Week 4

Learnt

What is Strategy? - by Michael Porter

Operational effectiveness and strategy are both essential to superior performance.

Operational effectiveness (OE) means performing similar activities better than rivals perform them.
Eg: the Japanese were so far ahead of rivals in operational effectiveness that they could offer lower cost and superior quality at the same time.
Managers have been preoccupied with improving OE through programs such asTQM, time-based competition, and benchmarking. The more benchmarking companies do, the more they look alike. The more that rivals outsource activities to efficient third parties, often the same ones, the more generic those activities become. Competition based on OE alone is mutually destructive.

Strategic positioning means performing different activities from rivals' or performing similar activities in different ways. "The essence of strategy is choosing to perform activities differently than rivals do".
Eg: Sony, Canon and Ikea - companies that practise strategic positioning. Ikea-targets young furniture buyers who want style at low cost; concept is tailored set of activities that make it work; use self-service model based on clear, in-store displays; offers extra services that competitors do not ie in-store child care.

Unlearn

Trying to read all text in details.

Relearn

Apply critical thinking thoughts in deciding which hospital to choose for E-card program and which mechanism to follow. We started with clear goals and objectives on what we wanted to achieve. I shared the mind map I created last week on the benefits of this program for all the stakeholders(patient, hospital and company). So, we have a clear purpose and and able to see a better point of view on why we need to carry out this pilot program for retaining our patients load and defending our market share. Many assumptions were taken into consideration to see how it can impact our selection criteria in the decision making. We use data ie sales volume, number of patients load and number of clinicians in the selection criteria. During our discussion, all of these aspects were taken into consideration. Finally, we have a conclusion derived to answer our question on which hospital to roll-out the program and which mechanism to use.