Manajemen Strategis
Referensi
1. Pearce and Robinsons, J
2. Fred David
3. Wheelen Hunger
JoJj
Minggu ke 1
Manajemen Strategi
(Strategic Management)
Pearce and Robinsons, JR
JoJj
Manajemen Strategis
Adalah merupakan serangkaian keputusan dan tindakan yang
menghasilkan perumusan dan implementasi rencana yang
dirancang untuk mencapai tujuan perusahaan. ( Pearce. Robinson )
Manajemen Strategis
Adalah serangkaian keputusan dan tindakan majajerial yang
menentukan kinerja jangka panjang (wheelen dan Hunger)
Manajemen Strategis
Adalah seni dan ilmu untuk memformulasikan,
mengimplementasikan dan mengevaluasi keputusan lintas fungsi
yang memungkinkan organisasi mencapai tujuan dimasa akan
datang ( Freed r, david)
Managemen strategi meliputi
- pengamatan lingkungan
- perumusan strategi ( jangka panjang )
- implementasi strategi
- evaluasi dan pengendalian
Manajemen Strategi
Kenapa perlu mempelajari manajemen strategi ?
Dihadapkan pada suatu perubahan lingkungan organisasi
Apa tidak cukup belajar konsep-konsep manajemen saja?
Strategi diartikan sebagai suatu proses penentuan rencana para
pemimpin puncak yang terfokus pada tujuan jangka panjang
Apa Strategi?
• Large-scale, future-oriented plan
• Used to interact within competitive
environment to achieve company
goals
• Provides a framework for managerial
decisions
• Reflects a company’s awareness of
the main elements of competition
Alternatip Struktur Manajemen
Strategi
Model Manajemen Strategis
Model Komponen Manajemen
Strategis
• Company Mission
• External Analysis
• Long-Term
Objectives
• Short-Term
Objectives
• Policies
Empowering Action
• Strategic Control &
• Internal Analysis
• Strategic Analysis
& Choice
• Generic & Grand
Strategies
• Functional Tactics
• Restructuring,
Reengineering &
Refocusing
Manajemen strategi menekankan pada pengamatan dan evaluasi
peluang dan ancaman lingkungan dan melihat kekuatan dan
kelemahan perusahaan
Manajemen
strategi
Peluang dan ancaman
lingkungan
Kekuatan dan kelemahan
perusahan
Pengamatan
Dan
Evaluasi
lingkungan
Peluang
Ancaman
Menggabungkan
Kebijakan bisnis dengan lingkungan
dan tekanan strategis
Minggu ke 2
Misi Perusahaan
(Company Mission)
Obyek yang Dipelajari
1. Describe a company mission and explain its
values
2. Explain why the mission statement should
include the company’s basic product or
service, its primary markets, and its principal
technology
3. Explain which goal of a company is most
important: survival, profitability, or growth
4. Discuss the importance of company
philosophy, public image, and company selfconcept to stockholders
5. Give examples of the newest trends in
mission statement components: customer
Apa Misi Perusahaan ?
• Company Mission:
A broadly framed but enduring
statement of a firm’s intent. It is the
unique purpose that sets a company
apart from others of its type and
identifies the scope of its operations in
product, market, and technology terms.
Formulasi dari Misi
• The typical business begins with the
beliefs, desires, and aspirations of a
single entrepreneur
• These beliefs are usually the basis for
the company’s mission
• As the business grows or is forced to
alter its product, market, or
technology, redefining the company
mission may be necessary
Komponen Statemen dari Misi
(Mission Statement Components)
1.
2.
3.
4.
5.
6.
7.
8.
Customer-market
Product-service
Geographic Domain
Technology
Concern for Survival
Philosophy
Self-concept
Concern for Public Image
Tujuan Utama Perusahaan
(Primary Company Goals):
• Survival – A firm that is unable to
survive will be incapable of
satisfying the aims of any of its
stakeholders.
• Profitability – A firm’s profitability
is the mainstay goal of a business.
