Well, are you wondering to start a firm and sell products/service? Starting a business is not easy especially when there are so many aspects to Business. And, the most important aspect to your business is your market. It’s always better to have certain facts infront of you before starting your business.
1.Is there a demand for your product/service in the market? Who are the key players in the market?
Answer: Research is the only answer to the question. The research could be primary or secondary. There are a lot of website who sell information and research reports pertaining to the business and the location. The total sales of the products in that location and the growth of the sales of the product, demand for certain services are the key figures important to you. If you think of primary research, certain websites will help you. Preparing a questionnaire and targeting potential customers will definitely add a value to the research. If you are selling a service, lets say Consulting, then it’s very important to know what kind of Consulting you are going to provide. It’s always advisable to start with Niche Consulting and then expand your services. Starting a service business needs a more prepared research. You need to know your competitors. Competitor analysis is of utmost importance. You need to research on the following:
1.Who are your competitors?
2.Kind of pricing they do for their services?
3.The list of clients of the competitors and the untapped clients in the market
4.Differentiation strategy of your services. It’s always better to add a product to your service so that you can win the clients of your competitors. The question arises, if I have a consulting firm, what kind of products I can sell? Well, products need not be tangible. It can come in the form of newsletters, white papers or industry insights.
Its also essential to know whether the market is saturated or in its infant stage. Depending on this, you will be able to know your scope and reconsider your decision to cater to the market you have decided to.
The information required can be gathered from a various of sources like Trade information, Demographic and Economic Data, Business groups, Management Universities who conducts a lot of research during their project etc.
To Be Continued...
Friday, March 30, 2007
Tuesday, March 27, 2007
PERFORMANCE Management: Leveraging competitive advantage
Most of the organizations believe in lateral thinking and take every possible measure that can give them competitive advantage. A market where stringent regulatory rules, changing market scenario, technology upgradation, investor pressures exists, there is a need to revamp the strategy and keep on improving the processes critical to the organization. Performance Management answers all the questions, which seem critical for the success of an organization.
It starts with strategy formulation keeping the corporate mission, vision and objectives in mind. The roadmap is clearly set and targets are set for each objective. The drivers accelerating the growth of an organization and those hampering the growth are defined. Measures are taken for each objective. The topics covered below like Scenario Planning, Risk Management are taken care of in the first step of Performance Management.
Once the objectives are defined and measures are taken, its important to communicate the same with the key people in the organization. The business units of the organization are made aware of these objective and the BU Head of each business unit sets operational plan for achieving these objectives. Key strategic initiatives and allocation of effective people lay to the foundation of successful implementation of the operational plan. Key performance indicators are set for each objective.
Once the operational plan is in process, it is essential to monitor the progress and chart the improvement in the processes. Performance gaps are analyzed and measures are taken to fill the gaps and achieve the best fitting the corporate objectives. A macro view of the organization helps in deciding the appropriate plan of action.
Last but not the least, feedback is necessary for a successful performance management plan. The success and failures achieved in the whole cycle of performance management should be documented and communicated across the organization so that the learning occurs and opinions could be taken for improvement of the processes.
An effective tool to measure Performance Management is Kaplan and Norton’s Balanced Score Card, which takes four perspectives into consideration critical to the organization keeping the objectives in mind.
a.Learning and Growth perspective
b.Business process perspective
c.Customer perspective
d.Financial perspective
It starts with strategy formulation keeping the corporate mission, vision and objectives in mind. The roadmap is clearly set and targets are set for each objective. The drivers accelerating the growth of an organization and those hampering the growth are defined. Measures are taken for each objective. The topics covered below like Scenario Planning, Risk Management are taken care of in the first step of Performance Management.
Once the objectives are defined and measures are taken, its important to communicate the same with the key people in the organization. The business units of the organization are made aware of these objective and the BU Head of each business unit sets operational plan for achieving these objectives. Key strategic initiatives and allocation of effective people lay to the foundation of successful implementation of the operational plan. Key performance indicators are set for each objective.
