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Business model innovation

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Business Model Innovation and Change

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Business model innovation

  1. 1. 1 Business Model Innovation Faculty: Dr Steyn Heckroodt Date: 2014 Inspiring thought leadership across Africa
  2. 2. OUTCOMES 2 Source: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za © Dr Heckroodt, S Analyse the concept of strategy and the process of developing corporate strategy Analyse and evaluate the processes of planning and developing a corporate strategy Analyse the strategy of a business in relation to the macro-environment Motivate the role of a strategic plan in the achievement of an organisation's mandate Formulate an integrated strategy for an organisation based on the analysis of the most viable strategic initiative/s
  3. 3. FOCUS AND APPROACH 3 For your own interest – not to be discussed during session • Read the article and entertain the thought on the relation between understanding and knowing, determining what possible value it holds for your strategic thinking? http://lectureonbusiness.com/blog/kno wledge/ Source: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za © Dr Heckroodt, S
  4. 4. UNDERSTANDING 4 © Dr Heckroodt, S “The better we can understand the cause-and-effect associations between the things shaping our business and its markets, the better placed we are to make strategic decisions to ensure effective future performance…” Tovstiga and Aylward (2008)
  5. 5. THE SEQUENCE 5 © Dr Heckroodt, S environmental scanning execute scenario planning appropriate strategy selection Business performance
  6. 6. INFORMATION 6 © Dr Heckroodt, S Source: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za
  7. 7. STRATEGIC SELECTION 7 © Dr Heckroodt, S Source: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za
  8. 8. ENVIRONMENT 8 © Dr Heckroodt, S © Dr Heckroodt, S Source: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za
  9. 9. 9 Practical © Dr . Steyn Heckroodt • Critically analyse your organisation’s current scanning (information gathering) processes and methodologies. • Identify possible problems in the current and entertain an open discussion on some possible alternatives or better ways of doing it.
  10. 10. 10 PESTLE and Systems Thinking © Dr . Steyn Heckroodt For your own interest – not to be done during session • Read the article and entertain the thought about moving beyond PESTLE, determining what value it holds for your strategic thinking? http://lectureonbusiness.com/blog/ should-management-move- beyond-pestle/
  11. 11. DYNAMISM 11 © Dr Heckroodt, S Source: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za
  12. 12. Strategic fit as a juncture Opportunity Threat Organisation Ability STRONG RELATIONSHIPS FLEXIBLE STRATEGIC THINKING MODE 12 © Dr Heckroodt, S Source: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za
  13. 13. STRATEGY AND COMPETITIVENESS 13 © Dr Heckroodt, S Source: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za
  14. 14. NEW FRAMEWORK 14 © Dr Heckroodt, S Source: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za
  15. 15. 15 Practical © Dr . Steyn Heckroodt • Critically analyse your organisation’s current competitive business model. • Identify possible problems in the current and entertain an open discussion on some possible alternatives or better ways of structuring a competitive business model and maybe highlight some substantial organisational problems – maybe something that could be tackled through a BDAL project
  16. 16. THINKING MODES 16 © Dr Heckroodt, S DISORDERCHAOTIC Domain of rapid response Act Sense Respond SIMPLE Domain of best practice Sense Categorise Respond PESTLE segmentation and categorisation COMPLICATED Domain of experts Sense Analyse Respond COMPLEX Domain of emergence Probe Sense Respond P-square Source: Amended from Snowden and Boone, 2007. A Leader’s framework for decision making
  17. 17. Dominant attribute Quality Price Variety and Range Convenience Demand 17 Source: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za © Dr Heckroodt, S STRATEGIC COMPETITIVENESS
  18. 18. Simulation example… Service leader Commodity leader Cost leader Cost and service leader Low HighLow HighCost advantage Valueadvantage Source: Amended from Christopher, M. Third Edition. Logistics and Supply Chain Management. Pearson Education STRATEGIC POSITIONING © Dr Heckroodt, S 18
  19. 19. Ideal Future Current Future Simulation example… Low HighLow HighCost advantage Valueadvantage POINT IN TIME © Dr Heckroodt, S 19 Source: Amended from Christopher, M. Third Edition. Logistics and Supply Chain Management. Pearson Education
  20. 20. Strategic fit as a juncture Organisation Ability Internal Information Live External Information Live Strategic planning = alive = moves beyond annual event Opportunity Threat PROBABILITY IMPACT STRATEGIC APPROPRIATENESS © Dr Heckroodt, S Source: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za 20
  21. 21. 21 Practical © Dr . Steyn Heckroodt Analyse the concept of strategy and the process of developing corporate strategy Practice: Analyse in terms of appropriateness – not correctness Do high-level contextual and transactional business environmental scanning Use either conventional or P-square framework Do internal environmental scanning, specifically looking at people, finance, infrastructure and information Provide a qualitative opinion on whether the strategy is appropriate, based on the information to your disposal

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