• Growth – A firm’s growth is tied
inextricably to its survival and
profitability. Growth in this sense
must be broadly defined.
Filosofis Perusahaan
(Company Philosophy)
• Company philosophy is often
called company creed.
• Usually accompanies or
appears within the mission
statement
• Reflects the basic beliefs,
values, aspirations, and
philosophical priorities to
which strategic decision
Teori Agensai
(Agency Theory)
Agency theory is a set of ideas on
organizational control based on the
belief that the separation of the
ownership from management
creates the potential for the wishes
of owners to be ignored.
Minggu ke 3
Tanggung Jawab Perusahaan pada Sosial
dan Etika Bisnis
(Corporate Social Responsibility and
Business Ethics)
Obyek yang Dipelajari
(Learning Objectives)
1. Understand importance of stakeholder
approach
2. Explain the continuum of social responsibility
3. Describe a social audit
4. Discuss the effect of Sarbanes-Oxley, 2002
5. Compare advantages of collaborative social
initiatives
6. Explain the 5 principles of collaborate social
initiatives
7. Compare the merits of different approaches to
business ethics
Pihak- pihak yang Bertanggung
Jawab
(Stakeholder Approach)
According to Stakeholder Approach:
• In defining or redefining the company
mission, strategic managers must
recognize the legitimate rights of the
firm’s claimants.
• These include outside stakeholders
affected by the firm’s actions.
Tahap yang berkepentingan dengan
Perusahaan
(Steps to Incorporate Stakeholders):
1. Identification of stakeholders
2. Understanding stakeholders’
specific claims vis-à-vis the
firm
3. Reconciliation of these claims
and assignment of priorities
4. Coordination of the claims
with other elements of the
company mission
Masukan untuk Pengembangan
Misi Perusahaan
(Inputs to the Development of Company
Mission)
Bentuk Pertanggungjawan Sosial
(Types of Social Responsibility)
•
•
•
•
Economic – the duty of managers, as agents
of the company owners, to maximize
stockholder wealth
Legal – the firm’s obligations to comply with
the laws that regulate business activities
Ethical – the company’s notion of right and
proper business behavior.
Discretionary – voluntarily
assumed by a business
organization.
CSR & Profitability
•
Corporate social
responsibility (CSR), is the
idea that business has a duty to
serve society in general as well
as the financial interests of
stockholders.
•
The dynamic between CSR
and success (profit) is complex.
They are not mutually
exclusive, and they are not
CSR Today
• Priority of American businesses
• Resurgence of Environmentalism
• Increasing Buying Power among
Consumers
• Globalization of Business
New Corporate Governance
Structure
•
•
•
•
Restructuring governance structure in
American corporations
Heightened role of corporate internal
auditors
Auditors now routinely deal directly with
top corporate officials
CEO information provided directly by the
company’s chief compliance and chief
accounting officers
The New Corporate Governance
Structure
CSR’s Effect on Mission
Statement
• The mission statement embodies
what company believes
• Managers must identify all
stakeholder groups and weigh their
relative rights and abilities to affect
the firm’s success
Audit Sosial
(Social Audit)
• A social audit is an attempt to
measure a company’s actual social
performance against its social
objectives.
• The social audit may be used for
more than simply monitoring and
evaluating firm social performance.
