Iskra Avtoelektrika Group
Innovation in rotation
HOW TO REACH STRATEGIC
POSITION WITH YOUR
CUSTOMERS
case: Iskra Avtoelektrika d.d.
Ljubljana, February 2007
Iskra Avtoelektrika Group
AGENDA:
1.
BASIC INFORMATION ABOUT IAE
2.
HOW TO REACH STRATEGIC POSITION WITH YOUR
CUSTOMERS ?
1. FOCUSING ON KEY CUSTOMERS
2. 4 P’s
3. CASE AGCO & GLOBALIZATION OF IAE
2006
2
Iskra Avtoelektrika Group
Iskra Avtoelektrika Plant in Šempeter
Iskra Avtoelektrika d.d.
SI-5290 Šempeter pri Gorici
Polje 15
SLOVENIA
Phone: +386 5 33 93 000
Fax:
+386 5 33 93 801
E-mail: info@iskra-ae.com
http://www.iskra-ae.com
2006
Šempeter pri Gorici
3
Iskra Avtoelektrika Group
SBU AUTOMOTIVE - products
STARTER MOTORS
&
ALTERNATORS
for the Automotive &
Industrial Vehicle
Industries
2006
4
Iskra Avtoelektrika Group
SBU DRIVE SYSTEMS - products
COMMUTATOR
MOTORS
CONTROLLERS
2006
BLPM MOTORS
AC MOTORS
AUTOMOTIVE
APPLICATION
SOLENOID
SWITCHES
5
Iskra Avtoelektrika Group
SBU COMPONENTS - products
Cold forged metal
parts
2006
Assembilies
6
Iskra Avtoelektrika Group
Corporation profile
Establishment
1960
R&D Activity Registration
1986
Certificate ISO 9001
1990
Joint Stock Company Establishment
1991
Privatisation Completed
1997
Certificate QS-9000
2000
Slovenian Business Excellence Award
2000
Certificate ISO 14001
2003
Certificate ISO/TS 16949
2006
Data for 2006
Revenue
Exports of Turnover
Number of Employees
2006
198.000.000 EUR
95%
2.569
7
Iskra Avtoelektrika Group
Consolidated Sales in EUR
250
220
198
Millions
200
150
166,8
138,8
150,8
2003
2004
126,6
100
50
0
2002
2006
2005
2006
P 2007
8
Iskra Avtoelektrika Group
Sales Structure by countries
30
27%
19%
20
16%
14%
11%
10
7%
2%
0
2006
3%
1%
GERMANY
USA
ITALY
FRANCE
UNITED KINGDOM
NETHERLANDS
FINLAND
SLOVENIA
OTHERS
9
Iskra Avtoelektrika Group
Sales Structure by products
STARTER MOTORS
29%
DRIVE SYSTEMS
38%
ALTERNATORS
24%
ELECTRONICS
2%
2006
COMPONENTS
7%
10
Iskra Avtoelektrika Group
AGENDA:
1.
BASIC INFORMATION ABOUT IAE
2.
HOW TO REACH STRATEGIC POSITION WITH YOUR
CUSTOMERS ?
1. FOCUSING ON KEY CUSTOMERS
2. 4 P’s
3. CASE AGCO & GLOBALIZATION OF IAE
2006
11
Iskra Avtoelektrika Group
DEFINE MARKET NICHES WHERE YOU
CAN BE SUCCESFULL
•MARKET ANALYSIS
•SWOT ANALYSIS
•PORTER FIVE FORCES MODEL
•BENCHMARKING
•BCG MATRIX
2006
12
Iskra Avtoelektrika Group
EXTERNAL ENVIRONMENT
COMPETITION
ECONOMIC
TRENDS
TECHNOLOGY
INNOVATIONS
SOCIAL
CHANGES
2006
REGULATORY
ISSUES
DEMOGRAPHICS
ECOLOGICAL
CONCERNS
13
Iskra Avtoelektrika Group
MARKET REQUIREMENTS
PRICES,
COSTS
QUALITY
TIME TO
MARKET
TIME TO
SUPPLY
LIFE
CYCLE
QUANTITY
RELIABILITY
2006
FLEXIBILITY
14
Iskra Avtoelektrika Group
Mission Statement
Iskra Avtoelektrika
is a global supplier of starter motors and generators for internal
combustion engines, battery powered DC drive systems and other
sophisticated components for the automotive industry such as
ignition coils, light alloy pressure die castings and plastic and steel
cold-forged components. Complementing this programme, we
develop our own technology, and we produce tooling and special
purpose equipment.
