Documente Academic
Documente Profesional
Documente Cultură
Estrategia Digital
April 24, 2008
Arnoldo C. Hax
Alfred P. Sloan Professor of
Management Emeritus
M.I.T.
EL MODELO DELTA
Tres alternativas de
posicionamiento estratégico
Consolidación del Sistema
• Economía del Sistema
• Dominio del Mercado
• Participación de empresas complementarias
… a través de un
uso efectivo de la
tecnología
Canal exclusivo
rural Wal-Mart
Liderazgo en costo
Southwest Airlines,
Amplitud horizontal
Nucor
Fidelity
Posicionamiento
estratégico
Total Customer Best Product
Solution
1
Misión
2
5 3 6 4
Scope
Agenda estratégica
Segmentación de
clientes
Tier 1: Exclusive Partner
Tra
Tier 2: Strategic/Integrated Partner
Tier 3: Project Solution Seekers
Tier 4: Body Shoppers
Current Sony VC Competencies and Desired Sony
VC Competencies
Tier 1: Total Office Solution Seeker
System
• International & large firms, large educational
Lock-In
firms who need “total office solution”
• Sony could provide all solutions including many
Tier 6: Price Seeker
kinds of products besides VC products,
• Large, middle, small size firms who need
customized system software, system design with
affordable products
system integrators
• These seekers pursue product price rather
• Long run service & maintenance for all system
than quality
• Customized VC products
• Necessary for wide product line-up range for
• Very long term relationship
many affiliated offices
Ideal
Customer
Segmentation
Best
Total
Product
Customer
Solutions
Tier 5: High Quality VC Seeker
Tier 2: Total VC Solution • Large, middle, small size firms
Seeker Tier 3: Negotiated Solution Seeker Tier 4: Heavy-Use Seeker who need “differentiated & best
• International & large firms, • Large, middle, small size firms, • Large, middle, small size firms products with very high quality”
large educational firms, & large large education firms, & large who need “heavy product usage” • These seekers pursue not heavy
exhibitions who need “total VC exhibitions who need “customized • Effective customer service for usage but very high quality &
solution” solution or products” products rather than system differentiated functions
• VC vendors could provide • VC vendors could provide • VC vendor could provide long • Wide product line-up range for
solutions including appropriate customized solutions or products run product support including many affiliated offices
VC products in each office, including appropriate or software version-up & updated • Needs guarantees of connectivity
customized system software, customized VC products in each functions between old VC model & new VC
system design with system office, customized system • Needs guarantees of model
integrators software, system design with connectivity between old VC • Product reputation & brand power
• Long run service & system integrators. model & new VC model necessary
maintenance for all system • Long term relationship • Collaboration with potential
• Customized VC products • Occasional special projects customers to fix VC
• Long term relationship specifications
Competencies of Sony VC Business
Dominant exchange System Proprietary standard
• Patents & dominant manufacturing CCD Lock-In • Patents
camera for all competitors’ products
Low cost
Exclusive Channel • Powerful Sony procurement system
• Advantage with regulators of 80 countries • Economies of scale with other Sony
through world-wide developed sales consumer products
channels • Efficient supply chain system
• Advantage with IETF & IEEE that make • High yield manufacturing technology
specification of video transmitting • Experienced electronics technology to
technology reduce components
• Offering products, system software &
system integration all together will
Sony • High development capability to reduce
product development time
discourage switching
• Sales & service channel for 80 countries
Competencies • Experienced quality assurance system
Horizontal breadth
Best
• Multiple channels (direct,
Product
resellers, distributors, system Total
integrators) Customer Differentiation
• A complete set of product & Solutions • Strong brand power
service offerings with Sony • Totally well-balanced product line-up
VC, other Sony products, Customer engagement Customer integration • Advanced Audio & Video technology
system software & system • Collaborative product • Joint forecasting & planning with • Sophisticated product design
integration development with potential suppliers, distributors & resellers • Connectivity with other Sony products (I.e.
