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CorporateStrategyFormulationMethodPracticeAidsTableofContentsDuPontAnalysis(Slide3)LeanProducerChart(Slide4)ValueTree(Slide5)StrategyDiagnostic(Slide6)Point-of-View(Slide7)ProjectApproachGraphic(Slide8)ProjectOrganizationChart(Slide9)StatementofWork(Slide10)GANNTChart(Slide11)ProjectManagementSoftwareTool(Slide12)ProjectBudgetTemplate(Slide13)OrientationPresentation(Slide14)BPRGame(Slide15)SupplyChainManagementGame(Slide16)Porter’sFiveForcesModel(Slide17)MarketSegmentationScheme(Slide18)CustomerParetoAnalysis(Slide19)CustomerValueDriversbySegment(Slide20)PEST-Political,Economic,SocialandTechnologicalChange(Slide21)ProductProfitabilityAnalysis(Slide22)ProductPortfolioAnalysis(Slide23)CoreCompetencyAnalysis(Slide24)SWOTAnalysis(Slide25)CompetitiveOpportunitiesSpace(Slide26)BusinessModels(Slide27)CompetitivePositioningSummary(Slide28)IndustryAllianceMapping(Slide29)PerformanceBenchmarking(Slide30)CultureMatrix(Slide31)ManagementProcessAssessment(Slide32)ActivitiesDictionary(Slide33)As-IsProcessMaps(Slide34)Routing-by-Walking-Around(Slide35)WorkDistributionCharts(Slide36)ProcessTreatmentModel(Slide37)Sparks(Slide38)InformationNeedsAssessmentModeling(Slide39-40)OrganizationStructureDimensionAnalysis(Slide41)BreakthroughModel(Slide42)StrategicVisionStatementOutline(Slide43)KeyImpedimentsAnalysis(Slide44)MintoLogic(Slide45)OrganizationalLearningKPIs(Slide46)VisionWorksWarGamingandSimulationTechnology(Slide47)FromSlideShow,ClickonthelinksBelow:DuPontAnalysisEstimateacompany'sfinancialperformanceifoneormoreofitskeyfinancialratiosequaledthatofthe"best-in-class"or"best-in-industry."Collectfinancialdataonthecompanyanditspublicly-heldcompetitors.Calculatean"as-is"financialtree.Identifythecompany'sfinancialweaknesseswithrespecttotherestoftheindustry'sfinanciallevers.Substitutealeverfromthecompetitionintothecompany'sfinancialstogeneratea"could-be"financialtree.Theanalysishelpstoestimatethefinancialimprovementacompanymightexperiencebyimprovingvariousaspectsofitsoperation.Italsopinpointstheareaswhichwouldhavethegreatesteffectonthebottomline,suggestingapossibleprioritizationforthecompany'simprovementefforts.Caveat:themodelignorestradeoffsthatexistinthepracticalitiesofrunningandshapingabusiness;consequently,theabsolutevalueofthefinancialimprovementsgeneratedfromthemodelmaybeunrealisticallyhigh.6.4%12.5%ROALegendmetricunitsCould-BeAs-IsOperatingProfitMargin10%18%TotalAsset

Performance1.601.76NetProfit

AfterTax4%7%8%16%ROEA/R

DSO6150Inventory

Turns6.08.0Other

Assets12%11%PP&E

Turns5.05.5timesdaystimesofNetSalesCash1%5%ofNetSales1.251.25Financial

LeverageTax

Rate40%LeanProducerChartAssessopportunitiestocreatevaluebychangingproductionstrategies,usingpubliclyavailabledataaboutinventoryinagivenmanufacturingindustry.Identifythecomparisonsetofsimilarcompanieswithinagivenindustryorfamilyofindustries.Gatherthefollowingdataforeachcompany:Inventory-Raw,Inventory-Work-in-progress,Inventory-Finishedgoods,andInventoryturns.Calculateandgraphthefinalvariables:Inventoryturnsvs.(Raw+WiP)/Fin.goods.Note:Tenormoredatapointsshouldgeneratethe"datacloud"necessaryforanalysis.Ifthedatapointsclusteraroundapositivelyslopingline,thenthatgenerallyindicatesthecomparisonbetweencompaniesismeaningful."Leanproducing"companies,i.e.,thosewith

