Systems, Strategy, Environment and Segmentation (September 9th) Michael F Smith

Session Theme is Change Change produces uncertainty and both creates opportunities for some and threats for others. A challenge is the calculus of change. That the rate of change changes. Your readings for 8/26 set the stage to explore our understanding of strategic concepts applied to dynamic systems. Frameworks such as Porter and Miles and Snow provide a way to structrure our thoughts about who we are, in what context, facing what issues, with what resources, to accomplish what tasks in light of both our strategic intent and the perceived intent and actions of others.

Planning: process of anticipating change and the impact that change will have on the firm in the context of mission, objectives, processes, technology, markets served , acquisition strategies, supply chains, etc. Strategy is a framework for action designed to allow the firm to adapt to change and realize its objectives within the context of its distinctive competence and resource availability to meet the firms objectives.

Environmental Change (Uncontrollable) Social, Technology, Economic, Political, Material, Competitive are contexts which change. Change impacts what we input, how, costs, market opportunities, processes, information systems, outputs. Some environments are placid while others are turbulent (see reading on four environmental scenarios framework). Your readings on strategy and uncertainty identify four environments that range from placid and predictable to turbulent and alien. Each environment presents unique challenges to strategy development and execution.

REFLECTION AND COMMENT There is the “wisdom of the crowd” And the “disruption of the cloud”

THE MARKETING ANGLE

Adapting to environment change requires information that is: Timely Accurate Relevant Accessable Communicable Information is gathered, analyzed, intrerpreted and disseminated for the purpose of increasing the decision maker’s confidence in the decision make. Another words, information shapes perceptions of probability of success.

In light of environmental change and uncertainty, we develop plans to adapt to constructed future environments with strategies which will allow us to successful adapt to change. In Marketing, particular emphasis is placed on the changing buyer and buyer segments.

Systems thinking workshop - June 4, 2015 REFLECTION Systems thinking workshop - June 4, 2015 The Fashion Channel • Which segment or combination of segments will provide the greatest net income? • In the year 2015, what digital channels can be utilized to support the cable channel? • Which combination of communication media would provide the greatest benefit? • What metrics would you use to justify your combination of media? Copyright 2015, Temple University

www.lessonsinluxury.com

Combine Porter and Miles/Snow Video

Disruptive Innovation Change in Business Model Generate Revenue in the context of Asset structure (current, fixed) Processes (costs) Requires corporate culture evolution Look for: Consumption Constraint (enable problem solving; break the dam) Understand problem recognition and definition from buyer perspective Customer articulation challenge (digital enabling information gathering, analysis, timeliness, storage, retrieval and dissemination) Enable possibilities for co-production

REFLECTION: Innovation Now! BloomNation: Is their business model sustainable? Incorporate your strategy readings to make your argument. This exercise will be done through a break out session.

Vertical Marketing Systems Vertical Marketing Systems represent different stages of the value creation process where each stage is linked by some form of exchange either between or within organizations. www.simext.com

Systems thinking workshop - June 4, 2015 REFLECTION Systems thinking workshop - June 4, 2015 Copyright 2015, Temple University