• Complementor development customers • Collaboration with distributors & memory stick)
• Very detailed sales manual • Event to hear customer needs resellers • Sophisticated CCD Video camera (All
book for multiple channels through periodic promotion events • Collaboration with System competitors purchase it from Sony)
• Detailed comparison chart • Sales campaign to sales software integrators • Time to market
to compete with Sony & channels over the world • Periodic introduction & seminars • Launch product for 80 countries
Tandberg • Special sales promotion to for customers • Quality (Video, audio, & product itself)
• Attractive cash back system potential large customers • Continuous customer support by • Collaboration with huge potential customers
Company policy “customer’s • A lot of innovative programs to dedicated web page for customers • High R&D spending
satisfaction first” make good relationship with • Hundreds of employees for sales • Outstanding experiences for VC & Audio
• Annual big event to motivate distribution channels & customer services conference as communication company
horizontal players • Company policy “good • Not product business but • Long history dedicating VC business
relationship with customers!” “solution business” • Sophisticated functions for customer satisfaction
• Great connectivity to other products
HP - Viewed Through the Delta Model
Dominant Exchange Proprietary Channel
• Owning the industry’s largest IT Supply Chain havs • Non-Stop (Tandem) Platform proprietary; e.g. 95% of
the ability to “mandate” suppliers to out-perform, set World Stock exchanges, 2 out of 3 credit card
standards, meet other IT needs by transactions, mobile & telecomm exchanges, public
challenge/motivation safety 911 systems
• Tough bargainer with suppliers/partners • Printers & supplies
• Play a leading part in many standards-setting bodies • Customers using specialized system flavors like
(e.g. RFID, EPC Global, W3C, etc.). HPUX, Tru 64 and FAX have a lot invested in it & are
System Lock-In locked-in.
Exclusive Channel
• Sold direct, online, & via technology, Low Cost Pricing
software, systems integration &
channel partners • Consumer goods & even low-end servers, PCs &
other systems are priced very low - Dell & HP/Compaq
play a see-saw game almost every quarter when it
Horizontal Breadth comes to pricing & overall revenue
• PDA, PC, Notebook, camera, printer, ink, scanner,
hp • Printers are practically given away
server - big & small, storage, software, solutions &
• Services & solutions sold used a global delivery
services to name a few
model using a combination of in-store, off-store & near-
• Financial services & leasing options offered for store to offer the best price for customer
customers in need.,
Total Customer Best Product
Solutions
Customer Integration
• Long-term vision Differentiation
• Exceed customer expectation Reduce Customer Experience • Achieve high sales by offering broad assortment of
• Strong regional, national & growing international innovative products, services solutions at relatively
• Total-customer experience is something HP prides low prices
presence - doing business in 178 countries itself on & it actively measures this using metrics
• Community involvement - grants to schools & other • Offer specific targeted solutions to each customer
• Go to market using the best solution which may be a segment - consumer, enterprise, public-sector
institutions, charities, scholars, etc. partner’s product on HP platform
• Rise to occasions like the recent Tsunami, Katrina, • Focus on catering to regional requirements, e.g.
• Create the best customer experience using the best N. American solution offering maybe different than one
SE Asian Earthquake, etc. by donating cash & team - one face to the customer & one throat to choke for Asia-Pacific or Europe.
products & by encouraging employees to donate & idea
match their contributions.
• Demo-days & other shows to help people understand
& enjoy the technology coming out of HP Labs
Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
HP - Viewed Through the Delta Model
Dominant Exchange Proprietary Channel
• Owning the industry’s largest IT Supply Chain havs the
ability to “mandate” suppliers to out-perform, set standards,
• Non-Stop (Tandem) Platform proprietary;
meet other IT needs by challenge/motivation e.g. 95% of World Stock exchanges, 2 out of
• Tough bargainer with suppliers/partners 3 credit card transactions, mobile & telecomm
• Play a leading part in many standards-setting bodies (e.g. exchanges, public safety 911 systems
RFID, EPC Global, W3C, etc.).
