The document discusses how businesses and economies are constantly evolving due to factors such as new technologies, globalization, and changing customer needs. It outlines how businesses have similar basic structures, strategies, and tactics regardless of size or industry, but these are influenced by the type of purchase and distribution channel employed. The role of technologists in businesses is also changing, with technology now needing to focus on customer engagement and collaboration rather than just back office operations. Overall, businesses must adapt to remain competitive by leveraging new technologies to differentiate themselves and create value for customers.

1. TAKING CARE OF ‘THE BUSINESS’
Paul Monks
VIC.NET SIG, January 2013

2. FROM THE ECONOMY
DOWN TO THE ENTERPRISE

3. “IT’S THE ECONOMY, STUPID”
Population, Participation, Productivity
Source: Clinton Election Campaign 1992; Intergenerational Report 2002, Treasury/Ken Henry

4. INDUSTRY SECTORS
Australia and NZ Standard Industrial Classification Sector
A — Agriculture, forestry, fishing and hunting
Primary
B — Mining
C — Manufacturing
D — Electricity, gas and water supply
Secondary
E — Construction
F — Wholesale trade
G — Retail trade
H — Accommodation, cafes and restaurants
I — Transport and storage
Tertiary
J — Communication services
K — Finance and insurance
L — Property and business services
M — Government administration and defence
N — Education ‘Quarternary’
O — Health and community services
P — Cultural and recreational services
‘Quinary’
Q — Personal and other services
Source: 1292.0 ANZSIC 2006, Australian Bureau of Statistics

5. EVOLVING ECONOMIES
Source: Conditions of Economic Progress, Clark, 1940

6. A HUGE IMPACT ON (FROM!) MOST OF US
Source: Digital Disruption – Short Fuse, Big Bang, Deloitte, 2012

7. MANY SOURCES OF ONGOING TURBULENCE
Political
Environ- New
Entrants Economic
mental
Existing
Supplier Buyer
Compet-
Power Power
ition
Legal Substitute Social
Products
Technology
Source: PEST(LE) Analysis, ???; Competitive Forces, Porter, 1979

8. STRUCTURES AND STRATEGIES

9. THE SAME BASIC STRUCTURE/FUNCTIONS,
REGARDLESS OF SIZE/INDUSTRY
Source: Competitive Advantage, Porter, 1985

10. WITH THE SAME BASIC GROWTH STRATEGIES
Market New Product
Penetration Development
(Existing Product, (New Product,
Existing Markets) Existing Market)
Market
Diversification
Development
(New Product,
(Existing Product, New Market)
New Market)
Source: Corporate Strategy, Ansoff, 1965

11. AND THE SAME BASIC TACTICS
Grow the Market /
Increase Usage
Win Competitors
Market Penetration
Customers
Win New Buyers / Improve Productivity
Repeat Purchasers
Reduce Costs
New Product Extend Product Line Outsource
Development (Up/Down/Side) Operations
Increase Sales Convert non-users Redeployment of
Capital
Reduce Investment
Base
Market Enter new Innovation, Divestment,
development segments Unrelate Diversification
Enter new
geographies
Related Develop new
products for new
Diversification related markets
Source: Adapted from ‘Products and Strategies’, Brownlie, 1985

12. INFLUENCED BY TYPE OF PURCHASE
Low Involvement, Low Involvement,
Informational Transformational
(Detergent, Fuel, (Snacks, Soft Drinks,
Credit Cards, Pet Fast Food, TV Shows,
Care, Basic Foods) Computer Games)
Low Risk, Low Risk, Self
Commodity Expression
High Involvement, High Involvement,
Informational Transformational
(Whitegoods, Loans, (Fashion Clothing,
Insurance, Advice, Cars, Motorcycles,
Computers, Medical) Cosmetics, Holidays)
High Risk, High Risk, Self
‘Commodity’ Expression
Source: Marketing Communications, Rossiter et al, 2005