Etika Manajemen
(Management Ethics)
The Nature of Ethics in Business:
• Belief that managers will behave in an ethical
manner is central to CSR
• Ethics – the moral principles that reflect
society’s beliefs about the actions of an
individual or a group that are right and wrong
• Ethical standards reflect the end product of a
process of defining and clarifying the nature
and content of human interaction
Minggu ke 4
Lingkungan Eksternal
(The External Environment)
Variabel-variabel lingkungan
Lingkungan internal
Struktur
Budaya
Sumber daya
Lingkungan kerja
Pemegang saham pemerintah
masyarakat
Lingkungan sosial
Lingkiungan kerja
Pelanggan, pesaing
Kekuatan ekonomi
Teknologi, politik hukum dan sosial politik
Lingkungan kerja
Pemasok, pekerja
Lingkungan Eksternal
Perusahaan
(The Firm’s External Environment)
Comprised of following Components:
• Remote environment
• Industry environment
• Operating environment
Lingkungan Eksternal Perusahaan
(Firm’s External Environment)
Pemantauan Lingkungan
(Remote Environment)
•
•
•
•
•
Economic Factors
Social Factors
Political Factors
Technological Factors
Ecological Factors
Faktor Ekonomi
(Economic Factors)
1. Prime interest rates
2. Inflation rates
3. Trends in the growth of
the gross national
product
4. Unemployment rates
5. Globalization of the
economy
6. Outsourcing
Faktor Sosial
(Social Factors)
Present in the external environment:
– Beliefs & Values
– Attitudes & Opinions
– Lifestyles
Developed from:
–
–
–
–
–
Cultural conditioning
Ecological conditioning
Demographic makeup
Religion
Education
Faktor Politik
(Political Factors)
Political constraints on firms:
•
•
•
•
•
•
Fair-trade Decisions
Antitrust Laws
Tax Programs
Minimum Wage Legislation
Pollution and Pricing Policies
Administrative jawboning
Faktor Terknologi
(Technological Factors)
•
•
•
Technological forecasting helps protect and
improve the profitability of firms in growing
industries.
It alerts strategic managers to
impending challenges and
promising opportunities.
The key to beneficial forecasting of
technological advancement lies in accurately
predicting future technological capabilities and
their probable impacts.
Faktor Ekologi
(Ecological Factors)
•
•
•
•
Ecology refers to the relationships
among human beings and other living
things and the air, soil, and water that
supports them.
Threats to our life-supporting ecology
caused principally by human activities in
an industrial society are commonly
referred to as pollution
Loss of habitat and biodiversity
Environmental legislation
Lingkungan Internasional
(International Environment)
•
•
•
•
Monitoring the international environment
involves assessing each non-domestic
market on the same factors that are
used in a domestic assessment.
While the importance of factors will differ, the same set
of considerations can be used for each country.
Economic, political, legal, and social factors are used
to assess international environments.
One complication to this process is that the interplay
among international markets must be considered.
Forces Driving Industry Competition
Contending Forces
•
•
•
•
•
•
•
Threat of Entry
Economies of Scale
Product Differentiation
Capital Requirements
Cost Disadvantages
Independent of Size
Access to Distribution
Channels
Government Policy
Powerful Suppliers
A supplier group is powerful if:
• It is dominated by a few companies and
is more concentrated than the industry
it sells to
• Its product is unique or at least
differentiated, or if it has built-up
switching costs
• It is not obliged to contend with other
products for sale to the industry
• It poses a credible threat of integrating forward
into the industry’s business
• The industry is not an important customer of
the supplier group
Powerful Buyers
A buyer group is powerful if:
• It is concentrated or purchases in
large volumes
• The products it purchases from the industry
are standard
• The products it purchases from the industry
form a component of its product and represent
a significant fraction of its cost
• It earns low profits
• The industry’s product is unimportant to the
quality of the buyers’ products or services
• The industry’s product does not save the buyer
Substitute Products
•
•
•
By placing a ceiling on the prices it can
charge, substitute products or services
limit the potential of an industry
Substitutes not only limit profits in normal
times but also reduce the bonanza an
industry can reap in boom times
Substitute products that deserve the
most attention strategically are those that
are
– subject to trends improving their priceperformance trade-off with the industry’s
Jockeying for Position
Intense rivalry occurs when:
• Competitors are numerous or are roughly
equal
• Industry growth is slow, precipitating fights for
market share that involve expansion
• The product or service lacks differentiation or
switching costs
• Fixed costs are high or the product is
perishable, creating strong temptation to cut
prices
• Capacity normally is augmented in large
Industry Analysis
& Competitive Analysis
•
•
•
•
An industry is a collection of firms that
offer similar products or services.
