A new paradigm in collaborative business - ecr-uvt

It appears that everywhere in the world wherewe meet leaders of the business and politicalworld, practically everybody feels that this age isdifferent……A NEW TYPE OF NORMALITY:CHAOTICSSource: Chaotics – Management si Marketing in Era Turbulentelor, P.Koetler, J.A. Caslione, 2009

CHAOTICIST MANAGEMENTSYSTEMNot a modified strategy for a particular case,but a conceptual framework of strategicbehaviors that can be adapted to particularsituations.As a supplementary guide – a five stepsprocess for putting into practice the strategicbehavior in chaos situations.Source: Chaotics – Management si Marketing in Era Turbulentelor, P.Koetler, J.A. Caslione, 2009

THE PROCESSStep 1. Reconfirming the current strategy andactual activity modelStep 2. Assessing the company capability ofexecuting strategy in chaos conditionsStep 3. Defining the application process ofstrategic behaviorsStep 4. Putting in practice the chaoticist strategicbehaviorsStep 5. Revaluation and reviewSource: Chaotics – Management si Marketing in Era Turbulentelor, P.Koetler, J.A. Caslione, 2009

Blue Ocean StrategyBlue ocean strategy challenges companies tobreak out of the red ocean of bloody competitionby creating uncontested market space that makesthe competition irrelevant. Instead of dividing upexisting – and often shrinking – demand andbenchmarking competitors, blue ocean strategy isabout growing demand and breaking away fromthe competition.Source: Blue Ocean Strategy – How to Create Uncontested Market Space and Make CompetitionIrrelevant, W. Chan Kim, Renée Mauborgne, 2005

Blue Ocean StrategyRed ocean represent all the industries inexistence today. This is the known market space.Blue oceans denote all the industries not inexistence today. This is the unknown market space.Source: Blue Ocean Strategy – How to Create Uncontested Market Space and Make CompetitionIrrelevant, W. Chan Kim, Renée Mauborgne, 2005

Blue Ocean StrategyValue InnovationValue innovation is a new way of thinkingabout and executing strategy that results in thecreation of a blue ocean and a break from thecompetition.Importantly, value innovation defies one of the mostcommonly accepted dogmas of competition-based strategy: the valuecosttrade-off. It is conventionally believed that companies can eithercreate greater value to customers at a higher cost or create reasonablevalue at a lower cost. Here strategy is seen as making a choice betweendifferentiation and low cost. In contrast, those that seek to create blueoceans pursue differentiation and low cost simultaneously.Source: Blue Ocean Strategy – How to Create Uncontested Market Space and Make CompetitionIrrelevant, W. Chan Kim, Renée Mauborgne, 2005

Value Innovation: The Cornerstone of Blue Ocean StrategyValue innovation is created in the region where a company’s actions favorably affect both its coststructure and its value proposition to buyers. Cost savings are made by eliminating and reducing thefactors an industry competes on. Buyer value is lifted by raising and creating elements the industry hasnever offered. Over time, costs are reduced further as scale economies kick in due to the high salesvolumes that superior value generates.CostsValueInnovationBuyer valueSource: Blue Ocean Strategy – How to Create Uncontested Market Space and Make Competition Irrelevant, W. ChanKim, Renée Mauborgne, 2005

Blue Ocean StrategyAs long as this remains true, red oceans willcontinue to dominate companies’ strategic agendaeven as the business imperative for creating blueoceans takes on new urgency.Source: Blue Ocean Strategy – How to Create Uncontested Market Space and Make CompetitionIrrelevant, W. Chan Kim, Renée Mauborgne, 2005

Definition of management:The systematic pursuit of desiredconditions by utilizing human capabilitiesin a concerted way.Source: Toyota Kata: Managing people for Improvement, Adaptiveness, and Superior Results ,Mike Rother, 2010

