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Mitigating Disruptive Innovation Risk
Let's begin with a defintion for innovation: Innovation is a match beween a need and a solution. Technology innovation can be brought about by inventing a new solution, discovering a new need or by improvising a new solution by applying an existing solution and need in a new way. Innovation need to create value:
- Is the need real?
- Does the solution meet the need?
- Can the solution be delivered cost effectively?
There are 3 Frontiers of innovation that corporates fall into. They need to exploit an existing technology, a new technology for an existing solution, or exploration of a completely new approach or solution. Each have their own risk reward systems with respect to adoption of the technology or solution itself.
The TekMetrix Ambidextrous Innovation Matrix, Figure below, indicates that in order to improve and sustain our business model we must fill the innovation pipeline with Frontier 3 opportunities. TekMetrix will assist our clients in identifying, developing and sustaining an innovation pipeline. We create a culture of innovation from our experience and knowledge through:
- Identifying investment needs in technology exploration
- Working to assign a central authority responsible for innovation
- Managing the innovation pipeline
- Creating a model to value the innovation
- Value Created (VC) = Function (idea, development capabilities and external factors)
- Managing a portfolio of innovation projects
- Managing the quality of ideas
- Integrating with the business units from the start
- Developing capabilities (skills, assets, systems)
We privide both an offensive and a defensive perspective on assisting our clients with innovtion. Offensive points of vew begin with how to discover and pursue opportunities for future growth and from a densive point of view how our can clients mitigate their rise to disruptive innovation. When an organization is faced with disruptive threats we work them to manage risk assisting with strategy development along the following decision scenarios:
- Fully Invest in the disruptive technology
- Invest in a project or create a new organization to mitigate, hedge against the risk of disruptive innovation
- Review anti-competitive actions
- Concede and manage for cash
- Change the game by proactively investing in new market opportunities
- Invest in Frontier 3 opportunities creating Frontier 2 opportunities
- Minimally we work with our clients to extend their business processes to enhance Frontier 2 culture and capabilities
- Taking a project portfolio perspective for Frontier 2 represents risk mitigation
- Leverage Frontier 2 opportunities to make money with at horizon 1 - exploitation
Defining the Innovation Process
- Strategy - what is the plan to proceed with innovtion efforts, what is the innovation opportunity (hypothesis)?
- Project - how to get the optimized return for specific innovation activities?
- Innovation Process - is this a new innovation process or an existing innovatino process in the client organization?
- Discovery processes to create more opportunities (workshops, innovation events, projects, partnerships)
- Find better opportunities by involving experts who have reliably generated high quality ideas in the past
- Inceasing idea quality variance by involving customers, suppliers, and other SMEs
- Creating an effective selection process
- Resolve team tension, work within productive processes
- Identifying and balancing internal versus external modes of innovation
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A critical strategic activity is to determine readiness to scale the business ecosystem. Growth and scaling are not the same. Growth is defined as adding resources at the same rate as adding revenue. This occurs in services organizations such as consulting firms. Scaling is about adding revenue at an exponential rate while adding resources at an incremental rate. To scale a business ecosystem corporates must invest by taking, for example, the current quarter margin and investing it into the next quarter capturing even more revenue. For many companies growth is not a strategy. And with the proper skills and technologies it is easier than ever to scale a business ecosystem. The internet offers a myriad of ways to adversise and capital flow into marketing has been historically large. Growth as a strategy is easy to copy but more than likely a business that has a growth strategy will probably fail.
Most all organizations have a common goal: and that goal is creating value. How an organization explains and demonstrates value add to their customers, investors and or stakeholders is a key challenge. To scale a business ecosystem the company must be efficient. Successful organizations are able to develop and link measurable organizational and business metrics that are then coupled to a financial metric, creating a goal with a measurable outcome and, finally, creating and measuring the leading metrics that indicate that the organization is ready to scale the business ecosystem. TekMetrix uses the TekMetrix Value Driver Tree (VTD) data model deloyed in SAP SAC for this purpose of measuring and maintaining efficiency.
