4 Competitive Advantage
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Transcript of 4 Competitive Advantage
8/9/2019 4 Competitive Advantage
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The History:
1950’s Productivity
1960’s Productivity + Service
1970’s Productivity + Service + Financial Control
1980’s Productivity + Service + Financial Control + Quality
1990’s Productivity + Service + Financial Control + Quality + Direction
2000’s Productivity + Service + Financial Control + Quality + Direction +
Information??
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CustomersExternal
Opportunities
External
Threats
Business
Mission
Factory for the
Future
Product
Creation
Product
Supply
Knowledge
Acquisition
People
Development
Business
Planning
SuppliersTechnology
Competitors
Markets, Products& Services
TheEnvironment
Demographyand lifestyles
GlobalEconomy
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Utilities
LeisurePublic Services
Finance & Business
Communications
Transport
Education
Health
The Consumer
Goods Providers
Finished Product
Manufacturers
1st Tier Suppliers
Major Items
2nd Tier Suppliers
Minor Items
Basic Materials
Manufacturers
Equipment Configures
1st Tier Suppliers
Major Items
2nd Tier Suppliers
Minor Items
Defence
Services ProvidersServices
Demand
Consumer
DemandGoods
Services
Industrial
Demand
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Identify the basis for competitive advantage
Determine what you must be good at
Do it better than anyone else
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What should we be good at?
The complexity/uncertainty grid
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Satellites
Nicorette Inhalers
“Prince of Wales” Drink
Games/Toys
Yoyo
TV’s – Video
CarMobile Phones
IBM Clones
Food & Drink
Fairy Washing up LiquidLow
High
Uncertainty
High LowProduct Complexity
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Aerospace
Defence
Professional Electronics
Heavy Electrical Equipment
Process Plant
Railway Equipment
Shipbuilding
Major Construction
Cosmetics
Perfumes
Textiles
Packaging
Food and Drink
Jobbing Builders
Automotive
Volume Consumer Durables
White
Brown
Conventional Machine Tools
Simple Components
Paper
Commodity Tools
Bulk Chemicals
PrimaryMetals
Glass
Building Materials
Food & Drink
Low
High
Uncertainty
High LowComplexity
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Super Value Goods
Fitness for
Purpose
Fashion
Timeliness
Consumer Durables
Variety
Commodities
Price
Low
High
Uncertainty
High LowComplexity
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Super Value Goods
Product Design &
Development
Information Technology
Fashion
Market Vision
Time to Market
Consumer Durables
Time to Market
Flexible Manufacturing
Commodities
Manufacturing Productivity
Logistics
Low
High
Uncertainty
High LowComplexity
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Super Value Goods
Product Creation
(Knowledge Acquisition)
Fashion
Product Creation
(Market Scanning)
Consumer Durables
Product Supply
(Flexibility)
Commodities
Product Supply
(Cost)Low
High
Uncertainty
High LowProduct Complexity
“Agile”
“Lean”
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Critical
Systems
Bespoke
components
Modular
Assemblies
Fasteners
Brackets etc.
Low
High
Uncertainty
High LowComplexity
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Performance
NowTime
Future
A
B
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Product Creation OLD NEWHonda
AT&T
Navistar
Hewlett Packard
Discovery
Cars
Phones
Trucks
Printers
5 years
2 years
5 years
4.5 years
5-7 years
3 years
1 year
2.5 years
22 months
2.2 years
Product Supply
GE
Motorola
Hewlett PackardBrunswick
Circuit breakers
Pagers
Test EquipmentFishing Reels
21 days
21 days
28 days21 days
3 days
2 hours
5 days7 days
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“Success comes from utilising all
the intelligence of all the people for
all of the time”
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