FROM “RULES OF THE THUMB” TO DIGITAL ERA MANAGEMENT APPROACH · FROM “RULES OF THE THUMB” TO DIGITAL ERA MANAGEMENT APPROACH THE INNOVATION AND DEVELOPMENT PATH TAKEN BY A

FROM “RULES OF THE THUMB” TO DIGITAL ERA MANAGEMENT APPROACH

THE INNOVATION AND DEVELOPMENT PATH TAKEN BY A CONSUMER

GOODS RETAIL DISTRIBUTION SOUTHERN ITALIAN COMPANY:

CASE HISTORY AND PERSPECTIVES

Vito Santarcangelo, Maria Cristina Camporesi, Luca Liccese,

Carmelina Tarantino, Caterina Dalessandri, Alberto Camporesi

PURPOSE OF THE WORK

This paper outlines the strategy adopted by an Italian Company,

(Orizzonti Holding Group) to deal with the long period of economical

crisis and build their own future development perspectives, thanks to a

strategic multidisciplinary approach and

through the use of technology and innovation

To achieve this, the role of its sister

Company (Centro Studi) is

fundamental, purposely designed to

assist and mediate synergically the

dialogue between the Scientific-

University world and the

Business world 3

OUTLINE

ORIZZONTI HOLDING GROUP

THE DEVELOPMENT PATH

BALANCE SCORECARD

• “Golf Grip”

• Measuring the Company Value

CENTRO STUDI ROLE

PROCESS DEVELOPMENT APPROACH

• Process Cycle

• Marketing 3.0

• Information Technology Role (DOOH)

RESULTS AND CONCLUSIONS 4

ORIZZONTI HOLDING GROUP

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STRUCTURAL FEATURES

Medium Size Consumer Goods

distribution Company in

Southern Italy

Store network with different Brands

and diversified distribution

Formats (B2B, B2C, B2B2C)

No export sales market

Core Operating Territory with:

• difficult orography and sparsely

populated areas

• per-capita income in the lower

bracket

ORIZZONTI HOLDING GROUP

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MISSION

“Add value to the company by drawing distinctive strength from the territorial

roots of the group, with respect for our identities and values”

VISION

To face the economical crisis period it is necessary to have a wider consciousness

about the responsibility of everyone to contribute to economic growth,

particularly at the entrepreneurial level

For this reason, the Group directs its action to:

• introducing technology support and innovation strength to process

development for the traditional core business

• promoting mental openness to new ideas, also to innovate its business model

THE DEVELOPMENT PATH

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BALANCE SCORECARD (BSC)

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BSC - FINANCIAL PERSPECTIVE

“GOLF GRIP”

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Main KPIs Financial Economic

thumb Net Financial Debt/Net Cash Flow Gross Margin/Operating Costs

index finger Net Financial Debt / EBITDA EBITDA %

middle finger Net Cash Flow CAPEX

ring finger Debt Maturity EBIT/Financial Costs

little finger Flexibility Factors Extraordinary Items Risk

Companies live on Income,

but they mainly die specifically on financial problems

Our two hands

Financial and Economic management control system (“Golf Grip”)

allows us to direct the key factors towards precise Goals of Value creation correctly

then

Golf Grip

BSC - FINANCIAL PERSPECTIVE

MEASURING COMPANY VALUE

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𝑺𝑽 = 𝑬𝑽 − 𝑵𝑭𝑫

𝑬𝑽 = 𝑬𝒃𝒊𝒕𝒅𝒂 × 𝑴𝒖𝒍𝒕𝒊𝒑𝒍𝒆

Financial and Economic aspects are to be “gripped” together and

Value Creation goals are monitored using “a formula”

•This formula was used in 2003 and 2008 for Venture Capital operations (MPS

Venture), to establish “way in” and “way out” values of the shareholding minority

•The same formula continues to be considered a valid “first glance tool” for evaluating

Enterprise Value growth

SV = Shareholders Value

EV = Enterprise Value

NFD = Net Financial Debt =

Financial Debt – Cash and Cash like, Liquid Assets

Multiple is determined in comparison with

listed companies in the same industry

CENTRO STUDI ROLE

The sister company Centro Studi has a fundamental role in the growth of

the Group's potential value because it conducts Applied Research and

Process Development Projects. It assists and mediates the dialogue,

synergically, with the Scientific World (University of Bologna, University of

Catania, Rimini Center for Economic Analysis)

Centro Studi becomes an

"opportunistic cultural antenna” for

Group activity development

It captures new hints, trends and ideas and helps to strengthen the

competitive potential of the Group

Centro Studi is financed for its activities by considering actual internal

value creation

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PROCESS DEVELOPMENT APPROACH

TRADITIONAL VS NEW PROCESS CYCLE

•The Process Cycle is reversed, substantially modifying the traditional relationship

established previously with Suppliers

•Determining Customer needs correctly directs Marketing decisions and the

relationship strategy with Suppliers 12

PROCESS DEVELOPMENT APPROACH

PROCESS CYCLE AS A HUMAN BRAIN

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• the left hemisphere is more suited

to analytical perception of reality

and is specialized in elaborating

sequential processes (engineer

brain)

• the right hemisphere is more

specialized in perception,

interpretation and elaboration of

emotional processes

(creative brain)

In the Group core-business there are two main processes that can be

assimilated to the two hemispheres of the human brain:

PROCESS DEVELOPMENT APPROACH

APV DEVELOPMENT

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PROCESS DEVELOPMENT APPROACH

BIG CONCEPT

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PROCESS DEVELOPMENT APPROACH

MARKETING 3.0: VALUE DRIVEN MARKETING

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Personal

Values

“Many-to-

many”

World of

social

networks

Digital media

(Dooh)

PROCESS DEVELOPMENT APPROACH

DIGITAL OUT OF HOME

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Digital out of home (DOOH)

symbolizes the dynamic media

distributed across placed-based

networks through digital signage

devices such as addressable

screens, kiosks, jukeboxes and

jumbotrons with the aim of engaging

customers and extending the

effectiveness of marketing

experiences

FUTURA POINT

Patented

PROCESS DEVELOPMENT APPROACH

DOOH = COMPUTER VISION, AI & IOT

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NLP teaches the ability to calibrate or “read” people (sensory

awareness). This means the ability to interpret changes in

muscle tone, skin colour and shininess, lower lip size,

breathing rate and location.

Richard Bandler and John Grinder Approach

“Neuro-linguistic programming (NLP)”

PROCESS DEVELOPMENT APPROACH

COMMUNICATION EFFECTS AND CUSTOMER BEHAVIOR ANALYSIS

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Miller Heiman ("New Strategic Selling") basic concepts have been

extended by us to study the individual customer attitude mode and

purchasing behavior by considering the information flow interaction

effects in the sale point.

RESULTS & CONCLUSIONS

Considering the present

CENTRO STUDI initiative results,

the Group Board is clearly intending

to proceed further with Innovation and

R&D process

Top Management intends to

maintain Strategic Discipline

contribute to the growth of Human

Resources

cooperate in Territory Development

ORIZZONTI HOLDING GROUP

is now structurally ready to face a

dimensional shift, having achieved:

more balanced financial key

indicators

increased know-how in process

development to improve key

competitive factors

greater capacity for dialogue at

international level with other

Distribution Companies

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THANKS!

Any questions?

You can find us at

[email protected]

&

[email protected]

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