highinventoryturnsandlowinventoriesoffinishedgoodswilllieintheupperrightquadrantofthegraph.Companiespositionedtotheupperleftlikelysufferfromcomplexproductportfoliosandbills-of-materials.Companiestothelowerleftlikelyneedastrategictransformationfrommassproducerstoleanproducers.Companiestothelowerrightcouldbenefitfromsellingmorevalue-addedproductsandservices.AlcoholicBeverageProducersInventoryTurnsRaw+WIPFinishedGoodsGrandMetGeneseeCorp.CanadiguaWineBrownFormanAnheuserBuschAdolphCoors05101520LeanProducersTraditional

ManufacturersJobShopsDistributors0123ValueTreeDevelopacomprehensivelistofpotentialvaluecreationdrivers.Beginwithastandardvaluetreeconsistingofbenefittype,first-orderdrivers,andsecond-orderdrivers.Determine"third-orderdrivers,"i.e.,thosespecificactivitieswhichconstitutethesecond-orderdrivers,basedonone'sindustryknowledgeandanycompany-specificinformation.Usetheavailableinformationandinsightsfromothertools(e.g.DupontAnalysis,EnterpriseDiagnostic,andLeanProducerChart)todeterminewhichbenefitdriversmightbethespecificareasofcompanyconcern.“Runthenumbers”tomodelpotentialprofitimprovement.Thistoolprovidesacomprehensivesnapshotofpotentialvaluecreation.Itprovidesthelinkbetweenchangeinitiativesandimprovementinfinancialperformance.ItalsoindicatesKeyPerformanceIndicatorsonwhichtofocus.ExampleofapartialvaluetreeforasalesoperationBenefittypeSecond-orderdriversIncreaserevenueReduceexpenseThird-orderdrivers(Examplesof)First-orderdriversIncreasevolumesIncreasepricesImprovemixImproveefficiencyAvoidcostsEliminatenon-value-addedworkIncreasesalesopportunities

Increasecloseratio

Increaseitemsperclose

Increasecustomerretention

IncreasebasepriceReducediscounting

Up-sellcurrentcustomers

Acquireupscalecustomers

ReduceotherfactorcostsEliminatecostdriversImproveprocessqualityyieldsIncreaseout-boundsellingtoexistingcustomersIncreasecallvolumeDecreasenumberofabandonedcallsImprovetrainingforsalesrepsellingtechniquesIncreasesalesrepproductand

customerknowledgeIncreasecustomersatisfaction“followup”communicationSelllonger-termpackages/contractsReducenumberorfrequencyofpromotionsIncreasetargetedRe-designbusinessprocessesAutomateactivitiesthroughuseofITReducerelianceonovertimeReduceorderprocessingerrorsStrategyDiagnosticDiscoverpotentialsourcesofeconomicvalueacrossthebusiness.TheStrategyDiagnosticcanbefoundintheAppendixofthisdocument.TheDiagnosticisamatrix-drivenframeworkofissuestoguideobservationsandresearchduringScoping.Useoff-the-shelfdata,executiveinterviews,walk-throughsandotherinformationtorankeachattributeoftheorganizationfrom1-4accordingtothecriteriaintheappropriatediagnosticmatrix.Inparticular,lookforattributeswhicharestrategicallyimportantandonwhichthecompanyperformsat/orbelowparity.Acomprehensivediagnosticprovidesanoverviewoftheorganizationandassessesitsperformanceinallmajorareasofitsbusinessagainstcompetitivenorms.Theframeworkisalsoachecklistforlocatinganygapingholesinthecompany’sapproachtodoingbusiness.Identifyingproblemareasearlyonhelpspinpointfurtherresearchanddiagnosticefforts.Further,identifyingareaswithsuperiorperformancecanhelpoutlinewaystoimplementchangebyleveragingtheorganization’sstrengths.RegulatoryEnvironmentMarket

