The Imperative of Capabilities Development in high profile wave of globalisation and attendant uncertainties in Business Development

1. Developing Global Capabilities
Dr. Elijah Ezendu
FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM,
PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr

2. Requirements for Developing
Global Capabilities
Source: Elijah Ezendu, Global Trends in Business Development

3. Global Efficiency
Efficiency = Outputs
Inputs
Increase in efficiency can be achieved
by acting on one or both variables.

4. Cost Efficiency
This gives rise to the following:
Greater opportunity for promotional
responsibility
More product features without price
increase
Lower Prices

5. Sources of Cost Efficiency
Supply Costs
Experience
Economies of
Scale
Product/
Process Design
Cost
Efficiency

6. Drivers of Global Innovation
i. Increase in Complexity
ii. Customer-centricity
iii. Offshoring
iv. Emergence of Innovation Networks
v. Open Innovation

7. Global Intelligence Imperative
This is underscored by extensive web of
inter-relationships connecting key
players, as well as the complexities of
regionalization, continentalisation, and
consumer sophistication.

8. Responsiveness to
National Differences
Take advantage of local comparative
advantages to improve inputs.
Calibrate output with due consideration to
differences in tastes, preferences, and
channels.

9. Global Learning
Optimizing and harnessing learning
systems through processes and
practices that ensure proper
codification and transfer of
knowledge.

10. Distinctive Competencies,
Resources and Capabilities
ResourcesResources
Higher
Profits
Distinctive
Competencies
Capabilities
Differentia-
tion
Low Cost
Value
Creation
Superior
•Efficiency
•Quality
•Innovation
•Customer
Respon-
siveness
Source: Jeff Shay, International Business.

11. Strategy Model of a Multinational
Organizational
Structure:
Centralized
Decentralized
Management
Processes:
Coordination
Configuration
Performance:
Market share
Profits
Formalization:
High
Low
Industry
Globalization
Drivers:
Market
Cost
Government
Competitive
Strategy:
Multidomestic
Global
International
Transnational

12. Industry Globalization Drivers
Cost Drivers
Good Logistics
ICT
Global Economies of Scale
Competitive Drivers Realizable Competitive Advantage
Market Drivers
Global Customers
Global Channels
Global Customer Needs & Wants
Government Drivers
Policies
Regulations

13. Tools for Developing
Global Capabilities
 Value Chain Analysis
 Benchmarking
 Activity System Mapping
 Cost Management Analysis
 Network-Structure Analysis
 Intellectual Capital Analysis
 SWOT Analysis

14. The Value Chain Concept
Source: M.E. Porter, Competitive Advantage, Creating and Sustaining Superior Performance

15. Value Chain
The value chain describes activities
that are within and around a firm
which contribute value towards the
creation of product or service.

16. Value Chain Analysis
 Identifies inefficient activities.
 Identifies distinctive roles of activities
 Identifies activities that are value-adding to
customers.
 Provides room for ascertainment of
cost/value of activities.

17. Value Network
Value network shows the inter-
organizational links and relationships
which are required to create a product
or service.

18. A Simple Value Network
Organization's
Value Chain
Supplier
Value Chains
Channel
Value Chains
Customer
Value Chains

19. Identifying Capabilities Through
Value Network
Profit pool.
Fitting partner.
Activities that should be outsourced.
The most relevant activities.

20. Benchmarking
It’s the process of identifying, learning and
adapting exceptional practices and
processes with the intention of
enhancing an organization's
performance.

21. Advantages of
Benchmarking
 Useful for identifying best practices.
 Aids in detection of performance gaps.
 Advances knowledge of competition.
 Gives room and reasons for positive change.
 Boosts managerial objectivity.
 Facilitates discovery of drivers and enablers of top
performance.
 Provides a baseline for measuring improvement.
 Encourages new ideas, innovation and creative
thinking.
 Aids initiation of effective budget process.