• Printers & supplies
System Lock-In • Customers using specialized system flavors
Exclusive Channel
like HPUX, Tru 64 and FAX have a lot
• Sold direct, online, & via technology,
software, systems integration & channel invested in it & are locked-in.
partners
Low Cost Pricing
• Consumer goods & even low-end servers, PCs & other
Horizontal Breadth systems are priced very low - Dell & HP/Compaq play a see-
• PDA, PC, Notebook, camera, printer, ink, scanner, server -
hp saw game almost every quarter when it comes to pricing &
overall revenue
big & small, storage, software, solutions & services to name
a few • Printers are practically given away
• Financial services & leasing options offered for customers in • Services & solutions sold used a global delivery model
need., using a combination of in-store, off-store & near-store to offer
the best price for customer
Total Customer Best Product
Solutions
Customer Integration
• Long-term vision Differentiation
• Exceed customer expectation • Achieve high sales by offering broad assortment of
Reduce Customer Experience
• Strong regional, national & growing international presence - innovative products, services solutions at relatively low
doing business in 178 countries • Total-customer experience is something HP prides itself on prices
& it actively measures this using metrics
• Community involvement - grants to schools & other • Offer specific targeted solutions to each customer segment
institutions, charities, scholars, etc. • Go to market using the best solution which may be a - consumer, enterprise, public-sector
partner’s product on HP platform
• Rise to occasions like the recent Tsunami, Katrina, SE • Focus on catering to regional requirements, e.g. N.
Asian Earthquake, etc. by donating cash & products & by • Create the best customer experience using the best team - American solution offering maybe different than one for Asia-
encouraging employees to donate & match their one face to the customer & one throat to choke idea Pacific or Europe.
contributions. • Demo-days & other shows to help people understand &
enjoy the technology coming out of HP Labs
Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
HP - Viewed Through the Delta Model
Dominant Exchange Proprietary Channel
• Owning the industry’s largest IT Supply Chain havs the • Non-Stop (Tandem) Platform proprietary; e.g. 95% of World
ability to “mandate” suppliers to out-perform, set standards, Stock exchanges, 2 out of 3 credit card transactions, mobile
meet other IT needs by challenge/motivation & telecomm exchanges, public safety 911 systems
• Tough bargainer with suppliers/partners • Printers & supplies
• Play a leading part in many standards-setting bodies (e.g. • Customers using specialized system flavors like HPUX, Tru
RFID, EPC Global, W3C, etc.). 64 and FAX have a lot invested in it & are locked-in.
Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
HP - Viewed Through the Delta Model
Dominant Exchange Proprietary Channel
• Owning the industry’s largest IT Supply Chain havs the • Non-Stop (Tandem) Platform proprietary; e.g. 95% of World
ability to “mandate” suppliers to out-perform, set standards, Stock exchanges, 2 out of 3 credit card transactions, mobile
meet other IT needs by challenge/motivation & telecomm exchanges, public safety 911 systems
• Tough bargainer with suppliers/partners • Printers & supplies
• Play a leading part in many standards-setting bodies (e.g. • Customers using specialized system flavors like HPUX, Tru
RFID, EPC Global, W3C, etc.). 64 and FAX have a lot invested in it & are locked-in.
