1. MODELS OF STRATEGIC RESTRUCTURING OF COMPANIES AFTER GLOBALIZATION

2. Structure of presentation 1.New approaches to strategic restructuring after globalization  basic concepts  authors: Tomaž Čater and a team of IMB students  presentation: Janez Žagar 2.Technological, marketing and complementary capabilities as a source of competitive advantage  competitive capabilities in Slovenian environment  authors: Janez Prašnikar, Tanja Rajkovič, Mateja Štembergar  presentation: Tanja Rajkovič and Mateja Štembergar 3.Integration and implications for practice  presentation: Tomaž Čater

3. New approaches to strategic restructuring after globalization Tomaž Čater Marjan Hozjan Matija Kranjc Anton Manfreda Janez Žagar

4. Development of new approaches to strategic restructuring after globalization

5. Theoretical support, practical application and dependence of new approaches on ICT

15. Global Puzzle Company has to focus on what it is best at and let others fill other parts of the puzzle

16. Global Puzzle Company has to focus on what it is best at and let others fill other parts of the puzzle

17. Global Puzzle Company has to focus on what it is best at and let others fill other parts of the puzzle

18. Outsourcing and Networking

19.  The question is no longer whether to outsource a capability or activity but rather how to source every single activity in the value chain  That, in turn, is changing the way companies think about their organizations, their value chains and their competitive positions  Loose-coupling vs. strategic alliances

20. Technological, marketing and complementary capabilities as a source of competitive advantage Janez Prašnikar Tanja Rajkovič Mateja Štembergar

21. Capabilities and competencies CAPABILITIES  Patterns of activities  Utilize firm’s resources (physical, intellectual, cultural capital)  Product and industry specific COMPETENCIES  Sustainable and synchronized utilization of resources  Spread across multiple products, markets, functions  Network of capabilities

22. Technological, marketing and complementary capabilities TECHNOLOGICAL capabilities  competencies MARKETING capabilities  competencies Capabilities Utilization of scientific and technical knowledge for R&D of products/processes Competencies Practical & teoretical know-how, methods, procedures, experience Capabilities Knowledge and skills that generate customer value and facilitate effective response to market challenges Competencies Marketing research, channel management, customer relationship management, forecasting and responding to competitors’ strategies COMPLEMENTARY capabilities  competencies Capabilities Synergy/fit between technological and marketing capabilities; new applications of existing knowledge Competencies Integration of specialties and functions, exploitation of synergies, integration of internal&external resources, generation of dynamic capabilities Competitive advantage

23. Technological, marketing and complementary competencies in Slovenian companies Methodology  Sample of 46 medium-sized and large Slovenian manufacturing companies  Questionnaire tested in 12 companies  (R&D managers, production line managers) Questionnaire structure  Competencies  Technological, marketing, complementary  Industry characteristics  Innovation performance  The characteristics of the R&D function  Business performance Competencies’ development Analysis of the segments

24. Competencies in Slovenian companies TECHNOLOGICAL COMPETENCIES MARKETING COMPETENCIES COMPLEMENTARY COMPETENCIES  Transfer of technological and marketing knowledge within the company  Contribution to the industry trends  Strategy explicitness  R&D knowledge transfer between strategic partners  Developmental processes  R&D advancement  Number & width of technological competencies  Efficiency in predicting technological trends  Product development  Time needed to develop completely new product  Time needed to improve product  Production: product quality  Cost efficiency of product development  Perception of changes in customer preferences and needs  Acquirement of real time information about competitors  Establishment and management of long- term customer relations  Establishment and management of long- term supplier relations

25. 4 segments of companies  Innovative firms  The best business performers  Low market uncertainty Technological competencies Marketing competencies Complementary competencies  Product quality  Lag behind in predicting industry trends  Fierce competition within the industry The leading firms Followers with well developed competencies Followers with better developed marketing competencies Followers with below average competencies  Lag behind in technological competencies  Imitators  Product quality  The worst in business performance

26. Technological and marketing capabilities in Gorenje Inc. Methodology  Identification of core capabilities  5-step model  16 in-depth interviews, semi-structured questionnaires, qualitative analysis Technological capabilities  Questionnaire, purposive sample of 22 experts  10-point scale for evaluation of:  capability relevance, probability of technological success and competitive position Marketing capabilities  Questionnaire, purposive sample of 24 experts  10-point scale for evaluation of:  capability relevance, probability of attaining customer loyalty and competitive position

27. Core technological capabilities in Gorenje Inc. Source: Own research, October 2004, n = 22.

28. Core technological capabilities in Gorenje Inc. design painting assembly dimensioning electronics sheet metal processing Source: Own research, October 2004, n = 22.

29. Core marketing capabilities in Gorenje Inc. Source: Own research, May 2006, n = 24.

30. Core marketing capabilities in Gorenje Inc. selling channel management product development marketing communication Source: Own research, May 2006, n = 24.

31. Identification of key core capabilities Core TECHNOLOGICAL capabilities Core MARKETING capabilities Design Painting Assembly Sheet metal processing Dimensioning Electronics Selling Channel management Marketing communication Product development

32. Complementary capabilities Idea generation Business opportunity definition Early product development Final product development Commercialization Product managers Marketers Sales personnel Technologists Development engineers Industrial designers Source: Own research, May 2006, n = 24.

33. Conclusion  Technological, marketing and complementary capabilities can generate improved competitive position  superior business performance  The most successful firms simultaneously develop technological, marketing and complementary capabilities  Business performance rests upon integration of capabilities

34. Integration of both studies and implications for practice

35. Conclusion  For a company to be successful  technological, marketing and complementary capabilities needed  superior capabilities and competencies needed  All that necessarily within one single company? Often complete superiority is impossible and senseless!  Approaches like core competencies, outsourcing, shared services and business process networks  a company should focus on what it is the best at and let others handle other pieces of the puzzle  argument: extreme specialization of knowledge  counterargument: reduced process visibility and control  ICT can help

36. Implications for practice  “Rethink” the company  alternatives to controlling the whole supply chain  collaboration  a “philosophy” behind collaboration matters more than its form (how will the processes, subsystems and capabilities differ)  only after “rethinking” the company the form of collaboration should be chosen  Form of collaboration  ”hard-wired” forms  ”loosely-coupled” forms  R&D collaboration among high-tech companies in the past and today?  what about less technologically demanding industries (tourism)?