Once the operational plan is in process, it is essential to monitor the progress and chart the improvement in the processes. Performance gaps are analyzed and measures are taken to fill the gaps and achieve the best fitting the corporate objectives. A macro view of the organization helps in deciding the appropriate plan of action.
Last but not the least, feedback is necessary for a successful performance management plan. The success and failures achieved in the whole cycle of performance management should be documented and communicated across the organization so that the learning occurs and opinions could be taken for improvement of the processes.
An effective tool to measure Performance Management is Kaplan and Norton’s Balanced Score Card, which takes four perspectives into consideration critical to the organization keeping the objectives in mind.
a.Learning and Growth perspective
b.Business process perspective
c.Customer perspective
d.Financial perspective
Friday, March 23, 2007
HOLISTIC APPROACH TO SOLVE A CASE: A CONSULTING EXPERIENCE
A consultant might come across a lot of complex situations where he is expected to deliver some tangible insights to the case so that the situations turn simple and the case is solved. In general, the problems rotate around making profits, market expansion, which includes merger and acquisitions, industry analysis, investing decisions, marketing decisions (pricing, branding etc.). A consultant should clearly set his road map to solve a case.
1.Facts and Facts: The best information which we will have before approaching a case is facts and figures which will clearly define the condition of the organization and its strategic goals. A macro view of the situation will help to analyze a lot of things.
2.See the solutions as problems: While looking into the problems from various perspectives, we might come out with a lot of solutions. It’s better to challenge the solutions and figure out the problems implementing the solutions. This will help us in narrowing down the solutions and come out with the most effective solution.
3.No problem is new. It might share some aspects with some problems, which happened for some other company. Knowledge has no alternative. Its always better to keep on reading various cases and talk to the senior management of the companies on the problems faced by them in the past and the way it was solved.
4.The client is always a way to another client. Rather than looking on new clients, its better to serve the existing one in a better way which might help us to get new clients. Networking is the key to consulting.
5.The crux is to build a case study on the client itself before building a case on client’s problems.
6.It’s the way a consultant understands a client and communicates with him. It’s always better to be in the shoes of the client while solving cases and treat the client as a consultant. The brainstorming might lead to amazing solutions.
1.Facts and Facts: The best information which we will have before approaching a case is facts and figures which will clearly define the condition of the organization and its strategic goals. A macro view of the situation will help to analyze a lot of things.
2.See the solutions as problems: While looking into the problems from various perspectives, we might come out with a lot of solutions. It’s better to challenge the solutions and figure out the problems implementing the solutions. This will help us in narrowing down the solutions and come out with the most effective solution.
3.No problem is new. It might share some aspects with some problems, which happened for some other company. Knowledge has no alternative. Its always better to keep on reading various cases and talk to the senior management of the companies on the problems faced by them in the past and the way it was solved.
4.The client is always a way to another client. Rather than looking on new clients, its better to serve the existing one in a better way which might help us to get new clients. Networking is the key to consulting.
5.The crux is to build a case study on the client itself before building a case on client’s problems.
6.It’s the way a consultant understands a client and communicates with him. It’s always better to be in the shoes of the client while solving cases and treat the client as a consultant. The brainstorming might lead to amazing solutions.
Tuesday, March 20, 2007
INTELLIGENCE Syndrome
“Students from IIMs and IITs are hired with 1crore package” but the students from “not so famous” colleges still strive to get a profile and work for a mere 2.4 Lakhs package. Consulting firms like BCG and Mc Kinsey are hiring students of IIMs as Consultants while some firms recruits MBAs from “not so famous” colleges on profiles, which can be easily handled by a B.Sc student or an engineering graduate. Some are blessed to get flooded with opportunities on day zero while others roam with their resumes just to find an opportunity to prove his worth and convince others that even they have the right attitude and the zeal to make it happen if given an OPPORTUNITY. The reasons for rejection are numerous for students from “not so famous” colleges and it ranges from working on a suitable profile, experience and lack of knowledge.