Structural attributes are the enduring
characteristics that give an industry its
distinctive character.
Concentration refers to the extent to
which industry sales are dominated by
only a few firms.
Barriers to entry are the obstacles that
a firm must overcome to enter an
Operating Environment
•
•
Also called competitive or task
environment
Includes competitor positions and
customer profiling based on the following
factors:
–
–
–
–
Geographic
Demographic
Psychographic
Buyer Behavior
HR: Nature of the Labor Market
Access to personnel is affected by 4 factors:
• Firm’s reputation as an employer
• Local employment rates
• Availability of people with the needed
skills
• Its relationship with labor unions.
Emphasis on Environmental
Factors
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•
•
•
•
Differing external elements affect different
strategies at different times and with varying
strengths
Only certainty is that the effect of the remote
and operating environments will be uncertain
until a strategy is implemented
Many managers, particularly in less powerful
firms, minimize long-term planning
Instead, they allow managers to adapt to new
pressures from the environment
Absence of strong resources and
psychological commitment to a proactive
Minggu ke 5
Manajemen Strategi
(Strategic Management)
Variabel-variabel lingkungan
Lingkungan internal
Struktur
Budaya
Sumber daya
Lingkungan kerja
Pemegang saham pemerintah
masyarakat
Lingkungan sosial
Lingkiungan kerja
Pelanggan, pesaing
Kekuatan ekonomi
Teknologi, politik hukum dan sosial politik
Lingkungan kerja
Pemasok, pekerja
Perencanaan dari sisi tingkatan manajemen dibagi dua
- Perencanaan strategis lebih terfokus pada bagaimana
manajemen puncak menentukan visi, misi falsafah, dan strategi
perusahaan untuk mencapai tujuan dalam jangka panjang
- Perencanaan fungsional lebih mengarah pada bidang fungsional
memperjelas strategi utama dengan identifikasi yang sifatnya
spesifik.
Strategi
Apa yang harus dikerjakan?
Mengerjakan sesuatu yang benar?
Menggunakan pertempuran untuk
memenangkan perangt?
(Peter Drukker)
Taktik
Bagaimana mengerjakan ?
Menegerjakan sesuatu yang benar ?
Menggunakan tentara untuk memenang
persaingan
(Peter Drukker)
Hirarki Strategi
STRATEGI
Perusahaan
(corporate strategy)
Strategi Bisnis
(Business unit strategy)
Strategi Fungsional
(fuctional strategy)
Pengamatan Lingkungan
Adalah pemantauan, pengevalusian dan penyebaran informasi
dari lingkungan eksternal kepada orang-orang kunci dalam
perusahaan
- Alat manajemen untuk menghindari kejutan strategis
- Memastikan kesehatan manajemen jangka panjang
Dalam penelitian menunjukan ada hubungan yang positip
antara pengamatan lingkungan dengan laba
Variabel –variabel lingkungan
• Kekuatan teknologi
• Kekuatan ekonomi yang mengatur pertukaran uang, enerqi,
dan menghasilkan penemuan pemecahan masalah
• Kekuatan hukum dan politik
• Kekuatan sosiokultural yang mengatur nilai adat istiadat dan
kebiasaan lingkungan (wheelen Hunger)
Beberapa penjelasan variabel lingkungan
• Lingkungan ekternal (sosial)
peluang dan ancaman
• Ekonomi
tren GNP, tingkat bunga, tingkat inflasi, tingkat