This model can be developed for each product SKU, with aggregations acrosss SAP master data and analyzed at the detailed product SKU. We use TekMetrix experience, knowledge base, AnalyticA tools and SAP SD MM FI CO COPA, BOM, Material Master, HANA SAC data models. We deploy these models using S4 BW4HANA, SAC and PaPM and Fiori. We deliver machine learning use cases on these models using regression and linear optimization algorithms creating a SKU level S&OP, AOP resulting in a newly purposed FP&A process for the enterprise.
Analyzing efficiency metrics like these above, costs per product or user, cost of revenue, revenue, loss per product or user assists in the scalability of the business ecosystem. These metrics assist the client in determining readiness to scale by making visible demand or supply side-side economics represented in their business model and ecosystem.
Supply-side economies of scale:
- Cost-based economies of scale
- Resouce pooling in supply chain and servcies
Demand-side economies of scale:
- Network effects
- Performance benefits achieved from scale
TekMetrix IT strategy components of a business ecosystem:
- Supply side economies of scale
- Demand side economies of scale
- Switching costs
- Learning curves
- Metrics
- Creating an organizational flywheel
Technology adoption and services adaptations are strategic aspects to assist in the decision and timing of scaling activities. We assist clients in codifying a process to hire, train and allow others to execute providing an appropriate division of labor by balancing people and process.
To assist an organization to scale their business we ask the following questions using the TekMetrix Synergy Framework:
- Scalable: Is the strategy, market, demand side - supply side economic business model favorable to scale?
- Constraints: What resoruces are needed, what do we have?
- Alignment: Do we have product and process market fit?
- Leadership: Do we have the right organization, leadership and employees?
- Efficiency: Do we have the know how to make money efficiently which requires a business model which is repeatable and scable?
With TekMetrix tools and leadership it is much easier to scale a business today than in the 1990s.Tools, know how, cloud compute are readily available, i.e the cost of compute, storage and cloud services have dramatically reduced.
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SAP SAC Supply Chain, Value Chain, Ecosystem
The supply chain is an operational view of interconnected activities between source of materials or services, conversion of materials or services to products and services and distribution of those products and services to end customers. Key metrics are cycle times, activity changes e.g., sales order changes, conversion costs and customer satisfaction. Short term disruption in the supply chain can occur because of pricing changes due to inflation, logistics delays, or weather issues. Longer term disruption includes competitor adoption of AI, IoT, ML and blockchain technologies.
The value chain is the set of activities that a firm chooses to assemble in order to either focus on cost or provide a differentiating value proposition when going to a market.
An ecosystem is a set of external business models and assets that contribute to the focal (primary product or service offer) user’s value proposition to the end customer.
Adoption of ML technology for improved forecasting in the supply chain has been accelerating. Skills and software are the adoption factors. Also are incumbent systems where master and transaction data is of sufficient quality to be used as an input into a learning algorithm. The quality of data has improved and the ML algorithm has improved, along with comput to take as inputs on a variety of data formats and meta data types.
As for value chain activities they have been disrupted largely by the wide spread adoption of enterprise resource planning (ERP) solutions. Largely all processes are automated and integrated. Organizations are slim, lean and more productive. However, they lack the adoption of existing AI technologies due to worker understanding and skills and complementary infrastructure to leverage the use of the new AI technologies.
