GIL1210 CEO 360 Handout Final

8/3/2019 GIL1210 CEO 360 Handout Final

1/24

CEOs 360 DegreePerspective Handbook

We Accelerate Growth

t h e c o m p l e x b u s i n e s s u n i v e r s e


2/24

2 CEOs 360 Degree Perspective

www.frost.comCallToll Free:877.GOFROST (877.463.7678) or Email: [email protected]

Friends,

Thank you for being a part of the CEO 2009: Frost & Sullivan Exclusive Think Tank.

We have designed this handbook in order to provide a greater understanding of the

CEOs 360 Degree Perspective and better equip you in your quest to accelerate the

growth of your company.

This model provides a visionary platform to build and pursue strong, sustainable

growth strategies. This is collaborative piece of thought leadership from our key

management personnel and Frost & Sullivans Growth Consultants. Our goal is

simple, to stimulate thinking and contribute to your individual growth opportunities,

strategies, and implementation plans that maps directly to your companys long-term

goals. Having a comprehensive, up-to-date understanding of markets, technology,

economic and financial conditions, customer buying patterns, competition, geo-

political and demographic conditions is the foundation for successful growth

strategies.

If this material inspires you, and you want to ensure that your organization effectively

leverages these important perspectives to build a successful growth strategy, I would

like to invite you to take advantage of Frost & Sullivans CEOs 360 Degree Growth

Workshop. This proprietary session will focus your organization on: identifying

promising growth opportunities, evaluating opportunities based on Frost & Sullivans

comprehensive and proven growth perspective, and implementing only those

opportunities with the highest probability of success. Please contact me directly so

we can get a workshop scheduled with our team of growth consultants.

We at Frost & Sullivan look forward to supporting your decision-making needs and

accelerating your companys growth.

Sincerely,

David Frigstad

Chairman

Frost & Sullivan

Welcome


3/24

The Complex Business Universe


Ta b le o f C o n te n ts

CallToll Free:877.GOFROST (877.463.7678) or Email: [email protected]

4The Complex Business Universe: Creating the Visionary

Platform for Innovative GrowthDAVID FRIGSTAD

Chairman

7 The Global Perspective: Charting a Course to GrowthART ROBBINSNorth America President

9The Impact of the Macroeconomy on Firms

VINNIE AGGARWALChief Economist

11Integrated Industry: How to Leverage Adjacent Industries to Ones BenefitSHEKAR GOPALAN

Partner & Vice President of Global Research

13 Technology Innovation is Key to GrowthRAJIV KUMARPartner/Senior Vice President,Technical Insights

15Competitive Intelligence: Mapping the Competitive LandscapeBILL ARCHER

Chief Marketing Officer, Frost & Sullivan

KEN GARRISON

CEO, Society of Competitive Intelligence Professionals (SCIP)

17Listening To the Voice of the CustomerThe Number OneImperativePETER SHREEVE

Customer Research Director

19 The Role of Best Practices within the 360 PerspectiveKEITH OBRIEN and DAN GOLDENBERGGrowth Team Membership

22 Appendix: Biographies


4/24



Great CEOs are both great leaders and great

visionaries. They can see coming trends,

convergence opportunities between industries,

technologies, and what customers want in the

future. They position their companies to exploit these

visions and know how to drive innovative growth strategies.

For all too few, this comes naturally. For the rest (99% of

us), we struggle, putting in long hours, constantly under

stress from information overload, and all too aware of the

multiple market forces that could threaten our companys

success.

To achieve a high level of successCEOs can not allow

opportunit ies to pass by or chal lenges ar ise out of

nowhere, that threaten the company and its markets. As

CEOs we must mainta in a steady focus, continually

monitoring seven key perspectives that provide opportunity

for growth and issues that can h inder growth. These

perspectives are constantly changing, intersecting, and

forcing the CEO to prioritize further analysis and company

resources to achieve success. The CEOs 360 Degree

Per spe ct ive e nsure s t hat C EO s v iew al l key

perspectivesglobal, economic, customer, competitive,

technology, integrated- industry, and best practices

developing visionary skills to ensure the successful growth

of their company.

There are seven major forces which form the basis of the

very Complex Business Universe in which CEOs exist.

This complex universe is continually in fluencing and

affecting the growth prospects of a company and CEOsneed to develop visionary skills to deal with it.

By maintaining a 360 Degree perspective, CEOs and their

growth teams can analyze each of these in fluentia l

perspectives and develop skills that:

Ensure the company is continuously monitoring both

opportunities that offer a high probability for growth

Help the company avoid costly mis-steps because the

CEO and growth team have a more comprehensive view

of the market

T h e C o m pl e x B u s i ne s s U n i v er s eCreating the Visionary Platform forInnovative Growth

By David Frigstad, ChairmanFrost & Sullivan

Develops the CEO visionary skills to ensure innovative

growth strategies that exploit future trends.

The CEOs 360 Degree Perspective provides a visionary

platform from which growth strategies can drive top-line

sustainable growth.

Frost & Sull ivan has gathered some of the best thought

leaders on growth strategies to create this handbook toprovide greater insight into each of the perspectives,

providing answers to some of the tough questions you will

have and challenges your organization will face on:

Global What global issues can affect our industry and what

should be our strategy to address them?

What are the geopolitical and regulatory issues that can

affect our industry?

What cultural issues need to be considered in our global

marketing strategy?

What regulatory issues do we need to monitor andconsider?

Integrated Industry How are convergence opportunities presenting new

growth opportunities or competitive threats?

What expansion opportunities exist within our industry

as a result of convergence or technology changes?

Do we have a strategy to expand our offerings into new

industries and markets?

Wh at i s t he con ve rg en ce p ot en ti al w it hi n o th er

industries?

Technology What are disruptive technologies that we should keep

an eye on and have a plan to address?

How will technology change our competitive landscape?

What technical licensing opportunities currently exist?

Economic What political and regulatory changes could affect our

industrys economic future?


5/24



Are we aware of: commodity impacts, currency risks, and

the changing landscape of international trade?

How will changes in population affect our industry?

How might investors affect growth potential in our

industry?

Competitive What new competitors are emerging?

Is there an opportunity to take market share from a

competitor?

