Dubai westford - master class on flexible business models
-
Upload
steyn-heckroodt -
Category
Business
-
view
198 -
download
0
description
Transcript of Dubai westford - master class on flexible business models
![Page 1: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/1.jpg)
Flexible business models for sustainability
Dr Steyn Heckroodt – Senior Lecturer: Strategy
www: Lectureonbusiness.com
![Page 2: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/2.jpg)
210/04/23 Dr S Heckroodt
![Page 3: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/3.jpg)
Morphing of strategy
• Morphing is a special effect in motion pictures and animations that changes (or morphs) one image or shape into another through a seamless transition
• What has morphed?• Our thinking• How and why?
310/04/23 Dr S Heckroodt
![Page 4: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/4.jpg)
Morphing of strategy
• Plait of environment and business• Environment – Pong – simple, non-complex, stable,
yes at times a bit disrupted
4
Time
Environmental change
Organisational strategy
10/04/23 Dr S Heckroodt
![Page 5: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/5.jpg)
Morphing of strategy
5
Time
Environmental change
Organisational strategy
ScanningScenario planningStrategy selectionStructure for implementationForecasting
10/04/23 Dr S Heckroodt
![Page 6: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/6.jpg)
• Post WW 2 – Sun Tzu – the Art of War• Thinking – analytical – molecular• Segment and categorise• Simplify• East and West• Socialist and capitalist
6
Quick paradigm history
10/04/23 Dr S Heckroodt
![Page 7: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/7.jpg)
• In strategy – environmental scanning 1970s• 80s – Porters and PESTLEs• Tools and techniques• Boxed – simplified• Scenario planning• Forecasting dominated• Larger manufacturing organisations IBMs and other
mass producing concerns – economies of scale• Product push
7
70s and 80s
10/04/23 Dr S Heckroodt
![Page 8: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/8.jpg)
• 90s – New jargon• Pull versus push • Demand chain versus supply chain• Customer focus, centricity• Information era• Systemic thinking (Ackoff)• Dots and Coms• Windows and Apple
8
90s
10/04/23 Dr S Heckroodt
![Page 9: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/9.jpg)
• 2000s• Complexity and complex thinking modes• Thinking modes and paradigms • Order and un-order, rules and heuristics,
epistemology and ontology• Credit crunch• Transient (temporary) versus sustainable
competitiveness • Fad trends versus long-term trends
9
2000s
10/04/23 Dr S Heckroodt
![Page 10: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/10.jpg)
What the complexity boils down to
10
Time
Environmental change
Organisational strategy
10/04/23 Dr S Heckroodt
![Page 11: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/11.jpg)
• 4Ps to SAVE• Design thinking (from forecasting to back-casting
and foresight)• Five-forces disciples (dominate existing markets)
versus blue-ocean enthusiasts (look to creating new opportunities)
• Industry to arena (Garmin)• PESTLE: Conceptual positioning to relational status
11
Paradigm shifts to helpmanaging complexity
10/04/23 Dr S Heckroodt
![Page 12: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/12.jpg)
Environment
12 © Dr Heckroodt, S © Dr Heckroodt, S
Labour Government
Public Pressure Groups
Exchange rate Interest rate
Fuel/Energy price Staff
ShareholdersColleagues
10/04/23 Dr S Heckroodt
![Page 13: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/13.jpg)
ENVIRONMENT
13 © Dr Heckroodt, S © Dr Heckroodt, S
Labour Government
Public Pressure Groups
Exchange rate Interest rate
Fuel/Energy price Staff
ShareholdersColleagues
10/04/23 Dr S Heckroodt
Environment
![Page 14: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/14.jpg)
ENVIRONMENT
14 © Dr Heckroodt, S © Dr Heckroodt, S
Labour Government
Public Pressure Groups
Exchange rate Interest rate
Fuel/Energy price Staff
ShareholdersColleagues
10/04/23 Dr S Heckroodt
Environment
![Page 15: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/15.jpg)
ENVIRONMENT
15 © Dr Heckroodt, S © Dr Heckroodt, S
Labour Government
Public Pressure Groups
Exchange rate Interest rate
Fuel/Energy price Staff
ShareholdersColleagues
10/04/23 Dr S Heckroodt
Environment
![Page 16: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/16.jpg)
• Strategy thinking paradigms change as our view(s) of the environment varies
• Deterministic, intended, selected and planned• Continuously emerging and amplifying with
unpredictable and unknown emergent processes• As the environment is becoming more sweeping
and random in its change though (Immelt), how can flexible business models help?
16
So ...To answer the why
10/04/23 Dr S Heckroodt
![Page 17: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/17.jpg)
• Understand how strategy, business models and tactics (the trio) interconnect and affect each other and how this can help guide the search for novel, interesting and profitable new ways to compete.
17
To answer that...
10/04/23 Dr S Heckroodt
![Page 18: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/18.jpg)
• Strategy – the selection of a particular business model
• Tactics – the choices available to an organisation based on the business model choice
• Business Model – the logic of the organisation, the way it operates and how it creates value. – Content– Structure– Governance of transactions creating value
18
Distinguish between…
10/04/23 Dr S Heckroodt
![Page 19: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/19.jpg)
• Content – the goods or information exchanged, as well as to resources and capabilities required
• Structure – the stakeholders that participate, their links, and the way they choose to operate
• Governance – the way flows of information, resources and goods are controlled by the relevant stakeholders
19
‘
Business model
10/04/23 Dr S Heckroodt
![Page 20: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/20.jpg)
• Is to be flexible an organisation’s ability to reposition itself in a market by dismantling its current strategy?
or• Is to be flexible an organisation’s ability to
reposition itself in a market by dismantling its current business model?
