Apr 11, 2010 | Demand chains, Management, Operations
Developing a forecast of what you need to make to sell is a different proposition to doing a demand forecast, it is much more than a semantic difference.
A forecast is usually an extrapolation, sometimes very sophisticated, but an extrapolation nonetheless, of the past, and the only thing we know for sure, is that the future will be different.
A demand forecast looks at the drivers of demand, essentially looking backwards through the supply chain from the customer, and anticipating the level of demand by factoring in all the things that drive the customer to order a volume of product in any given period.
ERP systems are driven by forecasts, they are the core of any system, and the more accurately the forecast, the better the system works within the limitation of the rules written in. However, when the forecasts are informed by the drivers of demand, not just the inventory levels and automatic restocking rules in place, the value that can be delivered in vastly enhanced.
Apr 3, 2010 | Alliance management, Change, Operations
Whilst we observe the rather sudden tarnishing of Toyota’s quality aura, it is easy to lose sight of the enormous value Toyota has given to our understanding of efficient and flexible manufacturing. The lessons are everywhere, there would not be a manufacturing operation anywhere in the dev eloped world that has not benefited from the expertise developed and shared by Toyota.
Our understanding of the TPS began when Toyota began manufacturing outside Japan, its first foray was a JV with General Motors in their Fremont California plant, in a JV called New United Motors Manufacturing Inc, or “NUMMI” as it is commonly called.
This JV is a milestone in our understanding of manufacturing, the link is to a Sloan Management Review article written by one of the modern gurus of lean manufacturing, john Shook, who was a key employee in the development of NUMMI, and its subsequent success.
Anybody unfamiliar with the story should take 10 minutes and come up to speed, and this article is the quickest way.
Mar 31, 2010 | Alliance management, Change, Demand chains, OE
It seems that everywhere there is a drive to collaborate, without any real regard to the challenges of collaboration, the behavioral and cultural changes necessary for success. Collaboration has become an end in itself, rather than a strategy that has the potential to deliver value to both parties under the appropriate circumstances.
For a collaboration to be successful, there are two pre-conditions:
- There is a genuinely important shared goal, and the goal is powerful enough to drive resource allocation decisions in both collaborators
- The reward systems of both parties recognise the importance of achieving the goal.
Without these two preconditions, there is little chance of the collaboration doing anything more than take some time, probably cover someone’s arse, and perhaps give the appearance of something useful happening.
Mar 30, 2010 | Innovation, Management, Social Media
A while ago, I blogged about the ownership of IP, the individual Vs the employer, and quoted the case of a designer who left Mattel for their competitor, MGA Entertainment, created a competitor to “Barbie” and ended up in court over IP ownership, and lost.
Now one of the key innovation drivers at Apple, Tony Fadell creator of the ipod, is leaving Apple for alternative pastures.
Steve Jobs is not known as benevolent, so we can expect some fireworks, and perhaps some further definition of the ownership rights of individuals who dream up great “stuff” and of their employers . This may not all be in the public domain, as sensibly the parties will have tied up the IP ownership & “money stream” issues, but we will watch with interest, and be certain that there has been some sweat in the Apple boardroom.
Mar 28, 2010 | Branding, Management, Marketing
Building a brand is a “one bit at a time” exercise.
Most aspiring brand managers look at Coke, Google, Microsoft, the local leader in their market, and think about how they can take them on, and win.
The process is useful, but the reality is that you can’t do it in one big bang, it is one brick at a time.
There are many metaphors, I like thinking about the process as a bike race. You need to be in there and fit, and have the support team all pulling for you, there will be ups and downs, opportunities to go faster downhill, and hills you have to really work at to get over, but over the distance, you if build up momentum, experience, consistency, manage the risks and take the opportunities, you may earn a place in the peloton, and if you are good enough, and your timing is right, you can get to the stage finish first. Then, there is just tomorrow.
Building a brand is similar.
Mar 28, 2010 | Management, Sales
The only way to win is to attack, you can prevent being beaten by defense, but as any football coach knows, defense will not win.
Same in business, you need to understand your strengths and weaknesses compared to the opposition, and exploit the strengths, whilst covering for the weaknesses.
Having an intimate understanding of the key customers, those who will spread the word of your product or service is as good as having the opposition playbook
The only way to get a crystal clear picture of the oppositions position is to experiment, continually ask the questions of them by experimenting, testing, & understanding their response, be restless, and inquisitive, probe, analyse, question, form and test hypothesis. Sounds a bit like the scientific method, and continuous improvement.
