Booz - Frameworks

Booz & Company City, Date Type of Document
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Frameworks
This document is confidential and is intended solely for

the use and information of the client to whom it is addressed.
Strategic frameworks
Value chains
Architectures
Path/evolution
Program/team management
Portfolio management
Booz & Company

DATE
BoozFrameworks.ppt Prepared for client name
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Value chains
Architectures
Path/evolution
Booz & Company

DATE
3
Strategic framework: Pricing strategy based on market lifecycle
Business School Framework: Pricing Strategy Based on Market Lifecycle

Sales
Introduction Growth Maturity Decline
Stage GSM
IMS
Time
Description  Often unique  Mature product  Strong demand for  Interest in product
product/first-mover available product, high decreasing
advantage  Product gaining volumes  Preparation of
 Demanded by early mass market successor product
adopters only attention release
Typical  Emphasis on  Primary focus on  Focus on exploiting  Extension of total

implication establishing a market share gains profits from product profitable product
market for new  Increased attention lifetime
on pricing product on profitability
– Second level
strategy
Booz & Company

DATE
4
Strategic framework: 2 x 2 matrix – business process re-
engineering
Business School Framework: 2 x 2 Matrix – Business Process Re-engineering
Uni-dimensional Multi-dimensional
 First level  First level

– Second Level – Second Level
Breadth of business change
Entire business unit
Cross functional

– Second Level – Second Level
Activity specific
Depth of business change
Booz & Company

DATE
5
Strategic framework: 2 x 2 matrix – operating models
Business School Framework: 2 x 2 Matrix – Operating Models
Centralized Shared
model service
model
Scale &
Efficiency
Distributed
model
Service/Responsiveness
Booz & Company

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6
Strategic framework: 2 x 2 matrix – other
Business School Framework: 2 x 2 Matrix – Operating Models

High predictability
Users:
10’s
1000’s
>1000’s
 External
Level of collaboration
contributors
 Customers
 Partners
 100% of  Suppliers
managers – Planning
(Enterprise
planning)
 Centralized
 Top-down
only
(traditional
planning)
High predictability
Low
predictability Frequency of forecasts
Booz & Company

DATE
7
Strategic framework: Porter's 5 Forces
Business School Framework: Michael Porters's Five Forces Model
New entrants
Text
Text Text
Customers
Text
Suppliers
Rivalry
Text
Substitutes
Booz & Company

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Strategic framework: 4 PS
Chart Title – Arial 14pt Bold

Secondary Title – Arial 12pt
 First level Marketing mix  First level

– Second level – Second level
Product Place
Other
Price Promotion

Booz & Company

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9
Strategic framework: Baselining

 First level Opportunities & Market Potential

General – Second level
Context &  First level
Market – Second level
Dynamics
 First level
– Second level
Players
Issues/Risks
 First level
– Second level
 First level
– Second level
Regulatory
Context/
Issues
Booz & Company

DATE
10
Strategic framework: Strategic plan components


Business Business
Concept Concept

Value Value
Proposition Proposition

Differen-tiation Differen-tiation
& Basis For & Basis For
Competition Competition
Booz & Company

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11
Strategic framework: Continuous improvement

 Is the IT function in service  What is the business

of or a barrier to the Enable trying to achieve? Are the
Set the
business’ objectives? with IT goals results-oriented?
strategy
 Does the organization The  Can the business

Align
understand how the org. continuous Establish
measure the
accountability flows through structure improvement effectiveness of its efforts
the
the business? cycle in objective terms?
metrics
 Does each person in the Define

business understand their Define  Are the business
the
role and responsibilities, the
roles processes optimized and
and how they are expected process
aligned to the objectives?
to contribute?
Booz & Company

DATE
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Strategic framework: Elements of pricing strategy

 Mass market player  Premium player

 High quantities Overall Vision  Overall XXX ambition: Achieve  High quality
 Price leader “market leading position in xx”  Innovation leader
 XXX positioned as premium player
High-price strategy
Low-price strategy
 Commodity product  Unique product

 Limited
Product  Strong innovation
differentiation  XXX video telephony not yet fully specified
 Currently limited differentiation of E/// solution
 Low demand  Strong demand