SegmentationCustomer

LifecycleManagementTpetitorswithintheconstraintsofregulation?Dowehaveinformationtodistinguishvariousrelevantgroupingsbasedonlikelypurchasecriteriaandfutureprofitability?Howisthecustomerrelationshipbeingmanagedasanongoinginteractiontoachievethecompany’sobjectives?Howarewehelpingthecustomernavigatethroughourvariousofferings?FirmusesregulatoryconstraintasexcusetoexplainlackofaggressivenessandfailingsinperformanceNo;verylittleinformationthat’sconsistentandmeaningful.Largegapsexistbetweenexistingcustomergroupsandoneswethinkwewanttoserve.Nottrackingcustomerneedsandchangesinexpectations,sothatappropriateresponsesandcontactscanbemade.Notorganizingcompany’sproductsandservicesintomotivatingportfolio.FirmunderstandsregulationandisabletotransactbusinesseffectivelyandattimesinfluencetheoutcomeofregulatoryproceedingsLotsofinformation-littleuse.Nospecificactionsbysegment.Competitorsoftenseemtoactonmarketinsightsfasterthanwedo.Understandcompetitors’effortstoattractourcustomers,andhavedesignedsomedefensesagainstswitching.Deployingprogramstomeetourcustomer’schangingneedsandenhanceourrelationship.FirmbasesitsactivitiesonbestinterestsofcustomersandrepresentstheseintereststoinfluencethecourseofregulationWellutilizeddata,specificactionsbysegments;keepingupwithcompetition.Cansegmentmarketonvariousbasestomaintainadvantage.Viewourcontactasa“relationship”andwilldowhatisnecessarytomaximizethelifetimevalueofacustomer.Managingtransitionscustomermakesinourrelationshipfromnewthroughlong-term.Firmisviewedbyregulatorsasacredibleleaderinrepresentingits,customers’andthepublic’sinterestsinabalancedmanner.Regulationisseenasanissuetobefactoredintobusinessdecisionsandaggressivelyinfluencedifitunfairlyhurtsbusiness.Well-utilizeddata,specificintegratedactionsbysegmentleadingcompetition.Insightsandactionsleadtoexpansionofmarketandourshareintargetedsegments.Targetedmarketingandservicedeliverybasedonone-on-onerelationship,recognizingawell-managedexistingcustomerrelationshipyieldsthehighestprofit.Emerginguseofmodelstopredictpurchasebehavior.AttributeDescriptionLevel1BelowParityLevel2ParityLevel3AboveParityLevel4BestPracticePoint-of-ViewArticulatethePwCMCSpoint-of-viewonopportunityareastofocusExternalandInternalUnderstandingmodulesinPhaseITheobjectiveoftheDistributionChannelRedesignprojectistosynchronizethetransformationofdistributionchannelswiththeplannedevolutionofNovartisSeeds’productsandtargetcustomersegmentstoachievethecompany’slong-termstrategicgoalsReviewopportunityassessment.Documentindustryinsights.Articulatethemostimportantchallengesfacingtheclient.Developworkinghypotheseson“therightanswer”.Specifytestswhichwewillperformduringtheengagementtoconfirmordenythehypotheses.ThePwCMCSapproachtostrategyconsultingiscontent-richandreliesonfacts,notopinions.Wewanttoengagetheclientduringtheproposaleffortinadiscussionofsubstance.Theobjectivehereisnottocomeacrossashavingpre-conceivedacompletedsolution.Ratherwewanttodemonstrateourindustryinsightsandfact-basedapproachtoaddressingtheirchallenges.TimeProductsChannelsCustomerSegmentsTransition1SeedAdvisorsDirecttoLargeGrowers/

