CEO’s 360 Degree Perspective Handbook

the complex business universe

“We Accelerate Growth”


CEO’s 360 Degree Perspective

Friends, Thank you for being a part of the CEO 2009: Frost & Sullivan Exclusive Think Tank. We have designed this handbook in order to provide a greater understanding of the CEO’s 360 Degree Perspective and better equip you in your quest to accelerate the growth of your company. This model provides a visionary platform to build and pursue strong, sustainable growth strategies. This is collaborative piece of thought leadership from our key management personnel and Frost & Sullivan’s Growth Consultants. Our goal is simple, to stimulate thinking and contribute to your individual growth opportunities, strategies, and implementation plans that maps directly to your company’s long-term goals. Having a comprehensive, up-to-date understanding of markets, technology, economic and financial conditions, customer buying patterns, competition, geopolitical and demographic conditions is the foundation for successful growth strategies. If this material inspires you, and you want to ensure that your organization effectively leverages these important perspectives to build a successful growth strategy, I would like to invite you to take advantage of Frost & Sullivan’s CEO’s 360 Degree Growth Workshop. This proprietary session will focus your organization on: identifying promising growth opportunities, evaluating opportunities based on Frost & Sullivan’s comprehensive and proven growth perspective, and implementing only those opportunities with the highest probability of success. Please contact me directly so we can get a workshop scheduled with our team of growth consultants. We at Frost & Sullivan look forward to supporting your decision-making needs and accelerating your company’s growth. Sincerely,

David Frigstad Chairman Frost & Sullivan

Call Toll Free: 877.GOFROST (877.463.7678) or Email:

GOFROST (877. Society of Competitive Intelligence Professionals (SCIP) Listening To the Voice of the Customer—The Number One Imperative PETER SHREEVE Customer Research Director The Role of Best Practices within the 360 Perspective KEITH O’BRIEN and DAN GOLDENBERG Growth Team Membership™ Appendix: Biographies Call Toll Free: The Complex Business Universe: Creating the Visionar y Platform for Innovative Growth DAVID FRIGSTAD Chairman The Global Perspective: Char ting a Course to Growth ART ROBBINS North America President The Impact of the Macroeconomy on Firms VINNIE AGGARWAL Chief Economist Integrated Industr y: How to Leverage Adjacent Industries to One’s Benefit SHEKAR GOPALAN Partner & Vice President of Global Research Technology Innovation is Key to Growth RAJIV KUMAR Partner/Senior Vice President.463. Technical Insights Competitive Intelligence: Mapping the Competitive Landscape BILL ARCHER Chief Marketing Officer.7678) or Email: myfrost@frost.The Complex Business Universe 3 Ta b l e of Contents 4 7 9 11 13 15 17 19 22 . Frost & Sullivan KEN GARRISON CEO.

For all too few. They position their companies to exploit these visions and know how to drive innovative growth strategies. intersecting. integrated-industry. and forcing the CEO to prioritize further analysis and company resources to achieve success. we struggle. The CEOs 360 Degree Perspective™ ensures that CEOs view all key perspectives—global.frost. There are seven major forces which form the basis of the very “Complex Business Universe” in which CEOs exist. Frost & Sullivan has gathered some of the best thought leaders on growth strategies to create this handbook to provide greater insight into each of the perspectives. To achieve a high level of success—CEOs can not allow opportunities to pass by or challenges arise out of nowhere.7678) or Email: myfrost@frost. and best practices developing visionary skills to ensure the successful growth of their Call Toll Free: 877. Chairman Frost & Sullivan G reat CEOs are both great leaders and great visionaries.4 CEO’s 360 Degree Perspective T h e Complex Business Universe Creating the Visionary Platform for Innovative Growth By David Frigstad. These perspectives are constantly changing. They can see coming trends. continually monitoring seven key perspectives that provide opportunity for growth and issues that can hinder growth. CEOs and their growth teams can analyze each of these influential perspectives and develop skills that: • Ensure the company is continuously monitoring both opportunities that offer a high probability for growth • Help the company avoid costly mis-steps because the CEO and growth team have a more comprehensive view of the market Develops the CEO visionary skills to ensure innovative growth strategies that exploit future trends. and what customers want in the future. that threaten the company and its markets. and all too aware of the multiple market forces that could threaten our company’s success. customer. technology. this comes . constantly under stress from information overload. The CEO’s 360 Degree Perspective™ provides a visionary platform from which growth strategies can drive top-line sustainable growth. As CEOs we must maintain a steady focus. economic. By maintaining a 360 Degree perspective. This complex universe is continually influencing and affecting the growth prospects of a company and CEOs need to develop visionary skills to deal with it.463.GOFROST (877. technologies. convergence opportunities between industries. providing answers to some of the tough questions you will have and challenges your organization will face on: Global • What global issues can affect our industry and what should be our strategy to address them? • What are the geopolitical and regulatory issues that can affect our industry? • What cultural issues need to be considered in our global marketing strategy? • What regulatory issues do we need to monitor and consider? Integrated Industry • How are convergence opportunities presenting new growth opportunities or competitive threats? • What expansion opportunities exist within our industry as a result of convergence or technology changes? • Do we have a strategy to expand our offerings into new industries and markets? • What is the convergence potential within other industries? Technology • What are disruptive technologies that we should keep an eye on and have a plan to address? • How will technology change our competitive landscape? • What technical licensing opportunities currently exist? Economic • What political and regulatory changes could affect our industry’s economic future? www. competitive. putting in long hours. For the rest (99% of us).

