Download presentation
Presentation is loading. Please wait.
Published byWilfred Morgan Wilkerson Modified over 5 years ago
1
Digital / Physical Interface In Decision Base
REFLECTS THE FOLLOWING FEATURES Higher margins on blended solutions Greater competitive immunity Customer continuity for blended solutions No change to board, customer cards, or guide Does not disturb the variables that are considers when determining what markets to enter or products to invest in Increased penalties for non-delivery
2
Digital / Physical Interface In Decision Base
Some customers will require these solution starting in year 4, noted as a blue dot on the contract card We have identified a subset of customers in all markets, and across all products, that require these solutions, and thus have a blue dot on the contract at the market table Customers requiring these solutions extend over all markets/products so as to not disturb the strategic decisions teams make to enter various markets or products
3
Digital / Physical Interface In Decision Base
Approximately 5 customers per round/year, spread evenly across markets and products, desire the digital products A team cannot accept these customers without investing in the technology: 6M one-time investment. This is paid as misc. expenses on board. Teams invest and pay at the same time of “investing in new markets” on the checklist. Failure to invest means they cannot pursue there customers Teams that invest get a sticker from the bank and place it on table name card to identify that they have paid for this R&D.
4
Digital / Physical Interface In Decision Base
Teams retain the customer for 2 years if won at the market table Teams that win these customers receive an extra 3M in revenue for each of the two years. The additional 3M revenue per contract is used to determine market leadership/market position before leaving market table Teams must retain these customers for two years. The contract is returned to the team at the market table, by the facilitator, at the start of the next years’ market table session The additional 3M revenue reinforces the concept that there are higher margins and revenue for these customers The two-year term of the contract conveys competitive immunity
5
Digital / Physical Interface In Decision Base
While there are higher margins/revenue and competitive immunity, there are additional risks and penalties If you fail to deliver, In year 1, there is no revenue for late delivery, the card is surrendered, and you lose 1 level in market position - If you fail to deliver in year 2, you will go to bottom of market position and receive no revenue for year 2
6
Digital / Physical Interface In Decision Base
This modified approach to DB has been Run at Honeywell four times with great success Lear Corp and was also successful
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.