Key Premises of an SAP SAC TPM PaPM RGM Ecosytem
- Multiple actors - different organizations contribute toward the focal offers value proposition
- Economic complementarities between actors - functions performed by the actors create or enhance the user value proposition
- For example POS data from Nielsen, IRA and SPINS provide syndicated market data
- Structural technological interdependencies between actors
- APIs connect SAP with application developers to help users benefit from from SAP data
- R, Python, Regression Analytics (volume forecasting, trade planning and forecasting, trade optimization)
- APIs connect SAP with application developers to help users benefit from from SAP data
- Product SKU level planning, forecasting, actuals and variance statistics (AOP, S&OP, Trade Promotions, Trade Executions)
- The value created by an Ecosystem is limited by its weakest link, bottlenecks
- Ecosystems and ecosystem strategy is not the same as a value chain or supply chain strategy, each are distinctly different
- Many of the worlds Ecosystems are organized around a central SAP platform
- Most of the worlds top companies have a platform based strategy for value creation (Apple, Uber, Amazon, Tesla)
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Synergy Methodology Goals
The Synergy Methodology is the base approach to delivering services to our clients. It is a combination of some of our best delivery assets into one global integrated methodology. It provides:
- A scalable integrated collection of assets
- Consistent vocabulary, level of detail, and presentation
- Enables tailoring to scale, to provide a unique but consistent cost effective delivery approach for each client
Why a Global Delivery Methodology?
While no two engagements are the same our clients expect us to deliver with a consistent and methodical approach. The Synergy Methodology incorporates TekMetrix practitioners' delivery experience into a single integrated approach for all our engagements. It provides the structure for integrating all our global capabilities including utilizing our AnyShore resources in the delivery of rapid measurable results. The methodology also provides guidance on the use of our Synergy Standard Tools while allowing individual teams the flexibility to use client-mandated tools.
The following is enabled by the methodology:
- A flexible baseline work plan that defines relationships and integration between the various components of the methodology.
- Modularity, which allows tightly integrated, well defined "units" of deliverables called activities in a loose pattern (flow chart) that prescribes inputs and outputs. Activities can be sorted or exchanged for units that use different techniques, technologies or approaches. This allows the methodology to be customized and specialized for specific solutions and technologies.
- A relatively static method that is the prescription for repeatable successful execution
The Methodology Applied
Establishing an Effective Process
- The Synergy Methodology abstracts the specifics of specialized technologies and techniques. The right assembly of technologies, techniques and deliverable processes takes a trained, experienced practitioner.
- The Synergy Methodology is the mechanism for a consistent global approach in reaching business objectives efficiently, visibly and effectively.
Planning Carefully to Be Efficient
- Time invested in an effective plan with clear objectives has repeatedly proven to be the key to successful execution. The Synergy Methodology provides a structured approach to the planning process.
- While this may appear to require more initial effort than desirable, experience has shown that following these processes will reduce the likelihood of planning mistakes, and result in lower risk and more cost effective rapid delivery.
Measuring Value
The Synergy Methodology incorporates a consistent approach for identifying and then tracking and measuring the value derived from an engagement. Incorporated primarily in the Strategy & Value work stream, these activities are based on our experience delivering and measuring improvement in enterprise value and return on investment.
Consistent Global Delivery
The Synergy Methodology assists TekMetrix in delivering our services globally by:
- Providing common language, terminology, presentation, and a cohesive delivery culture, which allows TekMetrix to deliver effectively and efficiently wherever our clients are located.
- Giving our clients confidence in our ability to ensure a consistent global approach that can deliver the same services worldwide with effective and cost efficient resource deployment.
Phases and Work Streams
Phases
- Synergy sequences Activities via a categorization of high-level phases that in some cases are further defined by sub-phases. This structure defines the typical sequence from which a project team tailors the methodology to meet their specific engagement requirements.
Work Streams
- Work streams are a sequence of activities that are directly related and are most often executed by a team with a specific knowledge base/experience. For example, the Manage work steam defines the activities and deliverables for project and program managers for the lifecycle of an engagement.
- Work streams articulate our team's respective delivery processes and continue to be refined by TekMetrix's global experience.
Tailoring the Synergy Methodology
- TekMetrix engagements may leverage the appropriate work streams to address a Solution specific target segment. Specific application approaches, technologies, standards and vendor specific requirements may be supported via additional experienced based assets. These specialized assets are integrated with the Synergy Methodology through the use of Solution Guides and Standards Guides.