frost. • Are we aware of: commodity Call Toll Free: 877.7678) or Email: myfrost@frost. and the changing landscape of international trade? • How will changes in population affect our industry? • How might investors affect growth potential in our industry? • Do we need a plan to identify new customer opportunities? • Do we know the buying characteristics of our target audience? Best Practices • What are the most innovative companies in our field doing? • How can we benchmark our performance against the leaders of the pack? • What do best practices in our industry look like? Competitive • What new competitors are emerging? • Is there an opportunity to take market share from a competitor? • Do we have a plan for monitoring and reacting to competitive forces in our industry? Customer • How can we develop a meaningful message to capture market share? www.463. currency risks.The Complex Business Universe 5 Composite view of seven market perspectives that are continually influencing and affecting the growth potential of an .GOFROST (877.

the Growth Consultant. you need to get underneath them.“What does this mean beyond the obvious and how does this affect our business?” This is where you take the opportunities you have defined. Client Team participants to create 21. trends.6 CEO’s 360 Degree Perspective Leveraging the 360 Degree Perspective The challenge is to synthesize these seven perspectives into a visionary platform from which a powerful growth strategy can be generated. there are six (6) development phases to follow in building an effective 360 Degree Perspective and conducting a successful CEO’s 360 Degree Growth Workshop™— Identify. etc • Prioritized list of opportunities in order of importance Analyze Prioritize Synthesize • Identified relationships between growth opportunities their drivers and constraints. The workshop team needs to ask. www. 35 or 70 issues • Determine the measurements for each issue and how they can be trended or sized. or will make an impact on the market • Brainstorm the environment with analysts. Frost & Sullivan’s wealth of global and industry research will help you interpret these perspectives and: • Significantly reduce decision risk • Create new opportunities from future scenarios • Anticipate industry convergence and resulting opportunities • Build a team of visionaries to support long-term growth • Develop a “think tank” mentality that drives innovation • Build a culture of growth. 5 or 10 years?” This development phase applies the visualization to the business and creates strategies to achieve results Outcome • Identified the opportunities. drivers and restraints that are. you begin the process of identifying the drivers and restraints for each of the seven (7) perspectives. mapped to each perspective and develop future scenarios.frost. and leadership • Be the first to identify industry trends and act on them To get started.GOFROST (877. issues. With this information. and with total commitment to accelerate growth. Analyze. the research and insights into the CEO’s 360 Degree Perspective™ will put you on the path to success. Start with most important.Visualize and Call Toll Free: 877. do not worry about prioritizing how relevant each may be. potential domino effects and outputs • An integrated market picture of the opportunity • 2–3 developed scenarios of what might happen based on the teams synthesis of the opportunities and their drivers and restraints. Synthesize. you will become a true business visionary. Now that you have defined the opportunities and their drivers and restraints. and continue until the least important. Step Identify Description In this step. Prioritize. • Strategies that can be implemented to achieve growth Visualize Strategize Without . It is important to capture as many as you can to begin the process. challenges.7678) or Email: myfrost@frost. the research and insights into the CEO’s 360 Degree Perspective™ will put you on the path to success.At this stage. The following table discusses each phase and their outputs. facilitator and the Client Team will analyze how each driver and restraint maps to a growth opportunity you have defined Prioritize each of the drivers and restraints in order of importance to the opportunity issue you defined.This step resembles a “Brainstorming” session where you come up with as many drivers and restraints as you can. and with total commitment to accelerate growth.463. TABLE 1: Six development phases to follow in building an effective 360 Degree Perspective Without bias. innovation.“What might the future look like in 3. In the Analyze step.

information circumnavigates the globe in a matter of milliseconds. North America President “It has been said that arguing against globalization is like arguing against the laws of gravity. have broken down the barriers of isolationism and have created a platform of interconnectivity—the foundation of our global economy. in 2009. political. facilitate decision making. services. has outpaced U. competitors. The first step is the CEO must conduct a Strategic Review of the business to leverage the benefits of operating in multiple countries. Magellan embarked on the first voyage to circumnavigate the globe. and new business models for supporting this strategy. The promise of Globalization is to increase the world’s standard of living through better access to goods. market size. global customers have higher expectations of value. CEO’s who disregard culture put their businesses at a great disadvantage in the global marketplace. | Kofi Annan I n 1519. CEO’s must be willing to think differently about how to approach the global market and thinking differently begins with developing a new perspective—a Global Perspective. India and China. Globalization has traveled a long Call Toll Free: 877. infrastructural. which countries will be considered for geographic expansion. The success of an international organization depends on one’s ability to understand each country’s cross-cultural issues especially those concerning the integration of a diverse workforce. and cultural differences in each. There are now unprecedented growth opportunities available to companies who effectively develop a Global Perspective to their business. while considering the social. economic.frost. But CEO’s can’t jump into the global arena blindly. customs. lasting almost three years. and expectations for behavior. CEO’s simply can’t afford not to be Global. Advances in information technology.463. in addition to changes in consumer behavior. Key considerations include: www. and customer base. This knowledge dramatically raises success rates of market entry strategies by two to three times. In the Strategic Review.7678) or Email: myfrost@frost. the CEO must evaluate growth opportunities to address where the market growth is. demographic. Some common examples include: • Developing an effective network of 24/7 customer support through strategically placed call centers around the globe • Reducing production costs by outsourcing manufacturing to lower cost countries • Empowering global sales and distribution channels via a centralized internet knowledge base • Streamlining R&D and engineering via collaborative systems connecting research teams across multiple locations globally • Leveraging videoconferencing to connect global executive teams.GOFROST (877. CEO’s can realize further benefits by adopting a Global Perspective to the cost structure of the business.The Complex Business Universe 7 T h e Global Perspective Charting a Course to Growth By Art Robbins. CEO’s cannot ignore the impact of Globalization to create and maintain a strong value proposition to their customers. and jobs caused by cross-border competition. and communications. Russia. Frost & Sullivan research shows GDP growth in emerging markets. improve productivity. Frost & Sullivan recommends a repeatable process for using the Global Perspective to put an entry plan in place at a country specific level. and improve internal communications As these models become more commonplace. Implementable business models have emerged that reduce . CEO’s must address the issues and challenges associated with implementing an effective geographic expansion strategy. Successful geographic expansion strategies should be repeatable and built upon comprehensive due diligence of a country’s attributes. The Strategic Review is a measurable and proven methodology that clearly identifies the goals of geographic expansion. Today. Having a true Global Perspective requires more than a basic understanding of worldwide business. Companies who don’t address how they will keep pace with these markets will not be able to maintain a healthy competitive position and economic isolation will result. domestic growth by 4 times in recent years. and enhance service by creating a global value chain. regulatory. such as Brazil. In today’s economy. As an example.S. transportation. Each culture has its own norms.

