Showing papers in "Journal of Business Strategy in 2009"

Social networks: the future of marketing for small business

Abstract: Purpose – The authors review recent developments in online marketing strategy that demonstrate the growing power of online communities in building brand reputations and customer relationships.Design/methodologies/approach – This work draws upon the results of an ongoing research project that is investigating the use of new technologies by entrepreneurial growing businesses in the London area. A range of examples from our 30 case study businesses are drawn upon to illustrate some of the opportunities and threats associated with these new marketing priorities.Findings – The authors conclude that social networks will play a key role in the future of marketing; externally they can replace customer annoyance with engagement, and internally they help to transform the traditional focus on control with an open and collaborative approach that is more conducive to success in the modern business environment.Research limitations/implications – Further research should aim to track this activity as it integrates with m...

How tangible is your strategy? How design thinking can turn your strategy into reality

Abstract: – Improving your company's ability to execute its strategy requires increase alignment, greater agility and a singular clarity regarding the desired outcomes. This paper aims to describe how the SAP Design Services Team uses design thinking and its principles to improve the organization's ability improve its ability to execute strategy and even evolve the way SAP identifies and defines its strategic vision., – This paper examines both the value of the design thinking approach as well as the organizational practices employed to insure its success., – The study has found a number of best practices for the development of artifacts to make strategies tangible, as well as the organizational requirements for the wide spread adoption of design thinking as an approach for the entire organization. Applying the principles of design thinking the Design Services Team has developed the means to analyze, refine and convey business strategies in the form of artifacts or prototypes. While demonstrating what the final offering will be from a customer's point of view, these objects also express the strategic planning as well as external market forces and risks within their narrative. Going beyond traditional communication channels this approach not only expresses the vision and intent behind the strategy but also an eventual end‐state; in short this method allows everyone across the organization to understand the real meaning of your strategy by knowing what success will look like when its achieved., – By reexamining both how they identify and develop their strategies as well as how those strategies are communicated and refined in implementation, organizations can increase their effectiveness and decrease time to execution. Today most strategies are conveyed as broad visions that lack any specifics regarding how the goals are to be achieved allowing it to be disintegrated at the point of execution. Combining the aspirational message with tangible examples of the end‐state makes the message and the mission clear and actionable.

Embedding innovation: design thinking for small enterprises

Abstract: Purpose – This paper aims to outline the approaches used by the UK Design Council to embed design and innovation capability in small businesses.Design/methodology/approach – Case studies of Design Council programmes are outlined and the design methods, tools and processes used to embed design‐led innovation are explored. These are grouped under five headings: vision and strategy; brand and identity; product and service; user experience and innovative culture.Findings – The paper finds that programmes which use design thinking, design mentoring and co‐creation to help companies develop innovation capacity result in tangible business benefits.Originality/value – This overview of design methods in practice creates a compelling case for the strategic deployment of design‐led innovation.

Welcome to World 2.0: the new digital ecosystem

Abstract: Purpose – The purpose of this paper is to introduce and describe World 2.0; the interactive, hyper‐connected, immersive, collaborative online ecosystem.Design/methodology/approach – The paper reviews paradigm shifts in technology and the internet that transform the world of business and innovation.Findings – The author proposes five shifts that characterize and describe World 2.0: creativity, connectivity, collaboration, convergence, and community. These shifts define the new global landscape of business, technology, and innovation.Practical implications – The article provides managers and professionals strategies for innovation in the World 2.0 ecosystem.Originality/value – The concept of World 2.0 provides managers and professionals a fresh perspective and an integrative vision of the twenty‐first century business and innovation landscape.

Beyond good: great innovations through design

Abstract: Purpose – The purpose of this paper is to propose that high quality innovations benefit both companies and customers. Most businesses have formal systems to ensure benefit to company, and weaker, informal systems to retain or add value to customers. This paper aims to provide a way to formally apply heuristics designers use (“design thinking”) to maintain a line‐of‐sight to company and customer needs in all decisions from concept through production. This approach should result in offerings that are compelling to customers and are profitable to companies.Design/method/approach – The paper has developed a concept to maximize the contribution of relatively few people in organizations with design thinking heuristics expertise. The concept was developed within Hewlett Packard (HP), and by studying the roles of customer experience, marketing and design organization in other companies. The approach has been validated through establishing new roles on pilot projects and is the basis for architecting the design pr...

