Strategies in downturn period
Read our resource pack for managers which is focused on key aspects of strategic management in recession period:
Various sectors of the economy enter and get out of the recession at different times of crisis. A look at the experience of past recessions can discover some of the ways companies plan their strategy in a recession and a recovery period.
In a perfect world, every company in the recession, was to be managed haired leader who could based on its experience of managing in previous recessions to the company through the current crisis. However, many companies do not have such leaders, their short stories, and sometimes it is difficult to rise above the crisis, to ponder the lessons of history. However, in the face of the recession on the development of accurate strategic plan to make big bets. Erroneous assumptions about the pace, scope, growth could slow the development of a good time, but today it can be a fatal mistake and lead to a crash.Read more...
IT: Beyond the cost savings
Global economy is in recession, and companies are looking for ways to reduce costs and improve financial results. Despite the fact that often the information technology costs make up a small share of total corporate costs, executives inevitably turn their attention to IT budgets, as well as any other component costs. However, in some cases, IT investments bring a lot of value in improving the efficiency of critical business processes and increase revenue than simply reducing the cost of information technology.
Information technology has come a long way in the last decade. Budgets have grown steadily in the era of e-business boom and the problems in 2000, and then dramatically decreased. Over the last decade, IT directors, working together with the heads of business units, improve the efficiency of IT departments by integrating applications, reduce infrastructure costs, improve manageability, consolidation of suppliers to outsource many functions.
How to increase the effectiveness of IT investments
Today, many highly competitive market the company's ability to effectively use information technology becomes a competitive factor. Investment in integrated information management system business is significantly greater. In this situation, many companies striving to improve the ability of IT departments to meet the requirements of the business is a natural and important task, which is usually solved by delegation team of IT developers directly to business units for which the development of IT systems. Despite the fact that this strategy allows developers to focus efforts on the implementation of the business goals, unfortunately, as a result, it leads to fragmentation and fragmentation of IT developers on the functional units, which greatly complicates the coordination and prioritization of IT projects.
This organization of work can lead to the fact that in two different units, using various technologies and solution providers can be developed and implemented the same application. Of course, business units can meet their needs and to get short-term results, but the company as a whole, may face high development cost and low efficiency of management and application integration challenges within the framework of cross-business processes. The other extreme is to improve the efficiency of IT projects is rigid centralization, resulting in a constant struggle for the prompt development and implementation of IT applications
How retailers can benefit from a reduction in the rate of economic growth?
Динамика спада, когда после снижение продаж следует инертный восстановительный период, означает для розничных компаний, что им следует делать быстрые шаги на пути минимизации потерь эффективности. Вопрос заключается в том, какие приоритеты установить в выборе мер. Диапазон таких мер у розничной компании очень широк: от сокращения затрат через закрытие магазинов или реструктуризацию обеспечивающих процессов, до увеличения выручки за счет обновления магазинов или реализации эффективных маркетинговых кампаний по продвижению. Многие делают ошибку.…Read more...
Three types of business models of value creation: Value Shop Value Network Value Chain
An accurate understanding of the logic of the company value creation (or in other words, its business model) is a critical factor in the management system. In the present study report shows that the ability of the company to create an "algorithm value," focused on the client is central to business success. On the other hand, on the upper level, business models (chain, shop, or network) may provide management many ideas unique design value generation algorithm. The report also explains the difference between the three types of business models, the risks associated with them, and apply them in practice....Read more...