BuyingGroupAg-ChemDistributors

andDealersCoops&CoopStoresMajorCenex/LoL,Countrymark,Growmark,Farmland,OthersCurrentGoalTransitionnTransition1CurrentGoalTransitionnTransition1CornBtBrandsCibaMaximizerNK’sBtOtherBrandsSoybeansSorghumAlfalfaSugarbeetsFarmers bySize byGeography bySophisticationGoalCurrentTransitionnProjectApproachGraphicDevelopahigh-levelprojectapproachgraphicthattailorsthePwCMCSStrategyMethodologytoaclient’sspecificsituation.Useinitialunderstandingoftheenterprisetodeterminethe"basicapproach"fortheengagement.Thebasicapproachgraphicusespriorexperiencetooutlinethebuildingblocksfortheengagementworkplan.Refinethebasicapproachgraphicbytakingriskandqualityintoaccountanddeterminingthespecifictoolsandtechniquestobeusedandtimeframes,forcompletingtheengagement.Theroutemapshouldguideplanningforallrelevantelementsofastrategyprojectincluding:deliverablesmodulesandactivities,andtoolsworkbreakdownstructureteamstructureprofiletimeandcostestimatesinitialworkplanThebasicapproachgraphicisessentiallya“firstcut”workplanforastrategyassignmentandprovidesthecentralframeworkforalargepartoftheactualproposal,andmostoftheproject.Thegraphiccanalsobeusedduringprojectreviewmeetingstoremindparticipantsoftheoverallflowoftheengagement,andcurrentprojectstatus.Phase1ChooseStrategicMarketsAgreedMarketsPhase2SetStrategicPrioritiesandDirectionsAgreedStrategicPrioritiesandDirectionsPhase3DevelopIntegratedBusinessStrategies&ImplementationPlansAgreedBusinessStrategies&ImplementationPlansExternalUnderstandingMarketscaleandpotentialBusinessopportunitynature,sizeandprofitsBestmanagementpracticesinAsiaInternalUnderstandingDriversofsuccessinUS/EuropeanbusinessmodelsBusinessandmanagementprocessesCultureandhumanresourcesExecutiveTeamDecisions“FirstandSecondCut”prioritycountries,forPhase2analysisConfirmationofdriversofsuccessinUSbusinessmodelExternalUnderstandingMarketcharacteristicscustomerneedschannelneedscompetitorpositionsanddirectionsregulatory/policyissuesEntrymodes(JV,acqn.,greenfield)InternalUnderstandingCapabilitiesandcorecompetenciesUSA/EuropeinregionOrganizationalandstaffingimplicationsExecutiveTeamDecisionsPrioritycountriesandbusinessesHigh-levelentryplansCriticalsuccessfactorsCorecompetenciesRegionalexecutiveandstaff,officeHighlevelsalesandprofitplanKeybarriersandchangesIntegrated5-YearBusinessStrategies,10-YearStrategicDirectionbycountryroll-uptoregionroll-uptocorporateFinancialmodelsCash-flowmodelsCapitalrequirementsMajorInitiativesproducts/serviceschannels,mfrg,mktg..,salescorecompetencies,organizationalchangesExecutiveTeamDecisionsImplementationWorkPlanandScheduleCreationofNewEntitiesOtherOrganizationalChangesResourceCommitmentsAcquisitions,JV,GreenfieldManagementConsensus&CommitmentCreatingARegionalStrategy--PwC’sApproachProjectOrganizationChartOutlineaprospectiveteamofPwCandclientprofessionalsspanningalllevelsofinvolvementintheengagementForeachphaseoftheengagement,structureclient-consultantteamstocompletethework.Determinetheindividualswhowouldbemostappropriateforeachteamtakingintoaccountindustryexpertise,functionalskills,andavailability.Thischartpaintsapreliminarypictureoftheclient/consultantteamfortheprospectiveengagement.ItspecifiestotheclientthePwCindividuals

whowillbeworkingontheengagementandtheirroles.Whencombinedwithresumes,thischartexplainsthespecificcapabilitiesPwCwillbringtotheengagement.Additionally,thechartconfirmsthenatureoftheengagementandthelevelofanticipatedclientinvolvement.ClientRoleResponsibilityPwCRoleResponsibilityExecutiveSponsorTeamDay-to-DayProjectManagementManager/Analysts•Markets•Products•ValueChain•InternalCapabilitiesRodSmith,CEOPeterJones,CFOExecutiveCommitteeTimLester,

VPStrategicPlanningTwoorthreepeoplewithintensiveinvolvementProjectSimpleandUKequivalent•

ClientPartner• IndustryPartner• UKPartner•

EngagementPartner• EngagementManager•

TechnologyManagerThreeSeniorAssociatesandoneResearchAssociatededicatedfull-time•JeanDallas•RobertRetail•DaveThames•

