Case Study
– Market Research
– Market Segmentation and new market entry planning
– Product conceptualisation
– Product development strategy
– SWOT analysis vs competitors
– Break Even Analysis
– Financial plan
– Business Plan
PLAN
PRESENTATION
Vision and execution cannot be combined..vision has to think ahead
..execution has to think immediate…
Like execution vision also require time and effort and thinking of much greater scale..
Read this Blog: http://mjskok.com/resource/vision-vs-execution
The Mission Statement and Vision statement are aligned with strategy chosen like Peter Drucker cost Leadership strategy. But besides there is product vision which also align with strategy but many disruptive technology make new rules as when break through is reached it continuous process.
Cutting or Leading Edge technologies also strategy gets refined as stages are reached it continuous process. E.g. would be success of iPod driven Apple to rethink and bring back iPod to refine or improve strategy in History.
Today we see Microsoft changing its device vision as market gets inundated by Mobile devices haves good processing power and can process more in Background in Cloud using Compute services available on cloud. Desktop OS sales are not growing as quick and Mobile OS sales. It has been caught earlier by Google Andriod and Apple iPhone. So they have early mover advantage.. So Strategy and product vision are disruptive and keep refining as we proceed.
Day to Day Execution issues are different from after 5 yrs vision although once u are neck deep in it you can realize what is going to come.
Can you say what ? how? When? Where ? we do things now will be same in future. Then can daily toil on task can set future vision ? But surely on u know fundamentals you know directions.
its like road to a hill station you are following to reach the peak. You cannot know its optimum till you cannot see from the top. When you are viewing from top many ways more efficient stands out. Its same called vision.
Retail sector has redefined they way goods are sold to customer. Sociology helps to decide where society is moving thus what possible product can be made for changing society preferences. Marketing just present those choices to potential customers. Sociology does play a front End to marketing. As be see behavioural Economics coming to for front to vindicate these facts last 2 decades.
Software innovation in Retail : from Retail Inventory planning software tracking inventory, to sensor and tags tracking goods through RFID, Retail non tactical , non structured management planning BI systems using SAP BO, IBM Cognos, Microstrategy BI, SQL server SSRS BI. look Manathan BI (www.manthansystems.com/) which is based on SSRS. Read details big data, retail andRFID:
https://sandyclassic.wordpress.com/2011/10/26/big-data-and-data-integration/
Read How Software is Eating Retail:
https://sandyclassic.wordpress.com/2011/10/30/groupon-on-top-5-along-with-facebooklinkedin-can-rediff-deals-do-the-same-in-india/
As Philip Kotler defined 5C and 5P of marketing. 5P (product, promotion, place, price,People) and 5 C being (Custmer, Company, collaborator, competition, context)
Read future trends: http://www.kotlermarketing.com/phil_questions.shtml
Read Book :
http://www.amazon.com/Marketing-Management-Philip-Kotler/dp/0130336297
In Retail sector out of 5P (Place) is very important centrally located , easy accessible to potential customers place can act as magnet for pulling in customers to mall. Then (Promotion) free car parking ,cleaning, or less than cost ice cream at Mac Donald s to attract consumers. (Price) This is where Wall mart is very famous for keeping prices low by attracting many sellers on same floor competing with each other thus like perfect competition condition goods are sold almost at price of Cost of production and supply chain are kept at level of minimal inventory to keep cost down. Supply Chain side automations brings down cost as well more rotation of goods.
Like how P&G and Nestle maintain there Physical warehouses see products by this company
you can register a see complete movie how its done.
http://warehouseoptimization.com/
Like maintaining Go-down with efficient warehousing management and quick reordering based alert issued by sensor on shelf following the (Reorder-level). Thus one of the Cost leadership strategy given by peter Ducker.
just Read few thoughts by author:
http://www.goodreads.com/author/quotes/12008.Peter_F_Drucker
Book:
http://www.amazon.com/The-Essential-Drucker-Management-Essentials/dp/0061345016
There was a classic case : On Grass cutting company On account of being marginalized in perfect competition floor of thus not able to achieve set price to by providing differentiated product said No to walmart
Read : Man who said No to Walmart
http://www.fastcompany.com/54763/man-who-said-no-wal-mart
Retail moved a long was towards innovation last 2 decade from merchandising by experts and procurement experts dealing with suppliers always thinking about the assortment they need to present to customer entering the Mall. Tracking Eyeball of consumer picking up consumer behaviour to schedule the products related to each other in one shelf or in nearby place. Creating products variety is assortment planned so as to achieve variety and meeting matrix of operational efficiency of (price, quality, time flexibility).
