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A lecture at the Ivey School of Business Dec 09 




GLOBAL
STRATEGY 

AND INNOVATION

Idris Mootee 
CEO idea couture inc.
LOOK AROUND US TODAY




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

THE YEAR WHEN
EVERYTHING FAILS




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

THE YEAR OF GLOBAL
HYPER CONNECTIVITY




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

THE YEAR WHEN
INDUSTRIES CONVERGE




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

THE YEAR WHEN DEMAND
WINS OVER SUPPLY




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

THE YEAR WHEN EVERY
GLOBAL INDUSTRY WILL
SOON BE RESTRUCTURED 




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

WHERE DO WE GO NEXT?
Strategic Insights

                                                                                 Radical
                                                                                 Innovation

                                                 Current       Emerging         Future
                                                 Businesses
   Businesses
      Businesses

                          Innovation within our                      Evolutionary
                          core businesses
                           Innovation
               Strategic Foresights




                                                                  New Global




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

WHERE DO WE FIND
GROWTH?




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

WHY GLOBAL?




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

80% OF THE WORLD'S POPULATION
AND 40% OF THE WORLD'S
ECONOMY CONSTITUTES JUST 10%
OF REVENUES FOR S&P 500
COMPANIES.
                                            (ADJUSTING FOR PURCHASING POWER PARITY) 




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

Demographics Matter: Key Markets in 2008



                                                                                   Population
          GDP per Capita     Real GDP Growth
                                               GDP ($Billions)
                                                                                    (Millions)
              ($)
                (%)

  China
                                                             4,326
                 1,328
                3,258
               9.0

  India
                                                             1,223
                 1,186
                1,031
               6.0

  Brazil
                                                            1,574
                   195
                8,062
               5.1

  Mexico
                                                            1,086
                   106
              10,203
                1.4

  Russia
                                                            1,677
                   142
               11,826
               5.6

  Turkey
                                                               726
                      76
             9,575
               1.1

  U.S.
                                                           14,265
                     305
              46,713
                0.4


 Future U.S. Trade Patterns Will Be Influenced By Trade Partner Growth Capacity
ONLY 2 COUNTRIES IN THE WORLD
WHERE ALL 3 ELEMENTS (MEGA
MARKETS, LOW COST PLATFORMS,
CONSUMER OPENNESS AND
LAUNCH OF NEW GLOBAL
COMPETITORS) ARE EMERGING AT
SUCH A SPEED.




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

MY PARENTS USED TO SAY
“CLEAN YOUR PLATES
BECAUSE THERE ARE
MANY CHILDREN IN CHINA
WHO ARE STARVING” 


©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

I AM NOW TELLING MY KIDS
“STUDY HARD BECAUSE MANY
PEOPLE IN CHINA AND INDIA ARE
STARVING FOR YOUR JOBS” 




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

INNOVATION MEANS
DIFFERENT THINGS IN
EMERGING MARKETS



18

 ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

ACQUISITIONS ARE
COMPLICATED. THE HUIYUAN
PURCHASE WOULD HAVE BEEN
COKE'S LARGEST EVER
FOREIGN ACQUISITION




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

WINNING IN EMERGING MARKETS
ISN'T JUST ABOUT MAKING
CHEAPER PRODUCTS. IT'S ABOUT
CONSIDERING BROADER
BUSINESS MODEL LEVERS




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

GOING GLOBAL AND GOING
GLOBAL SUCCESSFULLY IS
NOT THE SAME THING




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

HOW TO COMBINE DEEP
MARKET UNDERSTANDING WITH
INNOVATIVE APPROACHES TO
CREATE, DELIVER, AND
CAPTURE VALUE?

©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

INNOVATION REQUIRE
SCANNING FOR WEAK SIGNALS





©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

GLOBALIZATION REQUIRES
US TO REINVENT
EVERYTHING - TO THINK OF
OURSELVES AS COMPARED
TO OTHERS    - NICOLAS SARKOZY
THINK GLOBAL ACT LOCAL



                          THINK LOCAL                  ACT GLOBAL




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

Global Integration                                Local Responsiveness
                         - firms coordinate their                           - firms try to meet the
                         value-chain activities                            specific needs of local
                         globally to maximize                              customers as well as
                         economics of scale and                            adapt to the local
                         scope.
                                           competitive environment




                                                       Global Citizenship
                                                       -firms that operate in a
                                                       global market to make
                                                       profits entails a
                                                       responsibility of being
                                                       engaged in society


©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.
                                 26

Recognizing when a
                                                       company's competitive
                                                       advantage can be
                                                       leveraged more
                                                       effectively




 Determining the extent                                     GLOBAL             Evaluating which
 to which the company                                      STRATEGY
           strategic activities to
 should be (globally)                                                          own and which to
 diversified in its                                                             execute through
 businesses and                                             STRATEGIC          alliances or outsourcing
 markets
                                                           INNOVATION


                                                       Deciding how the
                                                       organization design
                                                       and incentive system
                                                       can best support the
                                                       global strategy


©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

Social
                                                              Innovation




                                                  Service     Experience     Business
                                                Innovation
   Innovation
     Model 
                                                                            Innovation




                                                                Product
                                                              Innovation




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

LOW   LOCAL RESPONSIVENESS    HIGH




                            HIGH
                COKE
                       P&G 
                                                 NOKIA
                      IBM

                                                 DISNEY
                     GE
                                                 SONY
                       LVMH
                                                 APPLE
                            INTEGRATION




                                                  SAM SUNG
                  UNILEVER
                                                  NINTENDO
                  PHILIPS
                                                  KRAFT
                     CITIBANK
                            LOW




©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

THANK YOU
WWW.IDEACOUTURE.COM

WWW.MOOTEE.TYPEPAD.COM





©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.