 Few customers
Demand  Many customers
 Generally low demand for xxx  Multiple non-ISP-based video telephony solutions
 Very few RFPs received for xxxx available
video telephony  Competing IMS-based video telephony solutions not
more advanced
 Strong competition  Weak competition
 Many competitors Competition  Few competitors
 Advanced offerings  Basic offerings
Source: xxx Overall pricing strategy: Text
Booz & Company

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Strategic framework: Different innovation models

Entrepreneur Sensor Client
“Entrepreneur” Model
Innovation Bottom-up Top-down
culture  Set-up of processes and principles to
– + foster innovation amongst employees
Incentive Non financial Financial community
system
 Focus on reduced time-to-market
– +
Long term Short term
Return on “Sensing” Model
investment – +  Network of innovation antennas spread
Market pull
Technology Market geographically to capture innovation
technology push  Centers of excellence focused on specific
– +
R&D skills
Spread Centralized
Management and
decision processes – + “Client-focused” Model
Centralized Dispersed
Geographic  Innovation is pulled by an internal or an
dispersion – + external client
Acquisition
 Client needs are identified early in the
Partnerships
Partnering innovation process
intensity – +  The development process constantly
ensures alignment of specifications with
“Entrepreneur” model “Sensing” model market requirements
Results from 2nd workshop “Client-focused” model
Booz & Company

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Value chains
Architectures
Path/evolution
Booz & Company

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Value chain: Mobile voice and data services

Traditional Mobile Value Chain

Voice
Equipment Sales Customer

Network
& device Provision of mobile voice services and care + Customers
operation
mfg marketing billing
New Mobile Value Chain
Application
Application
Voice + Data
service
develop-
provision
Equipment ment Sales Customer
Network Enabling & hosting
& device and care + Customers
operation tech
mfg Content marketing billing
Portal
develop-
service
ment
Booz & Company

DATE
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Value chain: Energy

Energy Energy Energy

Upstream Energy
Transportation Wholesale Retailing
Oil & Gas Processing
& Storage & Trading & Services
 Exploration  Oil & gas pipelines  Oil refining  Intermediaries  Industrial

 Production  Shipping/LNG  Chemicals:  Distributors  Commercial
 Storage – Feedstock  Risk management  Residential
 Trucking – Processing  Service stations
 Power transmission  Gas processing  Multi-utilities
 Power generation
 Cogeneration
 Technology develop-
ment
 Renewals
Exploration Oil & gas pipelines Oil refining Distributors Service stations
Booz & Company

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Value chain: Airline example
• Market Analysis • Network Planning • Leasing vs. buying • Development of new products
• Demand Evaluation • Revenue Management • Fleet requirements • Customer Care strategies
• Marketing Strategy • Strategy Alliances definition
Innovation Product
Market Commercial Fleet
Stream And Service
Planning Processes Planning
Development
Corporate Affairs
• Career • Treasury • IS planning • External relations
development • Budgets • Systems • Legal
• Training • Investments Development • Government relations
Business • Communi- • Internal audit • Systems Corporate • Standards and
Support Human cations
Financing
• Shareholder
IT
Operations affairs and regulations
resources • Incentives relationship • Technical support • Quality and safety
Stream • Capabilities Support services
development Support Services
• Labor relations • Administration
• Recruiting • Account
• Supply Services
Ground
Delivery In-flight
Demand Capture Maintenance Operations And Customer
Stream Operations
Service
• Advertising • Line maintenance • Flight operations • Pre-flight customer service
• Public relations • Overhaul • Safety • On board customer service
• Sales and Distribution • Maintenance engineering • Crew scheduling • Post flight service
management • Ground support • Crew recruiting and training • Frequent flyer programs
• Technical training • Client relationships
• Outsourcing of technical services
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Value chains
Architectures
Path/evolution
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Architectures: Standards-based, platform/architectural design - 1

 Text Discussion
Products
– Second Level
 First level
– Second level
 Text
Platform/architecture – Second Level
 Text
Peripherals – Second Level
 Text
Cores – Second Level
 Text
Memories/structures – Second Level
 Text
Components – Second Level
Booz & Company