which can be remote and linked via technology • Evaluate where there are economic and regulatory incentives and/or barriers that would impact the attractiveness of operating in certain countries • Evaluate the availability and cultural attributes of talent Call Toll Free: 877. While developing an effective Global Perspective. integrated-industry. or partner with third parties via strategic alliances or joint ventures • Evaluate business risks such as political.e. the processes for producing and delivering their products to market. currency fluctuations and develop mitigation strategies and risk adjusted financial models • Evaluate the timing. Globalization must be confronted—as deregulation. competitive. As the global economy evolves. and best practices. They must have a 360 Degree Perspective to go global. measuring and monitoring the strategy and implementation plan In the 1500s triangular sails.) through a global lens.7678) or Email: myfrost@frost. planning and implementation. CEO’s need a 360 view of their business—and the cure for myopia is a Global Perspective. astrolabes. Frost & Sullivan recommends following the Strategic Review with the following steps.8 CEO’s 360 Degree Perspective • Which markets present the most attractive growth rates? • Which markets have a window of opportunity to establish a market leadership position? • Can your existing products be introduced into new geographies or do new products need to be developed for new geographies? • Will existing products need to be modified or marketed differently to appeal to the local needs of the new market? • How will you effectively position your products against the local competition? The CEO’s Strategic Review must also look at the value chain of their business—i. impacted by each of the Perspectives in the Complex Business Universe. geographic expansion strategies will fail. mega-competition. Myopia is no longer a viable business strategy. Developing the right global strategy is necessary but not sufficient. the CEO will actually look at all other 360 Perspectives (economic. compasses. The result is a powerful growth strategy designed to capitalize on current and future market opportunities. such as field workers. companies (both established and entrepreneurial businesses) must respond by developing and implementing effective geographic expansion strategies. or extend internal capabilities to the new market. technology. using a set of analytic tools and disciplines: • Country Prioritization—Ranking of all countries under consideration for expansion • Entr y Assessment—In-depth research of the target country that directs market entry strategy decisions • Implementation Plan—Analysis of all logistical issues pertaining to establishing an on-the ground presence in the selected country • Implementation—Execution. security. and information technology have led to an acceleration of rivalries. Key considerations include: • Which processes must be close to your customers and suppliers/resources vs. and nautical charts were the tools that guided Magellan’s global journey. customer. www.463. or knowledge workers • Evaluate your core competencies and determine if the market entry strategy should result in M&A to acquire assets and resources. Today. Without proper due diligence. sequence and organizational readiness of market entry CEO’s need a 360 view of their business—and the cure for myopia is a Global Perspective. CEO’s can easily get lost in the circumnavigation vortex. with proper market intelligence and toolkits to serve as an accurate roadmap to success.frost. etc.GOFROST (877. technical .

however. The presence of inflation. www. affecting both their daily operations and merger and acquisition costs. unemployment levels. As the current financial crisis shows. monetary policy and interest rates. monetary policy directly influences interest rates. In many cases. exchange rates. The direct costs of coping with inflation also increased management costs as prices must be adjusted on a rapid and regular basis. thus potentially pushing firms into higher tax rates—a good example of such inflation creep is the personal alternative minimum tax that more taxpayers have been subjected to because AMT was not adjusted for . Firms also often end up footing a larger tax bill as governments do not always adequately index taxes to inflation. Interest rates are perhaps the most important issue that firms face. businesses must adapt both to managing these costs as well as attempting to price their products to compensate for losses of real revenue. consideration of the global macroeconomy is crucial. counterparty risk became a predominant concern. and keeping up with competitors. this phenomenon was common among banks as spreads on interbank lending actually increased despite central banks efforts to loosen monetary policy and drive greater lending. but lenders may still be unwilling to lend or may make it more difficult to secure loans by imposing onerous conditions on borrowers if they are concerned about default risk. Yet businesses cannot simply ignore the larger macroeconomic environment in which their firms operate. and fiscal policy. also increases the costs of contracts as firms need to hedge against inflation risks. firms can easily be overwhelmed by negative developments and may be unprepared to take advantage of opportunities such as government stimulus packages. many potential borrowers are finding it extremely With banks unsure about the solvency of their peers. particularly in an uncertain macroeconomic environment. cutting costs.463.The Complex Business Universe 9 T h e Impact of the M a c roeconomy on Firms By Vinnie Aggarwal. firms simply view the global macroeconomy as something beyond their control and thus an issue that merits less attention than immediate profitability and market share issues.7678) or Email: myfrost@frost. counterparty risk became a predominant concern.frost. Inflation affects firm strategies in many ways. With banks unsure about the solvency of their peers. in the mortgage market.GOFROST (877. it is hardly surprising that overwhelmed executives spend much of their time on what they perceive to be immediate business issues: seeking customers. We can consider a number of important ones including inflation. Currently. Most firms operate with significant amounts of debt. Macroeconomic factors are likely to affect firms in many ways. In 2008. Of course. As the prices of inputs rise. In Call Toll Free: 877. Chief Economist Frost & Sullivan I n considering a 360 degree perspective on corporate strategy and positioning.