Any shopping mall place with promotion pulls up potential customer called prospect to store area. Then Each vendor has its strategy of luring in customer because once in the store and customer start spending then customer does not think much about cost also like mac Donald less cost ice cream example other Items does get ordered out of expected value a consumer may derive. The rational choice theory does also play important role. It has been Noble prize winning theory by prof Daniel Kahneman (2002) and Gary Becker (1992). Read : http://en.wikipedia.org/wiki/Rational_choice_theory
Consumer Behaviour is getting shaped by the behavioural Economics of Rationality which is inherent in our thinking process.
Not only does it help justify Stock behaviour it does tell consumer preferences after entering into store.
From the format of stores and their strategies
1. Retail Store: Super Store, department store , Hypermarts, discount store,
Read Strategy here : http://en.wikipedia.org/wiki/Retail#Types_of_retail_outlets
2. Wholesale stores/Warehouse Club : for small vendor taking bulk orders at once. Like metro http://en.wikipedia.org/wiki/Warehouse_club
These differentiation help to achieve variety and specialization and hence more premium is available in terms of not cost but volume.
Its like classical economics “Supply will create its own demand” Although its not much relevant but surely its in play say (10%) of cases. Because there are other factors as well which dominate its not sellers market its buyers market.
These requirement are going to stay for next decade:
Where can Software services/product firms lay emphasis for next stage of development. Or the areas which will see maximum amount of work coming in future..
Or What areas of knowledge should software companies develop manpower on:
1. Game development and Gamification:
https://sandyclassic.wordpress.com/2012/06/27/future-of-flex-flash-gamification-of-erp-enterprise-software-augmented-reality-on-mobile-apps-iptv/
read: https://sandyclassic.wordpress.com/2013/09/16/new-age-enterprise-resource-planning-systems/
2-7. Each of the Seven areas in development:
https://sandyclassic.wordpress.com/2013/09/18/new-breed-of-app-development-is-here/
read: https://sandyclassic.wordpress.com/2013/09/20/next-generation-application-developement/
As you read you realize software which can take advantage of multiple processor available on the devices None of sotware present in market today is written to take advantage of this fact. It may be possible an new language may come up to take benefit of this fact of we can still use old java/C++ threads more offen or we can distribute load on server by more specific COM/ DCOM or Distributed Common Request broker Architecture CORBA to processor level at server.. We have virtual switches and VM ware or Zen virtualisation which can exploit maximum benefit from it.
8. More virtualised network stack: this I wrote 2 yrs back still valid to quote here:
https://sandyclassic.wordpress.com/2012/07/16/cloud-innovation-heating-up-network-protocol-stack-and-telecom-stack/
private and public cloud new API will emerge: https://sandyclassic.wordpress.com/2011/10/20/infrastructure-as-service-iaas-offerings-and-tools-in-market-trends/
9. from SDLC V model to Agile and now to lean Agile ..use of six sigma to control process is just one part of mathematics being used for quality control but there would be new data model which will be tested based to mathematical modelling like probability distributions new model industry specific models would keep emerging.
like how for security project how security user stories are plugged into model
https://sandyclassic.wordpress.com/2013/01/05/agile-project-management-for-security-project/
or read https://sandyclassic.wordpress.com/2012/11/12/do-we-really-need-uml-today/
10. BI would be Everyware:
https://sandyclassic.wordpress.com/2013/09/20/next-generation-application-developement/
parallelism , map reduce algorithm and cloud
https://sandyclassic.wordpress.com/2011/10/19/hadoop-its-relation-to-new-architecture-enterprise-datawarehouse/
Activity based accounting has changed the accounting system where even cost centre inputs to bottom line is also appreciated , calculated and accounted and apportionment is run not only to profit centre but also to cost centre.
This led to renewed influence of new cost centre based new module reporting like Human resource Accounting/Analytic ( Profit centre based system were preferred early and coast centre were neglected )which not only introduced new module in the Enterprise Resource planning ERP also changed the interlinking between modules such as Human resource management system , human resource accounting influence to General ledger and to profit and loss account.
– as each activity is apportioned into management accounting there are changes which are happening in the Analytics as more deeper ,cross functional analytic measure are used last 5 yrs leading to huge changes in business thinking for top line and bottom line growth.
– as BI becomes pervasive and ubiquitous it leads to deeper granular analysis to system thinking by lower level staff leading to bottom up innovation.
https://sandyclassic.wordpress.com/2013/05/03/classifying-ubiquitious-data-images-into-emotion-for-target-advertisement-campaign/
– cloud and mobility has introduced pay per use model which influenced more pervasive BI and ERP usage by all staff giving fillip to bottom up thinking. Capital expenditure changed to operating expenditure leading to more acceptability to mid size companies as well large scale companies.