pengangguran, pengendalian upah/harga,
ketersediaan enerqi, devaluasi/revaluasi
• Sosiokultural Perubahan gaya hidup, aktivisme konsumen,
harapan karir, tingkat harapan hidup, pertumbuhan
tingkat populasi
• Politik Hukum Regulasi, UU perlindungan lingkungan, UU gaji, UU
pajak, stabilitas pemerintahan, insentip khusus
• Teknologi
Perbaikan produktivitas, produk baru, total
pengeluaran R&D
Beberapa penjelasan variabel lingkungan
• Lingkungan Sosial
• Ekonomi
tren GNP, tingkat bunga, tingkat inflasi, tingkat
pengangguran, pengendalian upah/harga,
ketersediaan enerqi, devaluasi/revaluasi
• Sosiokultural Perubahan gaya hidup, aktivisme konsumen,
harapan karir, tingkat harapan hidup, pertumbuhan
tingkat populasi
• Politik Hukum Regulasi, UU perlindungan lingkungan, UU gaji, UU
pajak, stabilitas pemerintahan, insentip khusus
• Teknologi
Perbaikan produktivitas, produk baru, total
pengeluaran R&D
Variabel-variabel lingkungan
Lingkungan Eksternal (kerja)
•
•
•
•
•
•
•
Pemerintah
Pemegang saham
Pemasok
Pesaing
Pelanggan
Kreditur
Serikat buruh
Lingkungan Internal
• Sruktur
• Budaya
• Sumber daya organisasi
kekuatan dan kelemahan
Minggu ke 6
Manajemen Strategi
(Strategic Management)
Elemen-elemen dari Manajemen Strategis
Pengamatan Lingkungan
Perumusan strategi
Implementasi strategi
Evaluasi dan pengendalian
Visi dan Misi
• Visi adalah suatu cita-cita akan datang yang diharapkan bisa
tercapai
• Misi adalah penjabaran secara tertulis agar visi mudah dimengerti
dan jelas
Pengaruh visi dan misi terhadap kinerja bagi perusahaan
hasil penelitian :
- Perusahaan yang menggunakan misi memiliki hasil 30 % lebih
ukuran finansiil dibandingkan perusahaan tanpa memiliki misi yang
tertulis (Business book)
Contoh Misi dari Mc. Donalds
- Kualitas, pelayanan, kebersihan dan nilai
Proses Perencanaan Strategi
Pengamatan Lingkungan dan Analisa Industri
1.
Pengamatan Lingkungan
- Variabel – variabel lingkungan
mengidentifikasi faktor-faktor strategis eksternal
Matrik untuk analisa lingkungan
- Prioritas tinggi
- Prioritas menengah
- Prioritas rendah
Faktor strategis eksternal perusahaan adalah lingkungan strategis untuk
mengidentifikasi yang dianggap memiliki probabilitas tinggi
Mengkatagorikan faktor-faktor eksternal perusahaan sebagai peluang dan
ancaman dan memasukan dalam perumusan strategi.
Skor penilaian
5
Sangat baik
4
3
Rata-rata
2
1
Jelek
Ringkasan analisis faktor Eksternal
Peluangpeluang
Bobot
Rating
Skor yang
dibobotkan
Keterangan
Perkembangan
Ekonomi dunia
0,20
5
1
Persaingan antar
negara sangat
bagus
Terbukanya pasar
bebas
0, 20
4
0,8
Membanjirnya
produk luar yang
masuk dalam
negeri kualitas
kurang baik
Terbukanya usahausaha baru di
daerah-daerah
0,05
2
0.1
Inovasi produk
meningkat
Fasilitas
pemerintah
0,05
3
0,15
Harga barang
lebih rendah
kwalitas rendah
Kualitas produk
yang dihasilkan
meningkat
0,1
1
0,1
Perlu
dipertanyakan
Ringkasan analisis faktor Eksternal
Ancaman
Bobot
Rating
Skor yang
dibobotkan
Keterangan
Krisis moneter
dunia
0,10
5
0,5
Perlu waspada
dan hati-hati
Perkembangan
produk baru
0, 05
4
0,2
Perlu waspada
Perusahan produk
jepang
0,1
2
0.2
Produk harus
ada perbaikan
Perusahaan
perusahaan
peralatan Cina
0,1