The rise and rise of the B2B brand

Abstract: Purpose – The purpose of this paper is to demonstrate to leaders of business‐to‐business (B2B) organizations the value of using brand management disciplines and tools to accelerate growth. The premise is that B2B organizations need robust, coherent brands if they are to operate successfully and grow as fast as they tell shareholders they will.Design/methodology/approach – This paper uses empirical studies, mini profiles and research into the Fortune 500's stated rebranding initiatives to show that branding disciplines are joining the line‐up of management tools that can help drive business success and rekindle growth in industrial companies.Findings – The paper finds that in more and more industrial sectors, companies view strong brand management as a powerful mechanism for expanding into adjacent markets, acquiring and retaining scarce talent and counterbalancing the strength of downstream customers. The paper opens with an anecdote about Johnson Controls, draws on Lippincott research showing the percent...

A process for practicing design innovation

Abstract: Purpose – Companies are increasingly adopting design processes as a key driver for their innovation practice. Design processes help companies develop innovations that produce high user value as well as economic value and business value. The purpose of this paper is to describe how design processes can be effectively used in innovation projects through a good understanding design principles, tools, and frameworks.Design/methodology/approach – The frameworks in this paper are based on our direct experience with several innovation projects within leading companies. The processes adopted by many other companies and innovation projects, both academic and professional from around the world, were also studied as drawn from various sources. The goal was to uncover insights about the types of processes adopted by successful innovators.Findings – These analyses reveal that there is a new focus on “design innovation” that produces offerings with a better fit with users and results in higher rates of adoption. It is ...

Innovating health care delivery: the design of health services

Abstract: Purpose – The structure of health care financing, the lack of vertical and horizontal integration, and the slow translation of basic research into meaningful health outcomes for the population conspire to make innovation in health service delivery a difficult task. However, health service organizations that can more effectively and systematically understand patient needs – needs that are now poorly understood and often unarticulated – have an intrinsic advantage in delivering high value care. This ‐paper aims to describe a program for translating those needs into health services innovations.Design/methodology/approach – The Mayo Clinic, a large integrated multispecialty medical group based in Rochester, Minnesota developed an in‐house design program, the SPARC Innovation Program, to bring design thinking and business analysis together to develop innovations in care delivery. A project example is described to illustrate how designers, business strategists, health care professionals, and patients create new...

Mobile‐banking: can elephants and hippos tango?

Abstract: Purpose – The purpose of this paper is to establish the potential that mobile banking offers to both banks and mobile carriers. Acknowledging the inherent difficulties of convergence between large and very different industries, it then explores the merits and shortcomings of existing partnership models and offers suggested best practices.Design/methodology/approach – After in‐depth secondary research about the successes and failures of early mobile‐banking offerings, the report offers best‐practices based on a critical evaluation of partnership models.Findings – Open‐federated models – involving partnerships between large numbers of banks and mobile carriers to provide a shared platform for mobile‐banking services – access the broadest customer base and minimize the costs of developing proprietary software and infrastructures. Qualcom‐owned Firethorn is an early USA‐based adopter of this model. In more mature mobile‐banking markets like New Zealand, upwards of 40 percent of an individual bank's customers ...

The reality of India: Folding constraints into business strategy

Abstract: Purpose – This report provides a framework to better understand how constraints faced by companies and their customers in emerging markets can be converted into competitive advantage and thereby into factors for growth.Design/methodology/approach – Based on a literature review, a framework is developed to understand how companies can generate competitive advantage from constraints that affect companies, their customers or both. The framework is explained with case studies of Indian companies and multinational organizations (MNCs) operating in India.Findings – A multitude of constraints affect companies operating in emerging markets such as India. India is an emerging market where MNCs would like to have a presence but are deterred by constraints. Some of these constraints affect companies, while others affect customers. Although many multinational organizations are struggling to meet their business goals in India, many local companies and some MNCs have successfully navigated the constraints and managed t...

