Transcript Tyson Strategy and Innovation Part 3 and 4

Part 3: Best Practices - The Strategic
Marketing Plan
A Strategic Plan Framework
Can Be Extensive
2. Plan the Strategy
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3. Align the Organization
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Business Units
Support Units
Employees
4. Plan Operations
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1. Develop the Strategy
Strategy
Map/Themes
Measures/targets
Initiatives portfolio
Funding/STRATEX
Key Process
improvement
Sales Planning
Resource capacity
plan
Budgeting
Source: Norton and Kaplan, The Execution Premium
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Strategic
Marketing Plan
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Mission, values, vision
Strategic Analysis
Strategy formulation
Performance
measures
Strategy Map
Balanced Scorecard
• STRATEX
The Operating Plan
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Dashboards
Sales forecast
Resource
requirements
Budgets
Execution
Process
Initiatives
6. Test and Adapt
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Profitability
Strategy correlations
Emerging Strategies
5. Monitor and Learn
Performance
measures
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Strategy Reviews
Operating Reviews
Surveys
One-on-ones
The Strategic Plan
Clarify the Vision:
• Mission, values
• Vision statement
• Strategic Shifts from/to
Value Gap
Strategic change agenda
Enhanced Vision
Develop the Strategy:
• Strategic Analysis
• Strategy formulation
Strategic Issues
Strategy Direction Statements
Translate the Strategy:
• Strategic Mapping
• Measures and targets
Strategic Themes
Balanced Scorecard
Develop the Plan:
• Strategic Initiatives
• Strategic funding
• Accountability
Strategic Plan
Source: Norton and Kaplan, The Execution Premium
Investment Portfolio
Theme Teams
STRATEX
A Strategic Marketing Plan
• Subset of Strategic Plan.
• 180 days to formulate and implement.
• Focuses on core competencies, leveraging
strengths and opportunities.
• Innovation and growth orientation.
• Contains marketing plan and budget.
• 8 Profitability drivers.
• Refer to the recommended format at
http://www.thesavvystrategist.com Password:
billtyson
Elements of Good Strategy
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Starts with a challenge.
Is focused on leveraging core skills.
Supported by a SWOT analysis.
Based on 3 time-tested principles:
– Creation of a unique and valuable position, involving a
different set of activities than your rivals.
– Making tradeoffs in competing – choosing (and defining)
what you will not do.
– Creating a “fit” between company activities so to develop
synergies (as a result, the whole being greater than the
sum of the parts) between interlocking parts
• Has a “Kernel” at the core
The Kernel of Good Strategy
• Bare bones, heart of the strategy.
• A diagnosis - that defines or explains the nature of the
challenge.
– A good diagnosis simplifies the often overwhelming complexity
of reality by identifying certain aspects of the situation as
critical.
• A guiding policy for dealing with the challenge.
– This is an overall approach chosen to cope with or overcome the
obstacles identified in the diagnosis.
• A set of coherent actions that are designed to carry out the
guiding policy.
– These are steps that are coordinated with one another to work
together in accomplishing the guiding policy.
Rumelt, Richard (2011). Good Strategy Bad Strategy: The Difference and Why It Matters
(p. 104). Crown Business. Kindle Edition.
Bad Strategy
• Fluff. Fluff is a form of gibberish masquerading as strategic
argument. It uses “Sunday” words (words that are inflated
and unnecessarily abstruse) and apparently esoteric concepts
to create the illusion of high-level thinking.
• Failure to face the challenge. Bad strategy fails to recognize or
define the challenge. When you cannot define the challenge,
you cannot evaluate a strategy or improve it.
• Mistaking goals for strategy. Many bad strategies are just
statements of desire rather than plans for overcoming
obstacles.
• Bad strategic objectives. A strategic objective is set by a
leader as a means to an end. Strategic objectives are “bad”
when they fail to address critical issues or when they are
impracticable.
Where Do We Go From Here ?
3 by 3 Framework
Product and Services Alternatives
Market
Options
Present
Products/Services
Improved
Products/Services
Q1-Market
Penetration
Q2-Product Extension Q3-Product
(variants/limitations) Development - Line
extension
Expanded
Market
Q4-Market
Extension
Q5-Market
Q6-Product
Segmentation/Product Development/Market
Differentiation
Expansion
New Market
Q7-Market
Development
Q8-Product/Services
Q9-Diversification
Extension and Market
Development
Existing
Market
Start Here
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New
Products/Services
Business Model Redesign
In addition to being “the heart of strategy” it is one
of the 4 key components of a business model which
include:
1) the customer value proposition,
2) a revenue/profit formula,
3) marshaling the appropriate resources and
4) aligning necessary processes and workflows such
as operations and manufacturing.
Source: Reinvent Your Business Model by Mark W. Johnson, Clayton M. Christenson, and
Henning Kagermann, Harvard Business Review, December 2008 edition, page 50.
Constructing or Deconstruct Your
Value Chain
Value Chain Activities
• Primary activities:
– inbound logistics: materials handling, warehousing, inventory control,
transportation;
– operations: machine operating, assembly, packaging, testing and maintenance;
– outbound logistics: order processing, warehousing, transportation and
distribution;
– marketing and sales: advertising, promotion, selling, pricing, channel
management;
– service: installation, servicing, spare part management;
• Support activities:
– firm infrastructure: general management, planning, finance, legal, investor
relations;
– human resource management: recruitment, education, promotion, reward
systems;
– technology development: research & development, IT, product and process
development;
– procurement: purchasing raw materials, lease properties, supplier contract
negotiations.
