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What is the Agenda for Top Management?

1. Building the Capacity to Lead the Evolution

2. It is not about being Efficient in the old paradigm;

but being Different

3. Quantum jump in Capabilities

4. Focusing on Few Essentials; High Impact Opportunities

5. Thinking out of the box about Organizational Capabilities

6. Focus on Value Added; not hierarchy

Where you compete only on price,

Where you are working for your customers instead of

your investors

Price wars are the economic equivalent of the game of

holding one's breath to see who turns blue first.

The individual with the longest lung capacity wins, but

both end up weakened and exhausted.

What you need to do to exit from this trap?

You need to create:

Definitive separation from competitive offerings

Sustainable competitive advantage.

An abyss call commodity trap...

Extent of CompetitionLow HighP

ric

e D

iffe

ren

cia

tio

n

High

Low

Gro

ss

Marg

in

High

Low

Product/ Support DifferentiationsHigh Low

“Value-Added Offer”

“Commodity Offer”

The “Value-Added Offer” to “Commodity-Offer” Continuum

VIAGRA(PR, WOM)

LEADER BRAND(Brand advertising)

ME TOO(Channel incentives)

INFERIOR PRODUCT(Huge channel margins)

Pro

du

ct

Dif

fere

nti

ati

on

High

Low

Channel marketing spendLow High

The weaker your product,

the more you should spend on channels

How some managers react when they confront

obstacles in their path to growth

Do more of everything as fast as possible.

Pedal faster / Pedal harder

When you hear the managers that the main

problem is execution.

Doing the same thing again over and over and

expecting different results.

Simplistic approach to managing the business.

Functionally based attitudes to execution.

Great ideas, and real change, almost always occur at the sweet

spot, that are often serendipitous (by luck) but can be turn to

advantage if you know (foresight) where to find them.

What’s Needed

Sweet spot

What’s Possible

What’s Happening

A solution in search of a problem

Constraints to realize

what is possible (that's

not what we do) or

disconnected with real

needs (they used to

need that)

But not yet hapenning or possible. Thinking to far ahead of the curve

Needs vs wants

11

.

Are what is truly necessary

for a person activities.

Is determined by the task.

What a person ask for.

The customer's preferred

solution for meeting needs

Form that a human need takes

as shaped by:

• Culture,

• Advertising,

• and one’s self image.

Met

Satisfied

Unsatisfied

Most of the things we want are not needs

Could be: Unmet

Articulated (spoken) or

Non articulated (unspoken)

Demand

Human needs/wants backed by buying power.

i.e. I have the money to buy a Coca Cola

Needs Wants

States of felt deprivation including

Functional needs,

Hedonic needs and

Symbolic needs.

i.e. I am thirstyAre driven by:

Shifting tastes and

Changing status symbols

i.e. I want a Coca Cola

Gap between Research and Commercial Application:R

eso

urc

es

Research

Faculty

Service Providers /

Complementary Assets

Level of Development

“Valley of Death”

Existing

Research

Resources

Existing

Commercialization

ResourcesDecision space

between discovery

and Market

development

Fuzzy Front End