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• Helmet• Bike size

• Handlebars• Shirt

• Shorts• Shoes• Wheels

• Metal Alloy• Frame

• Crankset

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• Save up to 30% of you energy

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SYSTEMS &

STRUCTURE

How to INSURE predictable reliable results.

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Mario Andretti and YouIf you were to place Mario in a race car with no wheels and you were in a Honda Accord

with wheels, who would win?

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Rule of Structure

80% of a firm’s ability to compete and employee’s ability to succeed is driven primarily by the structure

the firm has to offer. The role of management is to think…design

the structure, processes and goals to insure the probability of

success.

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McDonalds’ Before and After

Drive through before visual display

Uncertain about order

Frustrated with individual

Increased chance of wrong order

Wondering about final total price

Drive through after visual display

Confirmed orders before production

Individual less important

Increased chance of success

Total price clear to viewer

               

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Sugarbush Ski SchoolMost profitable part of the mountain

Average wait used to be 1 hour each morning

Management did not understand their role

2.5 hours – changed the focus from “the magic moment” to cattle.

Changed the role from teamwork to decision making

Within one day the line queue dropped to 10 minutes

No technology changed.

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How it worked for years

Adult & Private Lessons

Kids Counter and Customer Service

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Winning strategies and tactics

Customer Form CounterGreeter

Adult & Private Lessons

Kids Counter and Customer Service

MetaMatrix Consulting Group LLC

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FAX UPFAX DOWN

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Systems Define Outcomes

NYS DEC’s Automated Licensing System5 Hours and 14 minutes

Replaced a hand system

WorldCom Primary Contractor

Named DECALS $15,000,000

Computer refused to issue licenses

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6 People a day die in a pool

poseidon-tech.com

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ALLIANCEDEVELOPMENT

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WHY WOULDYOU CARE ABOUT

ALLIANCES?

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Partnerships and Alliances

Who are your allies?– Who are your 3 best business allies?– Who are your 3 best family allies?– Who are your 3 best co-working allies?

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7 Types of Alliances

Ad Hoc Short TermMinimum Resources

Consortium Long Term Low Resources

Project Joint Venture

Short TermMedium Resources

Joint Venture Long Term High Resources

Merger Long Term High Resources

Acquisition Long Term High Resources

Affiliate Various Terms Low ResourcesModified Lorange and Roos

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Alliances

Best 2nd tierT M Goal Goal

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Statistics on Alliances

Hergert & Morris 198871.3% of alliances are between rivals

37.1% of alliances are for new products

Reasons for alliances35% Competition or Distribution

25% New Technology

20% Economics of Scale

20% Legal or Regulatory

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7 Strategic Tools

• Objectives – True goals of both parties• Strategic – Structure and direction of firm• Budgeting – Allocation of funds

– Where going to get the funds in Gov’t• Controls – How systems will be developed• Financial – Distribution and set-up• Human Resources – Who, What and Where• Risk Assessment – Is this worth the time

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Alliances

Best 2nd tierT M Goal Goal

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The Purpose of Alliances

Predictable Future Alliance Created

New Reality

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Step 4

Step 3

Step 2

Step 1

Strategically Career Ladders

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THINKTRIANGLES

Strategically Think Shapes

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Something the Lord Made

Who gives who credit…or…?

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November 1944 – 1st Heart Surgery

Eileen Saxon, a 15-month-old "blue baby," Johns Hopkins operating room. Dr. Alfred

Blalock & Vivian Thomas

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RQ-1 Predator MAE UAV

Arming the predator with Hellfire Missiles(Army, Navy, Engineering Functional, Contractors, SPOs)

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Northrop Grumman merger is a no-go

Lockheed Martin has terminated its merger agreement with Northrop Grumman Corporation, ending the U.S. government's need to pursue its lawsuit to block the combination. The corporation notified Secretary of Defense William Cohen of the decision made by the Lockheed Martin Board of Directors.

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Northrop’s Aquisition

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So what is it?

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Still guessing?

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F-22 Joint Venture

• Boeing• Lockheed

• General Dynamics

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Boeing and Lockheed

• United Space Alliance (USA) is one of the world’s leading space operations companies. Established in 1996 as a Limited Liability Company (LLC), USA is equally owned by The Boeing Company (NYSE:BA) and Lockheed Martin Corporation (NYSE:LMT) and employs people in Texas, Florida, Alabama, California and Washington, D.C. USA manages and conducts space operations work involving the operation and maintenance of multi-purpose space systems, including systems associated with NASA's human space flight program, Space Shuttle applications beyond those of NASA, and other reusable launch and orbital systems beyond the Space Shuttle and Space Station.