3
0,3
Efisiensi biaya
Peraturan
pemerintah
Jumlah total data
Eksternal
0,05
1
0,05
Kurang konsisten
3,40
Ringkasan analisis faktor Internal
Kekuatan
Bobot
Rating
Skor yang
dibobotkan
Keterangan
Budaya
perusahaan
0,20
5
1
Sangat
mendukung
Manajemen
puncak yang
berpengalaman
0, 20
4
0,8
Banyak kasus
terjadi bisa
diselesaikan
Hubungtan
karyawan
0,05
2
0.1
Harmonis
Integrasi vertikal
0,05
3
0,15
Komunikasi yang
baik
Keuangan
operasional
0,1
1
0,1
Keuangan
dengan rasio
yang layak
Ringkasan analisis faktor Internal
Kelemahan
Bobot
Rating
Skor yang
dibobotkan
R & D yang
berorintasi
proses
0,05
2
0,1
Kurang
diperdayakan
Saluran distribusi
0,05
3
0,15
Terlalu panjang
Pelanggan
0,1
2
0.2
Kurang perhatian
Pemasok
0,1
3
0,3
Kurang
pengawasan
Pekerja
0,1
1
0,1
Kurang
diperdayakan
Jumlah total
Internal
2,1
Keterangan
Minggu ke 7
Manajemen Strategi
(Strategic Management)
The Balance Scorecard
Requirements for
Generic Competitive Strategies
Requirements for
Generic Competitive Strategies
Vertical and Horizontal Integration
Minggu ke 8
Analisis Internal
(Internal Analysis)
Evaluating a Business’s Rapid
Response (Speed) Opportunities
SWOT Analysis Diagram
The Value Chain
Minggu ke 9
Sasaran jangka Panjang dan Strategis
(Long-Term Objectives and Strategies)
The Balance Scorecard
Vertical and Horizontal Integration
Minggu ke 10
Multi Bisnis Strategi
(Multi-business Strategy)
The Industry AttractivenessBusiness Strength Matrix
The BCG Growth-Share Matrix
BCG’s Strategic Environments
Matrix
Minggu ke 11
Pelaksanaan
(Implementation)
Short-Term Objectives
Short-Term Objectives
provide:
•
Specificity
•
Time frame for
completion
•
Who is responsible—
Potential Conflicting Objectives and
Priorities
Creating Measurable Objectives
Value-Added Benefits
Short-term objectives and action plans
provide:
1.
2.
3.
4.
Clarity of purpose
Process development
Basis for strategic control
Motivational payoff
Functional Tactics
•
Functional tactics are different from
business or corporate strategies in three
fundamental ways:
1. Time horizon
2. Specificity
3. Participants who develop
them
Outsourcing Functional
Activities
•
•
Outsourcing is acquiring an
activity, service, or product
necessary to provide a
company’s products or
services from “outside” the
people or operations controlled
by that acquiring company
Outsourcing can save valuable
time and money for many
organizations
Minggu ke 12
Struktur Organisasi
(Organizational Structure)
Matrix Organizational
Structure
The Product-Team Structure
Trends Affecting Organizations
in the 21st Century
• Globalization
• The Internet
• Speed
From Traditional Structure to BWeb Structure
Minggu ke 12
Budaya Kepemimpinan
(Leadership and Culture)
Learning Objectives
1. Describe what good organizational leadership
involves
2. Explain the relevance of vision and
performance in helping leaders clarify their
strategic intent
3. Describe how good leaders use education,
principles, and perseverance to build their
organizations
4. Define and illustrate the value of passion and
selection/development of new leaders as
means to shape their organization’s culture
What Competencies Should
Managers Possess?