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Ivey Lecture Global Strategy Short

  • 1. A lecture at the Ivey School of Business Dec 09 GLOBAL STRATEGY 
 AND INNOVATION Idris Mootee CEO idea couture inc.
  • 2. LOOK AROUND US TODAY ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 3. THE YEAR WHEN EVERYTHING FAILS ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 4. THE YEAR OF GLOBAL HYPER CONNECTIVITY ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 5. THE YEAR WHEN INDUSTRIES CONVERGE ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 6. THE YEAR WHEN DEMAND WINS OVER SUPPLY ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 7. THE YEAR WHEN EVERY GLOBAL INDUSTRY WILL SOON BE RESTRUCTURED ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 8. WHERE DO WE GO NEXT?
  • 9. Strategic Insights Radical Innovation Current Emerging Future Businesses Businesses Businesses Innovation within our Evolutionary core businesses Innovation Strategic Foresights New Global ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 10. WHERE DO WE FIND GROWTH? ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 12. 80% OF THE WORLD'S POPULATION AND 40% OF THE WORLD'S ECONOMY CONSTITUTES JUST 10% OF REVENUES FOR S&P 500 COMPANIES.
 (ADJUSTING FOR PURCHASING POWER PARITY) ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 13. Demographics Matter: Key Markets in 2008 Population GDP per Capita Real GDP Growth GDP ($Billions) (Millions) ($) (%) China 4,326 1,328 3,258 9.0 India 1,223 1,186 1,031 6.0 Brazil 1,574 195 8,062 5.1 Mexico 1,086 106 10,203 1.4 Russia 1,677 142 11,826 5.6 Turkey 726 76 9,575 1.1 U.S. 14,265 305 46,713 0.4 Future U.S. Trade Patterns Will Be Influenced By Trade Partner Growth Capacity
  • 14.
  • 15. ONLY 2 COUNTRIES IN THE WORLD WHERE ALL 3 ELEMENTS (MEGA MARKETS, LOW COST PLATFORMS, CONSUMER OPENNESS AND LAUNCH OF NEW GLOBAL COMPETITORS) ARE EMERGING AT SUCH A SPEED. ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 16. MY PARENTS USED TO SAY “CLEAN YOUR PLATES BECAUSE THERE ARE MANY CHILDREN IN CHINA WHO ARE STARVING” ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 17. I AM NOW TELLING MY KIDS “STUDY HARD BECAUSE MANY PEOPLE IN CHINA AND INDIA ARE STARVING FOR YOUR JOBS” ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 18. INNOVATION MEANS DIFFERENT THINGS IN EMERGING MARKETS 18
 ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 19. ACQUISITIONS ARE COMPLICATED. THE HUIYUAN PURCHASE WOULD HAVE BEEN COKE'S LARGEST EVER FOREIGN ACQUISITION ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 20. WINNING IN EMERGING MARKETS ISN'T JUST ABOUT MAKING CHEAPER PRODUCTS. IT'S ABOUT CONSIDERING BROADER BUSINESS MODEL LEVERS ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 21. GOING GLOBAL AND GOING GLOBAL SUCCESSFULLY IS NOT THE SAME THING ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 22. HOW TO COMBINE DEEP MARKET UNDERSTANDING WITH INNOVATIVE APPROACHES TO CREATE, DELIVER, AND CAPTURE VALUE? ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 23. INNOVATION REQUIRE SCANNING FOR WEAK SIGNALS
 ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 24. GLOBALIZATION REQUIRES US TO REINVENT EVERYTHING - TO THINK OF OURSELVES AS COMPARED TO OTHERS - NICOLAS SARKOZY
  • 25. THINK GLOBAL ACT LOCAL THINK LOCAL ACT GLOBAL ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 26. Global Integration Local Responsiveness - firms coordinate their - firms try to meet the value-chain activities specific needs of local globally to maximize customers as well as economics of scale and adapt to the local scope. competitive environment Global Citizenship -firms that operate in a global market to make profits entails a responsibility of being engaged in society ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.
 26

  • 27. Recognizing when a company's competitive advantage can be leveraged more effectively Determining the extent GLOBAL Evaluating which to which the company STRATEGY strategic activities to should be (globally) own and which to diversified in its execute through businesses and STRATEGIC alliances or outsourcing markets INNOVATION Deciding how the organization design and incentive system can best support the global strategy ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 28. Social Innovation Service Experience Business Innovation Innovation Model Innovation Product Innovation ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.

  • 29. LOW LOCAL RESPONSIVENESS HIGH HIGH COKE P&G NOKIA
 IBM
 DISNEY GE SONY LVMH APPLE INTEGRATION SAM SUNG UNILEVER NINTENDO PHILIPS KRAFT CITIBANK LOW ©
Confiden)al
and
Proprietary
2009
Idea
Couture
Inc.