Вы находитесь на странице: 1из 17

31st International Conference of the

TOC Practitioners Alliance - TOCPA


www.tocpractice.com 9 March, 2017 Helsinki, Finland

Using Thinking Processes for


Deciding on Market Strategies

Oded Cohen
Israel, Estonia
TOC Strategic Solutions
9th March, 2017
Oded Cohen
Oded has over 38 years of experience in developing, teaching
and implementing TOC methodology, solutions and
implementation processes working directly with Dr. Goldratt
all over the world. Among the countries to which Oded brings
his expertise are the USA, Canada, Japan, India, China, the
UK, Poland, Russia, Ukraine, Colombia, Chile, Peru, Turkey
and many others.
Oded has authored multiple TOC articles and contributed to
numerous TOC books.
Oded in the is the author of Ever Improve A Guide to
Managing Production the TOC Way, published in June 2010.
Oded co-authored the book Deming & Goldratt: The Theory
of Constraints and the System of Profound Knowledge The
Decalogue.
Together with Jelena Fedurko Oded has co-authored the
book Theory of Constraints Fundamentals.
Oded is International Director of TOC Strategic Solutions Ltd
and Founder and Co-President of TOCPA. oded.cohen.gs@gmail.com
www.toc-strategicsolutions.com
www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA
Determining
Market Strategies

Traditionally,
While deciding on market strategies managers operate
within the framework of the combinations of
existing/new products and existing/new markets.
The most popular approach is Ansoff Matrix
TOC Thinking Processes can be nicely integrated by using:
the U-Shape
the Decisive Competitive Edge
the Build-Capitalize-Sustain approach
Change Design and Implementation path (S&T Tree)

www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA 3
Traditional Way Managing
Market Strategy

Ansoff Matrix

Source: http://ansoffmatrix.com/

www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA 4
Integrating TOC
with Ansoff Matrix

TOC 5 steps of focusing provide concepts and sequence


The Primary Constraint of the growth of the company is - MARKET
Exploit Market Penetration
Elevate 1 Market Development
Elevate 2 Product Development
Elevate 3 - Product/Market Diversification
While avoiding creating internal Constraints Matrix Source: http://ansoffmatrix.com/

TOC provides contents for each one of the quadrats:


TOC Solutions,
TP
Parts from the standard S&T
www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA 5
Integrating TOC with Ansoff
Matrix
Start with
Before starting developing market strategies TOC
developing a
suggests to lay the foundations to enable the
decisive
competitive growth of the company. The foundations are
Edge recorded at level one of every standard S&T tree
Tactic
Build a decisive competitive edge and the capabilities to capitalize on it,
on big enough markets without exhausting the Company's resources and
without taking real risks.

The Supporting Logic - Parallel assumptions Realizing a jump in profitability


while increasing sales exponentially year after year - turns a company into an
Ever Flourishing Company. For the Company to achieve the jump, its Throughput*
must grow (and continue to grow) much faster than Operating Expense.
Exhausting the Company's resources and/or taking too high risks severely
endangers the chance of achieving the jump in profitability
Continuously growing Throughput in a competitive market requires a
"competitive edge" and the capability to exploit it.

www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA 6
Integrating TOC with Ansoff
Matrix

Following the Standard S&T Trees, we can track the pattern


suggested by TOC

1 Start with
developing a
decisive 2 3/4
competitive Develop
Exploit the
Edge New
Existing
Products/
Market
Offerings

3/4 5
Expand the Develop
offering to New
New Products/
Markets Offerings

Matrix Source: http://ansoffmatrix.com/

www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA 7
Integrating TOC with Ansoff
Matrix Build Phase
Start with
1
developing a Building Decisive Competitive Edge through:
decisive
competitive 1. Operational Excellence followed by
Edge 2. Developing a Market Offer(s) (Mafia Offers)

Operational Excellence can be achieved through high


performance and outstanding reliability of the logistical systems.
TOC Offers standard solutions: MTO,MTA, DTA and CCPM

Operational Excellence is a necessary conditions but on its own


cannot guarantee growth. In most cases there is a need to top it
up with an outstanding offer to the market. This offer is built
using the full U-Shape of the TOC Thinking Processes.

www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA 8
Terms and Conditions
For Marketing Initiatives

TOC tools and knowledge are based on logic.