- Individual projects will either begin with a solution or standards guide when available,or tailor the base Synergy Methodology.
- The Tailoring the Synergy Methodology technique provides the process for tailoring the methodology, specifically the Project Plan Template, to meet the needs of a program or project. It also includes an explanation of the Core Activities that should be used regardless of project type or size on every engagement.
Adapting and Growing
Scaling for Value
- Projects vary considerably in both scope and duration. Applying inappropriately scaled methods results in low productivity and poor quality. Synergy addresses scalability by including instructions for effective utilization (Adaptation) with each activity. These are designed not to omit necessary elements but rather address them efficiently.
Solution Guides
- Delivering TekMetrix solutions is supported via Solution Guides that identify the necessary elements of Synergy that have proved effective and necessary for a specific solution delivery. Solution Guides provide the guidelines that further accelerate TekMetrix's delivery process for repeatable successful solution implementation.
Continuous Improvement
- Continuous Improvement is an integral aspect of Synergy. The Synergy Methodology is a segment of the growing knowledge base and expertise of our experienced practitioners. TekMetrix's approach to knowledge capture and leveraging our team strengths through Synergy represents an improved value proposition with lower risk.
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Driving Strategic Innovation With Initiatives
Digital technologies are redefining the ways consumers engage and companies compete. Digital strategy is driven by a variety of factors, including current enterprise architecture, changes in consumer behavior, the competitive landscape and technology innovations. AI and ML are being adopted at an ever increasing rate. and are with us to stay. A digital strategy is designed to improve the organization's business effectiveness by using digital technology to improve efficiency, capture new customers, reduce costs and improve employee experience in the organization. Its about making long term decisions while maintaining the tensions between long term and short term needs. A successful digital strategy should include:
- Assessment of the strategic impact of digital
- Making data-based decisions
- Risk management
- Setting streatch goals
- Creating an Ambidextrous Organization capable of both innovation and efficiency improvements
- Evolving organizational capabilities by implementing Exploration and Exploitation processes
- Execution initiatives and transformation management
Understanding Location of World Skills Clusters
Talent and technology clusters exist in various locations throughout the world. Organizations need to hire the most talented people. Talent and technology are globally distributed in clusters. IT strategy cannot be local nor geographically random. Understanding where and why talent and technology clusters of excellence exist is critical to creating a digital strategy which can be implemented.
Demand curves drive the clustering of technology and talent. Talent and technology clusters are driven by global demand. Once the demand is global there are significant benefits to concentrating talent in one place. Talent is superadditive. Skills learn from each other and improve each other due to increasing returns to scale. Knowledge is transfered tacitly, that is face to face interactions and learning.There are fundamental economic reasons that explain why pools of talent or technology knowledge clusters exist around the world, and immigration helps explain these underlying dynamics. Managers need to understand that immigration is not just a political topic, but a strategic opportunity and challenge that affects key business activities, including the ability to be more innovative and make decisions about where to invest and where to recruit.
Developing a Strategy and Analytic Playbook
Where Will You Compete?
Differentiation Strategy and Leadership
- Differentiation is accomplished through product and or service attributes which provide value - improved price points
- Is distinctive
- Focuses on a market segment where there is interest in product or service attributes and the market is willing or pay for the desired attributes
Low Cost Strategy and Leadership
- Provides the lowest costs in the market or industry
- Gains low costs from economies of scale
Often, best costs is a value driven strategy which requires a balancing of market facing strategy with organizational leadership:
- Industry and positioning
- Leveraging and accessing new capabilities
- Neutralizing competition
- Implementing an ambidexterous organization
How Will You Compete?
The skills needed to managing innovation projects which unleash strategic advantage requires integrating teams, innovators and assets. There is a delicate balance between exploration for "new" and exploitation of "old". These skills are deployed across teams focused on the components of innovation shown in the graphic below.
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Product Innovation:
- Definition: Product innovation involves creating and developing new or improved products, services, or processes by a company or organization.
