Big-Think Strategy

Prof. Datuk Dr. John Antony Xavier

MBA
GSM-UPM
2011

(c)Prof. Datuk Dr. John Xavier 1

Please remember!
◦ No class on 27th May
◦ Research paper by 3th June
◦ Thank you.

(c)Prof. Datuk Dr. John Xavier 2

 STRATEGIC PLANNING : THE BIG PICTURE

EXTERNAL ENVIRONMENT

Economic Clients/
Social Customers REVISE AND CHANGE AS NEEDED
Political Competitive/
Technological Collaborative forces

Assess
Develop Organization’s Set Long- Craft Implement Evaluate
Vision & Current and Future Term Strategies Strategies Performance
Mission Situation Objectives

Resources Present strategy

Capabilities Performance
Technology Top Management REVISE AND CHANGE AS NEEDED

INTERNAL ENVIRONMENT (c) Prof. Datuk Dr. John Xavier 3

 ELEMENTS OF STRATEGIC
MANAGEMENT
Expectations,
-mission,
vision,
objectives

The external The internal

environment environment

STRATEGIC
ANALYSIS Review,
Follow-
up
action
Generation
STRATEGIC STRATEGIC HR and
of options
CHOICE IMPLEMENTATION Resource
& EVALUATION planning

Evaluation Systems and

of options Organization
Action Plan – structure
Selection Initiatives,
of KPI
strategy
(c) Prof. Datuk Dr. John Xavier 4
Strategy-Formulation Framework
 Stage 1 - Input Stage
◦ EFE matrix
◦ IFE matrix
◦ Competitor analysis
 Stage 2 - Matching Stage
◦ SWOT
◦ SPACE matrix
◦ BCG matrix
◦ Big Think
◦ GE/McKinsey matrix
◦ Grand strategy matrix
◦ IE matrix ©
Pr
of.
Da
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 Stage 3 - Decision Stage Dr
k

◦ Consolidation, prioritisation and selection (QSPM) Jo

.

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(c) Prof. Datuk Dr. John Xavier r
Big-Think Strategy
 Formulated by Bernd. H. Schmitt
 Thinking out of the box
 Creating bold ideas and disruptive strategies

that change markets and make companies

competitive
 Creative and visionary thinking

(c)Prof. Datuk Dr. John Xavier 6

Big-Think Strategy Model
 An opportunity to Learn, Explore and
Implement new & creative ways of
approaching business challenges, so that it
can thrive as a business.
 Creative Vehicle- helps to build meaningful

connection between company and their

business targets.
 “Think out of the box”

(c)Prof. Datuk Dr. John Xavier 7

Big Think vs. Small Think
Small Think Big Think
Inertia and resistance Creativity and change
Narrow-mindedness Visionary leadership
Risk aversion Bold ideas and actions
Silo-mentality Integration across
core ideas
Short-term focus Lasting impact

Cf. Group think!

(c)Prof. Datuk Dr. John Xavier 8
The Big-Think Strategy Model
1.Ideas Generation

2.Evaluating Ideas

3.Turning Ideas into Strategy

4.Executing Big Think

5.Leading Big Think

6.Sustaining Big Think

(c)Prof. Datuk Dr. John Xavier 9

How to Create and Implement Big
Think Strategies
1. Idea generation through brain-storming
2. Ideas classification
3. Evaluating ideas
4. Refining ideas
5. Executing the Big Think strategies
6. Monitor implementation

(c)Prof. Datuk Dr. John Xavier 10

How to think outside the box?
 Think from the standpoint of the customer –
(ask, step into his shoes, complaints)
 Schmitt’s four generic strategies

1. Opposition – creating the opposite of established

strategies – (PC, Ford car)
2. Integration – bringing seemingly incompatible
concepts together (Mass customisation)
3. Essence – the essential parts of an entity taken to
the extreme –(Palm oil – cooking fuel)
4. Transcendence – going far beyond the established
boundaries of a business or industry (Dell,IBM)