MichaelJames•DavidYork•BertStewart•TBDOutlinespecificissues,tasksanddeliverablesineachmajorprojectphaseandmoduleOutlinethestructureoftasksineachmoduleorphase.Specifythehigh-levelissuestoberesolvedineachtask.Outlinetheapproachtobetakeninaddressingtheissues,andifnecessary,thetypesofanalysesanddatacollectiontobecompleted.Identifythedeliverablesfromeachtask.Thedetailedmatchingofissues,analyticsanddatacollectiontechniqueswillensurethattheprojectapproachispracticalintheavailabletimeandbudget.Note:Thismaterialmaybetoodetailedforinclusionintheproposalexceptasanappendix,butwillbecriticaltostartingasuccessfulengagement,becauseitwillbecometheinitialroadmapforeachtask.TasksReviewexistingdocumentationConductinterviewsandgroupworksessionsInterpretbusinessstrategyQuickmapprocessesAssessprocessvalueAssessresourceutilizationAssessinformationtechnologyenvironmentAssesschangemanagementtechniquesSampleTools&TechniquesParetoanalysisMarketsegmentationIn-personinterviewsandfocusgroups“Whiteboard”processmapsValueanalysisValuechainanalysisSummit-SActivitybasedmanagementResultsStrategicvisionstatementProcessmapsCriticalsuccessfactorsandstrategiclinkagesAssessmentofstrategicimportanceandvalue-additionofprocessesProcess/organizationalmatrixCurrentITassessmentShort-termactionplanEnterprise-widechangecapacityassessmentResourcesPwCstrategy,technology,andprocessconsultantsSelectedNovartis’seniorexecutivesandmid-levelmanagersSelectedsalesmanagersandkeycustomersPwCandNovartisresearchanalystsModule2-AssessObjectiveUnderstandthecurrentstatusofNovartisSeeds’distributionchannelstrategyandinitiativesandtheneedforchangeEngageSelectAssessMobilizeCommunicateandManageChangeModule1Module2Module3Module4StatementofWorkGANTTChartIllustratefortheclientaroughtimelinefortheproposedengagementDeterminetheapproximatedurationforeachtask.Understandtheprospectiveclient'stimeconstraints.UsingaprojectmanagementsoftwaretoolsuchasMicrosoftProject,determinethespecifictimelinefortheproject.Workeitherforwardfromananticipatedstartdatetodeterminetheapproximatetimeofcompletion,orbackwardfromaclient's"must-complete-by"datetodeterminethenecessarydurationoftasks,orboth.AGANTTchartgivestheexpectedtimelinefortheengagementbasedonourexperienceandexpertiseaswellastheclient'sneeds.Itillustratesthedifferenttrackswithinthejobandthetaskswhichcomprisethosetracks.Itcanalsoillustrateanydependencieswithintasksandtheproject’’scriticalpathandcanbeusedtohighlightfortheclientthemostcriticalareasandtime-periodsfortheirinvolvement.Byitself,itdoesnotindicateresourcerequirements.IDNameScheduledFinish3/143/213/284/44/114/184/25MarApr1234567891011123/26/933/26/934/23/934/12/933/30/934/1/934/5/934/7/934/8/934/9/934/12/934/19/93MobilizationPwCMobilizationSCMMobilizationDesigncustomerserviceprocessMapcommunicationModeleconomicdecisionsIdentifycostdriversIdentifyvaluedriversSpecifyCSactivitiesSpecifyCSinformationneedsSpecifyCSresourcePreparetrainingmaterialsProjectManagementSoftwareToolHelpscheduletasks,manageresources,andbudgetcostsforanengagementSelectanappropriateprojectmanagementsoftwaretool,suchasMS-Project.Usingthesoftwaremanualasareference,taketheworkplanandenterthephase,moduleandtaskinformationintothetool.Addadditionalinformationifnecessary;indicate“milestone””eventswhereappropriate.Assignapersonor"resource"toeachtaskforagivenlengthoftime.Addthecorrectbillingrateperhourforeachpersonworkingonthejob.Selectlevelingfunctiontoensurethatindividualsarenotoverallocatedonanygivenday.Generatereportsasneeded.Thesoftwarewillidentifytheproject’s"criticalpath,"i.e.,thelistoftaskswhichmustbecompletedasscheduledinorderfortheprojecttofinishontime.Thesoftwaremayalsohighlightresourceconstraintsandanyothermajormanagementissuesthatneedtobeaddressedbeforetheprojectstarts.Thesoftwaretoolcanalsobeusedtotrackengagementprogress,givingpercentagecompleteinformation,actualvs.scheduledstartandcompletiondates,etc.Note:maintainingthesoftwaretoolcanbeachallengeinsomestrategyprojects,especiallyifchangingdefinitionsoftheproblemleadtomajorchangesinscopeanddirection,andthusalsotheworkplan.IDNameDurationScheduledStartScheduledFinishResourceNames1DanKastelman,MaryBober,

