© Business Keys Ltd 2008 The power to connect “It is the function of the creative man to...

© Business Keys Ltd 2008

www.businesskeys.co.uk

The power to connect

“It is the function of the creative man to perceive and connectthe seemingly unconnected”William Plomer, 1903 – 1973 English Writer

“The landscape is complex; there are many paths to innovation.Business requires greater clarity and a more connected approach”UK Technology Strategy Board Strategic Plan 2008 - 2011

Stephen MundenBusiness Keys Ltd.

Energistics Standards Summit23 October 2008



agenda

Introduction

Standards• paradigm• power

Standardization• innovation• impact

Strategy• leadership• value• process



Business Keys Limited

LEADERSHIPZONE

Survival Growth

Master complexity Create your future

unlocking business value…unlocking business value…

……helping organisations create a confident futurehelping organisations create a confident future



strategy – roadmaps providing clarity of direction for business & technologies

management systems – a framework that ensures consistent delivery of excellent customer results

solutions - • compliance – getting done what must be done

• cost reduction – higher productivity, lower operating costs

• growth – access to new markets and opportunities

• innovation – agility and flexibility with lower risks

results



New Strategies:

• knowledge as a strategic focus for business• open innovation and collaboration accepted as key to prosperity• network effects, network economy everything/ everybody connected

Business is driven by

• governments• dynamic markets

• standards

driving forces



Missed opportunities?

• Kodak – ‘pictures by phone’

• OilCo – Enhanced Oil Recovery through 3-D fluid injection*

Disruptive technologies

• Kodak – digital photography

• OilCo – hydrogen, bio, other?

disruptive events

* US patent 6,158.517



Standards I an agreed way to do something



Munden’s Law

standards are what they dostandards are what they do



what are ‘business keys’?

Commercially-sensitive strategic levers within a value chain/ network

standards - act as business keys to unlock business value

Types include:

• Access• Change• Communication• Differentiation• Identification• Leverage• Solution• Strategic



all successful, sustainable organisationsare underpinned by a matrix of

standards and business systemsthat coordinate its activities and

connect it to its markets and customers.

A framework by which an individual company or industry candevelop technology and do business in any market in the world

Standards connect your business to its customers



BRAND – market position & focusCUSTOMER VALUE

KNOWLEDGE – competencies, capabilities, assetsBUSINESS VALUE

the power of standardsCOMPONENT

RELATIONSHIPS PERFORMANCE OPERATIONS – systems/process

ORGANIZATIONAL VALUE



NETWORKS

MODULES PLATFORMS

INTEROPERABILITYINTEROPERABILITY

….all types of components

the power to connect



component, product…or something else?

Component: contributing to the composition of the whole

Technology Component Systems Adoption

Component Complements

Component rival Complementprovider

VALUE NETWORK or Business ecosystem

Innovator Integrator Users

Source: Joel West



mastering complexity

• Product – set of components linked together to form a function for a user

• Module – component of a system

• Interface – standard that defines how modules will interact with each other

• System – set of interrelated components

• Architecture – set of interfaces (standards) that make up a system

Control of the standards defining the architecture …….provides competitive advantage

The architecture lays down the rules for a new industry

Underlying complexity is a small set of simple rules – e.g. modularity



Standardization I a dynamic process for getting more people to value what you offer



innovation with standardization

Source: G M Peter Swann, 2000



Key Industry Drivers Standards Impact

Energy source depletion - reserves Leading edge technology integration

Production optimisation Agility and flexibility

Operational efficiency Cost reduction, waste reduction

Safety assurance Measurement/ assurance to staff/ stakeholders

Legal & regulatory compliance ‘License to trade’

Key Business Drivers

Volatile energy prices Increased yield/ new yields - market stability

Security of supply Increased self-sufficiency

Regulations driven by climate change/ public policy

Business-friendly regulation, easier implementation

EOR technologies Standardize patented technologies

New energy technologies Facilitate market penetration of alternatives

Demand & sourcing from developing countries Transaction cost reduction

Rising energy demands Implementation of climate change measures

Industry process issues – bottlenecks in supply Process improvements

Formation of the ‘rules of the game’ by others, e.g. China

Standards creating the framework for global business

standards impact



Strategy I Good leaders are the ones who set acceptable standards that can be emulated by others

Mahatma Gandhi



= sets the standards for the company

• brand

• systems/ structure

• functions/operations

– all working in complementary fashion to achieve the specific aim of the organisation

Companyobjectives

Strategicbusinessplanning

Technologyplanning

Productplanning

leadership



Customers

Cash $

Markets

Brand standards

Technology/ Product standards

Knowledge/ Capabilities

Process standards

Operations

Compete on – service‘Customer Intimacy’ Compete on – quality

‘Product Leadership’

Compete on – price‘Operational Excellence’

Where is the value in your

business?

Source: Business Keys Limited©

STRATEGY• Industry assumptions• Strategic focus• Customers• Assets & capabilities• Product/ service offerings

unlocking business value



Level RoleStandardization responsibility

Frame of reference

Examples

Strategic Director/ leader Set standards RoadmapBusiness Plan,

Brand standards

ManagementManager/ supervisor

Manage performance

FrameworkSystems,

architecture, processes

OperationsStaff/

functionalFollow/ comply Tactical plan

Technical Specification

strategic standardization

Use of standardized products, processes, procedures & policies to gain competitive advantage, or avoid competitive disadvantage,

thereby facilitating the attainment of business objectives



BUSINESS BOUNDARIES- Vision, Mission, Values

BUSINESS OBJECTIVES(or Goals)

External Stakeholders

INTERNAL ANALYSIS EXTERNAL ANALYSIS

ALTERNATIVE STRATEGIC DIRECTIONS

EVALUATE & SELECTSTRATEGY

IMPLEMENTMONITOR & CONTROL

Strengths &Weaknesses

Opportunities& Threats

strategy development process




standardization strategy- regenerative medicine example

• Regulatory framework• Collaborative strategy• Stability/ certainty• Fragmented/ embryonic markets• Investor confidence• Public perception/ media coverage• Unproven science/ technology• Uncertain future markets/ business risks• Process and production methods



Technology Leadership Process

Opportunity&

ValueMapping

StrategicChoice

BusinessImpact

StrategyDevelopment

TechnologyVision

TechnologyRoadmap

StandardizationStrategy

•Information•Implementation•Influence•Innovation

Opportunities

Activity

StandardsArchitecture

Products



Influencemarket structurestechnology directionproduct acceptance

Informationbusiness intelligencetechnology trackingbest practice/ next practice

Implementationcompliance/ assurancecost/ risk reductionmarket interconnectivity

Innovation faster product introductionnew competitive spacenew industry boundaries

standards management



Questions?

© Business Keys Ltd 2008 The power to connect “It is the function of the creative man to...

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