Iskra Avtoelektrika
develops, manufactures and sells on a global basis, with its own
manufacturing and distribution network, which, besides providing
support to our industrial customers, also offers a broad range of
aftermarket products.
Iskra Avtoelektrika
2006
is known for the innovation and high quality of its products,
its excellence in business and the strong marketing and
development support, which offers to its customers.
This recognition is based on the high degree of competence
of Iskra people and the flexibility of our processes.
15
Iskra Avtoelektrika Group
Vision
Iskra
Avtoelektrika
creates sustainable
development and wants to be
among the leading world suppliers
of starter motors and generators
and battery powered DC electric
drive systems, actuators and
components in its selected
market segments.
2006
16
Iskra Avtoelektrika Group
AUTOMAKERS SEEK IN SUPPLIERS
72
69
LOW COST/PRICE
41
44
QUALITY
TIMELY DELIVERY
27
27
INNOVATIVE TECHNOLOGY
20
25
18
12
ENGINEERING SUPPORT
RELIABILITY
3
8
HONESTY/INTEGRITY
0
6
0%
2006
20%
40%
60%
Legend:
2000,
2001
Source: DuPont Automotive Survey Results 2001
80%
17
Iskra Avtoelektrika Group
WHAT’S IMPORTANT TO OUR CUSTOMERS?
Automotive
PRODUCT QUALITY
4,7%
ON TIME DELIVERIES
4,6%
CLAIM SOLVING
4,5%
R & D SUPPORT
4,3%
KEY PERSONNEL AVAILABILITY
4,2%
R & D TEST REPORTS
4,2%
TECHNOLOGY LEVEL
4,1%
AFTERSALES SERVICE
4,1%
PRODUCT RANGE
4,0%
IT SUPPORT
2006
3,9%
3,0
3,5
4,0
4,5
18
5,0%
Iskra Avtoelektrika Group
CORPORATE STRATEGY
2006
1
PROFITABLE GROWTH AND
FINANCIAL STRENGTH STRATEGY
2
CUSTOMER RELATION FOCUSED
STRATEGY
3
GLOBAL MANUFACTURING AND
SOURCING STRATEGY
4
INNOVATION AND INTELLECTUAL
CAPITAL STRATEGY
5
HUMAN RESOURCES MANAGEMENT AND
LEARNING STRATEGY
19
Iskra Avtoelektrika Group
CORPORATE STRATEGIC MAP
PROFITABLE GROWTH
& FINANCIAL STRENGTH
STRATEGY
CUSTOMER
RELATIONSHIP
MANAGEMENT STRATEGY
GLOBAL
MANUFACTURING &
PURCHASING STRATEGY
INNOVATION AND
INTELLECTUAL CAPITAL
STRATEGY
HUMAN RESOURCES
MANAGEMENT AND
LEARNING STRATEGY
2006
PROFITABLE
GROWTH
RETURN
ON EQUITY
CUSTOMER
SATISFACTION
CUSTOMER
SUPPORT
QUALITY
RESPONSIVENESS
MANUFACTURING
GLOBAL
SOURCING
QUALITY
MANAGEMENT
PROCESS
APPROACH
INTELLECTUAL
CAPITAL
NEW
TECHNOLOGY
CREATIVE
COLLABORATION
INNOVATION
COMPETENT
PEOPLE
20
Iskra Avtoelektrika Group
AGENDA:
1.
BASIC INFORMATION ABOUT IAE
2.
HOW TO REACH STRATEGIC POSITION WITH YOUR
CUSTOMERS ?