Do we have a p lan for monitoring and reacting to

competitive forces in our industry?

Customer How can we develop a meaningful message to capture

market share?

Composite view of sevenmarket perspectives that are

continually influencing andaffecting the growth potential

of an organization.

D o we ne ed a pl an t o id ent if y new c us tome r

opportunities?

Do we know the buying characteristics of our target

audience?

Best Practices

What are the most innovative companies in our f ielddoing?

How can we benchmark our performance against the

leaders of the pack?

What do best practices in our industry look like?


6/24



Without bias, and

with total

commitment to

accelerate growth,

the research and

insights into the

CEOs 360 Degree

Perspective will

put you on the

path to success.

Leveraging the 360 Degree Perspective

The challenge is to synthesize these seven perspectives into a visionary platform from which a

powerful growth strategy can be generated. Frost & Sullivans wealth of global and industry

research will help you interpret these perspectives and:

Significantly reduce decision risk Create new opportunities from future scenarios

Anticipate industry convergence and resulting opportunities

Build a team of visionaries to support long-term growth

Develop a think tank mentality that drives innovation

Build a culture of growth, innovation, and leadership

Be the first to identify industry trends and act on them

To get started, there are six (6) development phases to follow in building an effective 360

Degree Perspective and conducting a successful CEOs 360 Degree Growth Workshop

Identify,Analyze, Prioritize, Synthesize,Visualize and Strategize.The following table discusses

each phase and their outputs.

Without bias, and with total commitment to accelerate growth, the research and insights

into the CEOs 360 Degree Perspective will put you on the path to success. With this

information, you will become a true business visionary.

Step Description Outcome

Identify In this step, you begin the process of identifying thedrivers and restraints for each of the seven (7)perspectives.This step resembles aBrainstorming session where you come up withas many drivers and restraints as you can.At thisstage, do not worry about prioritizing howrelevant each may be. It is important to capture asmany as you can to begin the process.

Identified the opportunities,issues, trends, challenges,driversand restraints that are, or willmake an impact on the market

Brainstorm the environment withanalysts, Client Team participantsto create 21, 35 or 70 issues

Analyze In the Analyze step, the Growth Consultant,facilitator and the Client Team will analyze how

each driver and restraint maps to a growthopportunity you have defined

Determine the measurements foreach issue and how they can be

trended or sized, etc

Prioritize Prioritize each of the drivers and restraints inorder of importance to the opportunity issue youdefined. Start with most important, and continueuntil the least important.

Prioritized list of opportunities inorder of importance

Synthesize Now that you have defined the opportunities andtheir drivers and restraints, you need to getunderneath them.

The workshop team needs to ask,What does thismean beyond the obvious and how does this affectour business?

Identified relationships betweengrowth opportunities theirdrivers and constraints, potentialdomino effects and outputs

An integrated market picture ofthe opportunity

Visualize This is where you take the opportunities you havedefined, mapped to each perspective and developfuture scenarios.What might the future look likein 3, 5 or 10 years?

23 developed scenarios of whatmight happen based on the teamssynthesis of the opportunities andtheir drivers and restraints.

Strategize This development phase applies the visualization tothe business and creates strategies to achieveresults

Strategies that can beimplemented to achieve growth

TABLE 1: Six development phases to follow in building an effective 360 Degree Perspective


7/24



T h e G l o b al P e r s pe c t i veCharting a Course to GrowthBy Art Robbins, North America President

In 1519, Magellan embarked on the f irst voyage to

circumnavigate the globe, lasting almost three years.

Today, in 2009, information circumnavigates the globe

in a matter of milliseconds. Globalization has traveled

a l on g w ay. A dvan ce s i n i nf or ma ti on t echn ol og y,

transportation, and communications, in addition to changes

in consumer behavior, have broken down the barriers of

isolationism and have created a platform of

interconnectivitythe foundation of our global economy.

The promise of Globalization is to increase the worlds

standard of living through better access to goods, services,

and jobs caused by cross-border competition. There are

now unprecedented growth opportunities available to

companies who effectively develop a Global Perspective to

their business. CEOs must be willing to think differently

about how to approach the global market and thinking

differently begins with developing a new perspectivea

Global Perspective.

Having a true Global Perspective requires more than a basic

understanding of worldwide business. CEOs must addressthe issues and challenges associated with implementing an

effective geographic expansion strategy. In todays economy,

CEOs simply cant afford not to be Global.

Frost & Sullivan research shows GDP growth in emerging

markets , such as Brazi l, Russia , India and China, has

outpaced U.S. domestic growth by 4 times in recent years.

Companies who dont address how they will keep pace with

these markets wi ll not be able to mainta in a healthy

competitive position and economic isolation will result.

CEOs can realize further benefits by adopting a Global

P er sp ecti ve t o t he cos t s tr uctu re o f t he b us in es s.

Implementable business models have emerged that reduce

cost, improve productivity, and enhance service by creating

a global value chain. Some common examples include:

Developing an ef fective network of 24/7 customer

support through strategically placed call centers around

the globe

Reducing production costs by outsourcing manufacturing

to lower cost countries

Empowering global sales and distribution channels via a

centralized internet knowledge base

Streamlining R&D and engineering via collaborative

systems connecting research teams across multiple

locations globally

L ever ag in g v id eo co nf er en ci ng t o con ne ct g lo ba l

executive teams, facilitate decision making, and improve

internal communications

As these models become more commonplace, g lobal

customers have higher expectations of value. CEOs cannotignore the impact of Globalization to create and maintain a

strong value proposition to their customers.

But CEOs cant jump into the g lobal arena b l indly.

Successful geographic expansion strategies should be

repeatable and built upon comprehensive due diligence of a

countrys attr ibutes, market s ize, competitors, and

customer base.This knowledge dramatically raises success

rates of market entry strategies by two to three times.

As an example, CEOs who disregard culture put their

businesses at a great disadvantage in the global marketplace.

Each culture has its own norms, customs, and expectations

for behavior. The success of an international organization

depends on ones ability to understand each countrys

cross-cultural issues especially those concerning the

integration of a diverse workforce. Frost & Sull ivan

recommends a repeatable process for using the Global

Perspective to put an entry plan in place at a country

specific level.

