Growth Management for Technology Companies High Tech Management Program Module 5.

Growth Management for Technology Companies

High Tech Management Program

Module 5

DESCRIBING THE CURRENT CORPORATE PORTFOLIO OF

PRODUCTS, MARKETS, OPERATIONS AND

PROCESSES

LISTING PRODUCTS, SERVICES MARKETS AND OPERATIONS

• Product/Service A– Markets:

• Market A.1 Export through agent– Segment A.1.1 Export through distributors– Segment A.1.2

• Market A.2 Manufacturing through outsourcer, selling through own selling personnel

• Market A.3 Licensing

• Product/Service B– Markets

• Market B.1 Basic Research, selling through agent– Segment B.1.1– Segment B.1.2

• Market B.2– Segment B.2.1

LISTING PRODUCTS, SERVICES MARKETS AND OPERATIONS

• Product/Service A

• Product/Service B

• Product/Service C

• Product/Service D

Strategic Importance/Profitability Product Portfolio Map

Pro

fita

bil

ity Positive

Negative

Strategic Importance

HighLow

CREATE YOUR OWN PRODUCT PORTFOLIO MAPS

LIFE CYCLE MAPPINGin Products with Chasm

LIFE CYCLE MAPPINGin Products without Chasm

THE PROCESS OF EXCELLENCE

• Which are the core competences: the internal activities that your company performs with excellence and are critical for the company’s strategy and profitability?– Indicate the key PROCESSES behind the

core competences (often the core competence is the process itself)

– Use the value chain in next slide for guidance if needed

THE PROCESS OF EXCELLENCE (Guidance Value Chain)

SUPPORT

ACTIVITIES

Infrastructure

Human Capital Development

Technology Competence

Relationships/Alliances

PR

IM.

AC

T

Inbound Logistics

ProductionOperations

Outbound Logistics

Marketing / Sales

ServiceR&D/ Product Developm.

• Core Competences– A)

• Processes:– – –

– B)• Processes

– – –

– C)• Processes

– – –

–

THE PROCESS OF EXCELLENCE

BUSINESS UNIT X / COMPANY X GROWTH INTENSITY CHART

• Select one specific product, or use this tool for the company as a whole

• List on the vertical axis the main markets or segments RELEVANT for this product

• List on the horizontal axis the growth alternatives for your selected product, or use the ones provided

• Insert one circle (per product) in the right box of the grid with one colour, indicating the current state of growth of your product

• Indicate with a different color the desired state of growth for that product, linking with an arrow the expected movement

• Select in a strategy meeting the priority growth objectives for these products

BUSINESS UNIT X GROWTH INTENSITY CHART: CURRENT SITUATION

__________

Non-existent Low Growth Medium Growth High Growth Booming GrowthGrowth Intensity

__________

__________

__________

__________

__________

__________

List Products or

Services

__________


__________

__________

__________

__________

__________

__________

List Products/Services


CREATING GROWTH THROUGH A PORTFOLIO

OF PROJECTS

CURRENT PROJECT FUNCTION GRID

__________

Basic Research

__________

__________

__________

__________

__________

__________

LIST BUSINESS UNITS

Process Improvement

Product Improv./Upgrade

/Extensions

New Process Creation

New Product Development

Maintenance/Repairs/Fixes

New/Existing Market

Development

PROJECT FUNCTION GRID

__________

Basic Research

__________

__________

__________

__________

__________

__________

LIST BUSINESS UNITS

Process Improvement


/Extensions




New/Existing Market

Development

Project Assessment Dimensions when creating the maps

Rank Type of Chart Horizontal Axis Vertical Axis

1

2

4

3

5

6

Risk vs. Reward Reward: NPV, IRR, market value

By Probability of success (technical, commercial)

Cost Vs. Timing Time to Impact By Cost to Implement

Ease Vs. Attractiveness

Technical feasibility By Market attractiveness (growth, potential, consumer appeal, general, attractiveness, life cycle)

Strength Vs. Attractiveness

Competitive strength Market Attractiveness

Newness Technical newness Market Newness

Strategic Vs. Benefit

Strategic focus or fit Business intent, NPV, financial fit, attractiveness

By

By

By

CREATE YOUR OWN PROJECT PORTFOLIO ASSESSMENT MAPS



Basic Research Project Ranking

PROJECTProbability of

Technical Success

Probability of High Growth

Platform

Technical gap with

competition

Compatible with existing

skill base

Time to completion

Availability of technical resources and skills

Technical simplicity

Financial resources required

New Process Creation Project Ranking

PROJECTFinancial

Impact in the company

Magnitude Duration of competitive advantage

Synergy with other

operations


skill base

Time to completion


Process simplicity


New Product Development Project Ranking (I)

PROJECTStrategic


Possibility of proprietary

position

Platform for growth

Durability of competitive advantage

Technolog. simplicity


Synergy with other products

Market need

New Product Development Project Ranking (II)

