(c)Prof. Datuk Dr. John Xavier 1

Big-Think StrategyProf. Datuk Dr. John Antony Xavier

MBAGSM-UPM

2011

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◦ No class on 27th May◦ Research paper by 3th June◦ Thank you.

Please remember!

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Economic Clients/Social CustomersPolitical Competitive/Technological Collaborative forces

Resources Present strategyCapabilities PerformanceTechnology Top Management

AssessOrganization’sCurrent and FutureSituation

Set Long-Term

Objectives

Craft Strategies

Implement Strategies

Evaluate Performance

REVISE AND CHANGE AS NEEDED

REVISE AND CHANGE AS NEEDED

EXTERNAL ENVIRONMENT

INTERNAL ENVIRONMENT

STRATEGIC PLANNING : THE BIG PICTURE

Develop Vision & Mission

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STRATEGIC ANALYSIS

STRATEGIC CHOICE

The external environment

Expectations, -mission, vision,

objectives

The internal environment

STRATEGIC IMPLEMENTATION

& EVALUATION

Generation of options

Selection of

strategy

Evaluation of options

Action Plan – Initiatives,

KPI

Systems and Organization

structure

HR and Resource planning

ELEMENTS OF STRATEGIC MANAGEMENT

Review, Follow-

up action

(c) Prof. Datuk Dr. John Xavier

© Prof. Datuk

Dr. Jo

hn Xavier

Strategy-Formulation Framework

Stage 1 - Input Stage◦ EFE matrix◦ IFE matrix◦ Competitor analysis

Stage 2 - Matching Stage◦ SWOT◦ SPACE matrix◦BCG matrix◦Big Think◦ GE/McKinsey matrix◦ Grand strategy matrix◦ IE matrix

Stage 3 - Decision Stage◦ Consolidation, prioritisation and selection (QSPM)

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Formulated by Bernd. H. Schmitt Thinking out of the box Creating bold ideas and disruptive

strategies that change markets and make companies competitive

Creative and visionary thinking

Big-Think Strategy

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Big-Think Strategy Model An opportunity to Learn, Explore and

Implement new & creative ways of approaching business challenges, so that it can thrive as a business.

Creative Vehicle- helps to build meaningful connection between company and their business targets.

“Think out of the box”

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Small Think Big Think

Inertia and resistance Creativity and change

Narrow-mindedness Visionary leadership

Risk aversion Bold ideas and actions

Silo-mentality Integration across core ideas

Short-term focus Lasting impact

Big Think vs. Small Think

Cf. Group think!

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The Big-Think Strategy Model

1.Ideas Generation

2.Evaluating Ideas

3.Turning Ideas into Strategy

4.Executing Big Think

5.Leading Big Think

6.Sustaining Big Think

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1. Idea generation through brain-storming2. Ideas classification3. Evaluating ideas4. Refining ideas5. Executing the Big Think strategies6. Monitor implementation

How to Create and Implement Big Think Strategies

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Think from the standpoint of the customer – (ask, step into his shoes, complaints)

Schmitt’s four generic strategies1. Opposition – creating the opposite of

established strategies – (PC, Ford car) 2. Integration – bringing seemingly incompatible

concepts together (Mass customisation)3. Essence – the essential parts of an entity taken

to the extreme –(Palm oil – cooking fuel)4. Transcendence – going far beyond the

established boundaries of a business or industry (Dell,IBM)

How to think outside the box?

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1. Innovative benchmarking (internal, competitive, functional [innovative] – Bedi, dabbawalas)

2. Quantum leap – willing to kill the sacred cow (data storage – servers thumbdrives)

3. Stepping out of the time frame or current strategy (scenario planning)

How to think outside the box?

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Idea generation:1.JAXB Game: BankMonopoly

Objective:◦ What is a bank?◦ How do banks make money?

Terrific tools for enhancing a person's understanding of:

◦ Financial responsibility◦ Smart spending◦ Money management

Learning from JAXBankMonopoly◦ Assign tasks◦ Count◦ Manage◦ Invest money

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Idea generation:1.JAXB Game: BankMonopoly

JAXB Manager

Customers

Employees

Customer Service Financial

Marketing

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Idea generation:1.JAXB Game: BankMonopoly

JAXB Headquarte

r

JAXB Branch JAXB Branch

JAXB Branch

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Idea generation:2.Online ATMs: Cash Delivery Allow customers to received cash within 24

hours by sending the request with few steps in JAXB Clicks.

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Idea generation:2.Online ATMs: Cash Delivery

Tac Request

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Idea generation:3.JAXB Drive Through ATMs

JAXBANK

JAX BANK

JAX BANK

JAXBANK

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Idea generation:3.JAXB Drive Through ATMs Designed for convenient use from the

secure and comfortable environment of an automobile.

Allows quick cash withdrawals for people on the go.

Advantages:◦ Saves time◦ No parking◦ Convenient◦ Fast◦ No waiting

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Good to have Differentiation Wow type

◦ transcendence or distinctive ideas◦ going against the trend or only one of its kind◦ new discovery or something new

Classifying Ideas

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Turning ideas into strategy

Transcendence• Online JAXB ATMs• Cash Delivery

Opposition

Essence

Integration• JAXB Drive

Through ATMs

COMPETITIVE REACTION

Weak Strong

CA

PA

BIL

ITIE

S

Exis

ting

New

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Creativity and change – how bold and visionary? Lasting Impact Sustainability – Do we have the resources,

capabilities, market potential? Suitability Affordability Value creation and profitability Implementability - Integration across functions Competitive advantage – Difficulty of imitation

Evaluation Criteria

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Ideas Evaluation

CategoriesJAXB Game:

BankMonopoly

Online JAXB

ATMs:

Cash Delivery

JAXB Drive

Through ATMs

Creativity 2 3 3

Business Impact 1 3 3

Communication

Impact

1 2 1

Feasibility 2 1 3

Dependability 2 1 3

Internal Fit 1 2 2

TOTAL 9 12 15

High=3 Middle=2 Low=1

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R&D Resources Integration across functions Action plan

Executing the Big Think Strategy

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Executing the big think Develop the R&D and Financial Analysis to

determine strategy implementation costs. Install and improve Security System. JAXB should monitor progress.

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Review targets achievement periodically Customer surveys/market research Product modification

Monitoring Progress

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Conclusion Making Big Think sustainable is the hardest

task of all. To succeed, we need the right environment

and organisational structure. (7S) We must have the right people - Big Think

heads who get excited about new ideas with a childlike fervour.