SteveBaber,Michael2SteveBaber,DanKastelman,MaryBober,Grady3GradyMeans4PreparetrainingmaterialsCSTrainingWorkshop4/27USGPWorkshop1Trackdivisions'dataanalysis16d1d2d28d4/5/934/27/935/6/934/28/934/26/934/27/935/7/936/4/93DanKastelman4thQuarterIDName1234PreparetrainingmaterialsCSTrainingWorkshop4/27USGPWorkshop1Trackdivisions'dataanalysis3/284/44/114/184/255/25/95/165/23AprMayProjectBudgetTemplateCreatePwCMCSprofessionalearnedservicesbudgetFromtheprojectworkplanenterintoaspreadsheetnumberofdaysforeachprofessionalforeachNEISsemi-monthlyperiod.Sumthenumberofdaysforeachprofessionalandmultiplybyhis/herdailyratetogetfeesperprofessional.Sumfeesforallprofessionals.Add10%contingencytogettotalfeeestimate.Weareinbusinesstomakemoney.Jobswhicharepricedproperlytendnottogooverbudget.Eachmemberoftheteamknowshowmanydayshe/shewillbeexpectedtocharge,andcancommunicatethattocharge,andcancommunicatethattotheSBUFinanceManagerforforecastingpurposes.OrientationPresentationBuildasharedunderstandingbyteammembersoftheproject,itsobjectives,approach,workplanandtheirroles.GatherPwCteammembersforbriefingonbackgroundtoprojectandclient,theirroles,andclient’sroles.Usepre-proposalbackgroundinformationonclient,plusoutputsfromscopingandprojectplanning,toexplainproject.HoldfurthermeetingwithfullPwC/clientteamasnecessary.Asmoothlyfunctioningprojectteamdependsonitssharedunderstandingoftheproject’sbackground,objectives,scope,approachandworkplan,andcoremethodologies,andofeachindividual’’sroleandspecificresponsibilitiesinthetimeframe.Buildingsuchanunderstandingrequiresintenseandfocusedcommunication.Theinternalmeetingshouldserveasadry-runforthejointPwC/clientteammeeting.ThePwC/clientteammeetingshouldpinpointadditionalissuestoberaised/addressedinanyfurther““kick-off”sessions.KickoffWorkshopAgendaDay1(PwConly)Ice-BreakerExercise(20mins)Introductions&Experience(Team-20mins)IndustryBackground(IndustryManager-30mins)BREAKClientRelationship(BAPartner-15mins)Client’sChallenges(ISSPartner-30mins)TheClientSponsors(ISS&BAPartners-15mins)ProjectObjectivesandScope(ISSMgr-15mins)OurApproach,WorkPlanandSchedule(ISSMgr-45mins)LUNCHMethodologiesandAnalytics(ISSSA’’s-45mins)ExercisesinUsingTools(ISSSA’s-45mins)PwCandClientTeamRoles(ISSPartner&Manager-45mins)Budget,ProjectMgmt,Logistics(ISSMgr-30mins)RevisionsforClientSession(ISSMgr-30mins)Day2(ClientTeam)Welcome(ProjectSponsor-10mins)Ice-BreakerExercise(30mins)Introductions&Experience(JointTeam-30mins)CompanyBackground(InternalManager-20mins)BREAKTheCompany’sChallenges(ProjectSponsor-30mins)ProjectObjectivesandScope(ISSPtr-15mins)OurApproachandWorkPlan(ISSMgr-45mins)LUNCHMethodologiesandAnalytics(ISSSA’s-60mins)ExercisesinUsingTools(ISSSA’’s-60mins)PwC/ClientTeamRoles(ISSPartner&Manager-60mins)Logistics(ProjectMgr&ISSMgr-30mins)Taskteammeetings(taskteamleaders-60mins)BPRGameDemonstratetheprinciplesofBPR(BusinessProcessRe-engineering),theskillsneededtoachieveit,andthepotentialbenefitstobegainedForfacilitators,readthepreparatoryBPRGamematerial.Instructtheplayersandrunthegame.Note:FacilitatorsactasCEOsof"firms"orteamsandmustapproveallchangestotheprocess;iftheyhaveanypriorknowledgeoftheagendasofdecision-makersattheclient,theycouldlettheirapproval/sreflectthat.Afterthegame,discussthefinalchangedprocesseswiththeplayersandcomparethestepseachteamtooktoarriveattheirfinalprocess.Discusspotentialapplicationsofthegametotheclient'ssituation,andrelevantinsightsonstrategyandorganizationalchange.Providesanoverviewofre-engineeringtobenefitthecustomer;specificlessonstaughtinclude:breakthroughperformanceimprovementispossiblethereisnoidealsolution;eachteamwillhaveadifferentsetofself-initiatedstepstoimprovetheprocessReceivingQualityAssuranceEvaluationConfirmationResearchOrderManagementCEO