20
Here’s the question…
10/04/23 Dr S Heckroodt
![Page 21: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/21.jpg)
• Merging market focused (in- pond & downstream) and network focused approaches (upstream)
21
Flexibility defined
Market Focus
Network Focus
In-pond
![Page 22: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/22.jpg)
• Organisations with strong, long-term, inter-organisation relationships both upstream and downstream
22
1. Network influencer
DELL
10/04/23 Dr S Heckroodt
![Page 23: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/23.jpg)
• Organisations buying and selling on the basis of price, quantity and delivery agreements. Upstream transactional relationships are suppliers of commodity products (milk, sugar,). Downstream customers include retailers
23
2. Transactional model
TRADER
10/04/23 Dr S Heckroodt
![Page 24: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/24.jpg)
• Utilise long-term relationships upstream, and ownership downstream
24
3. Franchise model
ZARA
ZARA
10/04/23 Dr S Heckroodt
![Page 25: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/25.jpg)
• Supplier-focused organisations• Long-term relationships upstream, but sell
downstream through transactional relationships, on the basis of price, quantity and delivery agreements. Downstream customers include retailers and wholesalers.
25
4. Agent model
MOBILE/BANKS
10/04/23 Dr S Heckroodt
![Page 26: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/26.jpg)
• Organisations with transactional relationships upstream and long-term relationships downstream. They have a sales focus; close relationships with downstream retailers, while purchasing supplies purely on the basis of price and quality
26
5. Sales-orientatedmodel
EXPORTERS
10/04/23 Dr S Heckroodt
![Page 27: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/27.jpg)
• Organisations with transactional relationships upstream and corporate ownership downstream. Downstream customers included retailers and business-to-business customers
27
6. Retail model
SPINNEYS
SPINNEYS
10/04/23 Dr S Heckroodt
![Page 28: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/28.jpg)
Shor
t le
ad ti
mes
Long
le
ad ti
mes
Supp
ly c
hara
cter
istic
s
Demand characteristics
Lean plan and optimize
Hybrid&
Postponement
Continuous replenishment
Agile quick response
Predictable Unpredictable
28Source: Amended from Christopher, M. Logistics and Supply Chain Management. Pearson Education
• Embed flexibility when aligning market demands with organisational supply
Network architectures need to
![Page 29: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/29.jpg)
• Business models are made of concrete choices and the consequences of these choices
• Different designs have different specific logics of operation and create different value for their stakeholders
29
Aspects for design ofbusiness models
10/04/23 Dr S Heckroodt
![Page 30: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/30.jpg)
• Choice Consequence• Secondary airports Low airport fees• Lowest ticket prices Large volume• Low commissions Low cost• Standardized fleet Bargaining power• Single-class Economies of scale• No meals Faster turnaround• Nothing free Additional revenue• No unions Flexibility in staff
30
Ryan Air exp.
10/04/23 Dr S Heckroodt
![Page 31: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/31.jpg)
• Every organization has a business model• It makes some choices, which have consequences• But not every organization has a strategy – a plan of
action for different contingencies that may arise• In this sense flexibility refers to morphing from one
business model to another whilst maintaining the strategic direction, vision and mission
• Model - are crucial in determining organisations’ value creation
31
Now – the point
10/04/23 Dr S Heckroodt
![Page 32: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/32.jpg)
• Content – goods or information exchanged, as well as to resources and capabilities required
• Structure – stakeholders, their links, and the way they choose to operate
• Governance – the way flows of information, resources and goods are controlled
• These issues are all interrelated – the question is• “How does one build a sustainable competitive
advantage?” (long-term and transient)32
Business modelconsists of...
10/04/23 Dr S Heckroodt
![Page 33: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/33.jpg)
• If the business model is a reflection of the organisation’s strategic choice, strategy proper is not the model
• Strategy proper is the choice and creation/creator of the model
• Flexibility for purposes of sustainability would refer to morphing between models – not strategies
• Different scenarios calls for different models• Strategic contingencies consist of different models
33
Let’s try and answer...
10/04/23 Dr S Heckroodt
![Page 34: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/34.jpg)
• This makes strategy a high-order choice that has profound implications on competitive outcomes
• Choosing a particular business model means choosing a particular way to compete– A particular logic of the organisation– A particular way to operate and to create value for the
organisation’s stakeholders– A particular content, structure and governance of
transactions
34
Sustainability contained
10/04/23 Dr S Heckroodt
![Page 35: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/35.jpg)
35
The trio
Possible Business Models Tactics:
Competitive choices enabled
by each Business Model
Strategy plan of which Business
Model to use
10/04/23 Dr S Heckroodt
![Page 36: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/36.jpg)
Case study
36
Dominant attribute
QualityPrice
ConvenienceDemand
WW case study
10/04/23 Dr S Heckroodt
![Page 37: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/37.jpg)
37Source: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za
Staff
Landlord
Landlord
Strategic thinking mode – pro-active partnering
Strategic thinking mode – reactive flexibility – willingness and ability to adapt
Staff
WW case study
![Page 38: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/38.jpg)
38
Landlord
WW case study
10/04/23 Dr S Heckroodt
![Page 39: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/39.jpg)
Strategic fitas a juncture
OrganisationAbility
Internal Information Live
External Information Live
Strategic planning = alive = moves beyond
annual event
OpportunityThreat
PROBABILITYIM
PACT
Strategic appropriateness
3910/04/23 Dr S Heckroodt
![Page 40: Dubai westford - master class on flexible business models](https://reader035.fdocuments.in/reader035/viewer/2022070304/54c51fe04a7959b2668b4569/html5/thumbnails/40.jpg)