Organizational Excellence

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• Organizational Excellence New Culture
• Value Creation Innovation
• World class
• Effectiveness Outcomes Best performance
• Efficiency Process Best Process
• Best practice Best performance
• What is Value?
• Valuation Value creation Value chain Value
  added Supply chain
• Innovation

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????????????????

• Right think
• Think right
• Do the right things
• Do the right things right

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Driving the Globalization Process are Seven Macro
Trends
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Reduction of barriers to trade and
investment Regional trade agreements and economic
blocs Market liberalization and
privatization Integration of world financial
markets Transportation and communication
technology Information technology Industrializati
on, economic development and modernization
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Things in what direction we are moving
????????????????? Value creation

• ??????????????????????????
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• ??????????????????????

2020
Excellence Organization
Driving Force
Gap
Competitive Drivers
Government Drivers
ORGANIZATIONAL CHALLENGES
Company
Market Drivers
Cost Drivers
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???????????? ????????? ???????? ???????? ????? ???
??? ???????
6
?????????????????
Change New realities
New Paradigm
Leadership
Organizational Excellence New Culture
Value Creation Innovation
Human Capital management
Strategic management
Balanced Score Card
Business Process Redesign
Project management
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So Whats Different Now?
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????????????????
VC Funds
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Incubator
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VC Funds
Software
Fashion City
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IPR
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?????? CEO
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30 ??????????????
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FTA
???????????????
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ASEAN
??????????????????????
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PMs mind mapping ???????????????????????????????
??????
OTOP
Asian Bond
30 ??????????????
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The Best and The Brightest
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Computer ?????????
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Source NESDBs analysis
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Organizational Excellence???????????????????????
??????????????????????????????? Mind
mapping2.Organizational excellence10.
Mind-set11. Bottom line46. Systematic
thinking51. System thinking55 Best practice56.
Best performance
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Business Performance Excellence
??????????????????????? ????? ????
????????????? Effectiveness ???????Vision
Mission ??????? Efficiency ??????
??????????????? Action ?????????? Best
Performance Process Technology HR Doing the
right things Effectiveness Doing the things
right Efficiency Doing the thing better
Improving Doing away with things Cutting Doing
things others are doing Copying Doing things no
one else is doing Different Doing things that
cant be done Impossible
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Think right
??????????????????????? ?????????????????? ???????
???? ?????????? ?????????? ????????
??????????????????????? ???????? Out side
in Think Global
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????????? ????????? ????????????? New
Paradigm Paradigm shift ?????????? ?????????????
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???????????????????? new competitive paradigm
???????????????????????????????????
??????????????????????????????????????????????
????????? ??????
??????????????? (???????????)
???????????????????? ??? ???????????????????????
Sense Response
Make Sell
Mass Customization
Mass Production
?????????????? ??????
Benchmarking
Improvement
?????????????????????(???????????)
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??????????????? (???????????) Supply Management
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??????????????? (???????????) Demand Management
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??????? 8020 ??? 80100
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Mega Level (General Environment)
Macro Level (Social Economic Environment)
Sustainable Value
PEST
Strategic thinking
Micro Level Business Environment)
Ideas Value
Business Model
Innovation Value
Firm Level
Prosumer Value
Business concept
Product/Process Value
Product/Process
Competencies
Business Plan
Out side in Think Global
In side out Act local
?????? Value
Basic chain
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Do the right things
Demand side ????????????????? Knowledge Do the
right things Networking Cluster Differentiate Valu
e delivery
En-Or De Lanna
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?????????????????????????????????????????

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?????????????

• Product Leadership ????????????????
• Best Product -- Product Differentiation
• Operational Excellence ???????????????
• Best Total Cost -- Operational Competence
• Customer Intimacy ??????????????????????????????
  
• Best Total Solution -- Customer Responsive

?????????????? 1 ?????? ?????????? 2
??????????????! ????????????????? 2
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• "In the long run, the only sustainable source of
  competitive advantage is your organization's
  ability to learn faster than the competition. No
  outside force can take the momentum of that
  advantage away from you.
• Arie De Geus
• Royal Dutch Shell -(1987)

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???????????????????????

• Today, I believe five new 'component
  technologies' are gradually converging to
  innovate learning organizations.
• Systems thinking
• Personal Mastery
• Mental models
• Building Shared Vision
• Team learning
• Peter M. Senge 1990 - The Fifth Discipline

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???????????????????????

• Characteristics of Learning Organizations
• 1.Create a common purpose
• ????????????????????????????Sense and Response
• 2. Develop new ways of thinking... and
  acting?????????????????????????? ??????
  ??????????????????? ??????????????????????????????
  ?
• 3. Build structural integrity ???????????????????
  ???????????????????????? ?????????????????
• 4. Create a learning culture ?????????????
  ??????????????????????????????????????????????????
  ??

