Transcript Value Chain management

ValueMathics
SWAT ANALYSIS
SELLER
SPEED
IMAGE
SERVICE
TCO
TCO
TOTAL
TECHNOLOGY -5
PRODUCTION 21
LOGISTICS 19
MARKETING -21
SUPPORT -19
TOTAL -5
MATERIALS
CHANCE
CHRONO
CONFLICT
BUYER
1. Value added reflected as
“VALUE CHAIN” on vertical axe
ACCESS
VALUE CHAIN
SWAT
analysis
PRODUCT
CUSTOMER VALUES
COST
CHANGE
MACHINES
MAN POWER
MINDS
The SWAT analysis is a new
generation balanced scorecard
that uses elements of The
Magic Pallet to analyse the
potential of a firm or a sector
in a given market segment.
MONEY
TECHNOLOGY
PRODUCTION
LOGISTICS
MARKETING
SUPPORT
PRODUCT
ACCESS
SPEED
IMAGE
SERVICE
The tool
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2. Perceived benefits and total
cost of ownership* reflected as
“CUSTOMER VALUES “ on
horizontal axe.
* TCO is the result of
MMMMM plus CCCCC
“SWAT” stands for…..
 Sources
 Cost of means, like technical and commercial people,
manpower, money, machines and raw materials
– “Minds, Money, Manpower, Machines, Materials”
 Winners
 Core competencies of the firm which create competitive
advantages in the value system
– “Technology, Production, Logistics, Marketing, Support”
 Alliances
 Forward or backward alliances with technology providers,
marketing companies, logistical service providers and
others
 Trends
 General direction of changes in customer values, like
product characteristics, process requirements, delivery
and stocking, desired image and service requirements
as well as CSR issues
– “Product, Access, Speed, Image, Service”
SPEED
IMAGE
SERVICE
TCO
TOTAL
TECHNOLOGY -5
PRODUCTION 21
LOGISTICS 19
MARKETING -21
SUPPORT -19
TOTAL -5
ACCESS
VALUE CHAIN
SWAT
analysis
PRODUCT
CUSTOMER VALUES
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The SWAT analysis
SWAT
analysis
VALUE CHAIN
TECHNOLOGY
PRODUCTION
LOGISTICS
MARKETING
SUPPORT
TPLMS are the value activities
of a firm -the source for
competitive advantages
–its value chain.
Being the drivers for value
creation, we put them on the
vertical axe of the SWAT
analysis.
TCO
SERVICE
IMAGE
SPEED
ACCESS
SWAT
analysis
PRODUCT
CUSTOMER VALUES
VALUE CHAIN
TECHNOLOGY
PRODUCTION
LOGISTICS
MARKETING
SUPPORT
On the horizontal axe, we list the PASIS
- required product, process and vendor’s
benefits of a given buyer’s segment.
TCO
SERVICE
IMAGE
SPEED
ACCESS
SWAT
analysis
PRODUCT
CUSTOMER VALUES
VALUE CHAIN
TECHNOLOGY
PRODUCTION
LOGISTICS
MARKETING
SUPPORT
TCO – Total Cost of Ownership is the
column for the comparative and
competitive advantages of
the firm or sector.
We know them as MMMMM
– “Minds, Money, Man power,
Machines, Materials” and CCCCC –
“Cost, Change, Chance,
Chrono, Conflict”
TCO
SERVICE
IMAGE
SPEED
ACCESS
SWAT
analysis
PRODUCT
CUSTOMER VALUES
VALUE CHAIN
TECHNOLOGY
PRODUCTION
LOGISTICS
MARKETING
SUPPORT
The crossroads of rows and colums
give us the relevant issues in
supply and demand that are subject
the SWAT analysis
PRODUCT
ACCESS
SPEED
IMAGE
SERVICE
TCO
VALUE CHAIN
SWAT
analysis
TECHNOLOGY
PRODUCT
DEVELOPMENT
MATERIALS
R&D PROCESS
TIME-TOPRODUCTION
TECHNICAL
REPUTATION
CO-DESIGN
ACTIVITIES
SUPPLIERS
FORMULATION
PRODUCTION
PRODUCTION
TECHNIQUES
PRODUCTION
PROCESSES
SPEED
WINDOWS
HOUSEKEEPING
AND OHS
PRODUCTION
FLEXIBILITY
LABOR COST
PRODUCTIVITY
QUALITY OF
LOGISTIC CHAIN
PACKAGING
STORAGE
SWIFTNESS OF
LOGISTICS
APPEARANCE
OF LSP
SPECIAL
DELIVERIES
COST OF
LOGISTICS
BRANDING
PACKING
LEGAL AND
SALES TERMS
RESPONSE
TIME ON RFQ
BROCHURES
WEBSITE ETC
CONVENIENCE
OF ORDERING
SALES TERMS
DISCOUNTS
MAINTENANCE
INFORMATION
GUARANTEE
DATA SHEETS
COMPLAINT
HANDLING
COMPETENCE
OF PERSONNEL
PERSONAL
SERVICES
COST OF
SERVICE
LOGISTICS
MARKETING
SUPPORT
TOTAL
TOTAL
CUSTOMER VALUES
PRODUCT
DESIGN
MD-2 variety, oval shape, no
spines exept at the leaf tip,
clear yellowish colour
inside,sweet taste, hard green
leaves, equal patches
Is the MD-2 variety available in the country ? Are there certified test
faciltities to guarantee the quality of the pineapple? Can ripeness be
tested to get the product at the right ripeness on the shelf ?
TECHNOLOGY
5
Is the growing and harvesting process adequate to preserve the
unique characteristics of the pineapple? Does the region have the
proper temperature range for this variety?
PRODUCTION
3
How are post harvest conditions? Is transport and warehousing
adequate for the chill sensitiveness of pineapples? Are transit times
suitable for the riping period of the pineapple ?