there has been a heated debate about the proper value of the yuan. www. both vis-a-viz other exporters as well as import competing firms such as those in the United States and Europe. the American Recovery and Reinvestment Act. Employment rates also directly affect business strategy. Much of the new spending is often targeted to specific sectors or types of firms. On the negative side. Currently. This integrated approach links the context of firms in the macroeconomy and global developments to the industry in which they operate. as part of Obama’s fiscal policy. especially if they are not market leaders. Over the last few years. consumer discretionary spending is likely to fall with high unemployment and employee morale may be low. among the most prominent being the large packages developed by the Chinese and the Americans. countries often intervene in currency markets to bolster exports or fight inflation. they can develop best practices and create a customerfocused company to deal with customers and successfully navigate their way in a complex global political economy. firms may be well-positioned to attract strong talent that they would be unlikely to get in a stronger employment market.10 CEO’s 360 Degree Perspective difficult to secure loans despite having good credit as banks overreact to previous years of sloppy lending policies that drove the current crisis. Although major currencies have been floating against one another since . fiscal policy is playing the largest role.frost. particularly with countries such as China. there is little doubt that of all macroeconomic variables. Firms are often more affected by exchange rate swings and currency valuations than by tariffs or other direct trade Firms are often more affected by exchange rate swings and currency valuations than by tariffs or other direct trade Call Toll Free: 877. $168 million is directly targeted to help small business owners (http://www. Governments throughout the world are actively engaging in undertaking major fiscal stimulus. which affects the competitiveness of Chinese exporters. Understanding potential market opportunities that may emerge from the packages is crucial for corporate strategy.wbsonline. As firms then consider technological and competitive trends. A 360 degree perspective includes crucial elements for consideration that companies need to succeed. in reality.463. For example.GOFROST (877. The balance of trade and its potential impact on exchange rates has increasingly become a central issue.7678) or Email: myfrost@frost. At the same time.

more importantly. Lately. multimedia capability.The Complex Business Universe 11 In t e g rated Industry: How to L e v e rage Adja cent Industries to O n e ’s Benefit By Shekar Gopalan. Mobility is key to efficiency by helping to reduce response times and consequences of delayed attention and has become essential for both individuals and businesses. to grow. represent a huge opportunity for semiconductor manufacturers. Countless are the companies that have been driven out of business due to the emergence of competition in low-cost nations. Understanding the dynamics of adjacent industries is critical to stay in business and. newer wireless communications devices such as Mobile Internet Devices (MID) offer revenue potential to instrumentation and semiconductor vendors. Additionally. display technology. smartphones. A CEO 360 perspective also dictates realization that the interdependence of industries can be just as dangerous and opportunistic. Call Toll Free: 877. Numerous mobile devices such as PDAs. the emergence of the Mobility concept does just that. Partner & Vice President of Global Research Frost & Sullivan T oday’s global market environment demands a CEO’s 360 degree perspective that operating a business by solely focusing on regional markets without consideration of dynamics and opportunities in other geographies is commercial business and mission-critical applications while they are out in the field. Such integrated industry segments are potential seeds for growth tomorrow. away from the office or traveling. Mobility has been ‘topof-mind’ for consumers and enterprises as the population tends to do more ‘on-the-go’. Understanding the dynamics of adjacent industries is critical to stay in business and. For Measurement & Instrumentation (M&I) vendors. to grow.7678) or Email: myfrost@frost. MIDs. It often means new alliances and customers to target that will be essential to guarantee the firm’s future growth. technological developments from adjacent industries can be leveraged into new product introductions/enhancements and applications to foster growth.GOFROST (877. more importantly.frost. In particular. as semiconductor components are required to enable rapid improvements in . and camera quality of these devices. connectivity. in particular.463. These newer devices are also loaded with various sensors offering opportunities for sensor and semiconductor manufacturers. as manufacturers of such devices need to perform extensive testing at the R&D and manufacturing stage while service providers will need to test these devices prior to their implementation and during their operation to ensure customer satisfaction. stay connected and access www. The future of mobile phones and home electronic devices spell out opportunity for test & measurement equipment vendors. and ever-expanding high-speed wireless networks and Wi-Fi networks enable workers to have access to the Internet.

com Call Toll Free: 877. it presents a huge opportunity for test equipment and sensor vendors too. many more exist in other adjacent industries. while still at the early-adopter stage. Over the past decade. These farms are mostly in remote and inaccessible locations and spread over several hundreds of acres. instrumentation. This presents test. The growing importance of wireless in the healthcare industry is a case in point. including the emerging applications like remote surgery.463. the healthcare industry has been shifting to wireless technologies and applications. important today as many conventional and traditionally low-tech industries are embracing modern . is expected to continue and accelerate. The proliferation of wireless medical devices can pose problems. as the industry strives to improve patient mobility and data access for healthcare professionals. This revolution. thus enhancing the need for testing. is the susceptibility of these devices to RFI /EMI. This is just one of the multitudes of opportunities that an integrated industry perspective presents. and semiconductor vendors.frost. It is. The down-time can be even more expensive if it brings down the grid or application being powered. a 360 degree perspective of the integrated industry is a critical tool for CEOs to plan their future business growth. Manual identification/repair of faulty generation components is time-consuming and expensive. While this may be seen as an opportunity for renewable energy generation products and systems manufacturers. It also helps get repair crews directly to the affected spot eliminating time consuming on-site diagnostics. especially. and Internet access enables mobile phones to be an important component of illness diagnostics or management programs. www. In conclusion. 3G and beyond wireless broadband communications are developing rather rapidly and offer tremendous opportunities to improve healthcare process and systems. multi-application smartcards. the integration of satellite communications. One major issue. Additionally. represents significant future growth opportunities for the test and instrumentation industry.GOFROST (877. sensors. and semiconductor vendors with tremendous growth opportunities. for instance. there is rapid influx of investment into the renewable and energy industry.12 CEO’s 360 Degree Perspective …technological developments from adjacent industries can be leveraged into new product introductions/ enhancements and applications to foster growth. The growing field of telemedicine. which can lead to corrupted data with dire consequences. Imagine a wind energy farm of hundreds of wind turbines or a Solar PV farm of thousands of panels. The other benefit from staying aware of dynamics in adjacent industries is the ability to leverage technological advancements in product development. Mobility is pervasive and its application in various industries translates into countless opportunities for test. instrumentation. Breakdown of a few turbines or panels will drastically affect inflow to the grid or captive application. Mobility and mobile test devices offer great opportunities to embed sensors into various farm generation components to monitor health and identify faults before a catastrophic event. For instance. sensor.7678) or Email: myfrost@frost.

