Management and Design

Management and Design

[wide][/wide] According to the authors of the book “Business Model Generation“, business model generation rarely happens by coincidence. It is also not an exclusive domain of the creative business genius. It is something that can be managed, structured into processes, and used to leverage the creative potential of an entire organization. The challenge, though, is that business model innovation remains messy and unpredictable, despite attempts to implement processes. It requires the ability to deal with ambiguity and uncertainty until a good solution emerges. This takes time. Participants must de willing to invest significant time and energy exploring many possibilities without jumping too quickly to adopt one solution. The reward for time invested will likely be a powerful new business model that assures future growth. This approach is called Design Attitude. If managers adopted a design attitude, the world of business would be different and better. Managers would approach problems with a sensibility that swept in the broadest array of influences to shape inspiring and energizing designs for products, services, and processes that are both profitable and humanly satisfying. The design attitude toward problem solving, in contrast, assumes that it is difficult to design a good alternative, but once you have developed a truly great one, the decision about which alternative to select becomes trivial. A decision attitude toward problem solving is used extensively in management education. It portrays the manager as facing a set of alternative courses of action from which a choice must be made. The decision attitude assumes it is easy to come up with alternatives to consider, but difficult to choose among them. The design attitude...
Unbundling Your Businesses

Unbundling Your Businesses

As John Hagel wrote over a decade ago, companies increasingly face an unbundling decision that will force executives to confront the most basic question of all: “what business are we really in?”   What business are you really in?   Hagel believe that companies are composed of three very different types of businesses with different economic, competitive, and cultural imperatives: Customer relationship businesses – building deep relationships with a target set of customers, getting to know them very well and using that knowledge to become increasingly helpful in sourcing the products and services that are most relevant and useful to them Product innovation and commercialization businesses – developing, introducing and accelerating the adoption of innovative new products and services Infrastructure management businesses – high volume, routine processing activities like running basic assembly line manufacturing, logistics networks or routine customer call centers On the same direction, Michael Treacy and Fred Wiersema describe three generic value disciplines any company must choose and consistently and vigorously act upon to succeed: Operational Excellence – Superb operations and execution. Otten by providing a reasonable quality at a very low price, Task-oriented vision towards personnel. The focus is on etticiency streamlined operations, Supply Chain Management, no-frills, volume is important. Most large international corporations are operating out otthis discipline. Measuring systems are very important. Extremely limited variation in product assortment. But see: Reverse Positioning. Product Leadership – Very strong in innovation and brand marketing. Company operates in dynamic markets. The focus is on development innovation, design, time to market high margins in a shorttime frame, Flexible company cultures. Customer Intimacy – Company excels in customer attention...
Business Model Innovation

Business Model Innovation

Everyone loves innovation… until it affects them! “The biggest obstacle to business model innovation is not technology: it is we humans and the institutions we live in. Both are stubbornly resistant to experimentation and change.” Saul Kaplan Current success prevents companies from asking themselves how their business model could be innovated. Organizational structures are not typically designed for new business models to emerge. Business model innovation combines creativity with a structured approach. The best of both...