ITU Centre of Excellence/AFRALTI Business Strategy for Telecom Somalia David Beard

Business Strategy Introductions Name Current job Involvement in business strategy Current Big Issue for you at work

Business Strategy Training Objectives Understand business strategy Know your core competence Know how to use your core competence to make profits

Business Strategy Popular misunderstandings: Strategy is just for senior managers Strategy is about external forces Strategy is planning

Strategy is about the: –creation –delivery of value Business Strategy

Value: 1.Share price + dividend (private sector) 2.Value for voters…better service (public sector) Business Strategy

Know your industry Know your own strengths & weaknesses and develop your core competence Know your customers needs Know how they fit together

Business Strategy Core Competence: Focus on what you are good at

Business Strategy Develop core competence Divest non-core?

Business Strategy Price Cost Quantity P,C Q profit (P – C) X Q

Entrants Substitutes Buyers Suppliers Business Strategy Five-Force Analysis (Porter) Internal Rivals

Business Strategy Which is Your Strategy? 1. Fast and Flexible –How fast? –How flexible? –How do you maintain your competitive advantage? 2. Manage Value Chain –How do you manage each part of the value chain? –How do you ensure no one gets too powerful? –How do you ensure profitability for all participants?

Business Strategy Balanced Scorecard Business Strategy Annual Business Plan

Business Strategy Customers NeedsOwners Needs Reliability Responsiveness Range Value Quality Processes Systems Profitability Success Staffs Needs Recognition Motivation Growth Kaplan & Norton, 1995 Balanced Scorecard

Business Strategy Balanced Scorecard Financial Targets Customer Service Targets Internal Process Targets Learning and Growth Targets

Business Strategy Social Obligation v Commercialism Universal access Social-driven Standard pricing Pay as you go Market-driven Pricing for profit Which Model?