additional content
companies ), typically buying one or two computers at a time , all seeking more or less the same few models ; these customers , however , are sensitive to cost and good user experience .
Lenovo has a single well-developed hardware and software innovation capability aimed at meeting the needs of both types of customers . But its supply chain capability is bifurcated . The relationship supply chain is complex , designed to provide enterprise customers with greater responsiveness and flexibility . Lenovo ’ s computer manufacturing plant in Whitsett , N . C ., which opened in 2013 , was designed for fast shipping , large orders , and high levels of customization . Meanwhile , the company maintains a simpler supply chain with manufacturing sites in low-cost locations for its transactional customers .
The principle “ keep it simple , sometimes ” is itself more complex than it appears at first glance . It combines three concepts in one : First , be as simple as possible . Second , let your company ’ s strategy be your guide in adding the right amount of complexity . Third , build the capabilities needed to effectively manage the complexity inherent in serving your markets and customers .
9 . Shape Your Value Chain
No company is an island . Every business relies on other companies in its network to help shepherd its products and services from one end of the value chain to the other . As you raise your game , you will raise the game of other operations you work with , including suppliers , distributors , retailers , brokers , and even regulators .
Since these partners are working with you on execution , they should also be actively involved in your strategy . That means selling your strategy to them , getting them excited about taking the partnership to a whole new level , and backing up your strategic commitment with financing , analytics , and operational prowess . For example , when the Brazilian cosmetics company Natura Cosméticos began sourcing ingredients from Amazon rain forest villages , its procurement staff discovered that the supply would be sustainable only if they built deeper relationships with their suppliers . Beyond paying suppliers , they needed to invest in the suppliers ’ communities . The company has held to that commitment even during down periods .
Use leading-edge digital technology to align analytics and processes across your value chain . In the past , companies that linked operations to customer insight in innovative ways did it through vertical integration , by bringing all parts of the operation in-house . For example , Inditex created a robust inhouse network that linked its Zara retail stores with its design and production teams . Real-time purchase data allowed designers to find out what was selling — and what wasn ’ t — more quickly than their competitors could . This approach has helped Zara introduce more items that would sell quickly while keeping costs down . And it has helped Inditex outpace its rivals in both profitability and growth .
At the time Inditex developed its system , vertical integration was a prerequisite for that kind of integration . But now the technology has changed , and in a cloud-based computer environment , you no longer need full vertical integration . You can achieve the same result through integrated business platforms ( some managed by third-party logistics companies such as Genpact , and others being developed as joint ventures ). By allowing several companies to share real-time data seamlessly , these platforms enable each participating company to set more ambitious strategic goals .
10 . Cultivate Collective Mastery
The more bound your company is by internal rules and procedures for making and approving decisions , the slower it becomes . Hence the frustration leaders have with the pace of bureaucracy , in which people can ’ t make decisions because they don ’ t know what the strategic priorities are — or even what other stakeholders will think . In a world where disruption has become prevalent , your company can ’ t afford the time or expense of operating this way .
The alternative is what we call collective mastery . This is a cultural attribute , often found in companies where strategy through execution is prevalent . It is the state you reach when communication is fluid , open , and constant . Your strategists understand what will work or not work because they talk easily with functional specialists . Your functional specialists know not only what they ’ re supposed to do , but
110 world monitor