“ We are impressed with your profile but regret to inform that your profile does not meet our requirements” is the only answer which students from “not so famous” colleges deserves.
An effort to make it happen is the only thing which everyone aspires, whether he is a geek from IIMs or students from some “not so famous” colleges. The only criteria for intelligence are not having a degree from IIM but the zeal to achieve the best, whether the person is a fast learner or not and whether he is able to perform or not matters. But, do the corporate believes and are ready to give that single opportunity to the students from “not so famous” colleges. May be, exposure and opportunity can help the students and even the corporate to get the best.
“ We are impressed with your profile but regret to inform that your profile does not meet our requirements” is the only answer which students from “not so famous” colleges deserves.
An effort to make it happen is the only thing which everyone aspires, whether he is a geek from IIMs or students from some “not so famous” colleges. The only criteria for intelligence are not having a degree from IIM but the zeal to achieve the best, whether the person is a fast learner or not and whether he is able to perform or not matters. But, do the corporate believes and are ready to give that single opportunity to the students from “not so famous” colleges. May be, exposure and opportunity can help the students and even the corporate to get the best.
Friday, March 16, 2007
The Four Steps of Visualizing STRATEGY
Visual Awakening
.Compare your business with your competitors' by drawing your "as is" strategy picture.
.See where your strategy needs to change
Visual Exploration
Go in the field to:
.Discover the adoption of hurdles for noncustomers.
.Observe the distinctive advantages of alternative products and services.
.See which factors you should eliminate, create, or change.
Visual Strategy Fair
.Draw your "to be" strategy canvases based on insights from field observations.
.Get feedback on alternative strategy pictures from customers, lost customers, competitors' customers, and noncustomers.
.Use feedback to build the best "to be" strategy.
Visual Communication
.Distribute your before-and-after strategic profiles on one page for easy comparison.
.Support only those projects and operational moves that allow your company to close the gaps to actualize the new strategy.
Courtesy: Harvard Business Review
.Compare your business with your competitors' by drawing your "as is" strategy picture.
.See where your strategy needs to change
Visual Exploration
Go in the field to:
.Discover the adoption of hurdles for noncustomers.
.Observe the distinctive advantages of alternative products and services.
.See which factors you should eliminate, create, or change.
Visual Strategy Fair
.Draw your "to be" strategy canvases based on insights from field observations.
.Get feedback on alternative strategy pictures from customers, lost customers, competitors' customers, and noncustomers.
.Use feedback to build the best "to be" strategy.
Visual Communication
.Distribute your before-and-after strategic profiles on one page for easy comparison.
.Support only those projects and operational moves that allow your company to close the gaps to actualize the new strategy.
Courtesy: Harvard Business Review
Thursday, March 15, 2007
SCENARIO Planning
Scenario Planning is all about describing what is possible rather than just predicting future. Most of the forecasting techniques fail to predict significant changes in the firm’s external environment when information is limited or not available or the change is unexpected and disturbing. In such a situation, scenario planning is used as a tool to deal major, uncertain events in the firm’s environment. The result of Scenario Analysis is a group of distinct futures, which are plausible. The challenge is how to deal with each of the scenario.
Scenario Planning Process:
1.Specify the scope of the planning and time frame.
2.For the present situation, develop a clear understanding that will serve as the common exit point for each of the scenarios.
3.Identify the elements, which can act as driving forces.
4.Identify the most important driver by rating them on their range of variation and impact on the firm. Multiplying the factors will give the significance of each factor. It could be done in a scale of 1 to 10.
5.To analyze the interaction between the variables, scenario matrix can be made using the most important variables and their possible values. Each cell in the matrix represents a single scenario. Alternatively, factors can be taken in pairs to generate several two-dimensional matrices.
6.Quantify the impact of each scenario on the firm and formulate strategies.
