GIL Silicon Valley 2012 J. Kevin Mann, Manager, Market Insights, Competitive Intelligence, IBM Developing Strategy from Competitive Intelligence

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GIL Silicon Valley – 2012

J. Kevin Mann, Manager, Market Insights, Competitive Intelligence, IBM Developing Strategy from Competitive Intelligence

Key Take-Aways:

• Understand your high ground, and how you are differentiated • Engage with senior leaders on competitive “high ground”

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Developing Strategy from

Competitive Intelligence

J. Kevin Mann

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J. Kevin Mann

Manager, Competitive Intelligence IBM Corporation

Please view in Slide Show mode

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Strategic Action Focus

Strategic Action:

Significant action to improve

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Significant action to improve

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High Ground

Machu Picchu ~1400 AD Elevation 7,970 ft

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High Ground

“High ground” is how you sustainably

meet customer needs with excellence

– Planned in advance

• Usually requires a decision and effort to achieve

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• Usually requires a decision and effort to achieve

it, but can also happen organically over time

– Improves over time

• Advantages increase the longer you occupy the position

– Differentiated from competitors

• Becomes identified with your company

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Signs of Success

6 Growth Innovation Earning Longevity

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What if this was one company?

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Renren

Real-name Social Network Online video sharing

8 Collective purchasing deals Online games

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Renren

We revolutionize the way that users connect, communicate, entertain, and shop in China because we have:

• The leading real-name social network

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• The leading real-name social network • Online social gaming

• Video sharing and blogging • Collective purchasing

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Gaggenau

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Gaggenau winning IF Communications Design Award – Gold - 2010

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Gaggenau

We help customers have a stylish, state-of-the-art kitchen because we have:

• Design excellence

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• Design excellence

• Innovative technology • Quality manufacturing

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Hard Lesson

We provide software We provide software

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We provide software appl. developers an

enterprise platform with: • Reliability

• Security • Support

We provide software appl. developers a popular platform with:

• Performance • Ease-of-use

• Large ecosystem

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Caterpillar

13 Operating since 1904 -- USA – Market leader, high growth, admired company

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Caterpillar

We help customers succeed by providing

equipment with the lowest overall owning and operating life-cycle cost, because we:

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• Excel at product development

• Have a superior distribution system • Support our customers

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Group Exercise

As a group, at your table, write a high ground statement for one of the following companies:

• Starbucks

• Ben & Jerry’s

• Walt Disney

• Boeing

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• American Express

Caterpillar – High Ground

We help customers succeed by providing equipment with the lowest overall owning and operating life-cycle cost, because we:

• Excel at product development

• Have a superior distribution system • Support our customers

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Strategy Earthquakes

Digitally Connected – relationships based on being

“always on” and using social networks

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2

Telepresence – projecting yourself into another

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2

3

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physical location (Cisco / Polycom / Remote Pilots)

Globalization – companies operating more and

more globally over time

Robotics – machine sensing and control –

autonomous vehicles, robotic medical devices

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Strategy x Earthquakes

Lowest overall owning

High Ground Earthquakes Global-ization Robotics Tele-presence Digitally Connected

Caterpillar – High Ground x Earthquakes Table

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Help customers succeed

Distribution System Product development Lowest overall owning and operating cost

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Strategy x Earthquakes

Earthquakes High Ground Digitally Connected Tele-presence Robotics Global-ization

Lowest overall owning Remote Reduce

Caterpillar – High Ground x Earthquakes Table

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Note: this strategic summary was prepared for discussion at GIL 2012, it has not been reviewed or approved by company management.

Lowest overall owning and operating cost

Remote operator

Reduce skill level

Product development Remote

operator

New

capabilities

Distribution System Remote

diagnostics Help customers succeed Customer dialogue Access to experts

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Nisiyama Onsen Keiunkan

19 Operating since 705 AD -- Japan – Oldest business in the world

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Nisiyama Onsen Keiunkan

We help customers relax, recharge, and restore their health, because we have:

• A beautiful setting with hot spring pools

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• A beautiful setting with hot spring pools

• A luxurious facility, designed for relaxation • And traditional hospitality

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Ypióca Group

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Caipirinha

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Ypióca Group

We help customers enjoy life with a Brazilian flair, because we provide:

• Drinks with style to match Brazilian tastes

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• Drinks with style to match Brazilian tastes • Made with the best quality control

• From a company that supports the community

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Group Exercise

Share one “strategy earthquake”

that you have to deal with in your

business soon, and why it’s

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business soon, and why it’s

important for your company.

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HSBC

24 Operating since 1850 – Hong Kong – Universal Bank with 7,500 offices in 87 countries

HSBC provides a

comprehensive range of financial services: personal financial services;

commercial banking; corporate, investment

banking and markets; private banking; and other activities.