- Forms:
- New Product Development: Creating entirely new products that fulfill unmet needs or offer unique benefits.
- Product Improvement: Enhancing existing products by introducing new features, improving performance, or addressing customer feedback.
- Line Extensions: Expanding an existing product line by introducing variations (e.g., flavors, sizes) to cater to specific customer segments.
- Cost Innovation: Reducing production costs while maintaining or improving product quality and functionality.
- Busines model innovation: Reimagining how products are created, distributed, marketed and sold
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Platform Innovation:
- Definition: Platform innovation rapidly iterates upon the platform business model by creating new platforms or improving existing ones.
- Examples: Facebook’s Messenger, Alibaba’s Taobao and Tmall, Amazon’s Marketplace, AWS, and Alexa.
- Paths to Market: In-house development, acquisition, advisory or private equity investment.
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Commercializing Innovation:
- Definition: Commercializing innovation is the process of taking inventions to market to achieve their intended societal benefit.
- Factors Influencing Success: Market readiness, industry partners, entrepreneurship, and go-to-market strategy.
- Paths to Market: Licensing to industry partners, existing startups or creating new startups.
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Ecosystem Innovation:
- Definition: Ecosystem innovation involves creating and implementing feasible business models within a network of actors, resources, and conditions. It catalyzes new products, ideas, and systems.
- Importance: Enables collaborative approaches, scalability, and impact on global poveraty challenges.
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Open Innovation:
- Definition: Open innovation emphasizes using both internal and external resources for enterprise innovation. It involves collaborating with external partners, acquiring inventions, and seeking collaborative innovation.
- Ecosystem Building: Creating an open innovation ecosystem without organizational boundaries, connecting external resources, anjd promoting value co-creation with partners
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Scaling Innovation:
- Definition: Scaling innovation involves taking successful innovations and expanding their impact to reach a larger audience or market.
- Examples: Expanding successful startups, replicating effective programs, or deploying innovations globally.
- Considerations: Scalability, sustainability and adaptability
What Capabilities Must Be In Place?
While the above looks complicated, strategy can be defined using a strategy playbook that seeks to answer five questions:
- When you win, what have you achieved against your aspiration?
- Where will you compete, what industries and where are the markets?
- How will you win, price points, efficiency, service and or product features?
- What capabilities must be in place to win, people, innovative technologies?
- What management systems are required, rewards, measurement systems,?
- What choices can we make today which will increase the success of future choices?
- What are the descriptive, predictive and prescriptive analytics needed to continuously improve?
What Management Systems Are Required?
TekMetrix Digital Innovation Strategy Services
We assist defining the latest technologies and how you can reinvent your business model, reassess your value chain, reconnect with customers, and rebuild your organization for the future. To create and drive a modern digital strategy you to:
- Create a strategic technology playbook
- Redesign existing and create new business models
- Taking advantage of crowdsourcing and open innovation
- Digitizing operations
- Designing Omnichannel strategies
- Understanding changing consumer behavior and media habits
- Creating digital, social, and mobile marketing strategies that engage customers
- Acquiring, retaining, and managing customers
- Establishing the right organizational structure and incentive systems
- Building a learning organization that continues to improve its capabilities
- Leading and managing the digital transformation process
What Choices Today to Improve Future Success?
Exploration versus Exploitation Processes
Appendix 1 Ambidextrous Organization
An ambidextrous organization is one that adeptly balances two critical aspects of its operation: exploitation and exploration. The details are:
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Exploitation:
- Exploitation refers to optimizing existing capabilities, processes, and products.
- It involves efficiently managing day-to-day operations, improving efficiency, and maximizing profits from the current business model.
- Think of it as “harvesting” the fruits of what the organization already knows and does well.
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Exploration:
- Exploration focuses on innovation, experimentation, and venturing into new territories.
- It involves seeking out novel opportunities, developing disruptive technologies, and exploring uncharted markets.