13. AND DISTRIBUTION CHANNEL EMPLOYED
• Business to Consumer (B2C)
– Producer → Consumer
– Producer → Retailer → Consumer
– Producer → Wholesaler → Retailer → Consumer
– Producer → Agent → Wholesaler → Retailer → Consumer
• Business to Business (B2B)
– Producer → Industrial User
– Producer → Industrial Distributer → Industrial User
– Producer → Agent → Industrial User
– Producer → Agent → Industrial Distributor → Industrial User
• Services
– Service Provider → End User
– Service Provider → Agent/Broker → End User
– Service Provider → Retailer → End User
Source: Strategic Marketing, Reed, 2010

14. AND UNDERPINNED BY FUNDAMENTALLY THE
SAME TECHNOLOGIES
Source: Adapted from Ovum’s ‘IT Reference Model’, Ovum, 2012

15. MODERN BUSINESSES
EMBRACING CHANGE

16. NO ORGANISATION IS AN ISLAND
Company
Value
Collaborators Customers
Source: The 5C Extensions to ‘Mind of the Strategist’, Ohmae, 1991

17. NEWER VIEWS OF BUSINESS MODELS
Source: Business Model Generation, Osterwalder et al, 2010

18. BASED ON DIFFERENTIATION
Source: Blue Ocean Strategy, Kim & Mauborgne, 2005

19. CAPITALISED UPON BY NEW ENTRANTS
Source: Zynga Business Model Canvas

20. AND CALLING FOR A HOLISTIC VIEW OF
TECHNOLOGY ALIGNMENT
Business Architecture Solution Architecture
Software Architecture
Information Application Data
Architecture Architecture Architecture
/ Interaction / Functional / Domain
Design Design Design
Security Architecture
Infrastructure Architecture
Every single piece (in both worlds) needs to be aligned
and moving in the right direction!
Source: Microsoft Business Architecture, Microsoft, 2006+

21. THE CHANGING ROLE OF
TECHNOLOGISTS

22. NO TECHNOLOGY IS ‘STRATEGIC ’
“IT did not need to be
involved in the purchasing
decision”
Source: Drivers of Cloud Adoption Survey, Host Analytics/Dimensional Research, 2012

23. REALLY JUST REMOVING COMPETITIVE DISADVANTAGE
Upgraded 2 Years Ago
54%
Upgraded 3 Years Ago
32%
Upgraded 4 Or More
Years Ago - 14%
Source: Drivers of Cloud Adoption Survey, Host Analytics/Dimensional Research, 2012

24. DIGITAL STRATEGY –
EVERYTHING OLD IS NEW AGAIN!
Umm… invest in Err… move all
customer channels and supporting functions
analytics/intelligence and systems into the
cloud or offshore
Source: Digital Disruption – Short Fuse, Big Bang, Deloitte, 2012

25. SO WHAT?
• A Matter of Perspective
– It’s never been easier for new entrants to scale up
– Incumbents have never been so entrenched in legacy
• Custom ‘Commodities’ Hinder, not Help
– Bespoke operations are now rarely a competitive
advantage – customers tend not to care about nuance.
– Most businesses care more about agility than costs.
• Differentiation and competitive advantage now
tends to be based in connected supply chains and
effective market channels
– Not ‘traditional IT’ for the ‘back office’
– The internet has only accelerated this trend

26. SO WHAT?
• IT is critical for modern businesses, but in a different way
to where the focus has been previously
– Organisations will quickly become either ‘Yesterday’s Heroes’,
‘The Survivors’, or ‘The Value Masters’
• To not only survive, but to truly create customer value, we
must architect systems for engagement and collaboration
– With both Partners and Customers
– In ‘real-time’ wherever possible
– Think Federated Identity, Cloud Service Bus, SaaS back-office
apps, etc
– If you don’t, guaranteed another organisation will…
• You probably know how technology can deliver value
better than your boss or ‘the business’ does
– Probably just need to express things in a business context
– In a software vendor or consultancy, it is double the fun

27. RECOMMENDED READING
• Positioning: The Battle For Your Mind (1981)
• Getting To Yes (1981)
• What They Don’t Teach You At Harvard Business School (1984)
• Influence: The Psychology of Persuasion (1984)
• The Fifth Discipline (1990)
• Leading Change (1996)
• The Innovator’s Dilemma (1997)
• The Tipping Point (2000)
• Blue Ocean Strategy (2005)
• The World Is Flat (2005)
• Reinventing Project Management (2007)
• Business Model Generation (2010)
• Great By Choice (2011)