LOGISTICS
-5
Does the company communicate the unique properties of this
variety to its prospects or custiomers ? Is there appropriate
information on the specifications in brochures or on a website ?
MARKETING
-1
Does the company provide product information for consumers –on
labels or leaflets. Are there suggestions as how to serve the
pineapple or ideas for recipes ?
SUPPORT
-3
SWAT - methodology
1.
Gather 3-5 persons; 3=minimum, 5 = maximum
• one/three persons from the firm; one/two from TPO,
client or supplier; one independent expert/facilitator
2.
Fill in the SWAT analysis individually without consultation
with other persons
• 5 or 3 or 1 or -1 or -3 or -5 for scroes per column
• Use each number only once, leave blank if no correlation
3.
Add up individual scores for total group results
4.
Add up columns and rows for first assessment
5.
Circle areas of high scores green = USP/CORE COMPETENCIES
6.
Circle areas of low scores red= CHALLENGES/ALLIANCES
7.
Define knock-out criteria and desirable areas per sector/market
8.
Decide on go or no-go for exports
9.
Define corrective actions in the red areas
10.
Construct the business model around the green areas.
This is an example of an
individual SWAT sheet.
You start filling the
numbers column by
column. The question at
each crossroad is
“To what extent does the
value chain of the firm
meet the specific
customer values
of the buyer ?
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3
5
5
5
1
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IMAGE
TCO
-1
SERVICE
TECHNOLOGY
PRODUCTION
LOGISTICS
MARKETING
SUPPORT
SPEED
If you cannot find a
correlation between a
certain value activity and
a specific customer
benefit, leave the
space blank
VALUE CHAIN
In each column, numbers
can be used only once.
ACCESS
SWAT
analysis
PRODUCT
CUSTOMER VALUES
-1
-5
1
This is an example
of a consolidated
SWAT sheet.
Individual results
are added up.
SPEED
IMAGE
SERVICE
TCO
TOTAL
TECHNOLOGY -5
PRODUCTION 21
LOGISTICS 19
MARKETING -21
SUPPORT -19
TOTAL -5
ACCESS
VALUE CHAIN
If all members have
interpreted the
respective box in
the same way, but
still have different
opinions, the
scores are left
untouched.
SWAT
analysis
PRODUCT
CUSTOMER VALUES
First analysis is
whether the
numbers close to
zero are the result
of consensus or
opposite opinions
in the group.
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From the vertical scores, we see that the
firm does not meet the buyer’s
requirements in product attributes and
support, but scores wel in compliance with
norms and standards; it meets the buyer’s
expectations in reputation. Delivery and
availability are acceptable.
Second analysis is
a quick scan of
the firm and its
potential to enter
in a certain market
segment
SPEED
IMAGE
SERVICE
TCO
TOTAL
TECHNOLOGY -5
PRODUCTION 21
LOGISTICS 19
MARKETING -21
SUPPORT -19
TOTAL -5
ACCESS
VALUE CHAIN
From the
horizontal totals,
we see a company
that excels in
production and
logistics, but with a
low level of
technology, and
serious
shortcomings in
marketing and
support
SWAT
analysis
PRODUCT
CUSTOMER VALUES
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SWAT - consolidated results
However, the
unique asset of the
SWAT analysis is its
detailed analysis of
“focus”
-green areasand
“challenge”
–red areasof a firm.
SPEED
IMAGE
SERVICE
TCO
TOTAL
TECHNOLOGY -5
PRODUCTION 21
LOGISTICS 19
MARKETING -21
SUPPORT -19
TOTAL -5
ACCESS
PRODUCT
SWAT
analysis
VALUE CHAIN
These are the basis
for the selection of
the right
product/market
combination,
the unique selling
proposition and
corrective actions
to be taken.
CUSTOMER VALUES
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SWAT - challenge
1 2 3 4 5
The product
brand(1) does not
represent a value in
the target market,
product support (2)
is bad.
IMAGE
SERVICE
TCO
TOTAL
TECHNOLOGY -5
PRODUCTION 21
LOGISTICS 19
MARKETING -21
SUPPORT -19
TOTAL -5
SPEED
Cost of logistics
make the offer
uncompetitive (5)
VALUE CHAIN
It needs an alliance
with a trade
partner that will
take care of the
service needs of
the market (4).
ACCESS
SWAT
analysis
The firm’s
response time
is insufficient (3).
PRODUCT
CUSTOMER VALUES
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SWAT - focus
This company’s
unique selling
proposition to its
target market is its
production
technique, meeting
all international
standards and
norms (1) at a
globally
competitive
price (3)
1 2 3
IMAGE
SERVICE
TCO
TOTAL
TECHNOLOGY -5
PRODUCTION 21
LOGISTICS 19
MARKETING -21
SUPPORT -19
TOTAL -5
SPEED
A license contract
with a technology
provider will
convert this firm
into a globally
competitive private
label manufacturer
VALUE CHAIN
The firm is capable
to deliver JIT or
maintain stocks
where necessary (2)
ACCESS
SWAT
analysis
PRODUCT
CUSTOMER VALUES
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SWAT – in a nutshell
1.
The SWAT analysis uses elements of The Magic Pallet from
supply side -value chain- and demand side -customer values
2.
Core analysis is a firm’s capability to make a competitive
value proposition to a targeted market segment
3.
Outcome of the analysis give tangible –not subjectivestrengths and weaknesses –focus and challenge
4.
This outcome is the basis for
5.
•
An appropriate product/market combination
•
A unique selling proposition
•
A market entry strategy
Multiple SWAT’s are the most reliable input for sector
analyses and sector strategies
To see how the SWAT results are converted into the business model,
go to “THE BUSINESS”