Global C4IR-1 Masterclass Cambridge Coutts - CIR 2017

32
© 2015 Routes to Value | All rights reserved Value Network Dynamics C 4 IR 3 February Cambridge Presented at Consortium for the 4th Revolution | Executive Briefing Day (#C4IR) Cambridge, UK 2-3 February 2017 | www.cir-strategy.com/events

Transcript of Global C4IR-1 Masterclass Cambridge Coutts - CIR 2017

© 2015 Routes to Value | All rights reserved!

Value Network Dynamics!!

C4IR!

3 February !Cambridge!

Presented at Consortium for the 4th Revolution | Executive Briefing Day !(#C4IR) Cambridge, UK 2-3 February 2017 | www.cir-strategy.com/events!

Confidential! 2!© 2015 Routes to Value | All rights reserved!

Value network

2!

Controlability:content;container- visibility

Packaging material:time/cost/

quantity/quality

Productcommunicationeffectiveness

sell packagesurface space

growth; productto be usedcorrectly

time, cost,quantity,quality

reliable,involuntarypartnership

Affordability(cheapest);flexibility;on time

Campains

expertise

Food quality;packagequality

orders

orders

on time; tospecifications

Food quality;package quality

ready designs

Certification, externalstandards

approvalof proof

orders,financing

Package choice:visibility, quality,

price, variety

on time; tospecifications

service standards;parts; quality;optimisation

sell package surfacespace

Operationalreliability;capability;

functionality

healthycompetition;

complementingTP system;stay outsideTP system

growth; product to beused correctly

materials thatcan be or are

digitally printed

on time; tospecifications

Printabledesigns

reliablefilling line

Food safetycertified materialand environment

(factory)

Price; performance;JIT; sourcing

capability

orders

time, cost,quantity,quality

orders

logisticsefficiency

orders

Printabledesigns

follow TPstandards

good handling of packages;unbroken chill-chain

if appropriate.

speed ofresponse;

report,proofing;

equipmentacquisition

investment

innovate to compete;remain uncompetitive;

identify changes inthe market

good price;good quality

Operationalreliability;capability;

functionality

Dual and globalsourcing;

tcqq equipment

orders

Compatibility;performance

Functionality:use; recycling;renewability;

emotionalengagement;

safety

to copy products;not to innovate;

inferior quality; andnot price competitive

with TP

compatibility;consistency

on time; tospecifications

maintaining standards

orders

Stability;innovate;disrupt;

break new ground

correct handling;promotion

orders,financing

Operationalreliability;capability;

functionality

on time;to specifications

correcthandling

brand awareness;environmentalconsciousness

Foodproducer

Foodprocessingoperation

Inkmanufacturer

Brandownerprivatelabel

Co-packer

Secondarypackagingmaterialssupplier

OEMequipment

andcomponents

Maintenanceprovider

Secondarypackagingequipment

supplier

CompetitorsOUT non-Fibre

Disposal andrecyclingserviceprovider

Consumergroups

Advertisingagencies

Supply chainintegrator

Customerfactory

Brandowner

customer

Energyprovider

ANA/ISOstandards

organisations

TPfactory

- converting

Foodsafety

regulator

Consumers- end users

Platesuppliers

Print enginemanufacturers

CompetitorsOUT with Fibre

Foodintegrator

Customersales rep

TPDesign Hub

Retailer- small,

independent

Serviceprovider

- quality andoptimisation

Integratorof packaging

lines

Mediabuyers

TPMarket

Company

Packagingmaterialcontract

convertor

Institutionalbuyer

Distributor

Foodfilling

operation

Media

eRetailer

Brandowner

producer

Orderfulfilmentprocessowner

Government

CompetitorsIN

Spare partsmanufacturer/ supplier

Plantautomation

and operation

Disposalof

chemicalsprovider

Largeretail

chains

Designagency

TPbrand owner

Basematerialsupplier

Additionalmaterials

TetraPakFutureMoneyFlows

Future DP money flows - Null Future DP money flows - Very Low Future DP money flows - Low Future DP money flows - Medium Future DP money flows - High Future DP money flows - Very High

This chart shows the future money flows on the introduction of digital technology.!!It was created by identifying the money flows between stakeholders.!!The stakeholders and flows are put in a spreadsheet and uploaded to kumu.io to create the chart.!