The benefits of Scenario Planning is the managers are forced to break out their standard world view and decision makers are better able to recognize a scenario in its early stages and there is a better understanding of the source of disagreements if any.
Scenario Planning Process:
1.Specify the scope of the planning and time frame.
2.For the present situation, develop a clear understanding that will serve as the common exit point for each of the scenarios.
3.Identify the elements, which can act as driving forces.
4.Identify the most important driver by rating them on their range of variation and impact on the firm. Multiplying the factors will give the significance of each factor. It could be done in a scale of 1 to 10.
5.To analyze the interaction between the variables, scenario matrix can be made using the most important variables and their possible values. Each cell in the matrix represents a single scenario. Alternatively, factors can be taken in pairs to generate several two-dimensional matrices.
6.Quantify the impact of each scenario on the firm and formulate strategies.
The benefits of Scenario Planning is the managers are forced to break out their standard world view and decision makers are better able to recognize a scenario in its early stages and there is a better understanding of the source of disagreements if any.
Monday, March 12, 2007
Talk about BUSINESS
“The business of business is Business”. Though the phrase is not new, but it truly indicates the real meaning of Business. Owning and running a business can be rewarding only if we know the nuances of Business and understand the Business terms, rules and what it takes to be a successful businessman. Well, being a Management student, I would like to use the word “Entrepreneur” rather than a “Businessman”.
PECS of Business:
Profit: No matter what business you do, ultimate aim is to make profits.
Expenses: When you run a business, you have certain expenses, which is unavoidable.
Cost of Goods: Whether it’s a product or service you sell, there is a cost to everything.
Sales: And, if you want your business to run, sales are of utter importance.
And then when we want to be an entrepreneur, we need to answer certain questions:
1.Do I understand the financial basics of Business: Assets, Liabilities, Accounts Payable, Accounts Receivable, Cash Flow, and Net Worth.
2.Who all will be involved in my business and is there a sync and proper flow of information among all the entities.
3.Do I possess all the technical skills and soft skills to conduct the business?
4.Do I have the necessary funds to have business and if not who are the potential sources?
5.What shall I sell? Why should I sell? Whom Should I sell? Where should I sell?? How should I sell?
6.How to differentiate myself from the herd? Why will people come to me?
7.Within how many years, I will be able to achieve the breakeven point?
8.Who are my stakeholders?
9.How to achieve success?
10.Do I have all the qualities to become a successful businessman?
Now, the question arises, how best you can answer the above questions. There are some ways to find the politically correct answers:
1.Do a SWOT analysis. Measure yourself on parameters like knowledge, leadership skills, communication, creativity etc.
2.How best you understand others needs?
3.Are you specific or general? If specific, then on what situations and if general, then on what situations.
4.What kind of people interests you the most? The people who share same qualities with you or the exact opposite people interest you the most.
5.Consider yourself as a product and try to sell yourself. Plan a strategy on what things you would do to sell yourself to people.
6.Consider others as Customers and try to ask relevant questions about yourself. Feedback is one of the most important things in Business.
PECS of Business:
Profit: No matter what business you do, ultimate aim is to make profits.
Expenses: When you run a business, you have certain expenses, which is unavoidable.
Cost of Goods: Whether it’s a product or service you sell, there is a cost to everything.
Sales: And, if you want your business to run, sales are of utter importance.
And then when we want to be an entrepreneur, we need to answer certain questions:
1.Do I understand the financial basics of Business: Assets, Liabilities, Accounts Payable, Accounts Receivable, Cash Flow, and Net Worth.
2.Who all will be involved in my business and is there a sync and proper flow of information among all the entities.
3.Do I possess all the technical skills and soft skills to conduct the business?
4.Do I have the necessary funds to have business and if not who are the potential sources?
5.What shall I sell? Why should I sell? Whom Should I sell? Where should I sell?? How should I sell?
6.How to differentiate myself from the herd? Why will people come to me?
7.Within how many years, I will be able to achieve the breakeven point?