The first step is the CEO must conduct a Strategic Review

of the business to leverage the benefits of operating in

multiple countries, while considering the social, political,

economic, regulatory, infrastructural, demographic, and

cultural differences in each. The Strategic Review is a

measurable and proven methodology that clearly identifies

the goals of geographic expansion, which countries will be

considered for geographic expansion, and new business

models for supporting this strategy.

In the Strategic Review, the CEO must evaluate growth

opportunities to address where the market growth is. Key

considerations include:

It has been said that arguing against globalization is like arguing against the laws of gravity. | Kofi Annan


8/24



CEOs need a

360 view of their

businessand the

cure for myopia

is a Global

Perspective.

Which markets present the most attractive growth rates?

Which markets have a window of opportunity to establish a market leadership position?

Can your existing products be introduced into new geographies or do new products need

to be developed for new geographies?

Will existing products need to be modified or marketed differently to appeal to the local

needs of the new market? How will you effectively position your products against the local competition?

The CEOs Strategic Review must also look at the value chain of their businessi.e. the

processes for producing and delivering their products to market. Key considerations include:

Which processes must be close to your customers and suppliers/resources vs. which can

be remote and linked via technology

Evaluate where there are economic and regulatory incentives and/or barriers that would

impact the attractiveness of operating in certain countries

Evaluate the availability and cultural attributes of talent pools, such as field workers,

technical workers, or knowledge workers

Evaluate your core competencies and determine if the market entry strategy should result

in M&A to acquire assets and resources, or extend internal capabilities to the new market,or partner with third parties via strategic alliances or joint ventures

Evaluate business risks such as political , security, currency f luctuations and develop

mitigation strategies and risk adjusted financial models

Evaluate the timing, sequence and organizational readiness of market entry

While developing an effective Global Perspective, the CEO will actually look at all other 360

Perspectives (economic, customer, competitive, technology, integrated-industry, and best

practices, etc.) through a global lens. The result is a powerful growth strategy designed to

capitalize on current and future market opportunities.

Developing the right global strategy is necessary but not sufficient. Without proper due

diligence, planning and implementation, geographic expansion strategies will fail. Frost &

Sullivan recommends following the Strategic Review with the following steps, using a set ofanalytic tools and disciplines:

Country PrioritizationRanking of all countries under consideration for expansion

Entry Assessment In-depth research of the target country that directs market entry

strategy decisions

Implementation Plan Analysis of all logistical issues pertaining to establishing an on-the

ground presence in the selected country

Implementation Execution, measuring and monitoring the strategy and implementation

plan

In the 1500s triangular sails, compasses, astrolabes, and nautical charts were the tools that

guided Magellans global journey. Today, CEOs can easily get lost in the circumnavigation

vortex. They must have a 360 Degree Perspective to go global, with proper market

intelligence and toolkits to serve as an accurate roadmap to success.

As the global economy evolves, impacted by each of the Perspectives in the Complex

Business Universe, companies (both established and entrepreneurial businesses) must

respond by developing and implementing effective geographic expansion strategies.

Globalization must be confrontedas deregulation, mega-competition, and information

technology have led to an acceleration of rivalries. Myopia is no longer a viable business

strategy. CEOs need a 360 view of their businessand the cure for myopia is a Global

Perspective.


9/24

T h e I m p ac t o f t h eMa c ro e c o n o m y o n F irm sBy Vinnie Aggarwal, Chief Economist

Frost & Sullivan

In considering a 360 degree perspective on corporate

strategy and positioning, consideration of the global

macroeconomy is crucial . Of course, it is hardly

surprising that overwhelmed executives spend much

of their t ime on what they perceive to be immediate

business issues: seeking customers, cutting costs, and

keeping up with competitors.Yet businesses cannot simply

ignore the larger macroeconomic environment in which

their firms operate. In many cases, firms simply view theglobal macroeconomy as something beyond their control

and thus an issue that merits less attention than immediate

profitabil ity and market share issues. As the current

f inancial cr is is shows, however, f irms can easi ly be

overwhelmed by negative developments and may be

unprepared to take advantage of opportunities such as

government stimulus packages.

Macroeconomic factors are likely to affect firms in many

ways. We can consider a number of important ones

including inflation, monetary policy and interest rates,

exchange rates, unemployment levels, and fiscal policy.

Inflation affects firm

strategies in many ways. As

t he p ri ce s o f i np ut s r is e ,

businesses must adapt both

to managing these costs as

well as attempting to price

their products to

compensate for losses of

r ea l r even ue . T he d ire ct

costs of coping with inflation

also increased managementc os ts a s p ri ce s m us t b e

a dj us te d o n a r ap id a nd

regular bas is. Firms a lso

often end up footing a larger

tax bil l as governments do

not always adequately index

t axe s t o i nf la ti on , t hu s

potentially pushing firms into

higher tax ratesa good

example of such inflation creep is the personal alternative

minimum tax that more taxpayers have been subjected to

because AMT was not adjusted for inflation.The presence of

inflation, particularly in an uncertain macroeconomic

environment, also increases the costs of contracts as firms

need to hedge against inflation risks.

Interest rates are perhaps the most important issue that

firms face. Most firms operate with significant amounts of

debt, affecting both their daily operations and merger andacquisition costs. In general, monetary policy directly

influences interest rates, but lenders may still be unwilling

to lend or may make it more difficult to secure loans by

imposing onerous conditions on borrowers i f they are

concerned about default risk. In 2008, this phenomenon was

common among banks as spreads on interbank lending

actually increased despite central banks efforts to loosen

monetary policy and drive greater lending. With banks

unsure about the solvency of their peers, counterparty risk

became a predominant concern. Currently, in the mortgage

market, many potential borrowers are finding it extremely



With banks unsure about thesolvency of their peers,counterparty risk became apredominant concern.


10/24


Firms are often

more affected by

exchange rate

swings and

currencyvaluations than by

tariffs or other

direct trade

barriers.

difficult to secure loans despite having good credit as banks overreact to previous years of

sloppy lending policies that drove the current crisis.