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Discussion
Products
 First level
– Second level
Platform/architecture
Peripherals
Cores
Memories/structures
Components
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2) Text
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Confidentiality
Ensures information is accessible only to those

authorized to have access to it
Booz & Company

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Architectures: Other

Pro-
duct
Platform
architecture
Common libraries/
peripherals
Level of re-use: Cores
Memories/structures
Standard cell/components
Wireles
Market: Automotive Communications
s
Booz & Company

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Architectures: Other

Strategic Exe-
Discussion
cutive
team  First level
– Second level
Business strategic direction
Service
Tactical
management
Operational Service operations team
Delivery Technology Business

Support center management units
Booz & Company

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Value chains
Architectures
Path/evolution
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Path/evolution: Defining brand equities

External
Step 1: Understand customer usage of brands associated with the corporation environment
Step 2: Analyze customer relationship with the corporation and its brands
Step 3: Audit current corporate constituents as perceived by the customer
Step 4: Define desired long term corporate brand equities
Internal
environment Brand equity becomes a set of long term
values and images linked to a corporate
name or symbol that adds to the value
provided by the corporation’s products or
services
Source: Booz & Company analysis
Booz & Company

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Path/evolution: Company evolution

Organic Growth Acquisitions Discussion
1989 Text  First level

– Second level
1996 Text
1999 Text
2000 Text
2001
Text
2002
Text
2003
Text Text
2004
Text
2005
2006 Text Text
2007 Text
Booz & Company

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27
Path/evolution: Change Management

Pursue of low
hanging fruit
Development and Successful
transfer of tools Change
Debate and agreement
Workshops with about targets
line management  Enthusiastically
Be willing
Interviews with to change participate in
management the change
Be able to program
change
Start
Know
how to change  Text
– Second level
CEO Vision
Booz & Company

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Path/evolution: Change Management

Transition/ongoing
Sustained
leadership
commit.
100 days/transition Leadership Culture
action reinforce-
Culture ment
Leadership harmoni-
alignment Culture zation
vision Communi-
Communi- Communi-
Pre-close cations cations
cations
planning follow-up
execution
Culture HR People
vision identifi- planning People
cation People
identification implemen-
HR tation
Change design
monitoring HR
implemen-
tation
Change
monitoring
Booz & Company

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Path/evolution: developing strategy and masterplan

Masterplan
Sector specific Strategy Month
priorities and
Activities/Worksteps
A M J J A S O N D J F M
Program Management
Socio- imperatives I.1 Confirm stakeholders objectives
economic Sectoral Plans Project

II.1 Review, refine, and detail
vices
II.2 Develop Council key business
plan
programs t ser
III.1 Develop methodology to
Go v’ Environment III.2 Map Masterplan aligning
n
Vision Educatio
III.3 Develop telec
ined
 Susta
III.4 Develop
m
l refor Health
Readiness III.5 Fine tune
politica
 Long-term Financial services Usage Primary Objectives
Program Charter # xx (Quarter 4 2005)
Deliverables
Vision
Program Charter # xx (Quarter 4 2005)
economic dev Tourism & sports

Primary Objectives Deliverables
 Equ
Tourism & sports

itab Transport Project
devel le social
External Skills
Finance
Education
Health
Other
opme charters
Key External Skills
Project
Oil and
Metrics
(3-4 Max)
nt g as
Key
Project
Metrics
(3-4 Max)
ICT Council
Project Sponsor
Council
Resources
ICT Council
Project Manager
Manu Council Council
factu
Project Sponsor Project Manager
ring
Operating
model
Booz & Company

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Path/evolution: Focus areas of process flows

1a Secondary Title – Arial 12pt
The new web-site will require a 2
separate log-in for mail order;
some functionality may be lost Though disruption is expected to
be minimal, some pharmacies may
not remain in the network
6
Member services (in-
1 sourced and out
sourced) will likely
A new card will be needed; due to register a significant
renewals/other projects, some increase in call volume
members will get multiple cards due to queries related to
the transition
3 Member presents
the prescriptions
(unchanged)
4
Mail order will remain largely 5
unchanged through in-sourcing Due to formulary changes, some
drugs may no longer be preferred
Customer payments will change
due to new drug prices
Lower Potential for disruption Higher
Source: xxx
Booz & Company