- Think of it as “planting seeds” for future growth and sustainability.
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Ambidextrous Organization Characteristics:
- Separation: Ambidextrous organizations create distinct units for exploitation and exploration.
- Exploitative Units: These handle existing operations.
- Exploratory Units: These focus on innovation and new ventures.
- Integration: Despite separation, senior executives maintain tight links across units.
- Ambidextrous Managers: These executives understand both worlds—rigorous cost-cutters and free-thinking entrepreneurs.
- Shared Growth Ambition: The organization aligns both units toward a common goal.
- Separation: Ambidextrous organizations create distinct units for exploitation and exploration.
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Why Is It Important?:
- Almost every company needs to renew itself through breakthrough products and processes.
- However, this shouldn’t happen at the expense of the traditional business.
- Building an ambidextrous organization ensures a balance between the present and the future
Appendix 2 Where Will You Compete?
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Definition:
- “Where Will You Compete” refers to the strategic decision-making process wherein an organization identifies and selects specific areas or domains in which it will compete.
- This is a strategic decision of choosing markets, customer segments, product categories, geographic regions, and channels where the organization will focus its efforts.
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Key Considerations:
- Geography: Which countries or regions will the organization target for its products or services?
- Product Type: What specific offerings (products or services) will the organization provide?
- Consumer Segment: Which groups of consumers will the organization serve?
- Channels: Through which distribution channels (e.g., direct sales, online platforms, retail partners) will the organization reach its customers?
- Stages of Production: Which parts of the value chain (from raw materials to end products) will the organization participate in?
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Importance:
- Defining the Playing Field: The choice of “Where Will You Compete” defines the boundaries of the organization’s business. It clarifies what markets and customer needs the organization will address.
- Strategic Focus: By making deliberate choices about where to compete, the organization can allocate resources effectively and avoid spreading itself too thin.
- Alignment with Capabilities: The selected playing field should align with the organization’s strengths, capabilities, and core competencies.
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Example:
- Imagine a business deciding where to play:
- Will the business sells only locally or should they expand to neighboring geographies?
- What products and services will they develop to sell?
- Will the products and services be differentiated, low cost or hybrid?
- Should the business sell directly to consumers or through intermediaries?
- If manufacturing is involved, should it be done in-house or outsourced?
- Imagine a business deciding where to play:
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Strategic Alignment:
- Where Will You Compete choices should reinforce each other and align with the organization’s overall strategy.
- Once the playing field is defined, the next step is to determine “How to Win” within those chosen areas.
In summary, “Where Will You Compete” is about making deliberate decisions on where the organization will compete, ensuring alignment with its capabilities and market opportunities.
Appendix 3 How Will You Compete?
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Definition:
- “How Will You Compete” refers to the specific actions and approaches an organization will take to achieve its strategic objectives.
- It focuses on the tactics, competitive advantages, and operational choices that will enable the organization to succeed in its chosen markets.
- What is the best value proposition, the best combination of differentiation and cost
- Understanding customer preferences that drive their willingness to pay (WTP) drives differentiation
- Cost efficiencies, process, scale, systems for the best cost position based on a given level of differentiation
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Key Considerations:
- Competitive Advantage: How will the organization differentiate itself from competitors? What unique value proposition will it offer?
- Business Model: What revenue streams, cost structures, and distribution channels will the organization use?
- Resource Allocation: How will the organization allocate its resources (financial, human, technological) to execute its strategy?
- Execution Plan: What specific initiatives, projects, and milestones will drive the strategy forward?
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Importance:
- Execution Bridge: While strategic thinking defines the overall direction, “How Will You Compete” builds the bridge between strategy and execution.
- Alignment: It ensures that everyone in the organization understands their role in achieving strategic goals.
- Adaptability: As market conditions change, the organization can adjust its tactics while staying true to its strategic intent.
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Example:
- Imagine a global CPG Company:
- How Will You Compete: The company will focus on a seamless user experience, personalized recommendations, and fast delivery.