The balance of trade and its potential impact on exchange rates has increasingly become a

central issue, particularly with countries such as China. Over the last few years, there has

been a heated debate about the proper value of the yuan, which affects the competitiveness

of Chinese exporters, both vis-a-viz other exporters as well as import competing firms such

as those in the United States and Europe. Although major currencies have been floating

against one another since 1973, in reality, countries often intervene in currency markets to

bolster exports or fight inflation. Firms are often more affected by exchange rate swings and

currency valuations than by tariffs or other direct trade barriers.

Employment rates also directly affect business strategy. On the negative side, consumer

discretionary spending is likely to fall with high unemployment and employee morale may be

low.At the same time, firms may be well-positioned to attract strong talent that they would

be unlikely to get in a stronger employment market, especially if they are not market leaders.

Currently, there is little doubt that of all macroeconomic variables, fiscal policy is playing

the largest role. Governments throughout the world are actively engaging in undertakingmajor fiscal stimulus, among the most prominent being the large packages developed by the

Chinese and the Americans. Understanding potential market opportunities that may emerge

from the packages is crucial for corporate strategy. Much of the new spending is often

targeted to specific sectors or types of firms. For example, as part of Obamas fiscal policy,

the American Recovery and Reinvestment Act, $168 million is directly targeted to help small

business owners (http://www.wbsonline.com/resources/what-does-the-economic-stimulus-

plan-mean-for-small-businesses/).

A 360 degree perspective includes crucial elements for consideration that companies need

to succeed. This integrated approach links the context of firms in the macroeconomy and

global developments to the industry in which they operate. As f irms then consider

technological and competitive trends, they can develop best practices and create a customer-focused company to deal with customers and successfully navigate their way in a complex

global political economy.


CEOs 360 Degree Perspective10


11/24

Todays global market environment demands a

CEOs 360 degree perspective that operating a

business by solely focusing on regional markets

w it ho ut c on si de ra ti on o f d yn am ic s a nd

opportunities in other geographies is commercial suicide.

Countless are the companies that have been driven out of

business due to the emergence of competition in low-costnations. A CEO 360 perspective also dictates realization

that the interdependence of industr ies can be just as

dangerous and opportunistic. Understanding the dynamics

of adjacent industries is critical to stay in business and,

more importantly, to grow. It often means new alliances and

customers to target that will be essential to guarantee the

firms future growth. Such integrated industry segments are

potentia l seeds for growth tomorrow. Addit ional ly,

technological developments from adjacent industries can be

leveraged into new product introductions/enhancements

and applications to foster growth. For Measurement &Instrumentation (M&I) vendors, the emergence of the

Mobil ity concept does just

that.

Lately, Mobility has been top-

of-mind for consumers and

enterprises as the population

tends to do more on-the-go.

Mobility is key to efficiency by

helping to reduce response

times and consequences of

delayed attention and hasbecome essential for both

individuals and businesses.

Numerous mobile devices

such as PDAs, smartphones,

and ever-expanding high-speed

wireless networks and Wi-Fi

networks enable workers to

have access to the Internet,

stay connected and access

business and mission-critical applications while they are out

in the field, away from the office or traveling. In particular,

newer wireless communications devices such as Mobile

I nt er ne t D evices ( MI D) o ff er r even ue p ot en ti al t o

instrumentation and semiconductor vendors.The future of

mobile phones and home electronic devices spell out

opportunity for test & measurement equipment vendors, asmanufacturers of such devices need to perform extensive

testing at the R&D and manufacturing stage while service

providers wil l need to test these devices prior to their

implementation and during their operation to ensure

customer satisfaction.These newer devices are also loaded

with various sensors offering opportunities for sensor and

semiconductor manufacturers. MIDs, in particul ar, represent

a huge opportunity for semiconductor manufacturers, as

semiconductor components are required to enable rapid

improvements in performance, connectivi ty, disp lay

technology, multimedia capability, and camera quality of

these devices.


I n t e g r a t e d I n d u s t r y : H o w t oL e v er a g e A d j ac e n t I n d us t r i e s t o

Ones BenefitBy Shekar Gopalan, Partner & Vice President of Global ResearchFrost & Sullivan

www.frost.com


Understanding the dynamics of adjacentindustries is critical to stay in business

and, more importantly, to grow.


12/24


technological

developments from

adjacent industriescan be leveraged

into new product

introductions/

enhancements and

applications to

foster growth.

www.frost.com


Mobil ity is pervasive and its application in various industries translates into countless

opportunities for test, instrumentation, and semiconductor vendors.The growing importance

of wireless in the healthcare industry is a case in point. Over the past decade, the healthcare

industry has been shifting to wireless technologies and applications.This revolution, while still

at the early-adopter stage, is expected to continue and accelerate, as the industry strives to

improve patient mobility and data access for healthcare professionals. The proliferation ofwireless medical devices can pose problems. One major issue, for instance, i s the

susceptibi l ity of these devices to RFI /EMI, which can lead to corrupted data with dire

consequences, thus enhancing the need for testing. 3G and beyond wireless broadband

communications are developing rather rapidly and offer tremendous opportunities to

improve healthcare process and systems. Additional ly, the integration of satell i te

communications, multi-application smartcards, sensors, and Internet access enables mobile

phones to be an important component of illness diagnostics or management programs.The

growing field of telemedicine, including the emerging applications like remote surgery,

represents significant future growth opportunities for the test and instrumentation industry.

The other benefit from staying aware of dynamics in adjacent industries is the ability to

leverage technological advancements in product development. For instance, there is rapid

influx of investment into the renewable and energy industry. While this may be seen as an

opportunity for renewable energy generation products and systems manufacturers, it

presents a huge opportunity for test equipment and sensor vendors too. Imagine a wind

energy farm of hundreds of wind turbines or a Solar PV farm of thousands of panels.

Breakdown of a few turbines or panels will drastically affect inflow to the grid or captive

application. These farms are mostly in remote and inaccessible locations and spread over

several hundreds of acres. Manual identification/repair of faulty generation components is

time-consuming and expensive.The down-time can be even more expensive if it brings down

the grid or application being powered.

Mobility and mobile test devices offer great opportunities to embed sensors into various

farm generation components to monitor health and identify faults before a catastrophic

event. It also helps get repair crews directly to the affected spot eliminating time consuming

on-site diagnostics. This is just one of the multitudes of opportunities that an integrated

industry perspective presents; many more exist in other adjacent industries.

