Transforming New Technologies into Cash Flow: Creating Market-Focused Strategic Paths for Business-to-Business Companies

by Lichtenthal; J David

• ISBN13: 9780789030207
• ISBN10: 0789030209
• Edition: 1st
• Format: Hardcover
• Copyright: 2006-03-14
• Publisher: Routledge

Summary

Transforming New Technologies into Cash Flow develops and applies a simple but powerful new concept to help managers in technology-intensive companies integrate their technology choices with effective marketing strategies. This unique book helps managers map out paths that successfully integrate bundles of technologies, product functionalities, and market networks to create new product strategies. The author uses case examples and provides a "Management Application Toolkit" with simple and tested maps, worksheets, and interactive cash-flow spreadsheets to connect strategy choices with long-term net cash flow that results in real financial success. Book jacket.

Table of Contents

Preface	xi
Acknowledgments	xiii
Overview of the Book	1	(18)
A Management Process Perspective	5	(3)
The Role of Tools and Concepts in Management Process	8	(1)
Applying Management Processes	8	(1)
The Concept of Strategic Paths: Strategic Bundles	9	(1)
Developing the Strategic-Paths Concept: A Grounded Management Research Process	10	(2)
Identifying Major Generic Strategic Choices and Questions	12	(1)
The Management Literature	13	(1)
Identifying Strategic Interactions: Transformation Processes	14	(1)
Conceptualizing Success for New Technologies and Products	15	(2)
Development of the Management Application Toolkit	17	(1)
The Management Application Toolkit	17	(1)
Using the Book	17	(2)
Strategic Paths: Reconceptualizing Market Focus	19	(26)
Introduction	19	(2)
Managers' Realities: New Technologies and Products	21	(3)
The Managers' Dilemma: Two Different Management Worlds	24	(5)
Major Management Problems	29	(7)
The New Technology Development-Adoption Gap	36	(6)
The Need for New Management Processes, Concepts, and Tools	42	(1)
Critical Questions for Managers	43	(2)
Creating Focused Strategic Paths: Managing the Four Critical Bundles	45	(42)
Introduction	45	(1)
Strategic Paths As Complex Strategic Bundles	46	(5)
Technologies Competitive Space: Choice of Technologies Bundle	51	(9)
Product Functionalities Competitive Space: Choice of Functionalities Bundle	60	(7)
Market Networks Competitive Space: Choice of Market Networks Bundle	67	(10)
End-User Segments Competitive Space: The Segments Bundle	77	(4)
Why Are These Four Strategic Choices So Critical?	81	(4)
Critical Questions for Managers	85	(2)
Managing Strategic-Path Transformation Processes: Creating Hot Zones	87	(32)
Introduction	87	(1)
The Six Critical Transformation Processes	87	(4)
Integrating the Strategic-Path Processes	91	(1)
Creating Hot Zones	92	(3)
Managing T1	95	(3)
Managing T2	98	(3)
Managing T3	101	(3)
Managing T4	104	(2)
Managing T5	106	(4)
Managing T6	110	(2)
Transformation Processes As Strategic Triggers	112	(5)
Critical Questions for Managers	117	(2)
Driving Fast Strategic-Path Adoption Through Market Networks	119	(26)
Introduction	119	(1)
The Challenge of Slow Strategic-Path Adoption	120	(1)
Theory and Reality	121	(2)
Managing Complex Market Networks	123	(1)
Mapping Market Networks	124	(7)
Understanding Company Choice/Rejection Behavior	131	(1)
Market Network Customers: Four Generic Stages in the Choice/Rejection Process	132	(2)
Buyer Choice/Rejection: The Critical Questions	134	(2)
Key Buyer Characteristics in Choice/Rejection Behavior	136	(4)
Creating Buyer Choice and Competitive Rejection	140	(1)
Creating Competitive Positioning for Differentiation	140	(1)
Four Competitive Zones for Positioning and Differentiation	141	(2)
Creating Fast Adoption	143	(1)
Critical Questions for Managers	144	(1)
Strategic Paths: Driving Net Cash Flow	145	(40)
Introduction	145	(1)
Creating Net Cash Flow with Strategic Paths	146	(1)
The Overarching Financial Objective	146	(1)
Positive Cash Flow Drivers	147	(1)
Negative Cash Flow Drivers	147	(1)
Evaluating a Strategic Path: Net Cash Flow Profiles	148	(2)
The Cash Flow Dynamic	150	(1)
An Ideal Scenario	151	(1)
The Critical Role of Pricing	152	(7)
Calculating Key Sensitivities in Positive Cash Flow	159	(4)
The Low Units Danger Zone	163	(1)
Exploring Sensitivities in Fixed Costs and Investments	164	(2)
The Critical Importance of Market Network Adoption Rates	166	(4)
Estimating Strategic-Path Cash Flows	170	(7)
Summary	177	(3)
Critical Questions for Managers	180	(5)
Managing Strategic Paths: Creating Project and Transformation Teams	185	(12)
Introduction	185	(1)
Understanding the Competitive Power of Market Focus	185	(1)
The Need for Strategic-Path Integration	186	(1)
Managing Project Teams: Creating Focused Transformation Teams	187	(8)
Critical Questions for Managers	195	(2)
Creating Strategic Paths and Hot Zones: The Management Application Toolkit	197	(30)
Introduction	197	(4)
Phase One: Map Strategic Path	201	(6)
Phase Two: Identify Problems, Constraints, and Information Needs	207	(2)
Phase Three: Map the Six Transformation Processes	209	(7)
Phase Four: Estimate Cash Flows	216	(9)
Phase Five: Revise and Remap Strategic Paths	225	(2)
Notes	227	(2)
Index	229