Week 7 Industry Structure and Production Network

Creative Service Design
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1.
Some reflections on the group exercises- ‘servicescenario of red.dot design product’
2.
Snapshot on Industry Structure & Production Network
3.
What is ‘Creative Brief’
2
Some reflections
on your group exercises
•Were you talking about the ‘product’ or ‘service’?
•Do you really understand your ‘products’?
•To what extent you integrate the ‘product’ and ‘service’
•What ‘services’ you need to sell those products?
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4
•Market/
•Technology
•Regulatory/
•Labor
factors
Horizontally and vertically
integrated corporation
Diversification, specialisation,
legislation
TOP
DOWN
MODEL
Operational decentralisation,
strategic centralisation
Business diversification (1):
spin-offs, acquisitions, mergers
Business diversification (2):
out-sourcing, sub-contracting
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Bottom-up
re-integration
Due to
economical,
political and
market shocks,
the mass
production
system has been
in crisis since
the 1970s.
Virtual organisation,
co-operative strategy,
co-branding
Clusters, critical mass
BOTTOM
UP
MODEL
Strategic alliances
Contracts, outsourcing
Specialist provider
Dependency
Loyalty
Trust
Piore and Sabel’s thesis of ‘the second industrial divide’ (1984)
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Handy’s shamrock: recognising that most of the
organisation’s work takes place outside the organisation
Virtual organisation model: not an organisation but a
brand
From Hierarchy to Networks
-Individualised, specialised ,
complex models of
organisation
-Networks of specialists
collaborating on projects post-Fordist model
-The Power of Network
Charles Handy: Understanding the Changing Organization
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Where are you now? (situational analysis)
Where do you want to go? (vision / mission)
What are the obstacles / promises on the way
there? (SWOT analysis, competitor analysis, market analysis)
How do you get there? (Action/Business Plan)
What market are you in? What market do you
want to be in? How do you get there?
Environmental analysis
 Competitor analysis
 Market analysis
 Differentiation and positioning
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Distinguish between strengths, weaknesses
(internal), opportunities, threats (external) –
positive and negative aspects of same
phenomenon!
Make Use of PEST/ STEP or similar to identify
key external/environmental variables
Prioritise opportunities and threats in relation
to strengths and weaknesses
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political
e.g. Taxation policy
Employment laws
Environmental regulations
Trade restrictions and tariffs
Political stability
social
e.g. Population growth rate
Age distribution
Health awareness
Career aspirations
Response to new technology
economic
e.g. Economic growth
Interest rates
Exchange rates
Inflation rates
technological
e.g. R&D activity
Automation
Technology incentives
Rate of technological change
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1.Threat of
Potential Entrants
Industry
Competitors
2.Bargaining Power of
Suppliers
3. Threat of substitute
Products or Services
4. Bargaining Power of
Buyers
Buyers
5. Rivalry
Among Existing
Firms
Porter(1980) Competitive Strategy
Substitutes
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high
Localization
low
identify competitive position
for your product / service/
brand
VARIABLE 2
VARIABLE 1
Price
high
low
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Market
size
Increasing competition and market complexity
growth
maturity / decline
emergence
Time
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What market are you in? Emerging/Growing/Mature?
What are the different actions for different markets?
What is distinctive about your business, product or
service?
How can you reinforce your distinctive position and
make it a basis for sustainable competitive advantage?
How will market, business and competitive position
evolve over time?
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Differentiation is the act of designing a set of

Positioning is the act of designing the company’s
meaningful differences to distinguish the
company’s offer from competitor’s offers.
offer and image so that it occupies a distinct and
valued place in the target customers’ minds.
Philip Kotler, Marketing Management, p. 307
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‘Good oral communication skills involve
the ability to exchange ideas with
colleagues, to brief others and to make
clear and relevant contribution to
discussion.’
(Design Council 2007)
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A document required in preparing for creative
production, ie. advertising, marketing, design
projects etc.
Who writes creative brief ?


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Client
Sometimes together with account executive
Art-director for designers and copywriters
Every decision-makers in the creative
production
Individual exercise!
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 The
objective
 The target
audience/consumers
 The message theme
 The support
 The constrains
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Reading

Uzzi, B., and Dunlap, S. (2005) How to Build Your Network.
Harvard Business Review .Dec. 83(12):53-60 – Reading Group 4
Group exercise:
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Group project warm-up presentation: Group 3-4
Each group has 15 mins for presentation + 5-10 mins for Q+A
Please note that this is a working-in-progress presentation toward your
mid-term presentations, yet pls try to cover the following headings:
◦ What type of service business you are developing? What’s the service/products
you would like to offer?
◦ What’s the profile of your target customers?
◦ What’s your initial understanding of its current market(s)?
New York StartUP! Business Plan Competition
◦ http://www.smallbiz.nypl.org/
◦ http://www.youtube.com/watch?v=cTjEF0mUGfw
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