THE WINNERS CHOICE Briefing 1122020 1 Introduction The

THE WINNER'S CHOICE Briefing 11/2/2020 1

Introduction The Winner’s Choice provides additional examples of companies using value disciplines: - Operational Excellence - Product Leadership - Customer Intimacy. n n Operational Excellence: providing customers with reliable products or services at competitive prices. Little inconvenience. Product Leadership: state of the art. 11/2/2020 2

Learn From Examples n n n What do we learn from operating models made up of operating processes, business structure, management systems, and culture, all organized to create value at a profit. Different value disciplines demand different operating processes. Mc. Donalds’s customers love consistency, speed, and meal value. 11/2/2020 3

Operationally Excellent n n Stellar at core processes/product supply. Expedient customer service/demand management. Plus fine tune your structure to empower the people who can make a difference in producing value. You make sure your staff is indoctrinated with your specific definition of success. 11/2/2020 4

Product Leaders vs. Customer-Intimacy n n n 11/2/2020 Critical processes include invention, product development, and market exploitation. See details about this topic in this article. Customer Intimacy companies demonstrate superior aptitude in advisory services and relationship management. Products Leaders: Johnson & Johnson Customer Leaders: Home Depot. 5

Product Leaders vs. Customer-Intimacy n n n 11/2/2020 Companies that exceed in the same disciplines have remarkably similar operating models. Management systems, business structures and the culture of product leaders look alike. The similarities end. Homogeneity exists only among leaders in the same value discipline. 6

Operational Excellence n n n Operationally excellent companies deliver a combination of quality, price, and ease of purchases that no one else in their market can match. Remember they are not product or service innovators and they are not known for their one-to-one relationships with customers. They execute exceptionally and guarantee low price and/or hassle-free service to their customers. 11/2/2020 7

Check Out Price Operational Excellence Example n Club store with only 3, 500 items compared to 50, 000 in competitors. n As a customer Price/Costco evaluates leading brands and best values for customers and makes the decision for you. New items are added that meet the criteria. This keeps you coming back. n Follows an operating model buying larger quantities and negotiate better prices, carrying items that sell well. n They have good tracking systems on products. They optimize floor space and the organization operates well. 11/2/2020 8

Operational Excellence n n Focused on the delivery system outsmarting Compaq and IBM. Outperformed PC computer dealers by selling to customers directly and by building to order rather than carrying a large inventory. Integrated company’s logistics with its suppliers. Undercut Compaq and other PCs in price while providing high quality products and services. 11/2/2020 9