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HSBC

We provide high net-worth individuals with superior banking services, because we:

• Have local offices throughout the world

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• Have local offices throughout the world

• Provide universal banking services to meet retail, trust, investment, and business needs • Leverage our scale for efficiency, quality, and

scope of services

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Simonis Cloth

26 Operating since 1680 -- Belgium – Cloth for Pool Tables

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Simonis Cloth

We help our customers enhance their enjoyment by playing their best (on our cloth), because we:

• Focus exclusively on billiard cloth so we

understand the unique demands of customers

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understand the unique demands of customers • Provide products to meet specific needs ... to

the highest quality

• Participate in the billiard community

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Your High Ground

We provide (value to customer segment):

______________________________________ Because we have (strengths):

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Because we have (strengths):

• A __________________________________ • B __________________________________ • C __________________________________ • D __________________________________

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Competitor A High Ground

______________________________________ Because we have (strengths):

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Because we have (strengths):

• A __________________________________ • B __________________________________ • C __________________________________ • D __________________________________

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Strategy x Earthquakes

Earthquakes (edit for your industry) High Ground / Strategy

Digitally Connected Tele-presence Robotics Global-ization Customer value

Competitive – High Ground x Earthquakes Table

31 Y o u Customer value How - 1 How - 2 How - 3 C o m p A Customer value How - 1 How - 2 How - 3

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Strategic Advantage

Strategy Impact by Competitor by Earthquake

Strengthens _Advantage _Parity

Robotics Digitally Connected 32 Comp A You Weakens Weakens Strengthens Threat Risk Connected Globalization Telepresence

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Group Exercise

What “strategy earthquake”

might be hard for your company

to see clearly because it runs

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to see clearly because it runs

counter to your current operating

model?

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Strategic models

High-ground is a practical, intuitive model

Ansoff - Product/Market Mission / Objectives / Vision

Depending on the issues at hand, you have more options

34 Ansoff - Product/Market BCG - Growth/Share Benchmarking Competitive Advantage Core Competencies GE - Strength/Attractiveness McKinsey Growth Pyramid

Mission / Objectives / Vision PEST Analysis

Porter - Five Forces McKinsey 7-S

SWOT Analysis

Value Chain Analysis Moore - Tornado

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Summary

Understand your high ground

Engage with senior leaders

Assess the earthquakes

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Assess the earthquakes

• opportunities

• blindspots

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Abstract

Strategic Differentiation from Competitive Intelligence

J. Kevin Mann

Manager, Competitive Intelligence IBM Corporation

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Enterprises thrive by finding competitive high ground that is differentiated from

competitors and by surviving or profiting from the constant earthquakes caused by new markets and new technologies. In a hands-on exercise we will use a customer-centered model to understand differentiation and how you can pick external trends that your

company can leverage strategically.

Key Take-Aways:

– Your strategic high-ground, and that of your top competitor

– How to assess which external trends can improve your differentiation – Which emerging competitive threats your company is most likely to ignore

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Brief Bio

J. Kevin Mann

Manager, Competitive Intelligence, IBM Corporation [email protected]

Kevin Mann manages IBM’s Competitive Intelligence Program focused on services competitors. Mr. Mann is a recognized expert in competitor intelligence, market segmentation, and marketing strategy development.

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segmentation, and marketing strategy development.

Mr. Mann’s prior assignments have included Principal Consultant, Growth Markets;

Global Market Analyst for banking and financial markets; Engagement Manager in IBM’s IT Strategy Consulting practice; and Marketing Strategist for Pervasive Computing. Mr. Mann has worked with IBM clients in more than 25 countries, including postings to Seoul and Tokyo. Mr. Mann published “Ask an Intelligent Question” a paper on competitor analysis for utilities in “Electric Perspectives.” Mr. Mann has a patent pending related to text analytics. He is listed in Marquis “Who’s Who in Finance and Industry.”

Mr. Mann received an MBA from the University of Chicago in 1983, and a Bachelor of Science in 1978 from MIT.

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High Ground

______________________________________ ______________________________________ Because we have (strengths):

Your Company Competitor A

• A __________________________________ • B __________________________________ • C __________________________________ • D __________________________________ • A __________________________________ • B __________________________________ • C __________________________________ • D __________________________________

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Strategy x Earthquakes

Earthquakes (edit for your industry) High Ground / Strategy

Digitally Con. Tele-presence Robotics Globalization

Y

o

u

Value

How.1

Competitive – High Ground x Earthquakes Table

Y o u _How.2 How.3 C o m p A Value How.1 How.2 How.3