Reshaping Industry Flashcards
porters five forces
Michael Porters five forces
- Bargaining Power of Buyer
- Rivalry among competitors
- Threat of new entries
- Threat of substitutes
- Bargaining power of suppliers
Five forces
1. bargaining power
GE aviation
smart connected products
- product differentiation - moving away from pricing
ability to: customer segmentation customization better pricing to capture value value added services closer customer relation
increase buying power by sharing knowleged and let them compare
GE Aviation
Redefining industry boundaries
increasing capabilities
I
reshape competition within industries
I
expand industry boundaries
I
change in competition
from
product - smart products- smart coxnnected products- product system - system of system
Five forces
2. rivalry among competitors
Babolat tennis rackets
product differentiation
customized added values
broaden value proposition beyond product per se…
data enhance service offering
price migration - higher fixed prices lower variable costs
Five forces
3. threat of entrants
thermo fisher
- high fixed costs
- entrance barrier high if a complete new products needs to be develop
- if smart connected product leapfrog the asset and strength of incumbents
Five forces
5. bargain power of supplier
open automotive alliance
shaking up traditional supplier relation
physical product can be discommoded or replaced
software no need for
smart connected products
net effect
- first mover advantages
- single and multi product advantage
- start ups with less legacy, size, culture, fully smart connect products development
smart connected products
competitive advantage
either price premium or operat at lower cost as his rivals
= create superior profitabiltiy and growth
FOUNDATION for competitive advantage =
OPERATIONAL EFFECTIVENESS
define a distinctive strategic positioning
deciding what to do and what NOT to do
smart connected products
change value proposition
Challenge:
Boundaries between products and services blur
• Customers demand integrated and intuitive solutions anytime and anywhere
• Traditional competitive advantages erode
• Low entry barriers grant competitors easy access
• Customers have low switching costs
Possible Approach
Products enriched with digital technologies
• Additional hybrid product-service bundles • Independent service solutions
• Development of configurable product/service modules • Extension of value chain activities (e.g. from mere B2B to B2C and B2T business)
smart connected products
Creating new value with data
data sources: External, smart connect, enterprise
data analytics:
descriptive
diagnostic
predictive
prescriptive
deeper insight
business
customer
partners
data reveals insight
= product and service optimization and product performance
more-sophisticated analytics, applied to product data
Manufacturing goes beyond production of the physical object
The job of ensuring IT security now cuts across all functions.
new staff with different qualifications
smart connected products
data integration
Challenges
- amount of data
- organize and integrate
- multitude of external and internal data source
Approaches:
advanced analytics - gain customer insights - improve customer experiences - forecast behavior - digital customer relationship -
smart connected products
data integration
Challenges
- amount of data
- organize and integrate
- multitude of external and internal data source
Approaches:
organized meta data , social data , machine to machine data
- data warehouse and BI
- data management proceses
smart connected products
A new organizational structure
new ways of collaboration to develop skills
structure need to be evolved with functional unis for data management
DEVOP
smart connected products
Organizational Agility
Challenge
Development of the ability to transform digital opportunities in successful products and services faster than competitors.
Challenges in the Digital Economy:
- Rapid appearance of digital technologies
- Extremely fast adaption by the end-customers
- Ambitious customer requirements every time
Low entry barrier for new competitors
How can organizations gain agility
approaches:
Approach:
• Product and service portfolio (e.g. modularization and standardization of services, products, and IT components)
• Organizational setup (e.g. flat hierarchies, decentralization, social collaboration, Lean Start-up, Digital Unit)
• Project approach (e.g. agile project management)
• IT (e.g. solid core/flexible boundary, bimodal IT)