1. FOCUSING ON KEY CUSTOMERS
2. 4 P’s
3. CASE AGCO & GLOBALIZATION OF IAE
2006
21
Iskra Avtoelektrika Group
FOUR P
ON A GLOBAL
MARKET
PRODUCT AND
PRICE ARE
PRECONDITION
FOR A SUCCESS
CHANNELS
P - PLACEMENT
CUSTOMER
FOCUS
PRICE
PRODUCT
PLACEMENT
SUPPLIERS
A KEY P IN A B
TO B
EVIROMENT IS
THE THIRD
SOCIETY
PROMOTION
IN CASE OF IAE:
1. THROUGH FOLLOWING
OF OUR KEY CUSTOMERS
TO THEIR KEY MARKETS
WORLDWIDE
2006
COMPETITORS
2. THROUGH
OPTIMIZATION OF
SERVICE AND
DISTRIBUTION CHANELS
FOR OUR CUSTOMERS
WORLDWIDE
22
Iskra Avtoelektrika Group
“MEET AND EXCEED CUSTOMER DEMANDS”...
... is already a used phrase.
BUT IT IS ALSO A GOOD WAY TO SECURE STRATEGIC POSITION
WITH YOUR CUSTOMER, IF YOU MEAN IT !
2006
23
Iskra Avtoelektrika Group
AGENDA:
1.
BASIC INFORMATION ABOUT IAE
2.
HOW TO REACH STRATEGIC POSITION WITH YOUR
CUSTOMERS ?
1. FOCUSING ON KEY CUSTOMERS
2. 4 P’s
3. CASE AGCO & GLOBALIZATION OF IAE
2006
24
Iskra Avtoelektrika Group
PARTNERSHIP WITH GLOBAL PLAYER
AGCO Corporation
2006
Europe:
Linnavuori, Finland
Beauvois, France
Marktoberdorf, Germany
North America:
Beloit, Kansas, USA
Hesston, Kansas, USA
Jackson, Minnesota, USA
Queretaro, Mexico
South America:
Canoas, Rio Grande do Sul, Brazil
Mogi das Cruzes, Brazil
Asia:
Istanbul, Turkey
Tabriz, Iran
Lahore, Pakistan
Chennay, India
25
Iskra Avtoelektrika Group
AGCO & ISKRA AE WORLDWIDE
Russia
UK
D
BiH
F
USA
Belarus
E
I
Iran
China
India
Brazil
2006
26
Iskra Avtoelektrika Group
GLOBALIZING BUSINESS
INCREASING GLOBALIZATION
& COMPETITION
TURBULENCE
IN DEMAND
SHORTER PRODUCT LIFE CYCLE
& COMPLEXITY OF TECHNOLOGY
INCREASED MOBILITY OF
THE PEOPLE
INCREASING POSSIBILITIES OF
THE INFORMATION TECHNOLOGY
MERGERS, ACQUSITIONS,
TAKEOVERS &
STRATEGIC ALLIANCES
2006
27
Iskra Avtoelektrika Group
WHY GLOBALIZAZION?
 GROUP SALES GROWTH
 PARTNERSHIPS WITH THE GLOBAL PLAYERS
 DIFFERENCES IN SOCIAL CLIMATE (COSTS)
 CURRENCY EXCHANGE RATE RISKS
 LOCAL CUSTOMS AND TAX LEGISLATION
 GOVERNMENT EXPORTS INCENTIVES
 DIFFERENCES IN CULTURE AND LANGUAGE
2006
28
Iskra Avtoelektrika Group
KEY PROCESSES DEFINITION
 GLOBAL MARKETING
 CENTRALIZED RESEARCH & DEVELOPMENT
 GLOBAL SALES FROM LOCAL PLANTS
 GLOBAL PURCHASING - SPECIALIZING
 GLOBAL MANUFACTURING - SPECIALIZING
 GLOBAL DISTRIBUTION & SERVICE NETWORK
 CENTRALIZED IT SYSTEM
2006
29
Iskra Avtoelektrika Group
FORMS OF STRATEGIC COOPERATION
MERGER,
ACQUISITION,
TAKEOVER,
JOINT
VENTURE
PARTICIPATION
IN EQUITY
CAPITAL
JOINT
PURCHASING
LICENSEE
AGENT
2006
JOINT
MARKETING
DEALER
FRANCHISE
MANUFACTURING
AGREEMENT
JOINT
SELLING
30
Iskra Avtoelektrika Group
IAE’s ROAD TO THE GLOBAL COMPANY
HIGH
GLOBAL
COMPANY
Complexity
INTERNATIONAL
STRATEGIC
PARTNERSHIPS
JOINT
VENTURES
FOREIGN
SUBSIDIARIES
LOW
LICENCEES
2006
EXPORT/IMPORT
DEPARTMENT
Commitment of management
31
Iskra Avtoelektrika Group
PRODUCTION FACILITIES
Global support from local
facilities
2006
32
Iskra Avtoelektrika Group
1. ISKRA AVTOELEKTRIKA
HEADQUARTER
Global support from local facilities
2006
33
Iskra Avtoelektrika Group
3. ISKRA AUTOELECTRIC IRAN - IAI
IAE OWNERSHIP
90%
PRODUCTION PROGRAM
1.
