New 7 vision engineering
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This presentation discusses vision, mission, and opportunities for entrepreneurship. It was created by Ziya Boyacigiller, a leading angel investor and mentor in Turkey. The presentation covers how to develop a compelling vision by identifying drivers of change, analyzing their effects, and deciding where to position your company. It also discusses how to develop a mission statement that conveys the benefit provided and capabilities used. Maxim Integrated is presented as a case study of a company that successfully engineered its vision. In 1983, Maxim predicted the growth of digital technology and envisioned capitalizing on the continued need for analog components. This vision guided Maxim's strategy and capabilities, allowing it to become a $1B company by 2000
New 7 vision engineering
- 1. On Vision Engineering Ziya G. Boyacigiller This presentation was created and given by Ziya Boyacigiller who was leading Angel Investor and a loved mentor to many young entrepreneurs in Turkey. We have shared it on the web for everyones benefit. It is free to use but please cite Ziya Boyacigiller as the source when you use any part of this presentation. For more about Ziya Boyacigillers contributions to the start-up Ecosystem of Turkey, please go to www.ziyaboyacigiller.com
- 2. Vision - Mission In Practice Ziya G. Boyac脹giller Sabanci Universitesi Yonetim Bilimleri Fakultesi
- 3. The Seven Domains of Attractive Opportunities Ziya G. Boyacigiller (c) 2005 EMBA 3 MODIFIED by ZGB, from The New Business Road Test, by J. Mullins MACROMICRO MARKET DOMAIN INDUSTRY DOMAIN VISIO N Note: Market is customers, industry is sellers
- 4. Is the Market Attractive? Assessment Metrics Number of customers in the market, Aggregate money spent by these customers on the relevant goods and services, Number of units of relevant product or usage occasions, How fast is the market growing (in the past and future) Ziya G. Boyacigiller (c) 2005 EMBA 4
- 5. HOW DO WE PICK OUR MARKET? Creating a Vision Ziya G. Boyacigiller (c) 2005 EMBA 5
- 6. Ziya G. Boyacigiller (c) 2005 EMBA 6 Vision paints a mental picture of the future.
- 7. Ziya G. Boyacigiller (c) 2005 EMBA 8 To Create a Compelling* Vision you need a Picture of the Future Vision is about going somewhere Man on the moon How Soviets ruled over the 1976 Olympics Where we are now Vision Where we will be in the future (* compelling means you have to take action NOW )
- 8. Ziya G. Boyacigiller (c) 2005 EMBA 10 ML King speech paints a picture of the end-result I have a dream that one day on the red hills of Georgia the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. ...I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the -content of their character. ...I have a dream that one day the state of Alabama. ..will be transformed into a situation where little black boys and girls will be able to join hands with little white boys and girls and walk together as sisters and brothers. ...
- 9. Ziya G. Boyacigiller (c) 2005 EMBA 11 How to Activate the Power of Visualization Paint in words a detailed description of the end result, a picture of the future. The power of picture works when you focus on what you want to create not what you want to get rid of. The power of picture works when you focus on the end result, not the process to achieve it. Enhance the visual picture with five-senses, to make it seem as real as you can
- 10. Ziya G. Boyacigiller 息 2005 Vision versus Goals Vision provides continued guidance (leader in space exploration) Goals are focused on specific achievements (man on the moon) Goals, once achieved, prompt the question: What is next?
- 11. Ziya G. Boyacigiller 息 2005 Vision Defined: Vision is knowing who you are, where youre going, and what will guide your journey.
- 12. Ziya G. Boyacigiller (c) 2005 EMBA 14 Vision defines what will happen in the future, and how you will fit into that picture. Examples: Microsoft Why Bill dropped out of school Intel Memories to microprocessors
- 15. Ziya G. Boyacigiller (c) 2005 EMBA 17 Vision Engineering: 1. Identify drivers of change for the industry. Economic, social/cultural, political, regulatory, demographic, technological, natural trends that will change how the industry functions. Which of these incoming waves is strongest? 2. Analyze how these drivers of change will affect every stage of the value chain for the industry. Note the threats / opportunities. 3. Decide where you want to be. 4. What capabilities and competencies does your company need to develop, what assets do you have or should get - to exploit the opportunities, dodge the threats, and ride the waves of change.