Confidential! 3!© 2015 Routes to Value | All rights reserved!

Value network dynamics

The value network shows the links between stakeholders.!!These links can be product, information, service, competence and money flows.!!Understanding how moving from analogue to digital technology may impact these flows can help:!!

Maintain current value!Capture new value !Mitigate risks!

Confidential! 4!© 2015 Routes to Value | All rights reserved!

Value network dynamics

Steps to map the current and future value networks.!

AN1 Capture stakeholders

and influencers

AN2 Map relationships

between them

AN3 Add the goals and

expectations of related players

AN4 Capture propensity to

change

AN5 Test for influence,

betweenness and centrality

AN6 Identify key

influencers and

gatekeepers

AN7 Identify points of potential leverage

AN8 Capture influence on

Customer Lifetime Value

Confidential! 5!© 2015 Routes to Value | All rights reserved!

Value network dynamics

Steps to map the current and future value networks.!

AN1 Capture stakeholders

and influencers

AN2 Map relationships

between them

AN3 Add the goals and

expectations of related players

AN4 Capture propensity to

change

AN5 Test for influence,

betweenness and centrality

AN6 Identify key

influencers and

gatekeepers

AN7 Identify points of potential leverage

AN8 Capture influence on

Customer Lifetime Value

DescriptionIdentify stakeholders and all known influencers of their preference and behaviour (technical, social, cultural etc.).These are agents not generalised ideas (e.g. not the economy).Categorise by type.

Confidential! 6!© 2015 Routes to Value | All rights reserved!

Value network dynamics

Steps to map the current and future value networks.!

AN1 Capture stakeholders

and influencers

AN3 Add the goals and

expectations of related players

AN4 Capture propensity to

change

AN5 Test for influence,

betweenness and centrality

AN6 Identify key

influencers and

gatekeepers

AN7 Identify points of potential leverage

AN8 Capture influence on

Customer Lifetime Value

DescriptionEnter agents in the model assigning colour by type and build the structure by linking agents who have dealings with each other and avoiding as many crossed lines as possible (automatic if agents are unpinned in Kumu)

AN2 Map relationships

between them

Confidential! 7!© 2015 Routes to Value | All rights reserved!

Value network dynamics

Steps to map the current and future value networks.!

AN1 Capture stakeholders

and influencers

AN2 Map relationships

between them

AN4 Capture propensity to

change

AN5 Test for influence,

betweenness and centrality

AN6 Identify key

influencers and

gatekeepers

AN7 Identify points of potential leverage

AN8 Capture influence on

Customer Lifetime Value

DescriptionIndicate goals and expectations of agents and show direction.(x expects … of y, arrow head at y. NB because y may also expect something of x you may need to add a link in the opposite direction)

AN3 Add the goals and

expectations of related players

Confidential! 8!© 2015 Routes to Value | All rights reserved!

Value network dynamics

Steps to map the current and future value networks.!

AN1 Capture stakeholders

and influencers

AN2 Map relationships

between them

AN3 Add the goals and

expectations of related players

AN5 Test for influence,

betweenness and centrality

AN6 Identify key

influencers and

gatekeepers

AN7 Identify points of potential leverage

AN8 Capture influence on

Customer Lifetime Value

DescriptionIndicate propensity to change as an attribute with High, Medium, Low alternatives. (bullseye colour can be used to indicate propensity of each agent)

AN4 Capture propensity to

change

Confidential! 9!© 2015 Routes to Value | All rights reserved!

Value network dynamics

Steps to map the current and future value networks.!

