3 wo-men How to respond to increased business complexity Maurizio Ammannato

Everything is accelerating at astonishing speed Change Acceleration Everything is accelerating at astonishing speed

COMMUNICATION Years to reach 50 million users: 1450 Print = 200 years Change Acceleration COMMUNICATION Years to reach 50 million users: 1450 Print = 200 years 1876 Telephone = 60 years 1895 Radio = 40 years 1930 TV = 20 years 1993 Internet = 5 years Everything is accelerating at astonishing speed

TRANSPORTATION Speed of “vehicles”: -6000 Camels = 8 km/h Change Acceleration TRANSPORTATION Speed of “vehicles”: -6000 Camels = 8 km/h 1785 Coach = 10 km/h 1825 Steam Engine = 20 km/h 1925 Screw Engine = 150 km/h 1940 Jet = 650 km/h 1960 Missile = 3000 km/h 8.000 years to increase speed by 2 km/hour

KNOWLEDGE As per today global knowledge doubles each 2 years Change Acceleration KNOWLEDGE In -6.000 = 1 Unit of knowledge In 1500 = 2 Units (7.500 years to double knowledge) In 1750 = 4 Units ( 250 years from 2 to 4 units) In 1900 = 8 Units (150 years from 4 to 8 units) As per today global knowledge doubles each 2 years 1 Unit = global human knowledge Knowledge doubles each 2 years

56 Relations 56 Relations 8 Nodes N*(N-1) 8 Nodes N*(N-1) Business Complexity Sales People & External Relations SALES Clients Agents Distributors OEM Local Competitors CIN.DIA Internet 8 Nodes 56 Relations N*(N-1) Sales People & Internal Relations 8 Nodes 56 Relations N*(N-1) SALES Marketing Finance Legal Production Delivery Suppliers I.T. Mutual Relations increase too

Sales people with their Internal & External Relations Business Complexity Sales people with their Internal & External Relations 16 Nods 240 Relations N*(N-1) Out of Control Process ! Mutual Relations increase too

Real organization relations : straight/dashed/pointed… lines Business Complexity Real organization relations : straight/dashed/pointed… lines

Back to Basics ..means.. back to Clients Clients Clients Clients Clients Clients Clients Clients Clients Clients

1 2 3 What Clients Want That their inquiries be well managed Client Driven Company What Clients Want 1 That their inquiries be well managed That proposals be presented on time and well prepared That Orders be correctly received and confirmed 2 Goods manufactured with quality and consistent with proposal Goods shipped on-time Goods installed and properly working 3 They want their strategic suppliers have always up-to-date products That they bring to them innovation and competitive advantage Clients see you ORIZZONTALLY (by processes)

Your Answer? You are organized by FUNCTIONS Client Driven Company Your Answer? You are organized by FUNCTIONS Each function sees only part of clients requirements Each function is not focused on global client needs Each function works as a company by its own You are organized VERTICALLY (by Functions)

What Clients Want What You Offer Disconnection! Client Driven Company New Product Introduction (NPI) Inquiry To Order (ITO) Order To Remittance (OTR) Suppliers Purchase Manufacture Marketing Sales Client What You Offer Disconnection!

The 20/80 theory Pareto 20% of people have 80% of the wealth 20% of the sales force makes 80% of the sales 20% of criminals commit 80% of the crimes 20% of the carpet gets 80% of the wear and tear 20% of the products account for 80% of the profits 20% of the defects cause 80% of the problems 20% of the suppliers provide 80% of the stock 20% of the stock fills 80% of the warehouse 20% of the staff causes 80% of the problems 20% of the project takes 80% of the time & resources The 20/80 theory

3 wo-men May we say that you can get the 90% control of your company, keeping under control just only 3 processes? The 3 Processes

1 ITO 2 OTR 3 NPI Only 3 Processes: 3 wo-men Only 3 Processes: 1 Client’s inquiries to be well managed Proposals presented on time and well prepared Orders confirmed ITO 2 OTR Goods manufactured with quality and consistent with proposal Goods shipped on-time Goods installed and properly working 3 NPI Their strategic suppliers always with up-to-date products Innovative and giving them competitive advantage From Client needs to 3 Processes answer

1° Manager for ITO Direct Sales Indirect Channels Operative Marketing (Inquiry To Order) Responsible to generate client inquiries, to replay with proposals, up to received client orders Direct Sales Indirect Channels Operative Marketing Sales Support Sales Consultant Finance for Sales Legal for Sales Marketing Communication Customer Care Getting Orders

2° Manager for OTR Technical Design Production Purchasing (Order To Remittance) Responsible for client order production, for client goods delivery and to collect money back Technical Design Production Purchasing Stocks management Transportation Finance Credit Collection Getting Money

(New Product Introduction) N P I N P I 3° Manager for NPI (New Product Introduction) Responsible to bring new products to the market (the future of the company) Strategic Marketing R & D Product Marketing Communication Assuring Future

3 Process 3 Wo-Men 90% under control From growing Complexity 3 Processes To Organization Simplicity From growing Complexity 3 Process 3 Wo-Men 90% under control Solution

The End Thank you!