(c)Prof. Datuk Dr. John Xavier 11

How to think outside the box?
1. Innovative benchmarking (internal, competitive,
functional [innovative] – Bedi, dabbawalas)
2. Quantum leap – willing to kill the sacred cow
(data storage – servers thumbdrives)
3. Stepping out of the time frame or current strategy
(scenario planning)

(c)Prof. Datuk Dr. John Xavier 12

Idea generation:
1.JAXB Game: BankMonopoly
 Objective:
◦ What is a bank?
◦ How do banks make money?
 Terrific tools for enhancing a

person's understanding of:

◦ Financial responsibility
◦ Smart spending
◦ Money management
 Learning from JAXBankMonopoly

◦ Assign tasks
◦ Count
◦ Manage
◦ Invest money

(c)Prof. Datuk Dr. John Xavier 13

Idea generation:
1.JAXB Game: BankMonopoly
Customers

Marketing

Employees

JAXB
Manager

Customer
Service Financial

(c)Prof. Datuk Dr. John Xavier 14

Idea generation:
1.JAXB Game: BankMonopoly
JAXB Branch

JAXB
Headquarter

JAXB Branch JAXB Branch

(c)Prof. Datuk Dr. John Xavier 15

Idea generation:
2.Online ATMs: Cash Delivery
 Allow customers to received cash within 24
hours by sending the request with few steps
in JAXB Clicks.

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(c)Prof. Datuk Dr. John Xavier
Idea generation:
2.Online ATMs: Cash Delivery

Tac
Request

(c)Prof. Datuk Dr. John Xavier 17

Idea generation:
3.JAXB Drive Through ATMs
JAX
BANK

JAX BANK

JAX
BANK

JAX
BANK

(c)Prof. Datuk Dr. John Xavier 18

Idea generation:
3.JAXB Drive Through ATMs
 Designed for convenient use from the secure
and comfortable environment of an
automobile.
 Allows quick cash withdrawals for people on
the go.
 Advantages:
◦ Saves time
◦ No parking
◦ Convenient
◦ Fast
◦ No waiting

(c)Prof. Datuk Dr. John Xavier 19

Classifying Ideas
 Good to have
 Differentiation
 Wow type

◦ transcendence or distinctive ideas

◦ going against the trend or only one of its kind
◦ new discovery or something new

(c)Prof. Datuk Dr. John Xavier 20

Turning ideas into strategy

Transcendence
Opposition
New
• Online JAXB ATMs
• Cash Delivery
CAPABILITIES

Integration
Existing

• JAXB Drive
Essence Through ATMs

Weak Strong

COMPETITIVE REACTION

(c)Prof. Datuk Dr. John Xavier 21

Evaluation Criteria
 Creativity and change – how bold and visionary?
 Lasting Impact
 Sustainability – Do we have the resources,
capabilities, market potential?
 Suitability
 Affordability
 Value creation and profitability
 Implementability - Integration across functions
 Competitive advantage – Difficulty of imitation

(c)Prof. Datuk Dr. John Xavier 22

 Ideas Evaluation
JAXB Game: Online JAXB ATMs: JAXB Drive Through
Categories
BankMonopoly Cash Delivery ATMs

Creativity 2 3 3

Business Impact 1 3 3

Communication 1 2 1

Impact

Feasibility 2 1 3

Dependability 2 1 3

Internal Fit 1 2 2

TOTAL 9 12 15

High=3 Middle=2 Low=1

(c)Prof. Datuk Dr. John Xavier 23
Executing the Big Think Strategy
 R&D
 Resources
 Integration across functions
 Action plan

(c)Prof. Datuk Dr. John Xavier 24

Executing the big think
 Develop the R&D and Financial Analysis to
determine strategy implementation costs.
 Install and improve Security System.
 JAXB should monitor progress.

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(c)Prof. Datuk Dr. John Xavier
Monitoring Progress
 Review targets achievement periodically
 Customer surveys/market research
 Product modification

(c)Prof. Datuk Dr. John Xavier 26

Conclusion
 Making Big Think sustainable is the hardest
task of all.
 To succeed, we need the right environment

and organisational structure. (7S)

 We must have the right people - Big Think

heads who get excited about new ideas with a

childlike fervour.

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