2.
3.
2006
STARTERS AZD 1.1 kW UP TO 150.000 pcs/year
STARTERS AZE 0.8 kW UP TO 350.000 pcs/year
ALTERNATORS AAK IF UP TO 250.000 pcs/year
Iskra Autoelectric Iran Ltd
34
Iskra Avtoelektrika Group
2. ISKRA SUZHOU AUTOELECTRIC Co., Ltd.
CHINA
IAE OWNERSHIP
80%
PRODUCTION PROGRAM
1.
2.
3.
4.
5.
STARTERS AZF 4  5,5 kW - 250.000 pcs/year
ALTERNATORS AAT - 30.000 pcs/year
STARTERS AZD-TR1.1.Kw - 500.000 pcs/year
ALTERNATORS AAK - 200.000pcs/year
DC MOTORS AMJ – 150.000PCS/year
Iskra Suzhou Ltd.
2006
35
Iskra Avtoelektrika Group
3. FAWER - ISKRA
CO.,d.d.
CHINA - FIC
Iskra Avtoelektrika
IAE OWNERSHIP
40%
PRODUCTION PROGRAM
1.
STARTERS AZF 4  5,5 kW UP TO 250.000 pcs/year
Changchun Fawer Iskra Ltd.
2006
36
Iskra Avtoelektrika Group
4. ISKRA DO BRASIL Autoelectrica, BRASIL
PRODUCTION PROGRAM
1.
2.
2006
STARTERS AZE-TR UP TO 100.000 pcs/year
ALTERNATORS AAK UP TO 100.000 pcs/year
Iskra do Brasil Autoeléctrica Ltda
37
Iskra Avtoelektrika Group
5. IskRa, Grodno – BELARUS
IAE OWNERSHIP
IskRa o.o.o.
98.5%
PRODUCTION PROGRAM
1.
2006
STARTERS AZJ – 100.000 pcs/year
38
Iskra Avtoelektrika Group
6. PRAMO ISKRA, RZEV – RUSSIA
IAE OWNERSHIP
94%
PRODUCTION PROGRAM
1.
STARTERS AZD – UP TO 150.000 pcs/year
2.
STARTERS AZE – UP TO 100.000 pcs/year
Pramo Iskra
2006
39
Iskra Avtoelektrika Group
7. ISKRA AE KOMPONENTE - IAK
Bosnia and Hercegovina
IAE OWNERSHIP
95%
PRODUCTION PROGRAM
2006
1.
VARIOUS COMPONENTS WITH MANUAL WORK OPERATIONS
2.
STAMPED METAL PARTS
3.
SUBASSEMBLIES
Iskra AE Komponente d.o.o.
40
Iskra Avtoelektrika Group
GLOBAL LOGISTIC STREAMS
BELARUS
USA
IRAN
CHINA
BRAZIL
2006
41
Iskra Avtoelektrika Group
CRITICAL SUCCESS FACTORS
 MARKET RESEARCH AND ANALYSIS
 CLEAR VISION STATEMENT & STRATEGY
 BUSINESS PARTNERS SELECTION
 KEY PROCESSES DEFINITION
 RESOURCES PROCUREMENT
 PROJECT MANAGEMENT & TEAM
 COMMUNICATION & FAST IMPLEMENTATION
2006
42
Iskra Avtoelektrika Group
Thank you for your attention!
2006
43