System Lock-In
Exclusive Channel
• Sold direct, online, & via technology, Low Cost Pricing
software, systems integration & channel
partners • Consumer goods & even low-end servers, PCs & other
systems are priced very low - Dell & HP/Compaq play a see-
saw game almost every quarter when it comes to pricing &
overall revenue
Horizontal Breadth
• PDA, PC, Notebook, camera, printer, ink, scanner, server -
hp • Printers are practically given away
big & small, storage, software, solutions & services to name • Services & solutions sold used a global delivery model
a few using a combination of in-store, off-store & near-store to offer
the best price for customer
• Financial services & leasing options offered for customers in
need.,
System Lock-In
Exclusive Channel
• Sold direct, online, & via technology, Low Cost Pricing
software, systems integration & channel
partners • Consumer goods & even low-end servers, PCs & other
systems are priced very low - Dell & HP/Compaq play a see-
saw game almost every quarter when it comes to pricing &
overall revenue
Horizontal Breadth
• PDA, PC, Notebook, camera, printer, ink, scanner, server -
hp • Printers are practically given away
big & small, storage, software, solutions & services to name • Services & solutions sold used a global delivery model
a few using a combination of in-store, off-store & near-store to offer
the best price for customer
• Financial services & leasing options offered for customers in
need.,
System Lock-In
Exclusive Channel
• Sold direct, online, & via technology, Low Cost Pricing
software, systems integration & channel
partners • Consumer goods & even low-end servers, PCs & other
systems are priced very low - Dell & HP/Compaq play a see-
Horizontal Breadth saw game almost every quarter when it comes to pricing &
overall revenue
• PDA, PC, Notebook, camera, printer, ink, scanner, server -
big & small, storage, software, solutions & services to name hp • Printers are practically given away
a few • Services & solutions sold used a global delivery model
• Financial services & leasing options offered for customers in using a combination of in-store, off-store & near-store to offer
need., the best price for customer
Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
HP - Viewed Through the Delta Model
Dominant Exchange Proprietary Channel
• Owning the industry’s largest IT Supply Chain havs the • Non-Stop (Tandem) Platform proprietary; e.g. 95% of World
ability to “mandate” suppliers to out-perform, set standards, Stock exchanges, 2 out of 3 credit card transactions, mobile
meet other IT needs by challenge/motivation & telecomm exchanges, public safety 911 systems
• Tough bargainer with suppliers/partners • Printers & supplies
• Play a leading part in many standards-setting bodies (e.g. • Customers using specialized system flavors like HPUX, Tru
RFID, EPC Global, W3C, etc.). 64 and FAX have a lot invested in it & are locked-in.
Exclusive Channel
• Sold direct, online, & via technology,
System Lock-In
software, systems integration & channel
partners Low Cost Pricing
Horizontal Breadth • Consumer goods & even low-end servers, PCs & other
systems are priced very low - Dell & HP/Compaq play a see-
• PDA, PC, Notebook, camera, printer, saw game almost every quarter when it comes to pricing &
overall revenue
ink, scanner, server - big & small, hp • Printers are practically given away
storage, software, solutions & services to • Services & solutions sold used a global delivery model
name a few using a combination of in-store, off-store & near-store to offer
the best price for customer
• Financial services & leasing options
offered for customers in need.,
Total Customer Best Product
Solutions
Customer Integration
• Long-term vision Differentiation
• Exceed customer expectation • Achieve high sales by offering broad assortment of
Reduce Customer Experience
• Strong regional, national & growing international presence - innovative products, services solutions at relatively low
doing business in 178 countries • Total-customer experience is something HP prides itself on prices
& it actively measures this using metrics
• Community involvement - grants to schools & other • Offer specific targeted solutions to each customer segment
institutions, charities, scholars, etc. • Go to market using the best solution which may be a - consumer, enterprise, public-sector
partner’s product on HP platform
• Rise to occasions like the recent Tsunami, Katrina, SE • Focus on catering to regional requirements, e.g. N.
Asian Earthquake, etc. by donating cash & products & by • Create the best customer experience using the best team - American solution offering maybe different than one for Asia-
encouraging employees to donate & match their one face to the customer & one throat to choke idea Pacific or Europe.
contributions. • Demo-days & other shows to help people understand &
enjoy the technology coming out of HP Labs
Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
HP - Viewed Through the Delta Model
Dominant Exchange Proprietary Channel
• Owning the industry’s largest IT Supply Chain havs the • Non-Stop (Tandem) Platform proprietary; e.g. 95% of World
ability to “mandate” suppliers to out-perform, set standards, Stock exchanges, 2 out of 3 credit card transactions, mobile
meet other IT needs by challenge/motivation & telecomm exchanges, public safety 911 systems
• Tough bargainer with suppliers/partners • Printers & supplies
• Play a leading part in many standards-setting bodies (e.g. • Customers using specialized system flavors like HPUX, Tru
RFID, EPC Global, W3C, etc.). 64 and FAX have a lot invested in it & are locked-in.
Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
HP - Viewed Through the Delta Model
Dominant Exchange
Proprietary Channel
• Owning the industry’s largest IT Supply Chain • Non-Stop (Tandem) Platform proprietary; e.g. 95% of World
havs the ability to “mandate” suppliers to out- Stock exchanges, 2 out of 3 credit card transactions, mobile
& telecomm exchanges, public safety 911 systems
perform, set standards, meet other IT needs by • Printers & supplies
challenge/motivation
• Customers using specialized system flavors like HPUX, Tru
64 and FAX have a lot invested in it & are locked-in.
• Tough bargainer with suppliers/partners
• Play a leading part in many standards-setting
System Lock-In
bodies (e.g. RFID, EPC Global, W3C, etc.).
Low Cost Pricing
Exclusive Channel • Consumer goods & even low-end servers, PCs & other
• Sold direct, online, & via technology, systems are priced very low - Dell & HP/Compaq play a see-
software, systems integration & channel saw game almost every quarter when it comes to pricing &
partners overall revenue
• PDA, PC, Notebook, camera, printer, ink, scanner, server - • Services & solutions sold used a global delivery model
big & small, storage, software, solutions & services to name using a combination of in-store, off-store & near-store to offer
a few the best price for customer
Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
Partnerships and alliances
Leveraging the best of the industry
Technology
Partners
Software
Partners
System
Integration
Partners
Channel
Partners
Source: Popsi Narasimhan, “Hewlett-Packard Company”, 15.902 research paper, Fall 2005
Gartner Magic Quadrant - December 2006
Future:
Exclusive Channel
System Lock-In
• External ties with major economies
• Network of Free Trade Agreements
• Gateway into & out of Asia Low Cost of Doing Business
• Low labor & business cost
Horizontal Breadth • Low personal & corporate tax rates
• Broad & diversified base of economic • Avoid fiscal budget deficits
players
• Twin engines of economic growth in
manufacturing & services 1960-1980s
1990-2000s
Current: Total
Customer Solutions Past: Best Product
• World-class legal, regulatory & • Expand international & regional trade networks • First-class business infrastructure
telecommunications infrastructure • Implement international best practices for accounting • Educated & trained labor force
& compliance framework
Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore
Inc.”, 15.902 research paper, Fall 2005
The Delta Model: Singapore’s Strategic Positioning
Dominant Exchange
• Comprehensive networks of Free Trade Agreements
Proprietary Channel
• Key node in the global network linked to all major
economies
• International hubs for specific
• Gateway into & out of Asia 2000-2010s sectors like finance, commerce,
trade & R&D
Future:
Exclusive Channel
System Lock-In
• External ties with major economies
• Network of Free Trade Agreements
• Gateway into & out of Asia
Low Cost of Doing Business
• Low labor & business cost
Horizontal Breadth • Low personal & corporate tax rates
• Broad & diversified base of economic players • Avoid fiscal budget deficits
• Twin engines of economic growth in
manufacturing & services
1960-1980s
1990-2000s
Current: Total
Customer Solutions Past: Best Product
Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore
Inc.”, 15.902 research paper, Fall 2005
The Delta Model: Singapore’s Strategic Positioning
Dominant Exchange
• Comprehensive networks of Free Trade Agreements Proprietary Channel
• Key node in the global network linked to all major • International hubs for specific sectors like
economies finance, commerce, trade & R&D
• Gateway into & out of Asia 2000-2010s
Future:
Exclusive Channel
System Lock-In
• External ties with major economies Low Cost of Doing Business
• Network of Free Trade Agreements
• Gateway into & out of Asia
• Low labor & business cost
• Low personal & corporate tax
Horizontal Breadth
rates
• Broad & diversified base of economic players • Avoid fiscal budget deficits
• Twin engines of economic growth in
manufacturing & services
1960-1980s
1990-2000s
Current: Total
Customer Solutions Past: Best Product
Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore
Inc.”, 15.902 research paper, Fall 2005
The Delta Model: Singapore’s Strategic Positioning
Dominant Exchange
• Comprehensive networks of Free Trade Agreements Proprietary Channel