while external challenges are related to factors impacting adoption and commercialization of new technologies and eventual ROI on product development efforts. As a stand-alone perspective. commercialization. Internal organizational challenges include issues related to company .frost. executive sponsorship. economic.463.GOFROST (877. disruptive and sustaining technologies and such. Technical Insights Frost & Sullivan O ne of the critical 360 degree perspectives impacting the CEO’s team is the technology viewpoint. technology innovation fuels growth and sustainability of organizations. competitive and best practices. technology roadmaps. 3) Aligning ideation with the strategic vision (including inter-departmental communication): Ideation must include mechanisms to channel inputs from multiple functional groups within the organization to align innovation with the strategic vision. www. Partner/Senior Vice President. 5) Allocating and prioritizing investments: Prioritizing investment over the short. technology innovation fuels growth and sustainability of organizations. In good economic times or bad. and continuous funding for R&D projects. team-building In good economic times or bad. more importantly. Challenges facing Technology Executives The CEO’s technology and R&D executive team is faced with numerous internal and external Call Toll Free: 877. emerging technologies.7678) or Email: myfrost@frost. it provides a critical focal point for technology driven or technology-based companies. 4) Defining innovation time frames: The process of demarcating stages of innovation based on time-tomarket. customer. services and solutions tend to do better than those who cut back on R&D programs. Key internal challenges include: 1) Measuring the value of Innovation: Establishing and applying metrics that quantify the value of innovation projects. integrated industry.The Complex Business Universe 13 Te c h nology Innovation is K e y to Growth By Rajiv Kumar. technology is important but in conjunction with six other perspectives. For many businesses in diverse verticals. technology development and innovation are crucial to keep up with customer demands. The key is to identify the most potent projects and take them through a systematic process of development and go/no-go decision milestones. global. achieve overall growth objectives. This perspective consists of a set of factors primarily focusing on innovation. new applications. Companies that continue to invest in development of innovative products. namely. medium and long term. competition and. IP evaluation. 2) Implementing customer driven innovation management: integrating customer feedback to guide the innovation process for product development.

incentivize. the technology perspective offers insights into activities in different regions that might allow collaboration with other technology-based companies. Since the technology perspective provides critical support to a CEO’s overall growth strategy. And this can be achieved by following best practices of successful companies as well as seeking professional help from technology and growth consulting firms. When you integrate the technology and customer perspectives.14 CEO’s 360 Degree Perspective 6) Build vs. when integrated with the global perspective. Visionary companies will always count on their ability to innovate before others and converting their innovations into commercializable solutions. 2) Matching innovations to applications (unmet needs): Focused and purposeful innovation based on a rigorous process of evaluating existing and future applications. M&A. buy for innovation: Balancing internal technology innovation with external sourcing. 9) Developing and managing intellectual property: It is important to design an effective IP strategy to develop. 10) Cultivating an innovation focused culture: Incorporating innovation in the organizational DNA involves a top-down approach to build a climate to drive multifunctional knowledge sharing and collaboration. and monetize technology innovation. A major issue for any technologist is the speed and regularity with which innovations need to be developed. timely and useful information is paramount. the technology platform can be combined with any of the other six perspectives to gain unique advantages. These challenges define the complex job of technology executives. develop and market their innovations and grow their business. 8) Developing and motivating the R&D team: Hire best in class talent. 3) Innovation for product differentiation: Employ innovation to generate a compelling and sustainable value proposition in pursuit of product differentiation. or introduction of new products or new applications. and . user interfaces and other inputs to guide product innovation.GOFROST (877.7678) or Email: myfrost@frost. Visionary companies will always count on their ability to innovate before others and converting their innovations into commercializable solutions. 5) Tracking the competitive technology landscape: Real-time monitoring of technologies and applications targeted by incumbent and potential competitors. the need for accurate. 4) Mining the white space to inform innovation strategies: It is imperative to scan the technology/application whitespace to identify novel target opportunities.463. Moreover. protect. The Technology perspective combined with the other six business perspectives gives CEOs and their growth teams the ability to identify. proved. For Call Toll Free: 877. 6) Monetizing innovation: The ultimate objective of innovation success is to productize innovation to maximize profitability and sustainability. Some of the key external challenges are: 1) Negotiating the IP Jungle: It is critical to map the intellectual property landscape to identify whitespace and IP dense areas to guide the innovation strategy and to ensure freedom to practice. www. you have a framework for identifying unmet needs in terms of product capabilities. 7) Evaluating open innovation for co-development: Reviewing the available open innovation options to optimize innovation strategy in pursuit of efficient product development.frost. desired features. and inspire the team to stay on the leading edge of innovation.

