ONE GESTURE SYSTEM. REAL PROBLEMS – REAL SOLUTIONS

Bucharest, Romania, 2010

BOGDAN CODREANUDRAGOS DANCAU

Team Yggdrasil

Agenda

Problem Definition

World Moving Trends

Solution

Conclusion

1

Agenda

Problem Definition

World Moving Trends

Solution

Conclusion

2

The core problem of our society spins around the sustainable creation of wealthand the adequate distribution of it

3

“Thousands of candles can be lighted from a single candle, and the life of the candle will notbe shortened. Happiness never decreases by being shared” – The Buddha

How to create wealth? How to adequate

distribute it?

How can a corporation provide a sustainable

unique value proposition?

Corporate-StrategicDimension

Social Dimension

How can more resources be

transferred in an efficient manner to

those who lack water, food, healthcare and education in under-

developed countries?

The problem of Differentiation(“deliberately choosing a different setof activities to deliver a unique mix ofvalue“ ) at the Corporate-Strategiclevel and that of human beingssuffering tremendously over the lackof resources for basic needs ofexistence, at the Social level, are flipsof the same coin – The Creation andDistribution of Wealth

*

Michael Porter, What is strategy?, Harvard Business Review, p. 64, November – December 1996*

Agenda

Problem Definition

Solution

Conclusion

4

World Moving Trends

Corporations find ever more challenging the strategic objective of relevantdistinct positioning in the market

5

Level of perceived value

Commodities

Level of Differentiation

Products

Services

Experiences

Companies are forced to compete on price because, in the mind

of the purchasing customer, their

products and services are perceived as being similar, if not identical – this trend, known as

Commoditization, is ever more present

Customers are moving from the search for products and services towards the search for experiences that can enrich theirlives. The desire fulfillment mediator represented by products and services is replaced by the genuine quest for gratification.So, in order to survive and prosper, companies must adapt

6

The Mergers Endgame analysis conducted by A.T. Kearney reveals the long-termneed for alliances between companies

*

* Graeme Deans, Fritz Kroeger, Stefan Zeisel, Winning the Mergers Endgame: A Playbook from Profiting from Industry Consolidation, McGraw-Hill, 2002

Time

Stage1Opening

Stage 2Scale

Stage 3Focus

Stage 4Balance & Alliance

IndustryConcentrationCR3

•Railway

•Telecom

•Utilities

•Insurance •Banks

•Services

•Airlines

•Chemicals

•Drugs

•Automotives suppliers

•Restaurants & Fast foods

•Pulp & Paper

•Food

•Steelmakers

•Automotive OEMs

•Rubber& Tire Producers

•Toys•Truck builders

•Aerospace suppliers•Aircraft OEMs

•Shipbuilding•Distillers

•Shoes

•Soft Drinks

•Tobacco•Automatic controls

•Defense

Industry Consolidation Cycle

After deregulation, an industry will evolve through four stages of

consolidation, with companies growing or disappearing

CR3The level of concentration is

given by the combined market share of the largest 3 companies

in the industry ( based on A.T. Kearney’s Value-Building Growth database of 25 000 companies)

7

The World is under the influence of new and powerful trends

More and more individualsare finding fundamentallyrewarding the process ofsharing their materialwealth with those aroundthem

Generosity GenerationThe World becomes flatterand flatter and thereactions of individualshave a higher and higherlevel of consecutiveness

Connectivity

People are realizing that ismore fruitful to share thework, the success, as wellas the potential failure,with other human beings

Cooperative MindWe are starting toremember the vision ofthe Native-Americans thatwere always thinking ofthe 7th future generation.The human specie is notrunning a 100m race, but amarathon

Sustainability Vision

Aging Population

Moving towards a

Multi-Polar World

NewConsumer Mentality

The mentality of every individual is suffering

important changes as it is driven forward by the desire for cooperation,

generosity and sustainability, in a world that is more and more

interconnected

The birth of new emerging powers and the trend of moving

towards a Multi-Polar World, offers an

unstable but full of opportunities environment

Thomas Friedman, The World is Flat, Farrar, Straus & Giroux, 2005*

Agenda

Problem Definition

Conclusion

8

World Moving Trends

Solution

9

The One Gesture System delivers a viable solution to the sustainable creationand distribution of wealth, while bringing together different interests