Business as environmental steward: the growth of greening

Abstract: Purpose – Business initiatives that improve environmental impact are increasing in number and the trend continues to accelerate. However, there is a growing consensus that transformations to protect the environment and conserve natural resources should be more pervasive and much larger steps than those already being taken are needed. Among the difficult challenges that business leaders and practitioners face today is to understand the driving forces that encourage environmental sustainability in the context of their own operation. This work articulates the key drivers of “green” activities that support environmental stewardship, and their relevance to business management.Design/methodology/approach – Environmental stewardship is positioned as a growth area, business leaders are already taking action to apply environmental sustainability principles, and each key driver of environmental stewardship is discussed separately. A rationale for each driver is provided, business management implications are articul...

Using design thinking to improve patient experiences in Japanese hospitals: a case study

Abstract: Purpose – The paper seeks to use a case study to describe work by a Japanese qualitative research specialist with leading office furniture manufacturer to spur innovation in product development and sales strategy in a newly targeted hospital furniture market. It aims to show how qualitative research can allow product development and sales teams to accelerate learning and pace of innovation by providing a window on needs in new market segments from a customer's point of view.Design/methodology/approach – A two‐phase study included phase one interviews with experts in and from outside the hospital field, which were analyzed at a workshop with the client choosing the research theme and identifying key topics. Phase two involved user observation at hospital lobbies and non‐hospital settings, plus in‐depth interviews with patients and hospital staff. Three patient experience styles were identified and personas created for each type. Personas and further analysis facilitated creating criteria for interaction, e...

Brain drain: why top management bolts after M&As

Abstract: Purpose – This paper aims to analyzes merger, firm, and country characteristics that may explain the root causes of long‐term executive instability in target company top management teams.Design/methodology/approach – Mergers involve two different groups of executives – executives in place at the time of the acquisition (“incumbents”) and those brought into the target after the acquisition (“new‐hires”). In order to understand why many target companies experience long‐term instability in their top management teams, patterns of turnover in these two distinct groups were analyzed over a 17‐year period in 730 target companies.Findings – Analysis of the data revealed that a range of factors create conditions in target companies that lead to prolonged leadership instability. Different deal types such as tender offers, hostile takeovers, divestitures, and leveraged buyouts, the nature of merger negotiations, growth and profitability of the target company, headquarters location of the acquirer–whether foreign or ...

Delegating and devolving power: a case study of engaged employees

Abstract: Purpose – Issues of trust and control are two major determinants for employee disengagement and organizational conflict. The following article describes how Bill Day, owner of Seaworks, a rapidly growing ocean salvage company, deals with issues of trust and employee disengagement.Design/methodology/approach – This article incorporates findings from an interview with Bill Day and literature on the areas of trust, employee disengagement, and the need for a personal sense of control.Findings – Key determinants for employee engagement are a sense of trust between employees and their managers as well as a sense of personal control. Restructuring efforts in the past may have been major contributors to employee disengagement. Trust must be communicated through the firm's culture and it must start from the top of the organization. A key barrier between employees and managers is the managerial reluctance to delegate authority and devolve power. This conflict between the organization's goals and the goals of its ma...

A celebrity chef goes global: the business of eating

Abstract: Purpose – This paper examines the internationalization strategy of Gordon Ramsay Holdings Ltd (GRH) from its base in London. While a substantial body of research on the strategic prerequisites for successful internationalization already exists, little attention has been given within this literature to the international growth of small, informally organized and entrepreneurially‐driven firms. The discussion also identifies the challenges facing GRH as it strives to continue its international expansion.Design/methodology/approach – The paper utilizes various published sources from the general press, business press and trade journals to examine the international expansion of GRH on the back of the personal brand the charismatic Gordon Ramsay has achieved in culinary and media circles. The growth of the GRH organization is interpreted through a theoretical framework of strategic capabilities and relationships.Findings – The analysis illustrates how critical resources and capabilities, branded reputation, and ...