In conclusion, a 360 degree perspective of the integrated industry is a critical tool for CEOs

to plan their future business growth. It is, especially, important today as many conventional

and traditionally low-tech industries are embracing modern technology. This presents test,

instrumentation, sensor, and semiconductor vendors with tremendous growth opportunities.


13/24

One of the critical 360 degree perspectives

impacting the CEOs team is the technology

viewpoint.This perspective consists of a set of

factors primari ly focusing on innovation,

emerging technologies, commercialization, new applications,

IP evaluation, technology roadmaps, disruptive and

sustaining technologies and such.

For many businesses in diverse vertica ls , technology

development and innovation are crucial to keep up withcustomer demands, competition and, more importantly,

achieve overal l growth objectives. As a stand-a lone

perspective, technology is important but in conjunction

with six other perspectives, namely, customer, economic,

global, integrated industry, competitive and best practices, it

provides a critical focal point for technology driven or

technology-based companies.

In good economic times or bad, technology innovation fuels

growth and sustainability of organizations. Companies that

continue to invest in development of innovative products,

services and solutions tend to do better than those who

cut back on R&D programs.

The key is to identi fy the

most potent projects and

take them through a

s ys tema tic pro ce ss o f

development and go/no-go

decision milestones.

Challenges facingTechnologyExecutives

The CEOs technology and

R&D executive team is faced

with numerous internal and

external challenges. Internal

organizational chal lenges

include issues related to

company vision, executive

sponsorship, team-building

and continuous funding for R&D projects, while external

challenges are related to factors impacting adoption and

commercialization of new technologies and eventual ROI

on product development efforts.

Key internal challenges include:

1) Measuring the value of Innovation: Establishing and

applying metrics that quantify the value of innovation

projects.

2) Implementing customer driven innovationmanagement: integrating customer feedback to guide

the innovation process for product development.

3) Aligning ideation with the strategic vision (including

inter-departmental communication): Ideation must

include mechanisms to channel inputs from multiple

functional groups within the organization to align

innovation with the strategic vision.

4) Defining innovation time frames:The process of

demarcating stages of innovation based on time-to-

market.

5) Allocating and prioritizing investments: Prioritizing

investment over the short, medium and long term.

In good economic times or bad,technology innovation fuelsgrowth and sustainability oforganizations.



Technology Innovationi s K e y t o G r ow t hBy Rajiv Kumar, Partner/Senior Vice President, Technical Insights

Frost & Sullivan


14/24


Visionarycompanies will

always count on

their ability to

innovate before

others and

converting their

innovations into

commercializable

solutions.

6) Build vs. buy for innovation: Balancing internal technology innovation with external

sourcing.

7) Evaluating open innovation for co-development: Reviewing the available open

innovation options to optimize innovation strategy in pursuit of efficient product

development.

8) Developing and motivating the R&D team: Hire best in class talent, incentivize, andinspire the team to stay on the leading edge of innovation.

9) Developing and managing intellectual property: It is important to design an effective IP

strategy to develop, protect, and monetize technology innovation.

10) Cultivating an innovation focused culture: Incorporating innovation in the

organizational DNA involves a top-down approach to build a climate to drive

multifunctional knowledge sharing and collaboration.

Some of the key external challenges are:

1) Negotiating the IP Jungle: It is critical to map the intellectual property landscape to

identify whitespace and IP dense areas to guide the innovation strategy and to ensure

freedom to practice.

2) Matching innovations to applications (unmet needs): Focused and purposeful

innovation based on a rigorous process of evaluating existing and future applications.

3) Innovation for product differentiation: Employ innovation to generate a compelling and

sustainable value proposition in pursuit of product differentiation.

4) Mining the white space to inform innovation strategies: It is imperative to scan the

technology/application whitespace to identify novel target opportunities.

5) Tracking the competitive technology landscape: Real-time monitoring of technologies

and applications targeted by incumbent and potential competitors.

6) Monetizing innovation:The ultimate objective of innovation success is to productize

innovation to maximize profitability and sustainability.

These challenges define the complex job of technology executives. A major issue for any

technologist is the speed and regularity with which innovations need to be developed, proved,

and launched. Since the technology perspective provides critical support to a CEOs overallgrowth strategy, the need for accurate, timely and useful information is paramount.And this

can be achieved by following best practices of successful companies as well as seeking

professional help from technology and growth consulting firms.

Moreover, the technology platform can be combined with any of the other six perspectives

to gain unique advantages. For instance, when integrated with the global perspective, the

technology perspective offers insights into activities in different regions that might allow

collaboration with other technology-based companies, M&A, or introduction of new products

or new applications.When you integrate the technology and customer perspectives, you have

a framework for identifying unmet needs in terms of product capabilities, desired features,

user interfaces and other inputs to guide product innovation.

Visionary companies wil l always count on their abil ity to innovate before others and

converting their innovations into commercializable solutions. The Technology perspective

combined with the other six business perspectives gives CEOs and their growth teams the

ability to identify, develop and market their innovations and grow their business.




15/24

Todays competitive environment is increasingly

becoming more complex and dynamic. The time

horizon for making decisions continues to narrow

strategic time horizons are being measured in weeks,

not years. Increasingly sophisticated information technology

creates a continuously expanding amount of competitive

information that must be organized, analyzed, and applied to

business decisions.

As company leaders look ahead, they face an even more

competitive landscape. Today, many industrial sectors are

experiencing both consolidation and globalization. Price

competition is being fueled by international competitionboth

at home and abroadand for some businesses regulatory

pressures are becoming worldwide.The pace of technological

innovation and disruption continues to increase.Add to these

business dynamics the growing uncertainty of unexpected

market events and decision-makers require as much insight and

foresight about future competitive situations as possible.

Decision-makers are all looking for the specific indicators and

signposts of what the future industry conditions are likely to be to

allow them to develop contingency

plans or optimally bend the

outcomes to a more favorable

position for their company.

Competitive positioning factors

include a wide perspective of the

environment outside our company:

political , social, economic,

competitive,regulatory,technology,

industry. But managers do not needmore information, they require

insights and analysis to make better

decisions. They need help

diagnosing the myriad challenges

they face every day and deriving

effective solutions for them.