• Key node in the global network linked to all major • International hubs for specific sectors like
economies finance, commerce, trade & R&D
• Gateway into & out of Asia 2000-2010s
Future:
Exclusive Channel
System Lock-In
• External ties with major economies
• Network of Free Trade Agreements
• Gateway into & out of Asia Low Cost of Doing Business
• Low labor & business cost
Horizontal Breadth • Low personal & corporate tax rates
• Broad & diversified base of economic players • Avoid fiscal budget deficits
• Twin engines of economic growth in
manufacturing & services
1960-1980s
1990-2000s
Current: Total
Customer Solutions Past: Best Product
Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore
Inc.”, 15.902 research paper, Fall 2005
The Delta Model: Singapore’s Strategic Positioning
Dominant Exchange
• Comprehensive networks of Free Trade Agreements Proprietary Channel
• Key node in the global network linked to all major • International hubs for specific sectors like
economies finance, commerce, trade & R&D
• Gateway into & out of Asia 2000-2010s
Future:
Exclusive Channel
System Lock-In
• External ties with major economies
• Network of Free Trade Agreements
• Gateway into & out of Asia
Low Cost of Doing Business
• Low labor & business cost
Horizontal Breadth • Low personal & corporate tax rates
• Broad & diversified base of economic players • Avoid fiscal budget deficits
• Twin engines of economic growth in
manufacturing & services
1960-1980s
1990-2000s
Current: Total
Customer Solutions Past: Best Product
Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore
Inc.”, 15.902 research paper, Fall 2005
The Delta Model: Singapore’s Strategic Positioning
Dominant Exchange
• Comprehensive networks of Free Trade Agreements Proprietary Channel
• Key node in the global network linked to all major • International hubs for specific sectors like
economies finance, commerce, trade & R&D
• Gateway into & out of Asia 2000-2010s
Future:
Exclusive Channel
System Lock-In
• External ties with major economies
• Network of Free Trade Agreements
• Gateway into & out of Asia
Low Cost of Doing Business
• Low labor & business cost
Horizontal Breadth • Low personal & corporate tax rates
• Broad & diversified base of economic players • Avoid fiscal budget deficits
• Twin engines of economic growth in
manufacturing & services
1960-1980s
1990-2000s
Current: Total
Customer Solutions Past: Best Product
Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore
Inc.”, 15.902 research paper, Fall 2005
The Delta Model: Singapore’s Strategic Positioning
Dominant Exchange
• Comprehensive networks of Free Trade Agreements Proprietary Channel
• Key node in the global network linked to all major • International hubs for specific sectors like
economies finance, commerce, trade & R&D
• Gateway into & out of Asia 2000-2010s
Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore
Inc.”, 15.902 research paper, Fall 2005
The Delta Model: Singapore’s Strategic Positioning
Dominant Exchange
• Comprehensive networks of Free Trade Agreements Proprietary Channel
• Key node in the global network linked to all major • International hubs for specific sectors like
economies finance, commerce, trade & R&D
• Gateway into & out of Asia 2000-2010s
Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore
Inc.”, 15.902 research paper, Fall 2005
The Delta Model: Singapore’s Strategic Positioning
Dominant Exchange
• Comprehensive networks of Free Trade Proprietary Channel
Source: Fook-Chuen Ow, “The Delta Model Analysis of the Competitiveness of Singapore
Inc.”, 15.902 research paper, Fall 2005
Putting it all Together -
How to capture the critical tasks
of strategy
From the Customer Segmentation to Strategic
Agenda
Value Proposition
Bundle of Competencies
System
Lock-In
Strategic Positioning
Total Customer Best Product
Solution
1
2 Mission Statement
5 3 6 4
Scope
Customer
“From” “To”
Classification
Strategic Thrusts
Customer Segment
Tier 1: Exclusive Partner
Tra
Tier 2: Strategic/Integrated Partner
Tier 3: Project Solution Seekers
Tier 4: Body Shoppers
DMK:
Outsourcing Information Technology from China
Complementors IBM (as an h/2 and s/2 partner), existing clients, Accenture
Value Proposition
Description
Element
Experiences Seamless extension of Client team with integrated culture, skilled
technologists with deep understanding of clients business.