22. Benchmarking of
Capabilities
i. Historical
ii. Industry/Sector
iii. Best-in-Class

23. Feasible Questions During
Analysis
 Is this other organization better than we
are?
 Why are they better?
 By how much?
 What best practices are being used now or
can be anticipated?
 How can their practices be incorporated or
adapted for use in our organization?

24. Activity System Mapping
i. Provides for consistency
ii. Identifies critical success factors
iii. Gives room for reinforcement
iv. Identifies resource-flow

25. Techniques for Cost
Management Analysis
 Activity Based Cost Analysis
 Lean Business Analysis
 Process Analysis
 Capacity Analysis
 Customer Value Preference Analysis
 Target Cost Analysis
 Product/Service Value Analysis

26. Network-Structure Analysis
This focuses on determination of the right
inter-firm network–structure that would
serve as strategic fit for development of
required capabilities, through simple
and complex alliances as well as
mergers and acquisition.

27. Skandia Concept of Intellectual Capital
Market Value
Financial Capital
value of all physical and monetary assets
Intellectual Capital
Human Capital
‘thinking’
• competence (knowledge and skills)
• attitude (motivation, behaviour, conduct)
• intellectual agility (innovation, imitation, adaptation)
Structural Capital
‘non-thinking’
Customer (Relationship)
Capital
customers, suppliers, shareholders,
alliance partners, other stakeholders
Organisational Capital
• infrastructure
• processes
• culture
Innovation Capital
renewal and development value
Process Capital
Intellectual Property Intangible Assets
Developed by Leif Edvinsson

28. Adam and Oleksak Concept of Intellectual Capital
Market Value
Intellectual CapitalFinancial Capital
Human
Capital
Structural
Capital
Relationship
Capital
Business Model
Management
Employees Processes
Intellectual
Property
Customers
Brand
Network

29. Current Concept of Intellectual Capital
Market Value
Intellectual CapitalFinancial Capital
Human
Capital
Structural
Capital
Relationship
Capital
Spiritual
Capital
Management
Employees Processes
Intellectual
Property
Customers
Brand
Network
Business
Model

30. Intellectual Capital Analysis
This provides clear picture of a firm’s
intellectual structure which would
be useful in identifying unexploited
strengths and incontestable
openings for global possibilities.

31. SWOT Analysis
This is used for identifying
opportunities and threats in the
business environment as well as
strengths and weaknesses within
the firm.

32. Dr Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise
in Interim Management, Strategy, Competitive Intelligence, Transformation, Restructuring, Turnaround
Management, Business Development, Marketing, Project & Cost Management, Leadership, HR, CSR, e-
Business & Software Architecture. He had functioned as Founder, Initiative for Sustainable Business
Equity; Chairman of Board, Charisma Broadcast Film Academy; Group Chief Operating Officer, Idova
Group; CEO, Rubiini (UAE); Special Advisor, RTEAN; Director, MMNA Investments; Chair, Int’l Board of
GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training),
Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management
Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Lead
Consultant/ Partner, JK Michaels; Turnaround Project Director, Consolidated Business Holdings Limited;
Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles),
Fortuna, Gambia & Malta; Chief Advisor/ Partner, D & E; Vice Chairman of Board, Refined Shipping;
Director of Programmes & Governing Council Member, Institute of Business Development, Nigeria;
Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic
Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria;
Country Manager (Nigeria) & Adjunct Faculty (MBA Programme), Regent Business School, South Africa;
Adjunct Faculty (MBA Programme), Ladoke Akintola University of Technology; Editor-in-Chief, Cost
Management Journal; Council Member, Institute of Internal Auditors of Nigeria; Member, Board of
Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business
Administration and Fellow of Professional Institutes in North America, UK & Nigeria. He is Innovator of
Corporate Investment Structure Based on Financials and Intangibles, for valuation highlighting
intangible contributions of host communities and ecological environment: A model celebrated globally
as remedy for unmitigated depreciation of ecological capital and developmental deprivation of host
communities. He had served as Examiner to Professional Institutes and Universities. He had been a
member of Guild of Soundtrack Producers of Nigeria. He's an author and extensively featured speaker.

33. Thank You