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Examines the implications of each discipline from an operating standpoint/offers step-by-step guidance/etc.
|Ch. 1||How to Fail in Business Without Even Trying||1|
|Ch. 2||The New Rules of Competition||15|
|Ch. 3||The Winner's Choice||27|
|Ch. 4||The Discipline of Operational Excellence||45|
|Ch. 5||One Company's Experience - AT&T's Universal Card||61|
|Ch. 6||The Discipline of Product Leaders||81|
|Ch. 7||One Company's Experience - Intel Corporation||97|
|Ch. 8||The Discipline of Customer Intimacy||119|
|Ch. 9||One Company's Experience - Airborne Express||139|
|Ch. 10||Setting Your Value Discipline Agenda||159|
|Ch. 11||Creating the Cult of the Customer||173|
|Ch. 12||Sustaining the Lead||185|
Posted January 28, 2005
This book's concepts for strategic marketing management are so widely accepted that the popular Balanced Scorecard concept of Kaplan and Norton in 2001 decided to adopt the ideas for the 'customer perspective'. The authors manage to take Michael Porter's two generic competitive strategies - Differentiation and Cost Leader - and elaborate on these to an extent never presented so elegantly before. In the process, they discover a third generic strategy - Customer Intimacy. Thus, Treacy and Wiersema distinguish between focusing on the following value dimensions: - Operational excellence (cost leadership / focus on supply chain management) - Product leadership (innovation / focus on product lifecycle management) - Customer Intimacy (service leadership /focus on customer relationship management) These are the FOUR RULES that govern market leaders' actions: Rule 1: Provide the best offering in the marketplace by excelling in a specific dimension of value Rule 2: Maintain threshold standards on the other dimensions of value Rule 3: Dominate your market by improving value year after year Rule 4: Build a well-tuned operating model dedicated to delivering unmatched value Expanding on the fourth rule - operating models - may the best long-term contribution of this book. The authors explain in detail and via case stories how the operating models differ for each of the three value propositions. In practice, I've learned that by explaining the operating models, many people can easier find themselves depicted than in the overall generic dimensions of cost, service or product leadership. OPERATIONAL EXCELLENCE or Cost Leadership - Best total cost - operating model: Key success factor: Formula! Golden rule: Variety kills efficiency Culture: Disciplined teamwork; Process focused; Conformance, 'one size fits all' mindset Organization: Centralized functions; high skills at the core of the organization Core processes: Product delivery and basic service cycle; built on standard, no frills fixed assets Management Systems: Command and control; Compensation fixed to cost and quality; transaction profitability tracking Information Technology: Integrated, low-cost transaction systems; Mobile and remote technologies PRODUCT LEADERSHIP - Best product - operating model: Key success factor: Talent! Golden rule: Cannibalize your success with breakthroughs Culture: Concept, future driven; Experimentation, 'out of the box' mindset; Attack, go for it, win Organization: Ad-hoc, organic, and cellular; High skills abound in loose-knit structures Core processes: Invention, Commercialisation; Market exploitation; Disjoint work procedures Management Systems: Decisive, risk oriented; Reward individuals' innovation capacity; Product lifecycle profitability Information Technology: Person-to-person communications systems; Technologies enabling cooperation and knowledge management CUSTOMER INTIMACY - Best total solution - operating model: Key success factor: Solution! Golden rule: Solve the client's broader problem Culture: Client and filed driven; Variation: 'Have it your way' mindset Organization: Entrepreneurial client teams; High skills in the field Core processes: Client acquisition and development; Solution development; Flexible and responsive work procedures Management Systems: Revenue and share-of-wallet driven; Rewards based in part on client feedback; Lifetime value of client Information Technology: Customer databases linking internal and external information; Knowledge bases built around expertise If you're interested in Customer Intimacy, you may want to add Wiersema's additional book on only this strategy to your shopping basket. I highly recommend both paperback books ... great value for money ;-) Peter Leerskov, MSc in International Business (Marketing & Management) and Graduate Diploma in E-businessWas this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.
Posted June 14, 2004
Authors Michael Treacy and Fred Wiersema make it clear that market leading companies all concentrate on creating value for their customers. Then they focus on specific cases from Nike to Johnson & Johnson. No company, including yours, can succeed by trying to be all things to all people. Companies must ascertain the unique value ¿ be it price, quality or problem solving ¿ they can deliver to a specific market. The book proves that comparisons are not odious if they are interesting, and the comparisons it offers are intriguing indeed. Anecdotes and case histories cover companies that are market leaders today ¿ AT&T, Intel, Airborne Express ¿ and companies that used to be market leaders. The authors offer you three choices: lead with low costs, great products or outstanding ability to solve customers¿ problems. But if you are going to lead, you have to pick a direction and implement a management strategy that supports it, a lesson eased along by the clarity of the writing. We recommend this book to executives who are seeking advice on trumping their markets.Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.
Posted October 18, 2008
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Posted July 30, 2009
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