Competitive intelligence helps

develop a reliable and

comprehensive understanding of your market landscape,

competition, and competitive forces.This understanding directly

impacts your ability to successfully drive your organization forward

and achieve your growth objectives. Having your competitive

intelligence function on the frontline to monitor this landscape will

ensure that you have the best information to make critical business

decisions. The insights generated by a focused, coordinated

competitive intelligence effort can be a powerful and effective toolfor enhancing decision-making that drives corporate growth.

The fundamental intelligence question for any decision maker is

straightforward: How can intelligence inform me about the current

and future world so that I can enhance my job performance? More

specifically, how can intelligence help me address the right

decisions, make better decisions, make them fasterin short,

leverage my time more effectively?

What is CI?

An effective, coordinated competitive intelligence effort can

provide a hol ist ic view of markets , competit ion, andcustomers in an environment of change. It supports the

The insights generated by a focused,coordinated competitive intelligence effort canbe a powerful and effective tool for enhancingdecision-making that drives corporate growth.



C o m p e tit iv e I n te l l ig e n c eMapping the Competitive LandscapeBy Bill Archer, Chief Marketing Officer, Frost & Sullivan and

Ken Garrison, CEO, Society of Competitive IntelligenceProfessionals (SCIP)


16/24

CallToll Free:877.GOFROST (877.463.7678) or Email: [email protected] Free:877.GOFROST (877.463.7678) or Email: [email protected]


need to make the best fast moving decisions possible and minimizes business surprises.

Through objective, timely, and continuous analysis, competitive intell igence delivers

knowledge about the competitive environment and helps translate global shifts and

transformations into strategic recommendations.

An intelligence process, whether implemented by a competitive team or diffused throughout

an organization, proves the means by which competitive information is systematical ly

collected, focused, processed, and analyzed to increase company understanding of the

competitors capabilities, plans, and intentions. It also tracks changes in the social, political,

technological, and economic landscape that affect the companys ability to be successful in its

chosen marketplace.

Intell igence gathers information from multiple sources (people, print, internet, social

networks, etc), analyzes it using appropriate techniques (trend analysis, impact modeling,

game theory, scenario planning, technology scouting, etc), and creates insight into their

potential impact on the company. Through this process, intelligence not only provides

perspective on known business concerns, but also alerts decision-makers about threats and

opportunities not previously identified.

Key to the effectiveness of competitive intelligence analysts is their ability to objectively

produce unbiased recommendations for decision options. Their deliverables must include

insights, judgments, conclusions, forecasts, and implications linked to decisions, plans, or

actions.

Insight conveys new knowledge and understanding to help enhance decision-makers to create

totally new insights about the subjects, thus producing uncommon actions and business

initiatives. An intelligence-informed dialogue helps test and refine decision-makers own

thinking and openly pursuing the business implications of the analysis outputs.

Like many endeavors that carry signif icant potential benefits, there are no common

approaches or standard answers to starting a competitive intell igence effort. No two

companies are alike, and as a result, no two intelligence functions are alike. Intelligence can

be implemented within companies of any size.While often formalized into a dedicated team

in larger corporations, competitive intelligence can become a part of any corporate culture

in fact your company already practices intelligence, albeit in an ad hoc form. Placing it within

a defined framework encourages employees throughout the organization to be a part of the

activity, and provides a process by which the ongoing intelligence effort has a stronger

decision-orientation.

Todays hyper-competitive environment requires your company to have the ability to better

understand its competition and the competitive forces that affect its success.An intelligence

function creates insights and analysis that helps your managers make more effective decisions

and implement strategies to improve the companys competitiveness. Starting a new

competitive intelligence function could very well be one of the most important activities

your company engages in this year.

An intelligence

function creates

insights andanalysis that helps

your managers

make more

effective decisions

and implement

strategies to

improve the

companys

competitiveness.


17/24

Customers are the l i fe blood of any business

therefore a focus on the customer must be of

paramount importance as part of the CEOs 360

visionary perspective. Companies that take the

customer perspective seriously include customer insight

programmes and metrics in corporate balance scorecards..

It is even more important to ensure these metrics do notremain static but reflect what is important to customers.

Technology, the economy, demographics and mega trends all

drive changes in customer behavior. Understanding the

impact is cr it ica l to ensure your product and service

propositions are in line with customer needs, whether your

customer is another business, an intermediary or an end

consumer.

In this context it is surprising how many companies do not

recognise the importance of becoming customer centric

many who work in a business to business context still focus

on product features rather than benef its and createproducts without involving the customer or end consumer

in their development.

Technology

Whilst the internet is over 10

years old it continues to impact

how customers buy products

and services and interact with

b ra nd s. T he i nt er ne t h as

allowed for and driven

cus to me r e mp ow er me nt

customers are able to become

closer to products and brands.

Cus to me rs w el co me t he ir

involvement in co-creation

a ct iv it ie s, w il l s ig n u p f or

communities to help advance

i mp ro ve me nt s a nd c an b e

accessed more easily through

consumer and specialist panels.

For example, P&G created the Tremor panel long before

other manufacturers to test and create product ideas.The

potential downside is that customers can also use the

internet to express their dissatisfaction, quickly building up

powerful anti-corporate feeling through online blogs.

Whether positive or negative it highlights the need to have

a relationship with customers and to respect that we asbusinesses have to cede control.

The internet has increased customer choice. It has allowed

nic he prod uc ts t o be so ld d ire ct ly or t hro ugh

intermediaries. With the right Search Engine Optimisation

strategy producers can find and then communicate direct

with their customers wherever they l ive. The internet-

g en er at io n i s l es s p at ie nt t he y h av e re al t im e

requirements and will switch brands if the user experience

is not satisfactory. Spending money and time on the right

digital experience for customers is imperative as so much

customer choice is driven through initial internet searches.A business that rel ies on channel partners or a long

Customers are the lifeblood of any business.



L iste n in g to th e V o ic eo f t h e C u s t o m e rThe Number One ImperativeBy Peter Shreeve, Customer Research DirectorFrost & Sullivan


18/24


The voice of the

customer should

always be heard.

distribution chain should review how its products and brands are featured, referenced and

catalogued to ensure they gain visibility with the customer.