AN1 Capture stakeholders

and influencers

AN2 Map relationships

between them

AN3 Add the goals and

expectations of related players

AN4 Capture propensity to

change

AN6 Identify key

influencers and

gatekeepers

AN7 Identify points of potential leverage

AN8 Capture influence on

Customer Lifetime Value

DescriptionThese are automatic tests run in the metrics built into Kumu

AN5 Test for influence,

betweenness and centrality

Confidential! 10!© 2015 Routes to Value | All rights reserved!

Value network dynamics

Steps to map the current and future value networks.!

AN1 Capture stakeholders

and influencers

AN2 Map relationships

between them

AN3 Add the goals and

expectations of related players

AN4 Capture propensity to

change

AN5 Test for influence,

betweenness and centrality

AN7 Identify points of potential leverage

AN8 Capture influence on

Customer Lifetime Value

DescriptionHigh centrality exerts high influence too (information and trends to be inherited through them). Influence can be indicated by node size.High betweenness indicates gatekeepers or bottlenecks

AN6 Identify key

influencers and

gatekeepers

Confidential! 11!© 2015 Routes to Value | All rights reserved!

Value network dynamics

Steps to map the current and future value networks.!

AN1 Capture stakeholders

and influencers

AN2 Map relationships

between them

AN3 Add the goals and

expectations of related players

AN4 Capture propensity to

change

AN5 Test for influence,

betweenness and centrality

AN6 Identify key

influencers and

gatekeepers

AN8 Capture influence on

Customer Lifetime Value

DescriptionUse the resulting model to deduce where action to engage or persuade might exert high leverage in the network.Potential consortia and key launch players can also be identified.

AN7 Identify points of potential leverage

Confidential! 12!© 2015 Routes to Value | All rights reserved!

Value network dynamics

Steps to map the current and future value networks.!

AN1 Capture stakeholders

and influencers

AN2 Map relationships

between them

AN3 Add the goals and

expectations of related players

AN4 Capture propensity to

change

AN5 Test for influence,

betweenness and centrality

AN6 Identify key

influencers and

gatekeepers

AN7 Identify points of potential leverage

AN8 Capture influence on

Customer Lifetime Value

DescriptionInfer which influencers and trends are most likely to influence customer perception and behaviour.

Confidential! 13!© 2015 Routes to Value | All rights reserved!

Stakeholder mapping

Day 2 of stakeholder mapping workshop.!

Confidential! 14!© 2015 Routes to Value | All rights reserved!

Example upload sheet – impact assessment of introduction of digital technology on stakeholders

Confidential! 15!© 2015 Routes to Value | All rights reserved!

Example upload sheet – current and future money flows between stakeholders

Money flow: 5 = very high 1 = very low 0 = no flow!

Confidential! 16!© 2015 Routes to Value | All rights reserved!

Value network dynamics

16!

Controlability:content;container- visibility

Packaging material:time/cost/

quantity/quality

Productcommunicationeffectiveness

sell packagesurface space

growth; productto be usedcorrectly

time, cost,quantity,quality

reliable,involuntarypartnership

Affordability(cheapest);flexibility;on time

Campains

expertise

Food quality;packagequality

orders

orders

on time; tospecifications

Food quality;package quality

ready designs

Certification, externalstandards

approvalof proof

orders,financing

Package choice:visibility, quality,

price, variety

on time; tospecifications

service standards;parts; quality;optimisation

sell package surfacespace

Operationalreliability;capability;

functionality

healthycompetition;

complementingTP system;stay outsideTP system

growth; product to beused correctly

materials thatcan be or are

digitally printed

on time; tospecifications

Printabledesigns

reliablefilling line

Food safetycertified materialand environment

(factory)

Price; performance;JIT; sourcing

capability

orders

time, cost,quantity,quality

orders

logisticsefficiency

orders

Printabledesigns

follow TPstandards

good handling of packages;unbroken chill-chain

if appropriate.