PROJECTEase of

Competition in that market

Predictability of

commercial success

Compliance with legal /

social regulations

Time to completion

Financial Resources Required

Financial Impact in

the company

Market Development Project Ranking

PROJECTImpact in the

companyMarket Size Market

growth potential

High Margin potential

Market simplicity

Time to completion

Synergy with other marketing operations


Maintenance Project Ranking

PROJECTImportance of the serviced

activity

Probability of success

Operational life of the

asset serviced

Time to completion


Technical simplicity


Product Improvement/Upgrade/Extension Project Ranking (I)

PROJECTStrategic


Possibility of proprietary

position

Platform for growth of additional extensions

Durability of competitive advantage

Technolog. simplicity


Synergy with other extensions

Market need

PROJECTEase of

Competition in that market

Predictability of

commercial success

Compliance with legal /

social regulations

Time to completion

Financial Resources Required

Product Improvement/Upgrade/Extension Project Ranking (I)

Financial Impact on

the company

Process Improvement Project Ranking

PROJECTFinancial


Magnitude Duration of competitive advantage

Synergy with other

processes


skill base

Time to completion


Improv. simplicity


TOTAL PROJECTS, RANKING SELECTION, CORE VS CONTEXT TEST

__________

Basic Research

__________

__________

__________

__________

__________

__________

LIST BUSINESS UNITS

Process Improvement


/Extensions




New/Existing Market

Development

FINAL PROJECT SELECTION

__________

Basic Research

__________

__________

__________

__________

__________

__________

LIST BUSINESS UNITS

Process Improvement


/Extensions




New/Existing Market

Development

INTERNAL PROCESS RESULTS EXPECTED

• Basic Research Results

• New Product Creation

• Product Improvements Benchmarking

• Product Portfolio Diversification

• Process Excellence

• New Process Creation

• Quality achievements


__________


__________

__________

__________

__________

__________

__________

List Products or

Services

BUSINESS UNIT / COMPANY X CURRENT VS FUTURE SITUATION

__________


Current

__________

__________

__________

__________

__________

__________


Desired

__________


__________

__________

__________

__________

__________

__________


BUSINESS UNIT X GROWTH INTENSITY CHART: CURRENT VS FUTURE SITUATION

MARKETING RESULTS EXPECTED

• Market Development Rates– Market Share increase in existing markets– New Market Development Rate– Repeating Customers Purchasing Rate

• Customer Satisfaction Rates• Customer Base Diversification• Customer Awareness Rates• Brand related rates• Customer Image Rates• Other relevant marketing rates

FINANCIAL RESULTS EXPECTED

• Sales Growth Rates• Profitability Increase Rates

– Pricing Increases– Cost Reductions– Margin Increases– Benchmark with competition

• Return on Investment Rates• Debt reduction rates• Stock market price rates• Other relevant financial rates

LOW REQUIREMENT BASIC REQUIREMENT KEY REQUIREMENT

L

OW

CU

RR

EN

T

M

OD

ER

AT

E C

UR

RE

NT

HIG

H C

UR

RE

NT

SK

ILL

LE

VE

L

S

KIL

L L

EV

EL

SK

ILL

LE

VE

L

LEARNING AND GROWTH PERSPECTIVE:NEW SKILLS REQUIRED FOR PROJECT PORTFOLIO

LOW REQUIREMENT BASIC REQUIREMENT KEY REQUIREMENT

L

OW

CU

RR

EN

T

M

OD

ER

AT

E C

UR

RE

NT

HIG

H C

UR

RE

NT

SK

ILL

LE

VE

L

S

KIL

L L

EV

EL

SK

ILL

LE

VE

L

LEARNING AND GROWTH PERSPECTIVE:NEW SKILLS REQUIRED FOR PROJECT PORTFOLIO

Leading

Leading

Lagging

Lagging

Soft

Soft

Hard

Hard

Vision &

Strategy

Vision &

Strategy

CUSTOMERCUSTOMER

“To achieve our vision, how should we appear to our customers?”

“To achieve our vision, how should we appear to our customers?”

ObjectivesObjectives MeasuresMeasures TargetsTargets

FINANCIALFINANCIAL

“To succeed financially, how should we appear to our shareholders?”

“To succeed financially, how should we appear to our shareholders?”

ObjectivesObjectives MeasuresMeasures TargetsTargets

INTERNAL BUSINESS PROCESSES

INTERNAL BUSINESS PROCESSES

“To satisfy our shareholders and customers, what business processes must we excel at?”

“To satisfy our shareholders and customers, what business processes must we excel at?”

ObjectivesObjectives MeasuresMeasures TargetsTargets InitiativesInitiatives

INNOVATION AND LEARNINGINNOVATION AND LEARNING

“To achieve our vision, how will we sustain our ability to change and improve?”

“To achieve our vision, how will we sustain our ability to change and improve?”

ObjectivesObjectives MeasuresMeasures TargetsTargets InitiativesInitiatives

Creating a Growth Scorecard

Growth Management for Technology Companies High Tech Management Program Module 5.

Documents

specific product

selected product

growth management

growth alternatives

current state of growth

desired state of growth

priority growth objectives

process itselfuse