MPLICATIONS 31-2 INTEGRATION FEDEX ASIA … needs collaboration between logistics engineers and our...
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Strategic Analysis Lenses Pivot Points 31-2 INTEGRATION FEDEX ASIA EXAMPLE Strategy to Implications Business Processes Where does the performance of specific business processes (or sub-processes) most directly limit the results we intend to achieve (i.e., which process constraints are most critical)? Ground operation improvement is more pivotal than air and hub operation improvement Efficiency at the point of customer service is pivotal Competitive Positioning What will differentiate us in the marketplace? What will we win, attack, or monitor? What is the most critical issue with respect to the differentiators (i.e., valuable, executable, and defensible)? U.S. Coverage … DHL Moving in Lift Capacity … DHL is buying planes Europe Coverage … OK to let DHL win Industry Context Where does having greater insight into the industry context, customers, competitors, organizational capabilities create sustainable success? Oil and fuel prices will not rise faster than we can increase prices. Airport landing rights will remain available Passenger airline airport infrastructure will remain viable for global shipping Logistics will increase as part of the value proposition Strategic Resources What resources provide advantage in the Input Market, Conversion/ Production, or Output Market? What is the critical issue: Build, Leverage or Protect? INTEGRATION: STRATEGY TO IMPLICATIONS 31-2 Strategy Execution Organizational Implications FedEx needs collaboration between logistics engineers and our product developers and sales force FedEx aircraft industry liaisons and logistics designers must communicate better FedEx internal ERP must communicate with product designers to create digital-age information systems FedEx needs collaboration between aircraft purchasers and our digital system designers Europe and Asia ground operation must integrate with a focus on U.S. buyers Collaboration between logistics design and airport rights acquisition will be pivotal Corporate social responsibility and airport community liaisons must integrate and cooperate Talent Implications FedEx may need to acquire skills in forecasting geopolitical disruptions that could shut down airports FedEx may need talent that can more accurately forecast fuel spikes FedEx may need forecasters of digitization and production logistics Talent that can enhance ground efficiency will be pivotal Talent that can enhance economies of scale to large aircraft will be pivotal Talent that can do digital logistics design integrated with physical packaging will be pivotal Talent that can identify and obtain vital locations will be pivotal Talent that can contractually protect airport rights will be pivotal Aircraft acquisition talent can be at parity Pilot talent can be at parity Copyright © 2017, John W. Boudreau. All Rights Reserved. Landing rights must be optimized and protected Aircraft can be at parity Brand must remain at parity with DHL Collaboration between couriers and logistics designers is vital Integration between courier customer service activity and digital field support will vital Logistics designers must learn from courier experience on the ground Couriers who can optimize ground efficiency will be pivotal Logistics designers that can integrate technology and field operations will be pivotal Dispatchers must become better at coordinating and overseeing field operations Logistics designers must gain expertise in ground operations Business Algebra What are the numbers and mathematical logic of business unit success? What is the algebra of revenue growth? What is the algebra of process and resource improvement? We establish large in-country air and shipping hubs, so fixed costs are higher than competition We must achieve a higher shipping revenue volume to justify entering a country Once we exceed break-even, we generate more profit per additional revenue dollar than with lower fixed costs Country managers must work closely with logistics and with other countries to track their position relative to fixed costs Because we will wait to enter a country until it has a large volume, logistics and public relations must work closely to explain our entry decisions In-Country managers who can build volume scale quickly are pivotal. Economists that can accurately forecast when a country will have volume large enough to justify our scale are pivotal.
Transcript of MPLICATIONS 31-2 INTEGRATION FEDEX ASIA … needs collaboration between logistics engineers and our...
Strategic Analysis Lenses Pivot Points
31-2
INTEGRATION FEDEX ASIA EXAMPLE
Strategy to Implications B
usin
ess
Proc
esse
s Where does the performance of specific business processes (or sub-processes) most directly limit the results we intend to achieve (i.e., which process constraints are most critical)?
Ground operation improvement is more pivotal than air and hub operation improvementEfficiency at the point of customer service is pivotal
Com
petit
ive
Posi
tioni
ng
What will differentiate us in the marketplace?What will we win, attack, or monitor?What is the most critical issue with respect to the differentiators (i.e., valuable, executable, and defensible)?
U.S. Coverage … DHL Moving inLift Capacity … DHL is buying planesEurope Coverage … OK to let DHL win
Indu
stry
C
onte
xt Where does having greater insight into the industry context, customers, competitors, organizational capabilities create sustainable success?
Oil and fuel prices will not rise faster than we can increase prices.Airport landing rights will remain availablePassenger airline airport infrastructure will remain viable for global shippingLogistics will increase as part of the value proposition
Stra
tegi
cR
esou
rces
What resources provide advantage in the Input Market, Conversion/Production, or Output Market?What is the critical issue: Build, Leverage or Protect?
INTEGRATION: STRATEGY TO IMPLICATIONS 31-2
s
Strategy Execution
Organizational Implications
FedEx needs collaboration between logistics engineers and our product developers and sales forceFedEx aircraft industry liaisons and logistics designers must communicate betterFedEx internal ERP must communicate with product designers to create digital-age information systems
FedEx needs collaboration between aircraft purchasers and our digital system designersEurope and Asia ground operation must integrate with a focus onU.S. buyers
Collaboration between logistics design and airport rights acquisition will be pivotalCorporate social responsibility and airport community liaisons must integrate and cooperate
Talent Implications
FedEx may need to acquire skills in forecasting geopolitical disruptions that could shut down airportsFedEx may need talent that can more accurately forecast fuel spikesFedEx may need forecasters of digitization and production logistics
Talent that can enhance ground efficiency will be pivotalTalent that can enhance economies of scale to large aircraft will be pivotalTalent that can do digital logistics design integrated with physical packaging will be pivotal
Talent that can identify and obtain vital locations will be pivotalTalent that can contractually protect airport rights will be pivotalAircraft acquisition talent can be at parityPilot talent can be at parity
Copyright © 2017, John W. Boudreau. All Rights Reserved.
Landing rights must be optimized and protectedAircraft can be at parityBrand must remain at parity with DHL
Collaboration between couriers and logistics designers is vitalIntegration between courier customer service activity and digital field support will vitalLogistics designers must learn from courier experience on the ground
Couriers who can optimize ground efficiency will be pivotalLogistics designers that can integrate technology and field operations will be pivotalDispatchers must become better at coordinating and overseeing field operationsLogistics designers must gain expertise in ground operations
Bus
ines
sA
lgeb
ra
What are the numbers and mathematical logic of business unit success?What is the algebra of revenue growth?What is the algebra of process and resource improvement?
We establish large in-country air and shipping hubs, so fixed costs are higher than competitionWe must achieve a higher shipping revenue volume to justify entering a countryOnce we exceed break-even, we generate more profit per additional revenue dollar than with lower fixed costs
Country managers must work closely with logistics and with other countries to track their position relative to fixed costsBecause we will wait to enter a country until it has a large volume, logistics and public relations must work closely to explain our entry decisions
In-Country managers who can build volume scale quickly are pivotal.Economists that can accurately forecast when a country will have volume large enough to justify our scale are pivotal.
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