– real time updates using sensor based tracking of supply chain items , stock keeping unit SKU in Retail and in-memory system (SAP HANA, Oracle Exadata, IBM Cognos TM1) making update faster and possibility of including more compressed data into primary memory for analysis.
https://sandyclassic.wordpress.com/2011/11/04/architecture-and-sap-hana-vs-oracle-exadata-competitive-analysis/
Gamification/AJAXifying of ERP:
https://sandyclassic.wordpress.com/2012/06/27/future-of-flex-flash-gamification-of-erp-enterprise-software-augmented-reality-on-mobile-apps-iptv/
Adobe forms and increasing replaced SAP forms and even Oracle apps forms in AJAXified ERP systems. Augmented reality on AJAX making possible Gamification of ERP.
Javascript and AJAX dominates the Java on client side. increasing used of Node.js making server side javascript dominance a possibility with less requirement for strictly typed languages like Java and easy callback references.
https://sandyclassic.wordpress.com/2013/05/03/classifying-ubiquitious-data-images-into-emotion-for-target-advertisement-campaign/
So many business are wiped out due to Strategic Information System (SIS). SIS will be important again.
SIS is effective only when it valuable and imperfectly imitable. Sources of imperfect imitability:
1. Unique Solution
2. Patentable technology
3. Organizational Culture
4. Teamwork
5. Internal Politics
If SIS is non-imitable then competitor cannot replicate and hence cannot benefit from it.
Operational management SIS example:
American Hospital Supply inventory control system installed on customer premises
Financial management SIS example
Organizational planning must be tied to financial analysis. There is always a greater opportunity to develop strategic systems when the financial systems are in place, and required figures can be readily retrieved from them.
How SIS help in strategic competitive advantage:
Cost ,differentiation are mutually exclusive.
Basic competitive forces:
The problem is to determine how a business can outperform the industry average and attain a sustainable competitive advantage .answer lies in information technology together with good management.
Enterprises can be large and complex, the models associated with the discipline also tend to be large and complex.Enterprise Architecture framework help reduce this complexity by offering:
Enterprise Architecture
A list of ALL ENTERPRISE FRAMEWORKS…
– Business Frameworks (e.g. BMM, Six Markets, Porters 5 Forces, McKinsey 7S, etc)
– Architecture Frameworks (e.g. PEAF, MODAF, TOGAF, TEAF, IAF, Zackman etc)
– Programming Frameworks (e.g. .NET, J2EE, etc)
– Project Management Frameworks (e.g. PRINCE2, MSP, etc)
– Service Management Frameworks (e.g. ITIL, etc)
– Industry Operations Frameworks (e.g. eTOM, Pragmatic Marketing, etc)
– Any other type of framework in any other domain so long as it is related to an ENTERPRISE.
There is endless list of model basically modeled around either Zackman or TOGAF.
Like this one for security. Building Security In Maturity Model. The BSIMM is a study of real-world software security initiatives organized so that you can determine where you stand with your software security initiative and how to evolve your efforts over time.
http://bsimm.com/online/
then like sharewood which like modeled on zackman
http://en.wikipedia.org/wiki/Sherwood_Applied_Business_Security_Architecture
SAP chairman said some last tech ed in europe..next 5 years SAP needs to work what it has not last 20 years…What is it? we see try understand that why? short 1. ABAP is old language still long way to go when compared with Java when it used for Fusion on which Oracle ERP is based.. SAP Answers: 1 Develop: BSP business Server pages to take on JSP in Java.. remove dependency on Java hence on netweaver..Where should netweaver go.. 2. Competition from cloud: SAP knows it limitation hence tied up best cloud provider Google..BO analytics. 3.new virtualization technology and parallelism with intel.
Few more things happen as processor hit More’s law we had to increase processing power using parallelism, intel came with new C++ API to increase parallelism of software (http://software.intel.com/en-us/articles/intel-parallel-studio-xe/).Then SAP came up with HANA in partnership with intel. see more details below..
Just see few changes on business Objects due to cloud and new mesh up architecture popularity..now BO is using google API to present it over mesh up or map API.Open system of technology ecosystems for SAP ISV, technology partners to customize and present to SAP systems.
http://www.sap.com/corporate-en/press.epx?pressid=17358
It gives google good entry point in enterprise software. So do we see google going deep into it..Even for mobilty SAP acquired Sybase but still mobility google can provide better solution.Now SAP has two choices Sybase or google API for Mobility.
Consumption strategy to increase usage : light components like Adobe flex for outside system/people interact with data and functionality of System and integrate with gateway to SAP for consumptions,front-end technology like adobe flex which gives access to outside systems,or in premise systems like Ms office,sharepoint and mobilty application came with acquisition of sybase.