KATAIn Japan such patterns or routines are called kata (noun). Theword stems from basic forms of movement in martial arts, which arehanded down from master to student over generations. Some commontranslations or definitions are:•A way of doing something; a method or routine•A pattern•A standard form of movement•A predefined, or choreographed, sequence of movements•The customary procedure•A training method or drillA further definition and translation for the word:•A way of keeping two things in alignment or synchronization with oneanotherSource: Toyota Kata: Managing people for Improvement, Adaptiveness, and Superior Results , MikeRother, 2010

The management challengeThe challenge we face is not to turn the headsof executives and managers toward implementingnew production or management techniques oradopting new principles, but to achievingsystematic continuous evolution and improvementacross the organization by developing repeatedlyand consistently applied behavioral routines:kataSource: Toyota Kata: Managing people for Improvement, Adaptiveness, and Superior Results , MikeRother, 2010

Supply – ChainingSupply – chaining is a method ofcollaborating horizontally – among suppliers,retailers, and customers – to create value.Supply-chaining is both enabled by the flattening of theworld and a hugely important flattener itself, because themore these supply chains grow and proliferate, the morethey force the adoption of common standards betweencompanies (so that every link of every supply chain caninterface with the next), the more they eliminate points offriction at borders, the more the efficiencies of onecompany get adopted by the others, and the more theyencourage global collaboration.Source: The World Is Flat: The Globalised World in the Twenty-First Century, Thomas L. Friedman, 2005

Supply – ChainingWhen the world is flat, your company bothcan and must take advantage of the best producersat the lowest prices anywhere they can be found. Ifyou don’t, your competitors will. So global supply chains –that draw parts and products from every corner of the world– have become essential for both retailers andmanufacturers. That is the good news. The bad news, asSheffi suggest, is that making these chains work is muchharder than it looks and requires constant innovation andconstant adjustment.Source: The World Is Flat: The Globalised World in the Twenty-First Century, Thomas L. Friedman,2005

Supply – ChainingAs consumers, we love supply chains, becausethey deliver us all sorts of goods – from tennisshoes to laptop computers – at lower and lowerprices and tailored more and more precisely to justwhat we want. That is how Wal-Mart became theworld’s biggest retailer. But as workers, we are sometimeambivalent or hostile to these supply chains, because theyexpose us to higher and higher pressures to compete, andforce our companies to cut costs, and also, at times, cut ourwages and benefits. That is how Wal-Mart became one ofthe world’s most controversial companies.Source: The World Is Flat: The Globalised World in the Twenty-First Century, Thomas L. Friedman,2005

Supply – Chaining (Wal-Mart’s)Once it established that basic method of buying directlyfrom manufacturers to get the deepest discounts possible,Wal-Mart focused relentlessly on three things. The first wasworking with the manufacturers to get them to cut their costsas much as possible. The second was working on its supplychain from those manufacturers, wherever they were in theworld, to Wal-Mart’s distribution centers, to make it as lowcostand frictionless as possible. The third was constantlyimproving Wal-Mart’s information systems, so it knewexactly what its customers were buying and could feed thatinformation to all the manufacturers, so the shelves wouldalways be stocked with the right items at the right time.Source: The World Is Flat: The Globalised World in the Twenty-First Century, Thomas L. Friedman,2005

Long-Term PhilosophyWe believe that our fundamental mission is tocontribute to the economy and society through creatingvalue, mainly by manufacturing high-quality products andproviding related services.-Toyota Way documentThe long-term philosophy of the ToyotaWay is to create value forcustomers&shoppers, suppliers, and thesociety.Source: Toyota Supply Chain Management, A.V. Iyer, S. Seshadri, R. Vasher, 2009

THE EVOLUTION OF COLLABORATIVE MANAGEMENT MODELBEST PRACTICESCMAllianceModelECR C-CRM CPFR SCORMODELSCMJAGALLIANCEMODELC&SJ1991 1993 1995 2000 2002 2003 2009 2011