8.Who are my stakeholders?
9.How to achieve success?
10.Do I have all the qualities to become a successful businessman?
Now, the question arises, how best you can answer the above questions. There are some ways to find the politically correct answers:
1.Do a SWOT analysis. Measure yourself on parameters like knowledge, leadership skills, communication, creativity etc.
2.How best you understand others needs?
3.Are you specific or general? If specific, then on what situations and if general, then on what situations.
4.What kind of people interests you the most? The people who share same qualities with you or the exact opposite people interest you the most.
5.Consider yourself as a product and try to sell yourself. Plan a strategy on what things you would do to sell yourself to people.
6.Consider others as Customers and try to ask relevant questions about yourself. Feedback is one of the most important things in Business.
Tuesday, March 6, 2007
BRAND EQUITY QUIZ 2007:SCHEDULE
Brand Equity Quiz (Regional Finals)
Mar 9, 2007 Ahmedabad
Mar 10, 2007 Pune
Mar 13, 2007 Kolkata
Mar 15, 2007 Delhi
Mar 20, 2007 Bangalore
Mar 21, 2007 Chennai
Mar 22, 2007 Hyderabad
Mar 26, 2007 Kochi
Mar 29, 2007 Mumbai
Mar 31, 2007 Indore
Brand Equity Quiz (National Final)
Apr 29, 2007 Mumbai
Watch out to know more about this happening event....
Mar 9, 2007 Ahmedabad
Mar 10, 2007 Pune
Mar 13, 2007 Kolkata
Mar 15, 2007 Delhi
Mar 20, 2007 Bangalore
Mar 21, 2007 Chennai
Mar 22, 2007 Hyderabad
Mar 26, 2007 Kochi
Mar 29, 2007 Mumbai
Mar 31, 2007 Indore
Brand Equity Quiz (National Final)
Apr 29, 2007 Mumbai
Watch out to know more about this happening event....
Strategy DYNAMICS
The approach to strategy is just not making profits but how to use the profits for the future and build performance through time. Strategic analysis is about answering the business performance for the past few years, the performance that the business seeks and the alteration that could be done for the betterment of future. The challenge is to analyze the performance of the resources (customers, employees, infrastructure) and how can they be building in the future. Sometimes, there is an overallocation of resources, which makes it redundant. The performance measurement criteria are not properly defined. Sometimes, it is difficult for the organizations to correlate the customer base with the performance measures. Whether the existing customers come back at regular levels, how frequent the new customers are acquired and how many leave. These questions should be sorted first to develop a clear strategy for the organization. Even, competition in marketplace matters a lot. This enables to identify the key areas of operation and dig the high level opportunities to boost the performance of the organization and damage the rivals. Strategizing is easy with practical and facts. This gives a more confident view of the future.
Friday, March 2, 2007
Business ANALYSIS
Business Analysis is a key area of every Business. Business analysis is done to improve efficiency, reduce wastage and complete projects on time. The crux of Business Analysis is documentation of right requirements. Many a times, the project is delayed due to the mismatch of understanding between the clients and the company. The purpose is to develop Business Process improvement (BPI) as a key strategy and management tool. Business Analysis ensures that the requirements of business clients are captured and documented correctly before a solution is developed and implemented. Business Analysis differs from organization to organization. Generally, the key processes involved in Business Analysis is developing an understanding of how present and future business needs will impact solution, identifying sources of requirements, developing a “Requirements Management Plan”, identifying and Documenting all business, technical, product and process requirements, helping to define acceptance criteria for completion of solution, preparing Business Requirement Document (BRD), Use Case Document (UCD), Use Case Diagram. For a product based company, it could be more of preparing market collaterals, proposal writing, processing Request for Proposals, performing market competition research, computing ROI etc. In IT company, Business Analysis stresses on assisting with the Business Case, gathering of requirements, reviewing of test, cases, processing change requests, tracing the requirements in Implementation phase and managing the project scope.
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