In healthcare, patients are now able to self-diagnose thus changing the relationship they have with

their physician. Patient ratings of hospitals and doctors are becoming publically available via the

internet highlighting the further empowerment of consumers. Drugs can be bought over the

internet fuelling the rise in counterfeit drugs. It seems no profession or business will be immune

from customer empowerment and from broader choice. Transparency will be paramount for

businesses and professionals in the future. Now that customers have so much control it is

important to understand and deliver the voice of the customer throughout your organisation.

The Economy

Reducing costs and making budgets go further has always been important in both the

business and consumer context but even more so in a recession.The challenge for brands is

to ensure that their brand equity remains intact. Put simply a strong brand can charge above-

average prices, a reduced price can become the norm and have a long-term negative impact

on the brand impacting shareholder value. It is a strategy that needs to be handled with care.

Reducing headcount can often have a negative impact on general service and account

management delivery. Renegotiating terms and conditions with intermediaries may impact

their demand for your products or service, and hence how it i s promoted by your

intermediary.

Demographics

Ageing and growing populations and increasing wealth in emerging markets present

opportunities for new products and market expansion. The older generation continues to

be a segment poorly marketed to and represented in growth strategies. Businesses need to

research these segments and markets more thoroughly to understand the underlying

attitudes and preferences to grow their brands. Brand positioning may be subtly different in

each country.

Mega Trends

Concern over corporate and human impact on the environment is not new but continues to

encroach in every part of business life. Outlining your Corporate Social Responsibility policy

is a starting point but transparency and continued investment in reviewing green activities is

now expected and required by customers. No industry is immune and hence understanding

and tracking attitudes on green issues is important if your business is going to grow. For

example, a greater demand for home-grown products to reduce carbon footprint has an

impact on consumer demand for imported products leading to changes in import levels.The

demand to reduce transport fuel emissions acts as a stimulus for the next generation of cars;

Nissan recently announced it wil l start producing batteries for electric cars in the UK.Monitoring and understanding the green trend alongside other mega trends is key to ensuring

your products and services can react to the opportunities and threats they pose.

In Summary

Customer intimacy will allow you to better understand and navigate the road ahead. How

customers access information, find your products, review your products and make their choices

is changing. Ensuring you have customer research programmes in place and the customer

represented at the top table through key performance indicators will allow you to keep pace with

and react to changing demands.The voice of the customer should always be heard.




19/24


T h e R o l e o f B e s t P r a c t i c e s W i t h i nt h e 3 6 0 P e r s pe c t i veBy Keith OBrien and Dan Goldenberg, Growth Team Membership

Frost & Sullivan

If there is one type of executive that can speak to the

challenge of navigating todays complex business

environment it is the CEO. Given todays economic

downturn, credit crisis and market volatility, making

the right decisions is even more imperative for each and

every CEO. In such an environment it is critical to have a

360 perspective on the company and the marketplace to

guide these decisions.

A crucial part of this 360 perspective is Best Practices,which are defined as specific activities performed to solve

a tough business challenge that nine out of 10 companies

are not performing but should, with measurable results

proving effectiveness. Best practices ensure that CEOs have

a set of proven practices to supplement internal data and

tools when dealing with key issues and challenges. Because

they provide CEOs with more choices and solutions when

making decisions, best practices should be a part of every

CEOs decision-support resources.

In specif ic terms, best practices

e na bl e C EO s t o m ake b et te r-

informed decisions by:

Avo id ing t he m is takes and

missteps that other companies

have made in addressing pressing

growth challengesdont reinvent

the wheel

Reducing the risk in developing

and implementing strategies and

tactics

Saving money and time by

directing proven solutions against

identified problems

Accelerating the learning curve

ef fect and addressing the root

causes not the symptoms of a

challenge

In evaluating best practices CEOs need to consider the

following factors:

Data-based research agenda that the list of challenges

addressed in the best practices is derived from surveys

of the executives in the key functions that report into

the CEOMarketing, Sales, Corporate Strategy, R&D

and so forthand are responsible for executing the

CEOs growth strategy

Rigorous research methodology that the research process

u se d t o i de nt if y a nd p ro fi le t he b es t p ra ct ices i stransparent, comprehensive and objective. The latter

p oi nt i s k ey a s b es t p ra ct ices m us t b e p ro du ce d

independent of financial considerations from companies,

vendors or consultants

Actionable content the best practices must enable the

CEO a nd o th er e xe cu ti ve s t o a pp ly i ns ig ht s a nd

takeaways to their own companies.Accordingly, the best

practice profile should incorporate the pertinent tools,

processes and strategies implemented by the featured

company.

www.frost.com


Best practices ensure that CEOs have a set ofproven practices to suppliment internal data and

tools when dealing with key issues and challenges.


20/24

An example of a Best PracticeReinvigorating Mature Productsto Stimulate New Growth

The following is an excerpt from a best practice developed by the Growth Team

Membership research team at Frost & Sullivan. The growth challenge it addressed was

overcoming stagnating demand for mature products in current markets. The challenge iscommon to many companies irrespective of their industry: the sales and share of core

products starts stagnating, and even declining, as the market and category matures.

This best practice demonstrates how a company developed and implemented a process to

identify new markets and applications for mature products.The company profiled is Appleton

Inc., a US manufacturer with revenues of $1BN.

The f irst page of the two-page excerpt (from a 14 page original) summarizes the best

practice: an overview of Appleton, the challenge it faced, the core elements of the solution,

the business results, resources required to implement the solution, and the executive

functions to whom the best practice is most applicable. (See Figure 1.)

The second page provides an overview of the five-step process Appleton created to assess

their mature product portfolio and find new, viable markets(see Figure 2):

1. Assess existing company products (capabilities) to identify what they do well, namely

what is their competitive advantage in their current market

2. Determine which mature product has the best competitive advantage to exploit in

new markets

3. Identify the right new market in which to launch this product

4. Decide how to enter this new market based on the firms capabilities

5. Lastly, if the company cannot go it alone, how do they identify the right strategic

partner to work with?