Customers

Companies

End Beneficiaries

The One Gesture System should be perceived as an organicmechanism, with all its parts being in constant interaction.The manner in which customers change their mentality,triggers evolutions at the corporate level, that carry forwardtheir desires. This initial impulse propagates through renownNGOs to those in need, in under-developed countries. Theshifts in their standard of living creates a strong feedback thatmoves back to the NGOs, then to the companies and then tothe customers, that put in motion yet another cycle

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The One Gesture Card has the power to create a new type of connection betweencustomer and corporation

Customer1

As Is To Be

Company A

Company B

Company C

Shop

Discount

Company A

Company B

Company C

End of process

End of process

End of process

Common Gesture Account

Donation

By using The One Gesture Card when acquiring different products, a customer will receive a discount represented by a percentage of thepurchase, while at the same time, a donation of the same size will be made by the company into the Common Gesture Account. The cardcan be used at distinct companies that have previously formed an alliance, which will win in customer base and volume of sales, because ofthe newly created competitive advantage. Customers will gain personal fulfillment by donating while buying

Customer1Shop

Discount

Customer3

Customer2

Customer3Shop

Customer1Customer2Customer3Customer4

Shop

Discount

Feedback

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Assisted by world renown NGOs, the Gesture Managing Department will ensurea lean drive of resources from the companies to those in need

Common Gesture Account

Gesture Managing

Department

NGO1

NGO2

NGO3

.

.

.

Feedback

Donation

Feedback

To Be

Resources

In order to develop an adequate coordination of all

the resources collected into the Common Gesture Account, as

well as to provide full transparency, a Managing

Department (in which each company will have a

representative) is going to be established

Based on results, know-how and reputation but also on

needs, a set of NGOs will be selected to maximize benefits using the available resources (e.g.: UNICEF, The Red Cross,

World Food Program, etc)

Food

Water

Health

Education

Under-developed country1

Under-developed country2

Under-developed country3

.

.

.

Under-developed country4

Under-developed country5

Time

Field level of contribution

Education

Health

Water& Food

Strengths

Opportunities Threats

Inte

rnal

per

spec

tive

Exte

rnal

per

spec

tive

•Growing concern towards sustainability

•Upward evolution of generosity trend

•Raising importance of cooperation between individuals and corporations •Unknown reaction of customers and market

•Fast growing concept

•Innovative

•Potential difficulties in System coordination

•Clear revenue model

•High impact benefits for all System participants

•Interdependency between interested parties

•Relative low resources needed for implementation

•Ability to connect very distinct interests, markets and values

•Easy to duplicate

•Virtual inconveniences regarding the growth strategy of partner companies in entering distinct markets

•Possible problems in alliance forging

•“Flatter” World

•More problematic creation of unique value propositions

Weaknesses

The SWOT analysis provides a clear vision of the entire One Gesture System

As the SWOT analysis reveals, TheOne Gesture System has a realpotential, with the Strengths beingmore significant and numerous thatthe virtual Weaknesses

Moving in the direction of theOpportunities presented by theGlobal Market, without real potentialThreats, the One Gesture Systemshould be perceived as a realisticoption for implementation

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Agenda

Problem Definition

World Moving Trends

Solution

13

Conclusion

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When there is a need for change, an opportunity always arises

We live in an World in which disparities between human beings are ever more present

Significant shifts are taking place in our perception of the World as a living, integrated entity

Customers, Corporations, NGOs and those less fortunate should face reality together, in a symbiotic manner

In addressing the present and future challenges, the One Gesture System provides a viable solution in merging different interests in one coherent line of thought and action

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Thank you!

For further information, contact us at: bogdan.codreanu@gmail.com

dragos.dancau@gmail.com