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Harry S. Dent, Jr. Dent Research

Dent Business Academy Business Strategies for the Winter Season. Harry S. Dent, Jr. Dent Research. Session 9:. The New Network Organization: Bottoms-Up Not Top-Down. Charts. 250-Year Revolutionary Cycle. 2014. 2 nd American Revolution Emerging World Revolution Network Revolution.

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Harry S. Dent, Jr. Dent Research

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  1. Dent Business Academy Business Strategies for the Winter Season Harry S. Dent, Jr. Dent Research

  2. Session 9: The New Network Organization: Bottoms-Up Not Top-Down Charts

  3. 250-Year Revolutionary Cycle 2014 2nd American Revolution Emerging World Revolution Network Revolution 1764 American Revolution French Revolution Industrial Revolution 1517 Protestant Revolution Capitalist Revolution Chart 9-1

  4. New Network Organization Chart Customer Segments Front-Line Browsers Back-Line Servers Management Chart 9-2 Source: Dent Research

  5. Key Principles for Designing Your Network Organization • Strategic Focus: focus your business only on what you do best and delegate to partners • Organize around your customers and define results by their end benefits • Design your organization into front-line browsers and back-line servers • Make every front-line team and back-line server a real business with a P&L (Profit and Loss) • Management becomes the vision, strategic focus, and legal/political arbiter of the network

  6. Designing the Network • Strategic Focus… focus on what you do best • Ask “Is there someone better or lower cost than us at doing this?”… find a partner and outsource • Break your customers into segments according to different product or service needs • Design your organization into front-line browsers • Create back-line servers

  7. Adapting to the Winter Season • Reconstructing P&Ls in total for each unit to represent the real nature of your business • Fixed costs have to be covered before profits begin to accrue • Variable costs determine how much cash flow you generate for every sale • Contribution margins = money you make from customers minus variable/direct costs (refer back to Session 3)

  8. Business Strategies for the Winter Season2008-2023 • Incorporate the power of these to see the opportunities vs. the threats • Demographics • Product life cycles • New strategies (at all levels) • Focused and flexible direct marketing and network organizations are the key to success • Management should be better than ever, but more invisible and built into the software and information system • Be the best at what you do • Customization vs. standardization… deliver greater, real-time, personalized products and services at lower and lower costs

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