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Path/evolution: Implementation roadmap

Phase I:
Phase II:
Go/ Business Case Go/ Go/ Phase III:
Commercial
No-go Development No-go No-go Launch
Pilots
and Structuring
 Text  Text  Text  Text  Text  Text

– Second level – Second level – Second level
Booz & Company

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Value chains
Architectures
Path/evolution
Booz & Company

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Program/Team Management: Team calendar

Month Month Month
M T W T F M T W T F M T W T F
2 3 4 5 6 1 2 3 1 2 3
B C 4 E
9 10 11 12 13 6 7 8 9 10 6 7 8 9 10
C D
16 17 18 19 20 13 14 15 16 17 13 14 15 16 17
I II 5 III
A 1 D E
23 24 25 26 27 20 21 22 23 24 20 21 22 23 24
2 3 E
30 31 27 28 27 28 29 30 31
6
B
Milestones Offsites Workshops Staff Meeting

I – Phase I complete 1 – Meeting scope & deliverables A – Kickoff workshop 1 -2 hour staff meetings in weeks
II – Phase II complete 2 – Meeting scope & deliverables B – Analytic goals (2) without offsites to review on going
3 – Meeting scope & deliverables C – Data architecture (2) operations, transition issues,
III – Phase II complete 4 – Meeting scope & deliverables D – Synthesis (2) deepen understanding of
? – OUS’s operational 5 – Meeting scope & deliverables E – Targeting pilot (3) capabilities. rotating location
6 – Meeting scope & deliverables
Booz & Company

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Program/Team Management: PMO Update Report (think-cell)
Document title Date Page

Work stream: project status report Project manager: 1/23/2007 1 of 1
Detailed project progress
January February March April May June July
Work step 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
1.
2.
3.
4.
5.
6.
7.
Completed Behind schedule Future activities
Text New/Updated project risks/issues
ID Description Mitigation Status Owner

 Text
– Second level 1
Risk Level Low Moderate High
Booz & Company

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Program/Team Management: PMO Update Report (PPT table)
Document title Date Page

Work stream: project status report Project manager: 1/23/2007 1 of 1
Detailed Project Progress
January February March April May June J

Work step Wk 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
1.
2.
3.
4.
5.
6.
7.
Completed Behind schedule Future activities
Text New/Updated project risks/issues
ID Description Mitigation Status Owner

 Text
– Second level 1
Risk Level Low Moderate High
Booz & Company

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Program/Team Management: Project roles and responsibilities

Role Model Responsibilities

Business platform  Determines business needs and requirements for IT systems
manager  Develops and presents business case for investment following request classification
 Acts as Project Sponsor or co-Project Manager during execution
Account manager  Main Point of Contact for clients towards demand management
 Owns the client relationship, coaches Project Managers and Business Analysts as needed
 Helps size, scope and file requests for IT services
 Informed about all requests going on in his domain (i.e., status information)
Project manager or  Point of Contact regarding project management issues (tracking, milestones, etc.) following
application manager approval of a request
(Functional role)  Responsible for a specific request or a set of requests (i.e., project) and operationally works with
internal clients during the whole project lifecycle
 If only a single request is handled, the Project Manager will most likely be a Business Analyst
 If several requests are handled, (i.e., a project is created) the Project Manager will most likely be
an Account Manager and several Business Analysts will work on the project
Business analyst  Point of Contact for technology to solve functional issues

 Expert for sizing and scoping work efforts
 Writes the functional analysis specification
Booz & Company

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Program/Team Management: Interview Guide

Interview Details Key Takeaways

 Text 1. Text
2. Text
1. Text
Topic 1 Topic 2 Topic 3

 Text  Text  Text
Other Information Open Questions/Information Gaps Next Steps/Follow-up

 Text  Text  Text
– Text
Booz & Company

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Program/Team Management: Project Approach
Proposed Approach
III. Opportunity identification, sizing IV. Implementation