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Integration ... Key To Success
PROCESS and PEOPLE increase effectiveness while
TECHNOLOGY primarily increases efficiency.
PROCESS

• Processes guide stakeholders through the
  development cycle

TECHNOLOGY
PEOPLE

• Technology needs to enable processes and
  techniques

• People need to be skilled in techniques and know
  when to apply them

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• From Jack Welch
• Change before it's too late
• Look reality in the eye and dont flinch
• Face Reality
• Be number one or number two
• Downsize before its too late
• Create a culture, then spread it
• Transfer ideas and allocate resources and then
  get out of the way

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• From Jack Welch (Continued)
• Make sure everyone in your business gets all the
  information required to make decisions
• Provide an atmosphere where people can have the
  resources to grow, the educational tools are
  available, and they can expand their horizons
• De-layer Get rid of the fat
• Express a vision, then let your Employees
  implement it on their own
• No matter how great the resistance, get those
  costs down

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• From Jack Welch (Continued)
• Get Faster
• Remove the boundaries
• Aim for speed, simplicity and self confidence
• Get Better or Get Beaten 1994 By Robert Slater

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• The challenge simply stated
• Extend the company's internal network outward to
  include all those with whom the company interacts
  in the marketplace. Spin a grand web to include
  employees, suppliers, regulators, and customers
  they all become part of your company's collective
  being. They are the company.
• Kevin Kelly, Out of Control - 1994 Richard B.
  Wolf-ATT

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Discussion Topics

• The Need for Increasing Effectiveness and
  Efficiency
• Increasing Process Effectiveness
• Increasing Personnel Effectiveness
• Using Technology for Efficiency
• Managing Expectations Evolution, Not a Revolution

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Continuous ImprovementA Way Of Life

• A process which is documentedcan be repeated.A
  process which is repeated can be measured
• A process which is measuredcan be improved.

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Business Excellence

• Business Excellence
• is the overall way of working
• that balances stakeholder concerns and
• increases the probability of long-term success as
  a business through
• operational,
• customer-related,
• financial and
• marketplace performance excellence.

? Rick L. Edgeman, June 1, 1998
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In Search of ExcellencePeters Waterman, 1982

• Bias for action Prefer doing something -
  anything - rather than cycle ideas endlessly
  through analyses and committee reports.
• Stay close to customers Learn their preferences
  and cater to them.
• Autonomy and entrepreneurship Organize into
  small, semi-autonomous companies. Encourage
  independent thinking and competitiveness.

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In Search of Excellence cont.

• Productivity through people Create employee
  awareness that best efforts are essential and
  that they will share (rewards) in organizational
  success.
• Hands-on, value-driven Insist that executives
  keep in touch with the essential business.
  Promote a strong corporate culture.
• Stick to the knitting Remain with the core
  businesses the organization knows best.

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In Search of Excellence cont.

• Simple form, lean staff Few administrative
  layers, few people at the upper levels.
• Simultaneous loose-tight properties Fostering a
  climate with dedication to the organization's
  central values plus tolerance for diverse
  cultures and all employees who accept those
  values.

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To be successful . . .

• There is a lot of truth to the old saying that
  you must be in the right place at the right time
• When you are in the right place at the right
  time, you must do the right thing!

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To grow, our companies have to become much more
flexible, much lighter on their feet. You cant
be light on your feet if youre carrying a lot of
baggage.Christian Koffman, Worldwide Chairman
of the Consumer Personal Care Group, Johnson
Johnson
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Business Performance Excellence

• Vision
• Mission
• Strategic Analysis
• Business Analysis
• Performance Measurement
• Product/Customer Selection
• Process Improvement
• Cost reduction

• Combines all elements from Vision to Process
  Improvement to Cost Reduction
• First truly integrative model Ive seen (Steve
  Lawrence)

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?????? Value creation

• ???????? value creation ?
• Value ??????? ?
• ????????????? value
• ???? Value
• ???????????????????????????? mind-Mapping
• 14. Value added
• 15. Value chain
• 16. Supply chain
• 17. Innovation
• 18. Value creation
• 19. Value proposition
• 25. Core Value
• 26. Shared Value

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???????? value

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???????? ??????
VALUE
?????? Low High
?????? Value ??????????
Low High ????????
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Value

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Transaction Value - created with a product
with higher margins and higher inventory
turnover
Economic Value - comes from labor savings,
product warranty, etc.
Perceived Value - derived functionally
and emotionally from benefits
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????????????? Value