Therefore, it is highly recommended to use clear and
precise terms setting directives and delegating them to
the troops
Terms used by TOC:
Strategy: the objective expected to be achieved by the
initiative
Tactic: the set of actions that will be taken to achieve the
strategy
It is also suggested to explicitly record and share the
conditions and the assumptions that have been made while
developing the market initiatives.
These are: the Necessary Assumptions, the Parallel
Assumptions and Sufficiency Assumptions (of the S&T Tree)
www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA 9
Market Penetration
- Capitalize

Operational Excellence that is achieved by the


logistical solutions enables management to develop
and use special offers for further penetration into
the existing market
Strategy of this phase:
Sales generated by special offers are increasingly growing.

Tactic of this phase:


The Company aligns its marketing and sales approach to fully
take advantage of the special offers.
(The sales and marketing core team makes sure a pre-launch
will be done properly and promptly; only when excellent
logistical performance is demonstrated is the green light given
to mass roll-out the offer).
www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA 10
Market Penetration
What is next?

A common mistake is that managers tend to


?
jump to step 4 Elevate, before actually
?
completing step 2 - Exploit
Usually, Step 4 demands investments and takes time.
Skipping step 2 can leave some opportunities in the market to the
competition.
The pressure to move to step 4 tend to come from the sales people
who are under pressure to bring more sales but experience difficulty
to achieve set targets.
Before deciding on heavy investments in new markets and/or new
products it is recommended to take two actions:
Review the sales process and manage it the TOC Way
Analyze the UDEs of the existing market and develop offers
www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA 11
Developing a Market Offer
Using the U-shape

Low Performance High Performance


Measurements Measurements

UDE DE

UDE UDE UDE DE DE DE

Future Reality
Current Reality

UDE UDE DE DE
NBRs
D D TOC Injections
B C
PIVOT TOC direction of
A TOC solution

www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA
Market Penetration
What is next?

With the special offers it is likely that the


? company will experience growth in its
? bottom line results.
When the rate of growth starts to slow down it is the time to
consider the expansion into new markets and/or to new
products
The decision depends on the structure of the company and
the way it operates:
The company may have a R&D department,
The company may be exporting already
Management needs to examine every new initiative in the
market using TOC T-I-OE, checking Delta NP and that the ROI
for the initiative is acceptable to the Board of Directors.
www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA 13
Market Development

Having a market offer that is backed by the


operational excellence allows the expansion
into new markets.
TOC Suggests:
Strategy: Sales people know which prospects to pursue with the
market offer
Tactic: Target markets are defined according to conditions that
are easily checked, and Relate to a non-negligible number of
prospects.
The conditions prioritize prospects according to:
The degree to which subject of the offer is a significant need;
The estimate of the ratio efforts/returns; and
The degree of business risks.
www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA 14
.
Product Development

New Product Development (NPD) is a must for


nearly every company. Life cycle of products are
continuously shrinking and the market expects to
be delighted and surprised with new products
There are two major sources for this direction:
1. Vision and innovation
2. Market research and analysis
TOC Suggests:
Subject any NPD initiative to T-I-OE decision process
Conduct NPD as a project
Manage the project using CCPM for planning , execution control
and POOGI

www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA 15
Product/Market
Diversification

A systematic growth of the company along the lines


suggested above provides the company with a
great deal of new opportunities for diversification
While growing the company gains:
Financial stability
Cash reserves
Internal capabilities
Systematic abilities to handle challenges
Hence the company can embark on any direction management or
the owners want.
TOC suggests do not take anything for granted. Check carefully
any initiative and manage it properly!
www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA 16
Conclusion

TOC can be integrated into each one of the


quadrats of the Ansoff Matrix!

The contribution of TOC is with:


Providing contents and ideas for each type of the market strategies
Providing the logical structure and checks that the strategies have
clear tactics to achieve them and that all the necessary conditions
are made explicit.
Providing the tools for checking and supporting the financial
considerations for choosing any Marketing Initiative.

In general, this is another example of how TOC can be


amalgamated into any other managerial method; TOC Thinking
Processes and can be added to the arsenal of tools any manger!
www.tocpractice.com KukonAskel 31st International Conference of the TOC Practitioners Alliance - TOCPA 17

Вам также может понравиться