I. Project launch II. Baselining
and prioritization planning
2 Weeks 3 Weeks 6 Weeks 3 Weeks
4 5
Function by Opportunity
1
Initial framing – function prioritization and
strategic opportunity improvement
objectives and analyses potential
principles 3 Process base- 7
Key recom-
lining and
Iterative mendations and
organizational
approach implementation
2 model
planning
assessment
Communication 6
plan
Organizational blueprint
14 weeks
Feb 11 May 15
Booz & Company

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Value chains
Architectures
Path/evolution
Booz & Company

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Project portfolio
SAMPLE
Strategic
 Innovate products or process
 Gain competitive advantage Invest in innovation
 Increase sales
Informational
 Increase control
 Develop integration Increase market value
 Improve quality
Transactional
 Cut costs
 Increase throughput Increase profitability
Foundational
 Integrate businesses
 Enable flexibility
Indicates higher portfolio weighting needed to achieve outcome Lower cost of
 Drive standardization
Note: Some projects may be allocated across multiple segments goods sold
Booz & Company

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Portfolio comparison framework

Secondary Title – Arial 12pt Description of
Supplementary Products
Description 1
 First level
Company XXX’s Competitor YYY’s – Second level
Portfolio Portfolio
 Product A  Product A Description 2

 Product A
 Product B  Product B  First level
 Product B – Second level
 Product C  Product C
 Product C
Description 3
 First level
– Second level
1) Non-applicable product
Booz & Company

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Customer Portfolio Management
SAMPLE
Customers
Features
Access
Channels  Caters to customers’ needs and
TV PC/Laptop Phone/Cell Terminals addresses all user groups
Seamless / user focused

 Allows customers to access online
Front-end Online Services, Web Portal, Contact Center, etc. services, applications and
information using the Government
network across multiple
Underlying technology channels
Network Connectivity method
Infra- Infrastructure Security etc  Allows the efficient usage of
Government Government
structure applications and storage of
entities entities
customer and other information
within a unified enterprise
Central Data Center architecture
Government
Applications &
Data Storage
Booz & Company

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Demand Portfolio Management

Cash Product
management design
Target
demand
Reconcile Demand responsive Understand Customer

Fulfillment management
demand supply chain demand
Satisfy
demand
Production Planning
Booz & Company

DATE
44

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Booz & Company City, Date Type of Document

This document is confidential and is intended solely for

Booz & Company

Booz & Company

Business School Framework: Pricing Strategy Based on Market Lifecycle

Introduction Growth Maturity Decline

Typical  Emphasis on  Primary focus on  Focus on exploiting  Extension of total

Booz & Company

 First level  First level

Entire business unit

 First level  First level

Depth of business change

Booz & Company

Business School Framework: 2 x 2 Matrix – Operating Models

Booz & Company

Business School Framework: 2 x 2 Matrix – Operating Models

Booz & Company

Business School Framework: Michael Porters's Five Forces Model

Booz & Company

Chart Title – Arial 14pt Bold

 First level Marketing mix  First level

 First level  First level

Booz & Company

Chart Title – Arial 14pt Bold

 First level Opportunities & Market Potential

Booz & Company

Chart Title – Arial 14pt Bold

 First level  First level

 First level  First level

 First level  First level

Booz & Company

Chart Title – Arial 14pt Bold

 Is the IT function in service  What is the business

 Does the organization The  Can the business

 Does each person in the Define

Booz & Company

Chart Title – Arial 14pt Bold

 Mass market player  Premium player

 Commodity product  Unique product

 Low demand  Strong demand

Source: xxx Overall pricing strategy: Text

Booz & Company

Chart Title – Arial 14pt Bold

Booz & Company

Booz & Company

Chart Title – Arial 14pt Bold

Traditional Mobile Value Chain

Equipment Sales Customer

New Mobile Value Chain

Booz & Company

Chart Title – Arial 14pt Bold

Energy Energy Energy

 Exploration  Oil & gas pipelines  Oil refining  Intermediaries  Industrial

Booz & Company

Booz & Company

Booz & Company

Chart Title – Arial 14pt Bold

Booz & Company

Chart Title – Arial 14pt Bold

Booz & Company

Chart Title – Arial 14pt Bold

Ensures information is accessible only to those

Booz & Company