- 16. Ziya G. Boyacigiller (c) 2005 EMBA 18 Trends Affecting PC Industry Early 1990s Economic Shift toward service and information economy Increased domestic and global competition Increased power of low labor-cost Asian countries Political Globalization of world economies Further deregulation of telephone companies Legislation of trade barriers (e.g. Japanese tariffs) Social Increased computer literacy and sophistication Need for reschooling and continuing education Development of computer stores Technological Increasingly powerful chips Faster and cheaper peripherals Increased networking capabilities
- 17. Ziya G. Boyacigiller (c) 2005 EMBA 19 Vision Engineering: 1. Identify drivers of change for the industry. Economic, social, political, technological trends that will change how the industry functions. Which of these incoming waves is strongest? 2. Analyze how these drivers of change will affect every stage of the value chain for the industry. Note the threats / opportunities. 3. Decide where you want to be. 4. What capabilities and competencies does your company need to develop, what assets do you have or should get - to exploit the opportunities, dodge the threats, and ride the waves of change.
- 18. Ziya G. Boyacigiller (c) 2005 EMBA 20 See Both Sides of a Crisis THREAT OPPORTUNITY YING YANG
- 19. Ziya G. Boyacigiller (c) 2005 EMBA 21 U.S. Auto Industry Profit Pool (Modified from HBR, May 1998, Orit Gadiesh and James L. Gilbert) auto manufacturing new car sales used car sales loans leasing insurance gas service/repair aftermarket parts auto rental gas oil 100% SHARE OF INDUSTRY REVENUE OPERATINGMARGIN% Profit = share$ x OM%
- 20. Ziya G. Boyacigiller (c) 2005 EMBA 22 How will the all-electric car affect the value chain? auto manufacturing new car sales used car sales loans leasing insurance gas service/repair aftermarket parts auto rental gas oil 100% SHARE OF INDUSTRY REVENUE OPERATINGMARGIN%
- 21. Ziya G. Boyacigiller (c) 2005 EMBA 23 Maxims Vision (1983) 1. World will be more and more digital in the future. 2. Digital will need analog to exist. 3. Thus analog growth will be parallel to microprocessor growth. 4. Maxim will capitalize on the analog.
- 22. Ziya G. Boyacigiller (c) 2005 EMBA 24 Vision Engineering: 1. Identify drivers of change for the industry. Economic, social, political, technological trends that will change how the industry functions. Which of these incoming waves is strongest? 2. Analyze how these drivers of change will affect every stage of the value chain for the industry. Note the threats / opportunities. 3. Decide where you want to be. 4. What capabilities and competencies does your company need to develop, what assets do you have or should get - to exploit the opportunities, dodge the threats, and ride the waves of change.
- 23. Ziya G. Boyacigiller (c) 2005 EMBA 25 Maxims Vision (1983) 1. World will be more and more digital in the future. 2. Digital will need analog to exist. 3. Thus analog growth will be parallel to microprocessor growth. 4. Maxim will capitalize on the analog.
- 24. Ziya G. Boyacigiller (c) 2005 EMBA 26 1983 Maxim starts up 2000 Maxim sales $1B
- 25. Ziya G. Boyacigiller (c) 2005 EMBA 27 Maxims Value Growth
- 26. Ziya G. Boyacigiller (c) 2005 EMBA 28 Vision Engineering: 1. Identify drivers of change for the industry. Economic, social, political, technological trends that will change how the industry functions. Which of these incoming waves is strongest? 2. Analyze how these drivers of change will affect every stage of the value chain for the industry. Note the threats / opportunities. 3. Decide where you want to be. 4. What capabilities and competencies does your company need to develop, what assets do you have or should get - to exploit the opportunities, dodge the threats, and ride the waves of change.
- 27. Ziya G. Boyacigiller (c) 2005 EMBA 29 When the tide rises, all the boats rise with it R I D I N G T H E W A V E
- 28. Ziya G. Boyacigiller (c) 2005 EMBA 30 Maxims Vision Resources & Capacities Needed (Why You? Why can you get there) Analog expertise ( knowledge) is a scarce resource, which will allow us to compete effectively ( monopolize). We already have some of the best analog experts in the world, and we can find and train more as we grow. We can create a world class analog company. We can use excess fabrication capacity available in the industry for manufacturing, thus we can startup with low capital investment. We can get the initial investment from VCs.
- 29. Ziya G. Boyacigiller (c) 2005 EMBA 31 First, Vision Next, Mission If you show the stakeholders what your vision is, you will make sure that they are seeing the exciting big picture as you do. Then, they will be excited about the specific opportunity/threat you want to pursue.
