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[email protected] Tel:(972)3-510-1768 -1- Fax:(972)3-516-8960 www.coman.org ARENA

Management-Of-Technology Copyright 2001 Alex Coman

The ARENA Genome: Harmonic Strategic Planning

Arena Layers:Corporate, Business Function-Define Hierarchy

Refinement Stages:Arena, Focus, Action

Create Strategy

F

O

C

U

S

Corporate

Focus

Corporate Layer:Portfolio BusinessesMaximize Value

Function Layer:Process, Project and ProductAgile value drive

Business Layer:Positioning Products byMarket Strategy

Filter CriteriaPrioritize attention

Manage Control span



Focus Patterns: Hidden Champions

Supplier

Classical Breadth Strategy

Hospitals SchoolsHotels/Restaurants

Dishwashers

Winter halter

Winterhalter’s Depth Strategy

Hospitals SchoolsHotels/Restaurants

Waterconditioners

WinterhalterWinterhalter Winterhalter

Dishwashers Detergents Service



Electronic Markets and Electronic Hierarchies Malone et. Al., Modeling Coordination in Organizations and Markets

Supplier2

Decentralized Market

Customer1

Centralized Market

Supplier1 Supplier3

Customer2 Customer3

Supplier2

Customer1

Supplier1 Supplier3

Customer2 Customer3

IntermediaryBroker InfoMediary



Corporate FocusClinton elected: “focus like a laser beam on this economy.”

“There was this huge, vast, pent-up potential in the American economy”.In retrospect: “I was pushing a lot of rocks up the hill. I was obsessed.

I was trying to get as much done as quickly as I could.”Matrix: Bringing actors into model. Vs.Deploying model into ArenaCriteria tailored for each business vs. uniform 2 dimensions.Appropriate control span: Boutique to Conglomerate.Synthetic perspective reflects customized perceptions: Exposing Polarities.

Expansive Focus: GE-McKinsey

Market Growth

Rate

High?++

Low--?

LowHighPotential for

market leadership (1/3)



Corporate Focus

ExpansiveFocus

BusinessStrengths/Weaknesses

Core competenciesVs. Critical Success Factors

(e.g. Market Share)

IndustryAttractivenessOpportunities/

Threats(e.g. Margins)



Corporate Focus

Expansive FocusBusiness Strength=CSF*Core

WeakStrong

IndustryAttractiveness

Attractive

Not- Attractive

ExpansiveFocus

Business Strength(e.g. Market Share)

IndustryAttractiveness(e.g. Margins)

1021 4 5 6 7 8 93

100%

80%

Sha

re o

f S

ales

Number of products Per $67Million sales

SuccessfulManufacturers

Less SuccessfulManufacturers



Corporate Focus

Defensive Focus:Risk Analysis, Stakeholder

VulnerabilityLowHigh

ThreatIntensity=Damage*

Probability

High

Low

DefensiveFocus

Vulnerability

Threat Intensity(Damage & Probability)

Steve Jobs on Apple’s losing the school market to Dell: Apple 1997:50%, 2000:19% “We took our eyes off the ball”



Technology Partnerships: The Palm Economy

UsersBusinessPrivate

Government

Palm

Handheld/PervasiveComputing

Enterprise

Tech.3Com

Enterprise

IBMSAP

Education

Consumer Cellular

OEMHandspring

Web sites

FodorPalm

Windows CEMS Ericsson

Palm OSSony Nokia

SW

Palm



Stan Shih: Navigating the PC Industry’s Value Curve“The PC industry’s profit pool”, HBR

“Going Global: Lessons from Late Movers”, HBR, March-April, 2000

Software15%CPU

35%DRAMLCDASIC

Monitor10%

Motherboard

Local Assembly2.5%

Local Sourcing

Marketing

DistributionE-commerce

15%

Local Assembly



Edutainment

Channel Bottleneck: The Edutainment Market

Development$100K-$10M: $1.5M

Distribution

$40/Unit; Myst:2M Copies$1b<’96

Enabler’96=20M MMPC$2K, +50%@97

20MX5CD/PC/Year X$40=$4B

2,700X$1.5M=$400MComfy: Fao SchwartzToysRUs Packard BellMATACH, Archeology

Producer +Distributor=$2$1M/$2=0.5MMake it<200

Retail: $8

Average: $10

Research

Development

Manufacturing

Distribution

Retail

Customer

Research

Development

Manufacturing

Distribution

Retail

Customer

Drugs/Aviation

Chemicals/Fabs

Retail<1%

#2,700/’95

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