Questions?
Part 4: Innovative Marketing and
Distribution Approaches
Innovative Marketing and Distribution
Approaches
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Mobile as the Big Disruptor
Mobile AD program
Cross Sell Upsell Platform
Lead Generation via service sites
Mobile as the Big Disruptor
• How is mobile changing the business of
insurance?
• How are consumers embracing mobile?
• How are insurers and technology firms
responding?
• Critical Success Factors
• Additional Innovative Marketing and
Distribution Approaches
Your customers are re-imagining what
insurance means to them...
…and Insurers are Responding
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Insurers are considering or piloting customer-facing mobile applications to help consumers
access policy/account information, file claims, pay premiums, locate offices/agents, and access
financial tools and calculators
Now almost every top insurance carrier has one, showing that the apps race is definitely on
Insurers are also investing in mobile apps that improve the productivity of company resources
such as mobile e-mail services, sales force apps, and field service apps
Insurers continue to emulate the mobile tech adoption path of banking peers
That demand for digital experiences is pressuring insurers to shift to
doing the right things from just doing stuff right
Source: Forrsights Budgets And Priorities Tracker Survey, Q2 2011 (6-22-2011)
Base: 2,741 IT Decision makers; 74 North American Insurance IT Decision makers
© 2011 Forrester Research, Inc. Reproduction Prohibited
...with mobile playing a starring role
© 2011 Forrester Research, Inc. Reproduction Prohibited
Base: 185 NAM Insurance Network and Telecom Decisionmakers
Source: Forrsights Networks And Telecommunications Survey, Q1 2011
About 60% of online retailers surveyed
have defined the role mobile will play
in the business
June 2011 “The State Of Retailing Online 2011: Marketing, Social, And Mobile”
...and they have definite revenue goals
for their mobile strategy
© 2011 Forrester Research, Inc. Reproduction Prohibited
...meanwhile, we’ve finally reached the inflection point in the
US for mobile banking
50 million
US adult
mobile bankers
by 2015!
...but in insurance, mobile adoption is low, even if customers are
happy
Channels used to interact with an insurer over the past 12 months
Percentage of users who are satisfied or extremely satisfied with each channel
69%
60%
Mail
Web site
54%
Phone with a rep
80%
48%
Office/branch
Satisfaction
79%
25%
Automated phone
Mobile
66%
17%
4%
Use
55%
66%
Base: US online adults who own at least one insurance product and
have used each channel at least once in the past 12 months
Source: North American Technographics® Financial Services Online Benchmark Recontact Survey, Q2 2010 (US)
© 2011 Forrester Research, Inc. Reproduction Prohibited
Mobile Brings Intersection of Medium
and Context
Always on
Always on us
Sensors
Physical Awareness
Mobile services – both Web and applications – have to offer three
core benefits to drive usage
Convenience Quotient
Immediacy
Simplicity
Context
Geico uses the mobile camera to return a
quote by email
Basic information is captured from
the driver’s license
Next steps are communicated.
...while UK aggregator, comparethemarket.com, lets shoppers get a
quote by taking a picture of the license plate
iPhone app that enable a
user to:
 Create a profile (done once, usable
many times thereafter).
 Initiate a quote request for a new
auto policy by taking a picture of a
license plate and submit the quote
request.
 App sends the user’s profile info
plus any other info on the quote
request.
 Quotes from multiple carriers
generated and presented in one
screen back to the user on the
iPhone.
Allstate’s Digital Locker gives insureds more reasons to engage,
driving additional sales
The more tech-savvy your customers are, the more likely they
are to change insurers
“How likely are you to switch some of your business away from the firms below?”
(% indicating likely or very likely)
© 2011 Forrester Research, Inc. Reproduction Prohibited
Base: 7,727 Online Adults
Source: North American Technographics Customer Experience Online Survey, Q4 2010 (US)
Example Mobile Insurance Framework
Extending the reach of business assets into the mobile space
Multi-Channel Delivery
Services
Consultancy
Development
Mobile Web
Native Devices
Roadmap
Mobile Enabled Applications
2Work™
Consumer
Broker/Agent
Cloud
Mobile Framework
Manage
Hosted or On-Premise
Testing
Security Integration
Adapters
Policy
Policy
Policy
Policy
Policy
Policy
Billing
Claims
Funds
Other
Core Insurance Solutions
Mobility Challenges
Impediments To Successful Adoption
Missing necessary tech and business skills
Identifying meaningful process improvements
Delivering on end user experience
Required infrastructure investment
Supporting numerous platforms
Security exposures
Supporting B.Y.O.T. (Bring Your Own Technology)
Developing acceptable ROI
Putting the App in the Ecosystems
• Privacy policy
• EULA
• Distribution
– App Store or Enterprise deployment for iPhone
– App World or OTA for Blackberry
– Market for Android including OTA capabilities
• Gathering data
– Ecosystems include online tools for monitoring downloads
– Web application monitoring tools for browser access
Innovative Marketing and Distribution
Approaches
• Mobile AD program
• Wisemuv.com - Digital Cross Sell Upsell
Platform
• Lead Generation via service sites:
– License America
– Legal Einstein – Will Service
– Social Security Solutions
Questions?
Resources • Access everything through
http://www.billtyson.com
• See Strategy-In-Action blog at:
http://www.billtyson.wordpress.com
• For a copy of the Recommended Format for a
Strategic Marketing Plan, please visit my web
site at: http://www.strategicmarketingplus.com
and go to the contact page.
• AIPAGIA Presentation is available at:
http://www.linkedin.com/in/billtyson