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?????????????????????Value

• ???????????? ??????????? ????????????????
• ???????????????????????????
• Building unique products at mass production speed
  and prices
• ?????????????????
• ??????????????? ??????????
• ????????????????????? Competency

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???? Value
?????? value
?????????? value
?????? value
????? value l
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Value Creation

• ???????? Value ??????????????
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Value Creation

• ???????? Value ??????????????
• ????????? Cluster Networking Integration
  linkage Alliance

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No Value Chain ?????????
Value Chain ?????????
Quality Chain ????????? ??? Internal to External
Customer
Supply Chain ????????? ??? Supplier to Customer
????????? Chain ????????? ??? ?????? to ???????
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The supply chain
???????? ???? ???????????? ??????? ??????
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CEO
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Taxonomy of Value Creation Activities
Primary activities are directly involved in
creating value for the customer
Support Activities enable and improve performance
of primary activities
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Primary Activities
Inbound Logistics receiving, storing and
disseminating inputs
Operations activities associated with
product transformation
Outbound Logistics activities associated
with collecting, storing and distributing the
product(s)
Marketing and Sales providing means
and inducements for product purchase
Service activities that enhance or maintain the
value of the product
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Support Activities
Procurement activities associated with
purchasing inputs to the value chain
Technology Development efforts to improve
the product or process
Human Resource Management recruiting,
hiring, training, developing and compensating
personnel
Firm Infrastructure general management,
planning finance etc.
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Value Chain
Supporting Activities
Administrative Infrastructure
????? ??????? ??????????????? ??????
Human Resource Management
???????????????????????????????????????
???????????????
Value Added Cost Margin
???????????
Product / Technology Management IT
????????????????????????????????
?????????????????????????
Procurement
??????????????????????????????????????????????????
???
Inbound Logistic
??????????? ??????????
Operation
????????????? ???????????? ??????????????
Outbound Logistic
????????????????????????? ???/???????????????
Sales and Marketing
??????????????????? ?????????????
Services
???????????????
Primary Activities
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Value Chain Analysis ???? Intangible (Service)
Support Activities
Administration and Infrastructure ????????????
Human Resource Management ????????????
????????? ????????????????????
Product / Technology Management ????????????
Procurement ????????????? ????????????
Value added- Cost Margin
Need Information ?????????
Resource ??????? ???????????
Service Development and Operation ????????????????
????????????????????
Service Delivery ?????? ???????
Primary Activities
Differentiation value added Cost
leadership reduce cost
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The Value System
???????
????????????????? ?????????? ????? ???????????? ??
??????????????
??????????????????????????
Demand information
Supply information
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Cluster ??????????? ?? 2003
Upgrading Innovative Institutions
No presence
RISE-AT
Weak
Medium
NECTEC
Upstream
Strong
Expert
SRI
Key driver
????????????????
Basic Processing
??????
Value Added Processing
????
Organic
??????????????
??????
Lanna
???????????
Handicraft
???????????????
???????
?????
?????? ??
??????????
??????????? ??????
Health spa
Spa
Consumers
????????????????
???????????????????
??????????
Fashion
Science Park
IT
?????????????????
??????
IT city
Critical linkage - strong
Critical linkage - medium
Critical linkage - weak
Infrastructure/services
Teaching Material
NGO
Equipment Suppliers
IT
Specialist Consultants
CEO
Private Org
Legislation
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????????????? Value chain
?????? / ???????
???????
??????? / ?????????
???????
???????????
???????
????????????
?????????????? Value Creation
?????? / ???
???????
???????????
???????? / ????????
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Biotech
Customer
Innovation
Food
Market
Mat.Sc
Customer
Innovation
Handicraft
Convergence technology
Nano
Customer
Innovation
Ceramic
IT
Innovation
Customer
ICT
CRM
CRM
Cognitive
Bonding
Branding
Infrastructure
???? NSP
IPC ??????????
??????????? ???????
NSP
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Drivers of Cost and Value
The cost behavior of value activities is
determined by structural factors defined as cost
drivers.
Cost drivers are partly related to 1.
Internal relationships 2. External factors 3.
The relationship between internal and external
factors
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New realities Change ????????????? Right
think ??????? Driving force
Supply Side ????????????????? Product Process
technology Do the right things
right Integration Value Creation innovation
Demand side ????????????????? Knowledge Do the
right things Networking Cluster Differentiate Valu
e delivery
Paradigm Leadership ?????? ??????????? Think
right Value
CRM Trust management
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• Strategic management
• ?????????????????????????????????????
  ???????????????????1 ??????? 2548?????????????
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