Part 7 Strategic Overview

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Strategic Planning

(The art of creating the desired Future)

introduction
1
Halan raised $120M
$33 Millions
Strategic Plan
It is all about enhancing the organizational Competitive
Advantage

introduction 6
REMEMBER
• “The essence of strategy is choosing OUT
what not to do.”
Michael Porter

• “Planning is bringing the future into


the present so that you can do
something about it now.” IN
Lakein, Alan, American Time
Management Expert Author
Trainer
introduction 8
Strategic Management:
Some Basic Assumptions

1. Plan or be planned for.


2. Failing to plan is planning to fail
3. Sometimes planning is more important
than plans!
4. Good old days are not sufficient to secure
future success (Vision and mission).

introduction
(1) Plan or be Planned for

• The ultimate goal for all types of


organizations is to increase
their market shares.
• Zero-sum game is the name of C A
the game (increases =
decreases). B
• Change is the only constant.
Market Share
• Business is a war.
introduction 10
(2) Failing to plan is planning to fail

• Planning is creating the


desired future.
• No planning = no future
• If you think planning is
expensive , try no
planning.
• If you plan to change
nothing, nothing will
change.
introduction Ch 1 -11
(3) Sometimes planning is more important than plans.
“In preparing for battle I have always found that plans are useless,
but planning is indispensable.”
Dwight D. Eisenhower

• Planning is a continuous process.


• Plans are the outcomes of the planning
process.
• Systematic way of strategic thinking is the
most important issue.

introduction 12
( 4) Good old days are not sufficient to
secure future success (Vision and mission).

• Yesterday is a history, tomorrow


is a mystery, toady is a gift.
• Strategic practices that were
once useful may cause a failure
in the future.
• You have to have a vision and a
clear mission.

introduction 13
REMEMBER

The greatest danger for most of us is not to aim too


high and miss it, but to aim too low and reach it

introduction
14
Strategic Thinkers
• Non- strategists: See
abnormal things as
normal.

• Strategists: See normal


things as abnormal.

introduction Ch 1 -15
Strategic Management – Defined
• Strategic Management is that set of managerial
decisions and actions that determines the long-run
performance of a corporation (Wheelen and
Hunger).
• It includes four stages:
– Environmental scanning.
– Strategy formulation.
– Strategy implementation.
– Strategy evaluation and control.

introduction Ch 1 -16
Four Strategic Questions
Stage Question Actions
Scanning Where are we now? • External
Assessment.
• Internal
Assessment.
Formulation Where do we want to go? VMOSA
Implementation How can we go there? Structure, Leading,
Resource
allocation, ….
Control and Are we there? KPI’s, BSC
Evaluation

introduction 17
Adapting for Changes
Enterprise Intelligence Definition:
“ the enterprise ability to initiate change ( to
unsettle competitors ) and confront changes
( initiated by competitors , regulators and
other players ) in the market environment. ”
• The main Problems :

- Traditional Operations and processes are innately


constrained by the limitations of manual
operations, consequently : migrating traditional
processes directly to ES pitches them at the
Lowest-end value-add spectrum

- Initiating change & confronting changes are the


two most important issues facing today’s
enterprises
Change Management versus
Management of Changes
The traditional concept of change management is
usually understood as dealing with one time or at
least non-frequent event

But if the enterprise is looking to handle not


only change management but also management
of changes on a continual basis , then establishing
a constellation of integrated enterprise systems
such as ERP,CRM,SCM,PLM,BPM and BI is a must
Employees vs IT Processes
• Handling process changes related to IT is more
simple than related to Employees . Because
processes that reside within computerized
systems are easy to change as they are not
thwarted by problem of Inertia , Fatigue or
lack of motivation .
The current challenge
Efficiency Innovation

Sustaining Innovation

Transformative Innovation

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