Value Delivery Systems • Dedicated client-focused team immersed in all aspects of client’s
culture
• Network integration to seamlessly extend client environment
• Open communication of all relevant information on both sides
• Executive sponsor, CEO oversight, an full corporate reach
• CMM and Six-Sigma delivery methodologies for delivery
• Value added reselling of hardware and software for one-stop-
shopping
Value Appropriation • Value gained by customer: Superior ROI, improved time-to-
market, Security, Resource stability
• Value gained by DMK: Exclusive long-term relationship, higher
margins, predictable revenue
• Value shared by both: Shared IP, shared learning, shared risk
Customer Segmentation
Business Dimension for Tier 2 - “Strategic Partner”
Channels Direct
Value Proposition
Description
Element
Experiences Integrated teams of skilled technologists with deep understanding
of client’s business
Channels • Direct
• Consulting partners such as IBM
• Strategic partners such as GE
End Users N/A
Value Proposition
Description
Element
Experiences End-end-end delivery of a project with high quality and
competitive price
Value Delivery Systems • Structured processes and teams with high quality of performance
• Ability to quickly ramp-up on clients business and culture
• Process for seamless transition at end of project
• Dedicated project team manager with executive oversight
Value Appropriation • Value gained by customer: Experimentation , learning, flexibility,
reduced time-to-market, high quality, ROI
• Value gained by DMK: Opportunity for long-term relationship,
ROI, learning
• Value shared by both: Shared learning in business domain and
new technology
Customer Segmentation
Business Dimension for Tier 4 - “Body Shoppers”
Channels • Direct
• Consulting partners such as IBM
End Users Corporations
Complementors N/A
Value Proposition
Description
Element
Experiences Supplement team with individual resources and fill gaps with skill
expertise
Value Delivery Systems • Strong bench that can be tapped on demand
• Mix of skills and expertise
Exclusive Channel
Low Cost
Customer Integration
1. Recruit teams that can
easily integrate with
customers across countries
• Large population (old immigrants from Japan) that can speak and are familiar
with the social and business manners of that country
• IBM mainframe expertise that comes from core team acquired when a Chinese
bank was dismantled.
• Six sigma certification and first company in China to get CMM5 certification
Bundle of competencies analysis
Horizontal Breath
Customer Integration
Redefining Customer Experience
• Due to its expertise in Mainframe systems DMK
has been able to integrate some of their • DMK has developed quite a remarkable level of
customers’ key operations with its own expertise at carrying out end-to-end projects
with smooth transition at end of project and tight
• Outsourcing from mainframe clients has also cost management
allowed DMK develop customer integration
expertise that are transferable to other industries,
functions and newer technologies
Bundle of competencies analysis
Systems Lock In
Exclusive Channel
• DMK has been capable to develop some high barriers of entry for its competitors due to the
limited amount of expertise available in mainframe systems at relatively low costs
• As DMK has integrated with its “main partners”, it has also created high barriers of entry for
its competitors due to the high costs its clients would incur if they switched IS suppliers. These
costs stem, mainly, from the highly tacit knowledge about the clients operations acquired
through continuous interaction
DMK:
Outsourcing Information Technology from China
End-User Scope Large Corporations, Government departments in China Expand to include mid-sized corporations, State and Federal
government departments, non-profit organization
Channel Scope Direct, Joint Venture Exclusive offshore service delivery partner-ships that allow white
labeling of DMK services
Complementor Hardware and software product companies Business Consulting, IT Strategy/Architecture consulting firms
Scope
Geographical Japan and China with limited presence in the U.S. U.S. and U.K. expand into countries where language of business is
non-English and where cost of IT services is higher than China.