The leadership lessons of crucible experiences

Abstract: Purpose – The purpose of this article is to explore different types of crucible experiences – transformative events that happen both on and off the job and that are the raw material from which outstanding leaders derive their core qualities.Design/methodology/approach – Primarily through interviews with leaders in a wide range of organizations, the author analyzed nearly 200 crucible experiences and identified three varieties: “New Territory” (encounters with the unknown); “Reversal” (loss, impairment, or defeat); and “Suspension” (an extended period of contemplation).Findings – Each type of crucible conveys different lessons for aspiring or established leaders. While the lessons vary, common themes emerge: the importance of relying on others; the interdependence of people within organizations; the need to continually ask questions, not just give answers; the importance of having a mission and recognizing that you are not bulletproof.Originality/value – The article takes the idea of learning from experien...

A head in the clouds

Abstract: Purpose – There is a quiet change going on in computing that can alter the landscape of the software and information industries. Cloud computing promises to provide various information services at a lower cost and change the model of capitalizing IT investment for software entrepreneurs and businesses. What are the implications of this trend?Design/methodology/approach – As a viewpoint this article is based on personal reflection and analysis of trends in computing.Findings – This article outlines the key advantages of cloud computing and its likely implications on corporate IT strategy, software innovation and pricing. Increasingly IT will migrate to clouds, software innovation will burgeon as new vendors find less barriers to enter software businesses and pricing will be by use of applications.Originality/value – This reflective viewpoint provides pragmatic critical thinking on a key business and technology transformation.

Leveraging intangibles: how firms can create lasting value

Abstract: Purpose – Firms are increasingly confronted with a complex and dynamic competitive environment. The purpose of this paper is to shed some light on the way firms can cope with – and succeed in – such an environment.Design/methodology/approach – The article examines major factors that are driving a global structural shift toward increased global competition. After identifying the difficulties behind the management of value creation, it focuses on the specific role of intangibles with a view to building a responsive firm.Findings – It is found that intangibles are the key to sustaining value creation in a complex and dynamic environment. Following this, some consideration is given to the elements that help build responsive firms. The paper concludes by proposing actionable ways for managers to leverage intangible‐based practices.Originality/value – The case for leveraging intangibles is advanced through a mix between an international business perspective and the combined role of knowledge and cluster‐like en...

High performers down under: lessons from Australia's winning companies

Abstract: Purpose – Several studies on high performing organizations in the US have strongly influenced management thinking about excellence in Australia. This paper challenges these studies and summarizes the results of a major four year empirical research project to define the unique attributes and key practices of 11 of Australia's long‐term high performing organizations.Design/methodology/approach – Over 1,000 senior executives were surveyed to nominate these winning organizations. Success was defined as taking a balanced scorecard perspective coupled with long‐term growth, innovation and productivity issues. Following detailed analysis, the final number of organizations was narrowed to eleven and their performance studied in depth over a 25‐year period from 1982 to 2007.Findings – Nine best practice elements have been identified from the eleven organizations: effective execution, perfect alignment, adapting rapidly, clear and fuzzy strategy, leadership not leaders, looking out and looking in, right people, man...

Structuring enduring strategic alliances: the case of Shell Australia and Transfield Services

Abstract: Purpose – This paper provides insights into the evolution of the strategic alliance between Shell and Transfield Services in Sydney, Australia in the area of engineering and facilities management.Design/methodology/approach – To gain an in‐depth understanding of the distinct developmental phases in the alliance relationship, we conducted 12 interviews and a survey yielding 39 responses from the management and operations staff of both these organizations.Findings – Initially the alliance between Shell and Transfield Services was established with fundamental building blocks of trust and flexibility. However, as the relationship progressed with subsequent contract renewals, complex value adding demands were placed on the alliance. This paper provides insights into understanding three generations of evolution in the relationship‐starting from the building of a successful relationship based on labor savings and then on to one which seeks incremental innovations to become one of the most efficient maintenance o...