speed ofresponse;

report,proofing;

equipmentacquisition

investment

innovate to compete;remain uncompetitive;

identify changes inthe market

good price;good quality

Operationalreliability;capability;

functionality

Dual and globalsourcing;

tcqq equipment

orders

Compatibility;performance

Functionality:use; recycling;renewability;

emotionalengagement;

safety

to copy products;not to innovate;

inferior quality; andnot price competitive

with TP

compatibility;consistency

on time; tospecifications

maintaining standards

orders

Stability;innovate;disrupt;

break new ground

correct handling;promotion

orders,financing

Operationalreliability;capability;

functionality

on time;to specifications

correcthandling

brand awareness;environmentalconsciousness

Foodproducer

Foodprocessingoperation

Inkmanufacturer

Brandownerprivatelabel

Co-packer

Secondarypackagingmaterialssupplier

OEMequipment

andcomponents

Maintenanceprovider

Secondarypackagingequipment

supplier

CompetitorsOUT non-Fibre

Disposal andrecyclingserviceprovider

Consumergroups

Advertisingagencies

Supply chainintegrator

Customerfactory

Brandowner

customer

Energyprovider

ANA/ISOstandards

organisations

TPfactory

- converting

Foodsafety

regulator

Consumers- end users

Platesuppliers

Print enginemanufacturers

CompetitorsOUT with Fibre

Foodintegrator

Customersales rep

TPDesign Hub

Retailer- small,

independent

Serviceprovider

- quality andoptimisation

Integratorof packaging

lines

Mediabuyers

TPMarket

Company

Packagingmaterialcontract

convertor

Institutionalbuyer

Distributor

Foodfilling

operation

Media

eRetailer

Brandowner

producer

Orderfulfilmentprocessowner

Government

CompetitorsIN

Spare partsmanufacturer/ supplier

Plantautomation

and operation

Disposalof

chemicalsprovider

Largeretail

chains

Designagency

TPbrand owner

Basematerialsupplier

Additionalmaterials

TetraPakFutureMoneyFlows

Future DP money flows - Null Future DP money flows - Very Low Future DP money flows - Low Future DP money flows - Medium Future DP money flows - High Future DP money flows - Very High

The stakeholders and flows are put in a spreadsheet and uploaded to kumu.io to create the chart.!!!The value network dynamics can then be analysed. !!!Add alerts to rack changes in flows: eg Google Alerts and Repindex.!! !

Confidential! 17!© 2015 Routes to Value | All rights reserved!

Analysis of value network dynamics

The tables below have been generated uploading the Value Network Impact Assessment Framework* for the current money flows.! !Table 1 Top 10 elements by Degree Centrality!Table 2 Top 10 elements by Closeness Centrality!Table 3 Top 10 elements by Betweenness Centrality !Table 4 Top 10 elements by Eigenvector Centrality!Table 5 Top 10 elements by Indegree !Table 6 Top 10 elements by Outdegree!!! !* file name = upload numeric money flows.xlsx!

Confidential! 18!© 2015 Routes to Value | All rights reserved!

Analysis of network dynamics

Confidential! 19!© 2015 Routes to Value | All rights reserved!

Impact estimation

Stakeholder Name%of%stakeholder Completed%by Date UpdateMoney.inflow Money.outflow

Flow%number

Flow%description,%eg%printed%carton

Cost%or%revenue%flow

Estimate%in%size%of%money%inflow

confidence%%

Impact%on%stakeholder

confidence%%

Estimate%of%size%of%money%outflow

confidence%%

Impact%on%stakeholder

confidence%%

1 current2 future3 current4 future56

ImpactVery%high 5 NoteHigh 4 Always%state%the%source%and%date%of%each%estimateMedium 3Low 2Very%low 1No%impact 0

For a detailed explanation of impact estimation, see Gilb T., Competitive Engineering, Elsevier Butterworth Heinemann, 2006, chapter 9!

Confidence table!

Stakeholders and barriers to adoption of graphene!

IKAWA ROADMAP

From product to service!

Confidential! 23!© 2015 Routes to Value | All rights reserved!

