MISM January 12th

Overview

  • The focus of today's lecture is on frameworks for analyzing problems.

Importance of Frameworks

  • A framework is a systematic way to look at problems compared to an ad hoc approach.

  • Ad hoc approach: Randomly trying solutions without a defined method.

  • The effectiveness of having a structured framework is emphasized during consulting interviews.

Product Framework

  • This is a vital industrial framework applicable across various sectors.

  • Discussion includes the applicability of different frameworks when tackling specific problem areas.

Feedback Discussion

  • An example was discussed about the plain chart market where no rival application is fully developed yet.

  • Reference to Pharmasco, indicating how to analyze new competitors using various dimensions:

    • Consideration of new entrants into the market and their potential impact.

    • Need to assess the ":

    • Threat of new entrants: Involves assessing how competitors may enter the market and offer similar products, potentially at a lower cost or better value.

    • Substitutes: Consider whether there are alternative solutions that do not closely relate to the current product but compete in other areas.

New Software Discussion

  • Discussion on a new software potentially having fewer features but still posing a threat due to some overlap with existing offerings.

  • Important to evaluate how different dimensions of framework apply to substitute services.

Supplier Power

  • Discusses how the power of suppliers can affect businesses based on their number and competition.

  • Referenced a CPU shortage during the COVID pandemic, illustrating how supply impacts might increase supplier power.

  • Buyers’ power was discussed in relation to options available when suppliers cannot meet demands, which leads to buyers having better alternatives.

Industry Rivalry and Profitability

  • Key point that increased rivalry leads to reduced profitability.

  • Porter's analysis does not prescribe solutions but indicates pressures within industries that could influence profitability.

Consulting Frameworks

  • Next, the MIS framework will be discussed as a flexible approach to analyzing problems.

MIS Framework Overview

  • Acronym stands for "Mutually Exclusive and Collectively Exhaustive".

    • Mutually exclusive: Decision options should not overlap.

    • Collectively exhaustive: All potential options must be covered.

Applications of MIS Framework

  • Example of analyzing a struggling restaurant to identify overlapping options regarding revenue and cost.

  • Importance of categorizing decisions to derive comprehensive solutions.

Decision Making and Problem Solving

  • Effective leaders can frame problems well and categorize options.

  • Example provided where a sales manager addresses productivity among staff, analyzing options to improve performance comprehensively.

Scenario Exercise

  • Activity where students work on a decision tree identifying options for Max Santos in competing industries.

Industry Analysis

  • Discussion on market share, pricing strategies, and competitive threats.

    • Mention of reducing costs versus possibly lowering prices as strategies.

    • Consideration of long-term effects such as customer sentiment towards price reductions.

Weighted Metrics Approach

  • A systematic, four-step approach for decision-making.

    • Steps include:

    • Defining criteria for decision-making

    • Measuring options against those criteria

    • Gathering relevant data

    • Analyzing results based on a systematic structure.

Key Measurements

  • Questions focus on three main categories for analysis: is it feasible, viable, and desirable?

  • Data is gathered to evaluate each option on those measurements clearly.

Decision Analysis Example

  • Three options analyzed on feasibility, risk, cost, etc., using Likert scale for ranking.

    • Demonstrated calculations for options to determine which is most favorable for decision-making.

Conclusion and Discussion

  • Distinguishing between qualitative and quantitative data in decision making.

  • Recommendation for using structured approaches for any significant life decisions.

  • Mention of personal anecdote about vetting strategies for marrying, emphasizing broad and critical thinking in decisions.

Digital Transformation and Disruption

  • Discussion introduces key concepts of digital disruption, defining it as significant technological changes affecting economics, production, and business operations.

Types of Digital Disruption

  • Digitization: Move from manual processes to computerized systems.

  • Digitalization: Connective software breaking down silos in business operations.

  • Digital Transformation: Implementing broader strategies to adapt to disruptive changes and remain competitive.

Critical Examination

  • The necessity of revealing potential obstacles before engaging in digital transformation initiatives.

  • Suggested framing of questions to navigate transformation steps; defining, analyzing, reviewing, selecting, deploying, and learning from each technology's implementation.

Summary of Lecture

  • Today's session primarily focused on frameworks for systematic problem-solving and decision-making, along with the critical understanding of digital disruption and transformation in contemporary business practices.

  • Students encouraged to collaborate with peers and utilize frameworks for practical application in case studies.