Making risk pay: the board's role

Abstract: Purpose – The purpose of this article is to propose a process which ensures boards make risk pay off by identifying and selecting opportunities which more than compensate for the risks assumed. Organizations are increasingly under threat from factors such as globalization, regulations, and technology. Given this, the biggest challenge boards' face is to competently manage these opportunities and risks. Although boards can benefit from fully integrating risk management into the strategy formulation process, survey evidence shows most have not done so.Design/methodology/approach – This article draws from the confluence of the risk management, strategy formulation and board governance streams to illustrate how boards can enhance performance by integrating strategy formulation and risk management into a single process.Findings – Given that many boards formulate strategy and manage risk separately, organizations can gain a competitive advantage by managing them in an integrative fashion. Boards that integrate ...

Engaging China: strategies for the small internationalizing firm

Abstract: Purpose – To date, more than 400 of the Fortune 500 companies have already established their presence in China. Like their larger counterparts, smaller multinationals are also attracted by the huge potential market and cheap resources that China has to offer. Thus, the purpose of this paper to examine key strategies that small internationalizing firms (SIFs) need to focus on for a successful China engagement.Design/methodology/approach – The findings of this study are based on a year‐long research of New Zealand firms in China. The study involved a survey of senior managers of New Zealand companies at home as well as a focus group discussion among executives in China.Findings – The study identifies three dimensions of strategy that SIFs need to pay particular attention – the attributes of the China bound manager, the business focus of the enterprise, and the guanxi building capabilities.Originality/value – This paper is based on the premise that the SIF cannot mirror the exact strategies of larger multina...

Finance is everything: advice from turnaround managers

Abstract: Purpose – There are many reasons why companies drift – or plunge – into financial disaster. Factors such as market share loss, excess debt, management problems, technology changes or credit fluctuations can all play roles. In fact, the number of risks facing corporate officers is enormous today and simply keeping abreast of it all is a colossal task. As a result, not all managers and firms can cope, often resulting in a turnaround situation. The purpose of this paper is to highlight what sets successful turnarounds apart from failures and the most frequent underlying causes of the problems faced by companies in turnaround situations.Design/methodology/approach – This paper makes use of previous literature and work with clients to identify a relevant top ten list of management practices for keeping companies out of trouble.Findings – The academic and professional literature on turnarounds leaves many unanswered questions with respect to what sets successful turnarounds apart from failures. This paper descr...

BRICOland brands: the rise of the new multinationals

Abstract: Purpose – The purpose of this paper is to demonstrate to business leaders in the developed world that many powerful brands are rising in the emerging economies; to indicate how those incumbents' branding approaches will need to adapt as a result.Design/methodology/approach – This paper uses empirical findings, segmentation into three accessible categories of fast‐rising brands, and third‐party research on the multipolar world to show that the twenty‐first century's “powerhouse” brands are as likely to come from emerging markets such as China, Turkey, Qatar, South Africa, and Brazil as from the USA, Japan and Europe.Findings – The paper states that the dominant brands of the twenty‐first century are far less likely to be household names like IBM and Coca‐Cola and much more likely to be brands that today are relatively unfamiliar in the West – names such as SABIC and Emaar and Ulker. The paper argues that the rise of these emerging‐market brands will change the way that business leaders in the developed wor...

The value of a dollar

Abstract: Purpose – Most business executives understand the importance of offering good value for money to their customers. But sometimes they do not put enough thought into how customers perceive value. This is particularly true in today's recessionary environment. Executives need to communicate clearly how and why their offerings are good value for customers. In doing so, they can help customers overcome resistance to discretionary spending and improve perceptions of value versus alternatives.Design/methodology/approach – In this article, Jackson considers a number of case examples of businesses that have improved their price‐value perceptions by adjusting their product offerings in subtle ways that help communicate value. Examples industries cited in the article include food service, retailing and the auto industry. The author then draws lessons that can be applied broadly across any business considering strategies to communicate the value of their offering.Findings – Companies should proactively communicate the...