Write business plan

Basic value network model !

Routes to Value model and pla/orm

Goal

Values

Purpose

WHAT?WHO?andHOW?(determines

Competencies)Objec1ves

WHY?

ThisconnectedanddynamicRoutestoValuemapvisualisesthebusinesslogicanddependenciesataglance

SCALABLE:REPEATABLE:AGILE

Drivers:internalandexternal

COMPETENCE

ANALYTIC

BuildBuy

BorrowBind

BalanceBounce

Competence:thebridgebetweenWHOandHOW

CONFIDENCEANALYTIC

Op1onsforWork

RoutestoValueisawayoforganisingallofthedataandenablesthestatusofanyelementtobeinterrogatedatany1me

Confidential! 25!© 2015 Routes to Value | All rights reserved!

Effective Evaluation of the Business Logic Meter:

-45 63-5 1

Contribution 355 -10 136Sufficiencyconfidence 85% -3Attributionconfidence 80% -63

Start: 90Fail: 45

Acceptable: 40 FromStart: 67% CompleteTarget: 30 FromAcceptable: 0% Complete

Contributiontodate: 0

Efforttodate(p.ds): 82Timetodate(wks): 11.2

PROGRESS

Current: 50

S.8.Improvetheaveragetimetakenfromrecruitmenttoeffectiveworkingofstaff

Startofemploymentofaveragehiretomanager’ssign-off(days)

Owner: JC

90

4540

30

50

StarttoFailFailtoAcceptable

AcceptabletoTargetAboveTarget

Confidential! 26!© 2015 Routes to Value | All rights reserved!

Effective Tracking of Supply and Demand

COMPETENCEANALYTIC

BuildBuy

BorrowBind

BalanceBounce

Requires input from workforce management pipeline!

Confidential! 27!© 2015 Routes to Value | All rights reserved!

Reveals Effectiveness in Execution

Project Acorn – workstream 2 WS2!

Meter:

15 1315 1

Contribution 780 5 186Sufficiencyconfidence 80% 4Attributionconfidence 75% 39

Start: 60Fail: 75

Acceptable: 90 FromStart: 14% CompleteTarget: 95 FromAcceptable: 0% Complete

Contributiontodate: 0

Efforttodate:Timetodate:

PROGRESS

Current: 65

WS2Increasetheconfidenceintheestimatesoftimetocompletework

%increaseinconfidence

Owner: LS

StarttoFail AboveTarget

60

75

90

9565

StarttoFailFailtoAcceptable

AcceptabletoTargetAboveTarget

COMPETENCE!

TIME!

Work!

HIGH!

HIGH!

LOW!

LOW!

Confidential! 28!© 2015 Routes to Value | All rights reserved!

Measures and Displays Implementation Effectiveness

Meter:

15 3915 1

Contribution 2480 15 160Sufficiencyconfidence 70% 6Attributionconfidence 70% 51

Start: 45Fail: 60

Acceptable: 75 FromStart: 44% CompleteTarget: 90 FromAcceptable: 0% Complete

Contributiontodate: 0

Efforttodate:Timetodate:

PROGRESS

Current: 65

WS2Increasetheconfidenceintheestimatesofdemandforcompetence

%increaseinconfidence

Owner: LS

StarttoFail AboveTarget

45

6075

90

65

StarttoFailFailtoAcceptable

AcceptabletoTargetAboveTarget

Routes To Value Map

Confidential! 30!© 2015 Routes to Value | All rights reserved!

Stakeholders and barriers to adoption of graphene!

Exercise!

Confidential! 31!© 2015 Routes to Value | All rights reserved!

Exercise

Barriers to adoption of IIoT B2B or B2C?!!Stakeholders!!Barriers by stakeholder!!Barrier scoring – if time: very high to very low!!

Confidence table helps address human error – a framework for validation!

We will produce the map and circulate it to all.!

Confidential! 32!© 2015 Routes to Value | All rights reserved!

Stakeholders and barriers