• As the prime contractor for NASA’s Space Shuttle Program, United Space Alliance is responsible for the day-to-day operation and management of the U.S. Space Shuttle fleet and brings a broad range of expertise to the job, including:

• • Mission Design and Planning • Flight Operations • Software Development and Integration • Payload Integration • Integrated Logistics • Astronaut and Flight Controller Training • Vehicle Processing, Launch and Recovery

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Fermi National Accelerator Laboratory

Universities Research Association, a consortium of 90 research universities.Accelerators & Colliders

Proton to 99.999946 the speed of light

Interior of Fermilab's linear accelerator

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Hollywood Model• $21,000 Spent on sign in 1923• Hollywood Real Estate Group• Mount Cahuenga

• Movie Industry Alliances• Small firms brought together• Limited time frame• Small film companies• Disband when done

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Security Consortium

http://www.biometrics.org

Started 1992

Purpose to exchange information

Meets twice per year

Create Standards

Watch Legal and Ethical Direction

Run by US Government

Includes Academia, Private firms,

Government and Non-Profits

FaceMulti-modal

Fingerprint

Retinal

Hand and Finger Geometry

Vein

Handwriting

Various/Others

Iris

Voice/Speaker

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Life of the alliance

Mother and father create a child:

Results if both committed?

Results if one is committed?

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HOW COULD YOU USE THIS EVERY

DAY?

What might be the results?

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New Product and Service Development

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NEW PRODUCT &

SERVICE DEVELOPMEN

THow to INSURE predictable reliable

results.

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NP&SD - Russian Roulette

$10 Million Dollars

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NP&S are all over…• Accounting

– Invoice, Software

• IT– Software, Server,

Computers

• HR – Training, Handbook,

Leasing

• Maintenance – Chemicals, Tools

• Logistics – Shippers, Online tracking

• Engineering – New process, Forms

• Design – On-line service, ASP

• Finance – Proposals, Credit Cards

• Sales – New video, Products

• Manufacturing – Equip., Staging Systems

• Operations – 24 tech Support, Site Select

• Marketing – Ad Campaign, Survey

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New Product Failure“25 to 45 % of new products launched, fail. Percentage will vary by industry.” Dr. Robert G. Cooper in his book, “Winning at New Products”

“19,000 new products were introduced to supermarkets and half disappeared from the shelves within two years.” David A. Light, Harvard Business Review, November-December 1996, Briefings from the Editor, based on 1995 study.

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Draw a picture of how you do it

now.

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NP&SD Attrition

100

90

80

70

60

50

40

30

20

10

0 0 10 20 30 40 50 60 70 80 90 100

IDEA GENERATION

SCREENING

EVALUATION

DEVELOPMENTTESTING

COMMERCIALIZATION

SURVIVAL RATE(%)

CUMULATIVE TIME IN PROCESS (%)

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Starting Strong

Discovery

Stage 1

Gate1

Idea Screen

ScopingGentle screenStrategic alignmentFeasibilityMagnitude of Opport.Market attractivenessProduct advantageFit with policiesKiller variables

Internet SearchLibrary SearchFocus GroupsConcept TestUser Test

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Making sound decisions

Gate2

Stage 2 Build Business Case

Competitive analysisIn-depth research /with customers Target marketDelineated Product ConceptProduct strategyProduct benefitsValue propositionSpell out desired Features Attributes Requirements SpecsMarket investigation & studyManufacturabilityCost to manufactureInvestment

Legal TechnicalSales InvolvedMarketing InvolvedPayback period

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Creating the right product

Gate3

Stage 3

DevelopmentParallel marketing & operationsRapid prototypeWorking modelFirst prototypeLegal - patentsLab testsIn house testsAlpha TestsUpdate financialsFacilities requirementsMarket launch plansContinue - Customer feedback Marketing analysis

Decision to spendConfirm case

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Make sure you didn’t miss anything

Gate4

Stage 4

Testing & ValidationExtensive validationProduct processCustomer acceptanceEconomics of productIn-house test continueUser trials continueTrial limited productionPretest Trial sell Test market Financial Analysis

Review probable executionRevised financialsQuality = original definitionWork reviewedGo to test

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Increased success rates

Gate5

Stage 5 Launch

Quality of testingQuality of validationFinancial review Post Launch

Review Review costsReview profitsReview strengthsReview weaknessesReview what learned