Obliterate knowledge management: everyone is a knowledge manager!

Abstract: Purpose – Knowledge assets are a critical basis of competition, but knowledge management (KM) often fails to deliver in effectively growing the value of these assets. This paper aims to lay out four shifts required to make knowledge management more effective.Design/methodology/approach – The paper defines four shifts likely in the evolution of KM: “Knowledge Clouds” where knowledge assets within and outside the company become permeable and interconnected in a cloud computing environment; the use of social media and ratings to co‐create user generated ratings, taxonomies and collective organization of knowledge; integrating KM with learning and decision support so users are better empowered to learn, decide and do useful things with knowledge; and everybody becomes a knowledge manager and is clear about how the can contribute to the creation, projection, organization and use of knowledge of assets within and outside the walls of the company.Findings – The paper presents clear reasons KM is vital to the fut...

The imperatives of e‐business: case study of a failed project

Abstract: Purpose – The purpose of this paper is to take a critical look at a recent e‐business initiative (eCRM) undertaken by a global technology solutions organization. After significant time and money invested in the initiative the project was cancelled. This paper will identify factors that the organization should have considered as part of the development and deployment of the initiative.Design/methodology/approach – This paper is explorative in nature, and based on the case study methodology. The data was collected via an on‐line questionnaire of over 300 employees across Europe, the Middle East and Africa (EMEA) involved with the delivery of eCRM.Findings – The research has highlighted what the author believes are ten imperatives organizations must consider when embarking on major e‐business projects. The imperatives support an e‐business strategy framework that was developed through the research findings.Research limitations/implications – This research was conducted across one organization only. Although ...

Innovation is good, fitness is better

Abstract: Purpose – Academic journals and the popular business press are filled with articles praising innovation. But innovation is not enough. This paper proposes a higher purpose – that survival of our business systems relies on achieving a new level of fitness – and aims to suggest that design thinking is one of the keys to becoming more fit.Design/methodology/approach – Ever since Darwin argued “survival of the fittest,” social scientists have worked to determine winners and losers in a wide range of complex systems. The paper asserts that there is value in applying the concept to the survival of business systems and provides examples of how successful companies have worked to overcome inertia and reinvent portions of their business model.Findings – The paper finds that dominant systems have a hard time accepting the need for change, even though the very attributes that made them successful now threaten to drag down their long‐term fitness. Design thinking is a framework that provides the opportunity to study ...

Let's talk: getting business and academia to collaborate

Abstract: Purpose – Many academics have raised concerns about the growing divide between academia and practice. While more collaborative research has been called for there is a lack of research into the actual practice of academic/practitioner engagement. This research aims to explore the application of strategic management theory and the role of universities in exchanging strategic management knowledge to practice.Design/methodology/approach – In depth interviews were undertaken with practitioners, academics and experts in order to get a balance of views from different perspectives.Findings – Organizations seem to have absorbed standard, iconic strategy techniques and are not, generally, relying on academia for new insights. On the academic side there is some uncertainty about what industry “needs”. The transfer of new strategy approaches can only be achieved once practitioners acknowledge the credibility of academia in contributing to practitioner related issues.Practical implications – For academics to have cred...

Re‐energizing a product portfolio: case study of a pharmaceutical merger

Abstract: Purpose – In 2007 global mergers and acquisitions (M&A) activity totaled a record $4.38 trillion, up 21 percent from 2006. Despite current turbulence in the world financial markets, 44 percent of privately held businesses globally are planning to grow through acquisition in the next three years. Following a merger or an acquisition, a combined firm may need to streamline an inefficient product portfolio so as to increase revenues and profitability. The consequences of retaining inefficient portfolios can be more than internal competition and inadequate financial returns. This paper seeks to illustrate key processes, methods and the value of strategic marketing research and science in helping make critical decisions that reshape an inefficient portfolio of 12 pharmaceutical products, created as the result of a merger of two large, global pharmaceutical firms.Design/methodology/approach – Using a case study, the paper posits that taking a customer‐centric, market‐driven view of the value of products in a po...