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MBABusiness in Context

Adding valueWeek 4

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII2

Matching organisational capabilitiesto market needs through competitive

positioning

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII3

Organisational assets

Financial assets

Physical assets

Operational assetsPeople assets

Legally enforceable assets

SystemsMarketing assets

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII4

Marketing assets

Customer-based assets

Image and reputation

Brand franchises

Market leadership

Country of origin

Unique products and services

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII5

Marketing assets

Distribution-based assets

Size and quality of the distribution network

Level of control over distribution channels

Internally-based assets

Cost structure

Information systems

Innovatory culture

Production skills

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII6

Marketing assets

Alliance-based assets

Access to markets

Managerial expertise

Access to technological development orprocesses

Exclusive agreements

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII7

Organisational competencies

Strategic competencies

Functional competencies

Operational competencies Individual competencies

Team competencies

Corporate-level competencies

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII8

The Value Chain

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII9

Relationship between assets andcompetencies

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII10

Successful Organisations

See capabilities as transferable skillsacross products

Link together a number of capabilitiesto differentiate their offering

From this build SCA

So how? Role of innovation

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII11

When Did We Forget AboutCreativity in Marketing?

Creativity is not just about smartadvertising and promotion (BA)

Creativity is not the preserve oftactivizing

Creativity belongs in strategizing

new ways of doing business and going tomarket

Smart tactics follow smart strategies,

not vice versa

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII12

Innovation audit

The organisational climate

Rate of new product development

Customer satisfaction ratingsThe innovation/value matrix

The balance of cognitive styles of the

senior management team

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII 13

Innovation Audit

Climate

- Attitudes

- Metaphors

Hard measures

Review policies and practices

Review cognitive styles of seniormanagement team

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII 14

Support

Teamwork

Resources

Challenges Freedom

Supervisor

Creativity

Recognition

Unity and co-operation

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII 15

Disablers

Insufficient time

Status quo

Political problemsEvaluation pressure

- two other measures

CreativityProductivity

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII 16

Hard measures

Rate of NPD

Customer satisfaction ratings

Staff turnover

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII 17

Cognitive preferences

Intuition

Feeling

ThinkingSensation

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII 18

Public sector portfolio matrix

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII 19

Reality check

But you are allowed to be weird

Ben and Gerry

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII 20

Capability strategy interface

Here the capabilities must be translatedinto something which is meaningful forthe customer, fits with resources and

external environmentOnly then can the organisation move

forward

The secret is to decide which way andthat maybe different from the currentdirection

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With thanks to: Market-Led Strategic Change - Nigel F Piercy, 2002 : J H Deacon MMII 21

Activity

Select an organisation and examine itscapabilities as a base for competitiveadvantage and future strategy.