In summary, best practices arm CEOs with demonstrated solutions from other companies

that empower them to more effectively pursue their growth strategy and business

imperatives.

Best practices arm

CEOs with

demonstrated

solutions from

other companies

that empower

them to moreeffectively pursue

their growth

strategy and

business

imperatives.




21/24


The Complex Business Universe 2

FIGURE 2: Appleton Inc.s five-step process.

FIGURE 1: Appleton Inc.s best practice overview.


22/24



A p p e n d ix : B io g ra p h ie sVinnie Aggarwal

Vinod (Vinnie) is Frost & Sullivans

Chi ef E co no mi st . H e i s a ls o a

professor in the Department of Political Science, the Business and

Publ ic Pol icy group in the Haas

School of Business, and Director of

the Berkeley Asia Pacific Economic

Cooperation Study Center (BASC)

at the University of Cali fornia at

Berkeley.Vinnie also serves as Editor-in-Chief of the journal

Business and Politics, and Co-Chair of the U.S.Consortium

of APEC Study Centers.

Bill ArcherBil l i s Chief Marketing Off icer,

managing Frost & Sullivans Global

Marketing and Corporate

Communications programs, along

with global responsibility for the

firms Marketing Excellence program

l eve ra gi ng t he f ir ms m ar ke t

intelligence to create powerfuldemand generation programs for

clients. Prior to joining Frost & Sullivan, Bill has spent many

years as a marketing professional in the roles of Vice

President and a senior marketing consultant with firms such

as Lockheed Martin, CBIS, and several emerging companies.

David FrigstadDavid serves as Chairman of the

Board. In college, David along with

his business partner envisioned aplan for global consulting and in

1 99 3, t he y a cq ui re d F ro st &

Sullivan. Over the past 25 years,

they have successfully implemented

this Vision by having research and

growth consulting support in al l

global economic centers with 25 country off ices. David

holds a master degree from the Japan American Institute of

Management Science in association with Sophia University

and a Masters in Business Administration with a double

concentration in International Finance and InternationalMarketing from Indiana University.

Ken GarrisonKen is the Chief Executive Officer

o f t he S ocie ty o f Com pe ti ti ve

Intelligence Professionals. He works

closely with the Board of Directors

t o e st ab li sh s ocie ty g oa ls a nd

objectives and he manages the daily

operations of SCIP. Ken served as

President of Finance Credit andInternational Business (FCIB),

owned and operated a commercial printing business, and

worked on the treasurers staf f at Reynolds Metals

Company. He earned an MBA degree from the University

of Dallas.

Dan GoldenbergDan is Vice President of Growth

Partnership Strategy and runs the

Gro wt h Te am Mem be rs hi p

program including global

responsibility for the firms strategic

client partnership and product

development efforts. Since joining

Frost & Sullivan, Dan has launched the

Growth Team Membership,

established the Best Practice Research Group, and formalized

the Growth Strategy Dialogue Program. Previously he founded

and managed the Sales Operations Excellence Center, a division

of the Corporate Executive Board.


23/24

2The Complex Business Universe


Shekar GopalanS he ka r h as n ea rl y 3 0 yea rs o f

experience in design, sales, support,

marketing, and market research ofvarious types of test equipment and

i ns tr um en ta ti on p ro du ct s a nd

m arke ts. He ha s ma rket ing

experience with products such as

Mobi le Wireless Network test

e qu ipme nt , RF / Mi crow ave

equipment, Analog and Digital Analyzers, Calibration

Systems, BoardTest Systems, Sensor instrumentation, Data

acquisition systems, and other test equipment with leading

Fortune 100 companies

Peter ShreevePeter is Director of Customer

Research and has over 20 years

experience gained with leading

market research agencies and client

side at Reuters as head of Global

Customer Satisfaction Programmes.

He ha s cre at ed an d d eli ve re d

research programmes within bothbusiness to business and consumer

markets covering advertising effectiveness, customer

satisfaction, brand equity,usage and attitudes. Peter holds a BA

in Business Studies and is responsible for Frost & Sullivans

customer research business across Europe, Israel and Africa.

Keith OBrienKeith is Global Senior Director of Research. He has global

responsibility for identifying and profiling best practices for

the Growth Team Membership program. Best practicesresearch entails documenting 90th percentile practices

within companies that address the key challenges faced by

the leadership of the key functions supporting the CEO.

Prior to joining Frost & Sullivan, Keith worked at the

Corporate Executive Board where he managed best

practices programs in the Sales & Marketing and Financial

Services divisions. Keith has an MBA from the Kellogg

School of Management, and an M.Sc. and BBS from Trinity

College Dublin.

Art RobbinsArt is North America President,

where he oversees and manages the

North American Client Business

U ni ts . F oc us in g o n s tr at eg ic

consulting, client development and

l ea de rs hi p d eve lo pme nt t o

accelerate client growth objectives,

his experience spans over 25 years

with multiple consulting companies,

starting with American Management Systems, an IT

consulting firm and Ernst & Young, where as Partner and

Vice President, he provided a fu ll range of strategy,

transformation and IT consulting services.

Rajiv KumarRajiv is Partner and Senior Vice

President and has over 18 years of

d ivers e e xpe ri ence d ire ct ing

successful strategy consulting and

technology research businesses,

primarily in the emerging technology

f ie ld s. Mr. Ku ma r ha s bro ad

experience in multiple industries witha talent for thinking outside the

box. His international business experience inAsia, Europe and

North America positions him as a proactive leader with a keen

ability to analyze and prioritize problems with senior decision

makers and clients at any level.


24/24

Frost & Sullivan, the Growth Partnership Company, enables cl ients to

accelerate growth and achieve best-in-class positions in growth, innovation

and leadership.The companys Growth Partnership Service provides the CEO

and the CEOs Growth Team with disciplined research and best practice

models to drive the generation, evaluation and implementation of powerful

growth strategies. Frost & Sullivan leverages over 45 years of experience in

partnering with Global 1000 companies, emerging businesses, and the

investment community from 34 offices on six continents.To join our Growth

Partnership, please visit http://www.frost.com.

Date post:	06-Apr-2018
Category:	Documents
Upload:	soom
View:	222 times
Download:	0 times

GIL1210 CEO 360 Handout Final

Documents