Scope (Indian firms do not have language advantage while China-based
firms have significant cost advantage.)
Service Scope Lower end of software services value chain: Application Integrated service that captures the entire value chain through
development, system integration, system strong collaboration with complementors at the high-end of the
conversion/migration, maintenance and support software services value chain
Product Scope Technology base such as J2EE framework, 1. Horizontal Application frameworks such as Portal toolkits, Content
Microsoft.NET framework, etc. for rapid code Management toolkits, etc.
development 2. Solutions frameworks such as wealth management solutions for
financial services, employee portals as HR solutions, etc. that
leverage competencies/expertise of strategic and exclusive partners
Unique 1. High maturity in Software development process - 1. Ability to build teams that can integrate seamlessly to form
First company to obtain SEI CMM level 5 certification in extensions of other service organizations
Competencies China. 2. Develop familiarity and comfort in business/professional
2. Six-Sigma certified project and operations managers relationships with other cultures based on geographic expansions
to ensure data-driven analysis and predictability. 3. Develop strength in technical design and knowledge of specific
3. Low cost of China-based delivery business domains for solutions development
4. Japanese language and cultural strength
DMK:
Outsourcing Information Technology from China
VP Operations
Businesess
Processes
VP Mktng
RP Japan
RP China
VP Sales
VP HR
RP US
CEO
CFO
Strategic T hrusts Performance
Build Internal Capabilities
1 Inv est in people, train and m otiv ate. Hire outstanding talent. Dev elop
strong technical design capabilities. 2 2 2 1 1 2 OE Attrition, # of recruits, per
2 Expand nationally lev eraging gov ernm ent program s to dev elop global Growth in GDC, # of emp
deliv ery centers throughout China. 1 2 1 1 2 2 2 OE profit margin
3 W ork with exclusiv e channel partners to dev elop horizontal
fram eworks (portals, content/doc m anagem ent) and industry specific Decrease in project execu
solution sets (energy, publishing, financial serv ices) for rapid in client satisfaction, incre
dev elopm ent. 1 2 2 2 1 2 1 I competitiveness
Solidify Core Markets
4 Dom inate IBM m ainfram e outsourcing m arket in Japan through
aggressing sales and m arketing program s. 2 1 2 2 1 1 CT Increase in profitable mar
5 Strengthen strategic relationships (e.g. IBM, G E, Kawasaki, Unisys)
through deep custom er understanding/integration and continuous Increase in client satisfac
im prov em ent. 1 2 1 1 1 2 OE size of relationship and p
Build US m arket
6 Dev elop strong direct-m arketing program to target the interm ediary High quality sales leads in
serv ice prov ider channel. 2 2 1 2 2 1 CT consulting and IT service
7 Activ ely pursue US based Consulting/high-end IT Serv ice firm s to
becom e their exclusiv e prov ider of design, dev elopm ent, & Increase in US market sh
m aintenance serv ices 2 1 2 1 2 CT # of exclusive partners an
8 Dev elop an engagem ent program with processes to ensure long-term , Client satisfaction, increa
successful integration of offshore DMK team with local serv ice firm . 1 1 2 2 I profitability of client
Expand to other m arkets
9 Expand to UK and test EU (Germ any, France, Italy) using an Increase in UK market sh
interm ediary partnership network sim ilar to US-strategy. 1 1 2 2 1 1 2 B partners/projects
10 Enter and test the Latin Am erican m arket (Brazil, Mexico, Chille) also Targeted relationships/pr
through an interm ediary partnership network. 1 1 2 2 1 1 2 B geographies
Strategic Agenda: Quality Tests
Dimension Description
Monitoring and Control Milestones established throughout the process allow for
continuous monitoring and change in strategy if and as
required.
Motivation The mission combined with clear strategic thrust energizes
the organization with a common set of goals and flexibility
to innovate and grow.
Vulnerability No material vulnerabilities have been identified at this
time. Aligning execution with this strategic agenda will be
critical to the success of DMK.