Competitive positioning factors include a wide perspective of the environment outside our company: political. and applied to business decisions. analyzed. coordinated competitive intelligence effort can provide a holistic view of markets. they require insights and analysis to make better decisions. Chief Marketing Officer. coordinated competitive intelligence effort can be a powerful and effective tool for enhancing decision-making that drives corporate growth. competitive. many industrial sectors are experiencing both consolidation and globalization. not years. The time horizon for making decisions continues to narrow— strategic time horizons are being measured in weeks. www. leverage my time more effectively? What is CI? An effective. make them faster—in short. Add to these business dynamics the growing uncertainty of “unexpected” market events and decision-makers require as much insight and foresight about future competitive situations as possible. Competitive intelligence develop a reliable helps and coordinated competitive intelligence effort can be a powerful and effective tool for enhancing decision-making that drives corporate growth. Frost & Sullivan and Ken Garrison. they face an even more competitive landscape. economic. Price competition is being fueled by international competition—both at home and abroad—and for some businesses regulatory pressures are becoming worldwide. Society of Competitive Intelligence Professionals (SCIP) T oday’s competitive environment is increasingly becoming more complex and dynamic. how can intelligence help me address the right decisions. competition. Today. As company leaders look ahead. technology.GOFROST (877. The insights generated by a focused.7678) or Email: myfrost@frost. The fundamental intelligence question for any decision maker is straightforward: How can intelligence inform me about the current and future world so that I can enhance my job performance? More specifically. But managers do not need more information. They need help diagnosing the myriad challenges they face every day and deriving The insights generated by a focused. The pace of technological innovation and disruption continues to increase. Having your competitive intelligence function on the frontline to monitor this landscape will ensure that you have the best information to make critical business decisions. and competitive forces.463. industry. comprehensive understanding of your market landscape. It supports the Decision-makers are all looking for the specific indicators and signposts of what the future industry conditions are likely to be to allow them to develop contingency plans or optimally bend the outcomes to a more favorable position for their company. effective solutions for them.The Complex Business Universe 15 C o m petitive Intelligence Mapping the Competitive Landscape By Bill . Increasingly sophisticated information technology creates a continuously expanding amount of competitive information that must be organized. and customers in an environment of change. regulatory.frost. social. This understanding directly impacts your ability to successfully drive your organization forward and achieve your growth objectives. make better decisions. competition. Call Toll Free: 877.

Insight conveys new knowledge and understanding to help enhance decision-makers to create totally new insights about the subjects. impact modeling. While often formalized into a dedicated team in larger corporations. proves the means by which competitive information is systematically collected. Placing it within a defined framework encourages employees throughout the organization to be a part of the activity. whether implemented by a competitive team or diffused throughout an organization. etc). plans. An intelligence process. etc). there are no common approaches or standard answers to starting a competitive intelligence effort. analyzes it using appropriate techniques (trend analysis. Their deliverables must include insights. Through this process. Key to the effectiveness of competitive intelligence analysts is their ability to objectively produce unbiased recommendations for decision options.16 CEO’s 360 Degree Perspective need to make the best fast moving decisions possible and minimizes business surprises. plans. No two companies are alike. but also alerts decision-makers about threats and opportunities not previously identified. Intelligence gathers information from multiple sources (people. and intentions. technology scouting. conclusions. Starting a new competitive intelligence function could very well be one of the most important activities your company engages in this year.463. intelligence not only provides perspective on known business concerns. albeit in an ad hoc form. Through objective. and provides a process by which the ongoing intelligence effort has a stronger decision-orientation. Like many endeavors that carry significant potential benefits. processed. internet. www. competitive intelligence can become a part of any corporate culture— in fact your company already practices intelligence. Intelligence can be implemented within companies of any size.GOFROST (877. technological. An intelligence function creates insights and analysis that helps your managers make more effective decisions and implement strategies to improve the company’s competitiveness. political. thus producing uncommon actions and business initiatives.frost. and implications linked to decisions. no two intelligence functions are alike. print. and creates insight into their potential impact on the company. timely. An intelligence function creates insights and analysis that helps your managers make more effective decisions and implement strategies to improve the company’s competitiveness. Today’s hyper-competitive environment requires your company to have the ability to better understand its competition and the competitive forces that affect its success. scenario planning. competitive intelligence delivers knowledge about the competitive environment and helps translate global shifts and transformations into strategic recommendations. judgments. social networks. and as a result. and economic landscape that affect the company’s ability to be successful in its chosen marketplace. forecasts. or actions. and continuous analysis. and analyzed to increase company understanding of the competitor’s capabilities. An intelligence-informed dialogue helps test and refine decision-makers own thinking and openly pursuing the business implications of the analysis Call Toll Free: 877. It also tracks changes in the . game theory.7678) or Email: myfrost@frost. focused.

. In this context it is surprising how many companies do not recognise the importance of becoming customer centric— many who work in a business to business context still focus on product features rather than benefits and create products without involving the customer or end consumer in their development. the economy. For example. will sign up for communities to help advance improvements and can be accessed more easily through consumer and specialist panels.7678) or Email: myfrost@frost. demographics and mega trends all drive changes in customer behavior. www. The potential downside is that customers can also use the internet to express their dissatisfaction. A business that relies on channel partners or a long Technology Whilst the internet is over 10 years old it continues to impact how customers buy products and services and interact with brands.463. quickly building up powerful anti-corporate feeling through online blogs. Customers are the life blood of any business. The internetgeneration is less patient—they have real time requirements and will switch brands if the user experience is not satisfactory. The internet has allowed for and driven customer empowerment— customers are able to become closer to products and brands. Technology. Whether positive or negative it highlights the need to have a relationship with customers and to respect that we as businesses have to cede control. whether your customer is another business. With the right Search Engine Optimisation strategy producers can find and then communicate direct with their customers wherever they live. P&G created the Tremor panel long before other manufacturers to test and create product .com Call Toll Free: 877. Customers welcome their involvement in co-creation activities. It has allowed niche products to be sold directly or through intermediaries. It is even more important to ensure these metrics do not remain static but reflect what is important to customers.GOFROST (877. Companies that take the customer perspective seriously include customer insight programmes and metrics in corporate balance scorecards. an intermediary or an end consumer. The internet has increased customer choice. Understanding the impact is critical to ensure your product and service propositions are in line with customer needs. Customer Research Director Frost & Sullivan C ustomers are the life blood of any business therefore a focus on the customer must be of paramount importance as part of the CEO’s 360 visionary perspective. Spending money and time on the right digital experience for customers is imperative as so much customer choice is driven through initial internet searches.The Complex Business Universe 17 L i s t e ning to the Voice o f t h e Customer The Number One Imperative By Peter Shreeve.

