just 22 nm apart.

32. Exponential Technologies @ Inflection pt. The Internet of Everything Today, Another Convergence is Redefining Our Civilization The resulting Techno/Info-sphere is re-defining the business landscape for the 21st century

33. Moving to 3rdIteration of the Internet

34. 1993- National Information Infrastructure Act is passed-- Internet commercialized COMPUTERS HOSTS IN INTERNET (MILLONS) 25 20 15 10 5 0 25.000.000 20.000.000 5.000.000 130.000 4 1969 JUL. 1992 MAR. 1994 JUL. 1995 SEP. 1996 JUL. 1997 JUL. 1989 SEP. 1991 OCT. 1993 ENER. 1995 ABR 1996 FEB. 1997 NOV. 1997

36. 52,000 Smart Devices Every Minute In 2025 ….30 billion by 2020 and then nearly triple again to 80 billion five years later.

37. Exponential Technologies @ Inflection pt. The Internet of Everything ai/ Cognitive CommpunicationTechnologies Today, Another Convergence is Redefining Our Civilization The resulting TECHNIUM/ GLOBAL BRAIN

38. Watson Resources WebPageWatson HomePageHow it Works/ The World of Watson

39. AC BC

40. The Key Q’s • What time is it? • Where are we at in the scheme of things? • How did we get “here” • What change have we experienced & what change can we expect? • What can I do to optimize/ maximize my (personal/ company’s) probability of success? • What do I need to know? • What do I need to do

41. Daniel Bell – 1973 • The economy transitions from the production of goods to the provision of services. • Knowledge becomes a valued form of capital • Producing ideas is the main way to grow the economy. • Through processes of globalization and automation, the value and importance to the economy of blue-collar, information theory. • Through processes of globalization and automation-value & importance to economy of blue-collar, unionized work, including manual labor (e.g., assembly-line work) decline, • those of professional workers (e.g., scientists, creative-industry professionals, and IT professionals) grow in value and prevalence. • Behavioral and information sciences & technologies - developed ... (behavioral economics, information architecture, cybernetics, game theory and information theory)

45. 1st Wave 2nd Wave 3rd Wave KEY COMMODITY • CAPITAL • Like land- a zero sum commodity* • Necessary for control of Production-Labor & Raw materials • LAND • Basis of economy • Life organized • ‘round village • Economy • Decentralized • Every village produce most of its necessities • Information • Uniquely different from previous key commodities

46. What’s so different about information? • Expandable- infinity expansive commodity AT NEAR ZERO MARGIN • Transportable-geography no longer matters • Compressible-can be summarized, encoded • *Sharable-Value increases when shared– yet cost of duplication & distribution= nil

48. The Key Q’s • What time is it? • Where are we at in the scheme of things? • How did we get “here” • What change have we experienced & what change can we expect? • What can I do to optimize/ maximize my (personal/ company’s) probability of success? • What do I need to know? • What do I need to do

49. -most common response….

50. Why bother with Change "If you think that you can run an organization in the next 10 years… … as you've run it in the past 10 years… you're out of your mind." CEO, Coca Cola