Cloud strategy of SAP: product strategy is to provide systems On premise, on demand, on device. consumption like webservices,cloud for virtualization and in-memory for quick response time.Cloud systems have three Type SAAS,PAAS,IAAS
SAAS/PAAS Strategy: Platform as service: Platforms: 1 SAP by Design Platform: core application, transactional,robust enterprise class application(application like sales on demand)
SAP Business ByDesign which is ideally suited for small and medium size companies and subsidiaries of large corporations.Re-Align your modules priority quickly..by using design..build from ground up.
watch demo video: http://www.sap.com/solutions/products/sap-bydesign/index.epx
2.River Platform: River is a cloud-based development environment which supports lightweight extensions to on-premises ERP (enterprise resource planning) software.It is based on SAP’s purchase of Coghead in 2009 is present in the urns in the REST API.
application have rapid application development,collaborative applications.Carbon impact applications.http://www.sapcarbonimpact.com/
Both have backed integration capability with on premise systems.
IAAS: Infrastructure as service VCM: External cloud and Internal cloud, virtualized machines all can be managed with virtualization and cloud management to make IT more Agile and move from like development systems to production systems quickly. self service portals for maintaining cloud. (VCM landscape management software (BC-VCM-LMS)
Partnership with Intel: to increase parallisation to utilize hardware to increase compute capacity.In memory computing engine.
SAP HANA in memory unifying architecture is path breaking but where it can be leveraged ? What HANA does is integrate
High performance Analytical appliance. HANA in memory computing engine on which partner can build appliance like IBM,HP,Fijistsu,Dell. It can give sub second response time. modelling and data model from BO, data replication through sybase transnational systems into this in memory database .
Three protocol:1. BICS for BO, 2. SQL for other applications on top of it and 3.MDX for applications like Excel.
HANA can power any mobile applications and gateway to easy consumption and attach to existing system.Exiting customer can also utilize and hence non disruptive.can utilize latest consumption models and infrastructure innovations.Lower TCO.
cloud wars between apple,amazon,microsoft Apple: From itune,ipad to iphone, to now icloud.which can leverage all these technologies and trends.now from my last post you can guess why amazon is coming with new cloud based browser and its architectural details.As cloud comes up it breeds new tool, new war, necessity is mother of invention..so new split browser does 90% work on cloud uses cloud power only 10% om mobile.Amazon is only competitor to apple on icloud. -iwork: When i work gets released, new generation office tool from apple on mobile or any devices, its ready to compete with Microsoft office 365, and google doc. apple most wealthy company in this world is still less prized. only 14 times its future revenue compared 11 times of microsoft or google..reason its growing 67% in revenue...its no.1 and double the size of next competitor.iWork: When its start cutting iwork it will eat up more of Microsoft revenue. Apple cross-platform app open strategy of apple is winning streak bringing collaboration to work. Google: Chormebook, with chrome based apps (just like app store for apple) will start competing iPad. features last year - file storage,music stream all chrome app. - get more dependent on webizimo. - sun had old net strategy.(but no content was given). google has so much content to consume from Gmail to YouTube, - leverage pattern to see consumer behaviour. google finance etc. Microsoft - leveraging of complaint is gift.(they like your product except for). - Microsoft.people preception MS not fixing issues in present version but releasing new versions every time. - IBM (the legacy player) has Microsoft eating its revenue stream from OS,servers,office,mail servers,database,langauge. - icloud,iwork for tablet vision office suit will be competing with office 365. - on tablet .Microsoft will going to become legacy provider for migrations. biggest legacy company IBM has highest share still..interesting how stock market behave. Samsung interesting to see how Samsung (the dark horse) is only provider of hardware and licensed version of other software OS. Samsung has collaborated with google last year launch of android phone..then ran into dispute will apple and losing it. now also had tied up with windows mobile.Looks like Samsung is taking all side just want to be one eating everyone revenue. interesting to see how samsung (the dark horse) is only provider of hardware and licensed version of other software OS. samsung has collaborated with google last year launch of andriod phone..then ran into dispute will apple and lossing it. now also had tied up with windows mobile.Looks like samasung is taking all side just want to be one eating everyone revenue. Oracle: The late comer had Oracle RAC for RDBMS which does same almost computation as Hadoop hive do for realtime data. Oracle has every component on cloud from server to storage to databases, identity management to ERP and now cloud is ready but where is mobile strategy.Even open world Larry Ellison announced cloud will be ready in next few moths after getting jitters from sales force CRM CEO.Lary has taken best of both world approach. The application unlimited strategy. Just like FMCG majors Hindustan levers strategy of different product for each differentiation. Fusion app is being ready as platform for future cloud. EMC mobile stategy. focused on mobile user response to application,gestures,content they want to access,function and capabilty of device New software application for mobile based on --guided navigation. (GUIDE WHERE is content,what they want to see ) --search and filter capabilities.(taking content offline). --acessing content anywhere. --document and repository.
Sandyclassic 