Renegotiating terms and conditions with intermediaries may impact their demand for your products or service. Patient ratings of hospitals and doctors are becoming publically available via the internet highlighting the further empowerment of consumers. In healthcare. Nissan recently announced it will start producing batteries for electric cars in the UK. referenced and catalogued to ensure they gain visibility with the Call Toll Free: 877. The older generation continues to be a segment poorly marketed to and represented in growth strategies. Demographics The voice of the customer should always be heard. It seems no profession or business will be immune from customer empowerment and from broader choice. Businesses need to research these segments and markets more thoroughly to understand the underlying attitudes and preferences to grow their brands. Transparency will be paramount for businesses and professionals in the future.GOFROST (877.18 CEO’s 360 Degree Perspective distribution chain should review how its products and brands are featured.frost. a reduced price can become the norm and have a long-term negative impact on the brand impacting shareholder value. Brand positioning may be subtly different in each country. Monitoring and understanding the green trend alongside other mega trends is key to ensuring your products and services can react to the opportunities and threats they pose. and hence how it is promoted by your . Ensuring you have customer research programmes in place and the customer represented at the top table through key performance indicators will allow you to keep pace with and react to changing demands. find your products. It is a strategy that needs to be handled with care.463. www. review your products and make their choices is changing.7678) or Email: myfrost@frost. Reducing headcount can often have a negative impact on general service and account management delivery. In Summary Customer intimacy will allow you to better understand and navigate the road ahead. The demand to reduce transport fuel emissions acts as a stimulus for the next generation of cars. Outlining your Corporate Social Responsibility policy is a starting point but transparency and continued investment in reviewing green activities is now expected and required by customers. For example. The challenge for brands is to ensure that their brand equity remains intact. a greater demand for home-grown products to reduce carbon footprint has an impact on consumer demand for imported products leading to changes in import levels. Put simply a strong brand can charge aboveaverage prices. Now that customers have so much control it is important to understand and deliver the voice of the customer throughout your organisation. Mega Trends Concern over corporate and human impact on the environment is not new but continues to encroach in every part of business life. How customers access information. Drugs can be bought over the internet fuelling the rise in counterfeit drugs. The voice of the customer should always be heard. The Economy Reducing costs and making budgets go further has always been important in both the business and consumer context but even more so in a recession. patients are now able to self-diagnose thus changing the relationship they have with their physician. No industry is immune and hence understanding and tracking attitudes on green issues is important if your business is going to grow. Ageing and growing populations and increasing wealth in emerging markets present opportunities for new products and market expansion.

processes and strategies implemented by the featured company. Best practices ensure that CEOs have a set of proven practices to supplement internal data and tools when dealing with key issues and challenges. In such an environment it is critical to have a 360 perspective on the company and the marketplace to guide these decisions. the best practice profile should incorporate the pertinent tools. vendors or consultants • Actionable content—the best practices must enable the CEO and other executives to apply insights and takeaways to their own companies. Sales.The Complex Business Universe 19 T h e Role of Best Practices Withi n th e 3 60 Perspective By Keith O’Brien and Dan Goldenberg. Given today’s economic downturn.GOFROST (877. best practices should be a part of every CEO’s decision-support resources. best practices enable CEOs to make betterinformed decisions by: • Avoiding the mistakes and missteps that other companies have made in addressing pressing growth challenges—don’t reinvent the wheel • Reducing the risk in developing and implementing strategies and tactics • Saving money and time by directing proven solutions against identified problems • Accelerating the learning curve effect and addressing the root causes not the symptoms of a challenge In evaluating best practices CEOs need to consider the following factors: • Data-based research agenda—that the list of challenges addressed in the best practices is derived from surveys of the executives in the key functions that report into the CEO—Marketing. Best practices ensure that CEOs have a set of proven practices to suppliment internal data and tools when dealing with key issues and challenges. Corporate Strategy. www. making the right decisions is even more imperative for each and every CEO. credit crisis and market volatility.frost. The latter point is key as best practices must be produced independent of financial considerations from companies. Accordingly. In specific terms.” which are defined as specific activities performed to solve a tough business challenge that nine out of 10 companies are not performing but should. Growth Team Membership™ Frost & Sullivan I f there is one type of executive that can speak to the challenge of navigating today’s complex business environment it is the CEO. comprehensive and objective.463. with measurable results proving effectiveness.7678) or Email: Call Toll Free: 877. R&D and so forth—and are responsible for executing the CEO’s growth strategy • Rigorous research methodology—that the research process used to identify and profile the best practices is transparent. A crucial part of this 360 perspective is “Best . Because they provide CEOs with more choices and solutions when making decisions.

as the market and category matures. a US manufacturer with revenues of $1BN. and even declining. Determine which mature product has the best competitive advantage to exploit in new markets 3.20 CEO’s 360 Degree Perspective An example of a Best Practice—Reinvigorating Mature Products to Stimulate New Growth The following is an excerpt from a best practice developed by the Growth Team Membership™ research team at Frost & Sullivan. namely what is their competitive advantage in their current market 2.7678) or Email: myfrost@frost. viable markets(see Figure 2): 1. how do they identify the right strategic partner to work with? In summary. Decide how to enter this new market based on the firm’s capabilities 5. the business results. Assess existing company products (capabilities) to identify what they do .com Call Toll Free: 877. if the company cannot go it alone. The growth challenge it addressed was overcoming stagnating demand for mature products in current markets. the core elements of the solution. resources required to implement the solution. (See Figure 1.. and the executive functions to whom the best practice is most applicable.463.frost. This best practice demonstrates how a company developed and implemented a process to identify new markets and applications for mature products. www. best practices arm CEOs with demonstrated solutions from other companies that empower them to more effectively pursue their growth strategy and business imperatives. the challenge it faced.) The second page provides an overview of the five-step process Appleton created to assess their mature product portfolio and find new. Identify the right new market in which to launch this product 4.GOFROST (877. The company profiled is Appleton Inc. Best practices arm CEOs with demonstrated solutions from other companies that empower them to more effectively pursue their growth strategy and business imperatives. The challenge is common to many companies irrespective of their industry: the sales and share of core products starts stagnating. The first page of the two-page excerpt (from a 14 page original) summarizes the best practice: an overview of Appleton. Lastly.