(Facilitator)CustomerCustomerServiceXXXXXXX(X)MailClerkX(X)X=aparticipantX(X)XXXSupplyChainManagementGameIllustrateprinciplesofsupplychainmanagementthroughaninteractiveexperimentwithdemandvolatilityFacilitatorsshouldreadthePwCMCSwhitepaperontheSupplyChainManagement(SCM)Gameandhaveplayedthegameseveraltimes.Instructtheplayersandrunthegame.Besensitivetostressesdevelopingwithintheteamsplayingthegame.Thekeypointsofthegamewillbelostiftheteams““losetheircool”.Followthewhitepaperdebriefafterthegame.Drawoutfromplayers““realworld”exampleswhichreinforcethelessonslearnedinthesimulation.Discusshowplayerscanmodifytheirmentalmodelsandbehaviorstoavoidthekindofeffectsseenatthegamefromoccurringintheirenterprise.Providesanoverviewofthedynamicsofsupplychainperformance;demonstrateshowminorchangesininputscanhavemajor“rippleeffects”alongthesupplychain.KeylessonsfromtheSCMgameinclude:Supplychainstructuredrivesbehaviorandultimatelyperformance.ThetremendouspotentialforperformanceimprovementinSupplyChainManagement.Incorrectmentalmodelsofhowthesupplychainworkscanexacerbatesupplychainproblems.SRICurrentInventoryRETAILERRETAILDISTRIBUTIONCENTERDISTRIBUTIONCENTERFACTORYConsumerOrderPIPIPPSRSRSRP=OrdersPlacedI=IncomingOrdersR=ReceivingDelayS=ShippingDelayKEY:ORDERFLOWPRODUCTFLOWSupplyChainManagementGameCurrentInventoryCurrentInventoryCurrentInventoryAnalyzetheinteractionofthevariousforcesthatinfluenceanindustryGatherinsightsintomajorindustryissuessuchasEconomiesofScaleandScope,LearningCurves,IndustryLifeCycle,etc.Identifykeycompetitorsintheindustrywithmarketsharesforeach.Classifycompetitorsascostleaders,qualityleaders,brandleaders,rapidproductdevelopers,customproductsdesigners,etc.Identifysupplierpowerissuesbasedonthesuppliers’relativesize,%ofindustrydemandmet,commodityvs.specialty,etc.Identifybuyerpowerissuesbasedonthebuyers’relativesize,%ofsales,commodityvs.specialty,etc.Includeexistingaswellasemergingtechnologiesinsubstitutesanalysis.Thisanalysiscreatesanuniformunderstandingofthemajorcompetitivedriversandissuesthatinfluencetheindustry.Broadstrategicoptions/hypothesescanbedevelopedusingthismodel.Forexample,itmaysugg

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