- Tactics: Implement AI-driven product recommendations, optimize website speed, and negotiate partnerships with reliable couriers.
- Imagine a global CPG Company:
Appendix 4 What Capabilities Must Be In Place?
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Organizational Capabilities:
- Organizational capabilities refer to the intangible, strategic assets that an organization draws upon to execute its business strategy, accomplish tasks, and satisfy customers.
- Skilled resourced, focused assets, dedicated systems
- Technology alliances and partners.
- Capabilities are not borrowed from external templates; they are acquired and refined internally through various interactions.
- Organizational capabilities include expertise, processes, knowledge, skills, technologies, and unique adaptive features.
- The strength and alignment of these assets define a company's inentity and differentiate it from competitors.
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Why Are Organizational Capabilities Important?
- Successful companies possess distinct combinations of capabilities that set them apart. It’s not just their structures but their knack for innovation, adaptability, and customer-centric approaches that make them stand out.
- Organizational capabilities play a pivotal role in:
- Gaining Competitive Advantage: Effective resource management and information utilization enable organizations to meet customer demands with distinctive products and services.
- Driving Success: Companies that excel in organizational capabilities deliver deliver excellent service and satisfaction to customers which leads to success
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Strategic Planning and Capabilities:
- When crafting a strategic plan, organizations must consider the following capabilities:
- Demand Sense: Understanding and monitoring customer preferences, demand management, forecasting, and demand sensing.
- When crafting a strategic plan, organizations must consider the following capabilities:
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SAP Ecosystem:
- S4 and BW4 most often is the core ERP system for large and small corporations, transactions and reporting must be in real time:
- Hana and Data Modeling: Bundles data from various formats and sources into meaningful queries.
- Data Procurement: Gathers data from different systems and integrates it.
- Analysis and Insights: Provides agile access to information through BW Workspaces.
- Security
- BTP data, analytics, AI, application development, automation, integration
- SAC
- Hana-R
- S4 and BW4 most often is the core ERP system for large and small corporations, transactions and reporting must be in real time:
Appendix 5 What Management Systems Need To Be In Place?
- Innovation Management Processes
- Program Office and Project Management
- IT Strategy and roadmap
- Initiatives and wwnership
- A deep understanding of the business
- Open versus closed Innovation business models
- Manage increasing R&D, IT costs
- Open innovation increases the velocity of change
- Stratetic innovation partnerships
- Open versus closed architecture
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Integrate SAP Business Processes and Anaytics with AI:
- Integration Points:
- Finance: Enhance financial processes with intelligent invoice matching, error resolution, and fraud detection.
- Supply Chain: Automate communication-heavy processes and gain real-time insights.
- Procurement: Streamline procurement operations using AI-driven guidance.
- Sales and Marketing: Leverage AI for personalized experiences and efficient lead-to-cash processes.
- Human Resources: Optimize recruitment, employee management, and talent development.
- IT and Platform: Integrate AI across the entire technology landscape
- Integration Points:
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Generative AI:
- Use Generative AI to create new content, such as images, text, or music, based on patterns learned from existing data.
- Applications: Software design, development, SAP configuration, integration, data modeling
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Integrated Approach:
- Robotic process automation
- Integrated APO, SD MM, FI CO, IBP, TPM, ATMA, SAC, Hana, CRM S4 BW4
Appendix 6 What Choices Today To Improve Future Success?
- Aligned business and technology strategies
- Strategic technology planning
- Expand with complementary products
- Explore new markets and regions
- Target new customer segments
- Prepare AI, chatbots and human like interactions
- Understand how the organization access and interact with information
- Choose a set of technology tools which compliment the existing technology platform
- Maintain a platform strategy
- Maintain a clean data strategy
- Prepare for future Mergers, Acquisitions, Divestitures
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Develop frameworks and strategies to accurately budget, forecast, and avoid pitfalls related to hardware vs. systems thinking