com .frost.’s best practice overview.463.GOFROST (877. www. FIGURE 2: Appleton Call Toll Free: 877.7678) or Email: myfrost@frost.The Complex Business Universe 21 FIGURE 1: Appleton Inc.’s five-step process.

7678) or Email: Call Toll Free: 877. owned and operated a commercial printing business.Vinnie also serves as Editor-in-Chief of the journal Business and Politics. Dan Goldenberg Dan is Vice President of Growth Partnership Strategy and runs the Growth Team Membership™ program including global responsibility for the firm’s strategic client partnership and product development efforts. and several emerging companies. a division of the Corporate Executive Board. Since joining Frost & . and worked on the treasurer’s staff at Reynolds Metals Company. Ken Garrison Ken is the Chief Executive Officer of the Society of Competitive Intelligence Professionals. David Frigstad David serves as Chairman of the Board. the Business and Public Policy group in the Haas School of Business.463. they have successfully implemented this Vision by having research and growth consulting support in all global economic centers with 25 country offices. Bill has spent many years as a marketing professional in the roles of Vice President and a senior marketing consultant with firms such as Lockheed Martin. they acquired Frost & Sullivan. In college. established the Best Practice Research Group. Bill Archer Bill is Chief Marketing Officer. David along with his business partner envisioned a plan for global consulting and in 1993. He earned an MBA degree from the University of Dallas. and Co-Chair of the U. Ken served as President of Finance Credit and International Business (FCIB). www. CBIS. David holds a master degree from the Japan American Institute of Management Science in association with Sophia University and a Masters in Business Administration with a double concentration in International Finance and International Marketing from Indiana University.frost. managing Frost & Sullivan’s Global Marketing and Corporate Communications programs. Over the past 25 years.GOFROST (877. Previously he founded and managed the Sales Operations Excellence Center. and Director of the Berkeley Asia Pacific Economic Cooperation Study Center (BASC) at the University of California at Berkeley. and formalized the Growth Strategy Dialogue Program. Dan has launched the Growth Team Membership.22 CEO’s 360 Degree Perspective A p p e ndix: Bio graphies Vinnie Aggarwal Vinod (Vinnie) is Frost & Sullivan’s Chief Economist.Consortium of APEC Study Centers. He is also a professor in the Department of Political Science. He works closely with the Board of Directors to establish society goals and objectives and he manages the daily operations of SCIP. Prior to joining Frost & Sullivan. along with global responsibility for the firm’s Marketing Excellence program leveraging the firm’s market intelligence to create powerful demand generation programs for clients.

Peter Shreeve Peter is Director of Customer Research and has over 20 years experience gained with leading market research agencies and client side at Reuters as head of Global Customer Satisfaction Programmes. Kumar has broad experience in multiple industries with a talent for thinking “outside the box. Data acquisition systems. Analog and Digital Analyzers. Keith has an MBA from the Kellogg School of Management. and market research of various types of test equipment and instrumentation products and markets.463. Europe and North America positions him as a proactive leader with a keen ability to analyze and prioritize problems with senior decision makers and clients at any level. transformation and IT consulting services. BoardTest Systems.The Complex Business Universe 23 Shekar Gopalan Shekar has nearly 30 years of experience in design.frost. Art Robbins Art is North America President.” His international business experience in Asia. Israel and Africa. Best practices research entails documenting 90th percentile practices within companies that address the key challenges faced by the leadership of the key functions supporting the CEO. Focusing on strategic consulting. Calibration Systems. customer satisfaction.Sc. Peter holds a BA in Business Studies and is responsible for Frost & Sullivan’s customer research business across Europe. He has global responsibility for identifying and profiling best practices for the Growth Team Membership™ program. and other test equipment with leading Fortune 100 companies Keith O’Brien Keith is Global Senior Director of Research. Prior to joining Frost & Sullivan. where he oversees and manages the North American Client Business Units. starting with American Management Systems.GOFROST (877. usage and attitudes. and an M. Keith worked at the Corporate Executive Board where he managed best practices programs in the Sales & Marketing and Financial Services divisions. an IT consulting firm and Ernst & Young. Rajiv Kumar Rajiv is Partner and Senior Vice President and has over 18 years of diverse experience directing successful strategy consulting and technology research businesses. marketing. RF/ Microwave equipment. Mr. www. where as Partner and Vice President. and BBS from Trinity College Dublin. client development and leadership development to accelerate client growth objectives. primarily in the emerging technology fields. he provided a full range of strategy. sales. Sensor instrumentation.7678) or Email: Call Toll Free: 877. He has created and delivered research programmes within both business to business and consumer markets covering advertising effectiveness. his experience spans over 25 years with multiple consulting companies. brand equity. He has marketing experience with products such as Mobile Wireless Network test equipment. .

.frost. The company’s Growth Partnership Service provides the CEO and the CEO’s Growth Team with disciplined research and best practice models to drive the generation. and the investment community from 34 offices on six continents. evaluation and implementation of powerful growth strategies.Frost & Sullivan. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies. please visit http://www. To join our Growth Partnership. the Growth Partnership Company. enables clients to accelerate growth and achieve best-in-class positions in growth. innovation and leadership. emerging