Moonshots
Summary
1.A Current Challenges : Established Management Practices become less effective
Major issues of the diminishing power of push management model
• Forecasting Demand and planning/organizing resources (=push management model) becomes more
difficult in turbulent markets- therefore the push management model is increasingly challenged
• Long-term decline of RoA (sustained erosion of profitability) by 75% over 40 years (US) indicate that
established management push practices become less effective in value creation/capturing
• Productivity improvements are harvested/captured by customers and knowledge workers
• Competitive intensity has doubled of the last 10 years
• Competition is shifting in a fundamental way: Knowledge stocks are deprecating fast. Economic value
moves form knowledge stocks to Knowledge Flows
• New digital infrastructure (cloud computing) reduces barriers of entry and movement at an accelerating
rate.
• The emerging new “Pull”-Business Models based on cloud computing/Apps (energy, health, media,
mobility, smart cities etc.) challenge the traditional hierarchical push management model.
1.Current Challenges : Established Management Practices become less effective
Major issues of the diminishing power of the push management model
• Forecasting Demand and planning/organizing resources top-down (=push management model) becomes more difficult in turbulent markets:
-The push management model works best in predictive markets for maximizing efficiency and minimizing deviations from standard practices .
-In dynamic and changing environments the management model must be adaptive and innovative.
Therefore the top-down push management model is increasingly challenged and direction-setting starting now to be done more outside-in and bottom-up.
• Long-term decline of RoA (sustained erosion of profitability) by 75% over 40 years (US) indicate that established management push practices and growth strategies (organic & M&A) become less effective in value creation/capturing
• Productivity improvements are harvested/captured by customers and knowledge workers
• Competitive intensity has doubled of the last 10 years
• Competition is shifting in a fundamental way: Knowledge stocks are deprecating fast. Economic value moves form knowledge stocks to Knowledge Flows
• New digital infrastructure (cloud computing) reduces barriers of entry and movement at an accelerating rate.
• The emerging new “Pull”-Business Models based on cloud computing/Apps (energy, health, media, mobility, smart cities etc.) challenge the traditional hierarchical push management model.
2. Pull Strategy: Leverage the Power of Apps-based Management Model
Strategic Pull Objective: Create services (Apps) to draw out resources (e.g. software or information)
and People (e.g. consultants or peers) as needed to address opportunities and challenges
Elements of a successful pull strategy .
• Leveraged Growth; Increase sales by e.g. 50% in 3 years by increasing global networking
returns of resources for accelerated cross-selling and open innovation with limited investments
• Social Productivity: improve overhead costs by e.g. 15% by better/faster participation in the flow
of knowledge , reduction of non-value added interaction cost .
• Dynamic Fulfillment-Ecosystems: Increase Profitability by e.g 20% and RoA by 30% by
improving quality and performance with suppliers, customers and partner by collaboration and
coordination (extended enterprise)
3.Core Questions for new Pull Solutions
1. What is the most efficient pull approach to leverage our critical resources and intellectual capabilities?
2. How to link Strategy to Operations to become more agile and adaptive by fast knowledge flows ?
3. How can the company out-think and out-execute the competition?
4. How can current delays in key management processes be reduced?
5. How can communities of passion be enabled to increase social productivity?
6. How to decentralize co-creation of value and strategies and ensure central control ?
7. What tools does management need to act in an open/borderless world which take work out of the work?
8. How can Collaboration, Openness and Sharing be balanced with Security, Control and Compliance?
9. How to capture the advantage of diversity with outside partners ?
10.Which key employees need an expanded scope of autonomy?
4. Apps-based Management System: Overview
Building blocks for making the Organization fit for the Future
- Management Process: Create Fast Cycle Management of Knowledge Flows
- Management Workplaces: Modular Design & Security of flexible knowledge access/creation
- Cloud Computing: Deploy adequate cloud architecture (Private/Public/Hybrid)
- Community of Practice: Local Management Forum of peer-groups and market-knowledge flow and learning
- Enterprise Social Network/ Creation Space: Linking local management teams on scalable pull platform (strategicfrontend.com) in the cloud to share successes and best-practices
Problem
Running faster, Falling behind with “Push” Management (Enterprise 1.0):
The return-on-assets for all American firms has eroded by 75%
Forecasting Demand and planning/organizing resources top-down (=push
management model) becomes more difficult in turbulent markets
Running faster, Falling behind with “Push” Management (Enterprise 1.0):
The return-on-assets for all American firms has eroded by 75%
Forecasting Demand and planning/organizing resources top-down (=push management model) becomes more difficult in turbulent markets
The push management model works best in stable markets for maximizing
efficiency and minimizing deviations from standard practices .
In dynamic and changing environments the management model must be adaptive
and innovative: Therefore the top-down push management model is increasingly
challenged and direction-setting starting now to be done more outside-in and
bottom-up.
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