Management Processes and Levels
of Management
Organizational Culture
•
•
•
Organizational culture is the set of
important assumptions (often unstated)
that members of an organization share in
common
Every organization has its own culture
Assumptions become shared
assumptions through internalization
among an organization’s individual
members
Ethics
•
•
Ethical standards are a person’s basis
for differentiating right from wrong
The culture of an organization, and
particularly the link between the leader
and the culture’s very nature, is
inextricably tied to the ethical standards
of behavior, actions, decisions, and
norms that leader personifies
Managing the Strategy-Culture
Relationship
Manage the Strategy-Culture
Relationship
•
Link to mission
•
Maximize synergy
•
Manage around the culture
•
Reformulate strategy or culture
Minggu ke 13
Control, Innovation, and Entrepreneurship
Four Types of Strategic Control
Premise Control
•
Premise control is designed to check
systematically and continuously whether
the premises on which the strategy is
based are still valid
•
Environmental factors
•
Industry factors
Strategic Surveillance
•
•
•
Strategic surveillance is designed to
monitor a broad range of events inside
and outside the firm that are likely to
affect the course of its strategy
Strategic surveillance must be kept as
unfocused as possible
Despite its looseness, strategic
surveillance provides an ongoing, broadbased vigilance in all daily operations
Implementation Control
•
•
Strategy implementation takes place as
series of steps, programs, investments,
and moves that occur over an extended
time
Implementation control is designed to
assess whether the overall strategy
should be changed in light of the results
associated with the incremental actions
that implement the overall strategy
– Monitoring strategic thrusts
Balanced Scorecard
Methodology
•
•
An alternative approach linking
operational and strategic control,
developed by Harvard Business School
professors Robert Kaplan and David
Norton, is a system they names the
balanced scorecard
The balanced scorecard is a
management system (not only a
measurement system) that enables
companies to clarify their strategies,
Integrating Shareholder Value and
Organizational Activities across
Organizational Levels
Balanced Scorecard
Four perspectives:
1. The learning and growth perspective: How well
are we continuously improving and creating
value?
2. The business process perspective: What are
our core competencies and areas of
operational excellence?
3. The customer perspective: How satisfied are
our customers?
4. The financial perspective:
How are we doing for our
Innovation
•
•
Invention is the creation of new products
or processes through the development of
new knowledge or from new
combinations of existing knowledge
Innovation is the initial
commercialization of invention by
producing and selling a new product,
service, or process
– Product innovation
– Service innovation
Incremental Innovation
• Incremental innovation refers to
simple changes or adjustments in
existing products, services, or
processes
• Continuous improvement, what in
Japanese is called kaizen, is the
process of relentlessly trying to find
ways to improve and enhance a
company’s products and processes
Incremental Innovation
• Toyota’s CCC21: construction of
cost competitiveness for the 21st
century
• Six Sigma is a rigorous and
analytical approach to quality and
continuous improvement with an
objective to improve profits through
defect reduction, yield improvement,
improved consumer satisfaction,
The DMAIC Six Sigma Approach
10 Essential Elements that
Lead to Incremental Innovation
1. Define quality and
customer value
2. Develop a customer
orientation
3. Focus on the
company’s business
processes
4. Develop customer
and supplier
partnerships
5. Take a preventive
6. Adopt an error-free
attitude
7. Get the facts first
8. Encourage every
manager and
employee to
participate
9. Create an
atmosphere of total
involvement
10. Strive for continuous
Breakthrough Innovation
•
A breakthrough innovation is an
innovation in a product, process,
technology, or the cost associated with it
that represents a quantum leap forward
in one or more of those ways
•
Breakthrough approaches to innovation
are inherently more risky than
incremental innovation approaches
From Idea to Profitable
Reality
Risks Associated with
Innovation
•
•
•
•
Innovation involves creating something
that doesn’t now exist
Long odds for success
Market risk
Technology risk
Idea Factors
•
•
•
•
•
•
Need spotting
Solution spotting
Mental inventions
Random events
Market research
Trend following
Risks Associated with
Innovation
Entrepreneurship
•
•
•
Entrepreneurship is the process of
bringing together creative and innovative
ideas and actions with the management
and organizational skills necessary to
mobilize the appropriate people, money,
and operating resources to meet an
identifiable need and create wealth in the
process
Inventors
Promoters
Who Is the Entrepreneur?
Three Elements Central to
Entrepreneurial Process
1. Opportunity
2. Entrepreneurial Teams
3. Resources