- 30. Ziya G. Boyacigiller (c) 2005 EMBA 34 Vision vs Mission Vision is about where you are going Mission is about how you will get there Where we are now Where we will be in the future Mission What we do to get from here to there
- 31. Vision is not enough; it must be combined with venture. It is not enough to stare up the steps, we must step up the stairs. Ziya G. Boyacigiller (c) 2005 EMBA 35 Vaclav Havel
- 32. Ziya G. Boyacigiller (c) 2005 EMBA 36 Tests of a good Vision/Mission Statement Imaginable: Describes the future Desirable: Benefits for followers Feasible: Realistic, attainable goals Focused: Shows what to do & not to do Flexible: General enough to allow for individual initiative and alternative response when conditions change (situation or information) allows moving from Plan A to Plan B etc. Easy to communicate: Can be explained in less than 2 minutes (elevator-test) From Realizing Change CD, P.Kottler)
- 33. Copyright (c) Ziya G. Boyacigiller 2003, 2004 To Create Compelling Vision need: Purpose Without purpose, visions are not compelling enough Purpose defines what business we are really in, what we are here for, why we exist Explain Why we? A good purpose should serve a greater good (Merck)
- 34. Copyright (c) Ziya G. Boyacigiller 2003, 2004 From www.Merck.com : Merck & Co., Inc. is a leading research-driven pharmaceutical products and services company. Merck discovers, develops, manufactures and markets a broad range of innovative products to improve human and animal health, directly and through its joint ventures. OUR MISSION The mission of Merck is to provide society with superior products and services by developing innovations and solutions that improve the quality of life and satisfy customer needs, and to provide employees with meaningful work and advancement opportunities, and investors with a superior rate of return.
- 35. Copyright (c) Ziya G. Boyacigiller 2003, 2004 Summary of Purpose: Purpose is your organizations reason for existence meaning to exist It answers the question Why do you do it? rather than just explaining what you do. Great organizations have a deep and noble sense of purpose a significant purpose that inspires excitement and commitment. (stone cutters story)
- 36. Ziya G. Boyacigiller (c) 2005 EMBA 40 Example: Maxims Vision & Mission Vision: World will be more and more digital in the future. Digital will need analog to exist. Thus analog growth will be parallel to microprocessor growth. Analog expertise (knowledge) is a scarce resource, which will allow us to compete effectively (monopolize*). We have some of the best analog experts in the world, and we can find and train more as we grow. We will create a world-class analog company and use innovation to make the world a better place for us all... Mission: We add value to our customers products through our analog definition, design, and manufacturing expertise. (expertise = knowledge) (*: At the time Maxims gross margin was > 70%) FUTURE (WHERE) PURPOSE (WHY) HOW
- 37. Ziya G. Boyacigiller (c) 2005 EMBA 41 Mission has two components Mission: a.We add value to our customers products Benefit for customers (and other stakeholders) b.through our analog definition, design, and manufacturing expertise. How you create/deliver that benefit what you will do / will not do
- 38. IMPORTANT! Write your mission statement after you have developed your strategy Ziya G. Boyacigiller (c) 2005 EMBA 42
- 39. Ziya G. Boyacigiller (c) 2005 EMBA 43 Why do organizations need to make their mission clear to everyone?
- 40. Ziya G. Boyacigiller (c) 2005 EMBA 44 Vision, Purpose, & Mission Result in: Everyone rows in the same direction. People have the power to make important decisions on their own They take charge (proactive) rather than wait (passive or reactive). They find-a-way (creativity) when faced with a problem Everyone assumes responsibility and accountability for their own actions (company gets results) Everyone finds a place for themselves to fit in the larger whole Company becomes effective and efficient
- 41. Copyright (c) Ziya G. Boyacigiller 2003, 2004 For Vision to become Reality: It is important: How it is created (process of creating it) How it is communicated (keep talking, stories) How it is lived (courage of commitment, take a step, always focus on your vision) As the leader of your company, your job is to help articulate the vision, to champion the vision, but not to own the vision. Everyone in the company must own the vision. (Say Our vision is and NOT My vision is
- 42. Ziya G. Boyacigiller (c) 2005 EMBA 46 Final Words Effort to define vision and mission is necessary to show stakeholders if your business has a reason to exist now and in the future; to be a - compelling, - viable, - growing, and - sustainable business. If stakeholders wont buy into this reason, they will not agree to work with you! They will say Im out!
- 43. Copyright (c) Ziya G. Boyacigiller 2003, 2004 Whatever you can do, or dream you can, begin it. Boldness has genius, power, and magic in it. - GOETHE
- 44. Copyright (c) Ziya G. Boyacigiller 2003, 2004 A journey of ten thousand miles, starts with a single step. -CHINEESE PROVERB
- 45. Copyright (c) Ziya G. Boyacigiller 2003, 2004 A journey of ten thousand miles, starts with a vision. -Ziyas version of this CHINEESE PROVERB
- 46. He who risks and fails can be forgiven. He who never risks and never fails is a failure in his whole being. Paul Tillich Ziya G. Boyacigiller (c) 2005 EMBA 50