Booz, allen & hamilton business model

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AOSI-2007-CASOG-55829

AOSI 2007
Caso G: Booz, Allen & Hamilton

1. Analyze Booz, Allen & Hamilton using the competitive forces and value
chain models.
Competitive forces:
The bargaining power of customers: High
In this industry, the power of clients is always rising, due to every time bigger
technological demands and great easiness of choice regarding other suppliers of
internationalmanagement and technology consulting. It is necessary to have a huge
power of differentiation at a technological level, with an important sense of innovation,
regarding what is in accordance to the clients’ expectations.
The bargaining power of suppliers: Very Low
In this context, the concept of supplier is not applicable.
The intensity of competitive rivalry: Very High
In this industrythere is an enormous rivalry between the great enterprises that always
try to be more sophisticated in the use of information technology.
The threat of substitute products: Low
At least nowadays there is no product in line to replace specialized consulting services.
The threat of new market entrants: Low

Value chain:

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AOSI-2007-CASOG-55829
Ideation:
Clearinnovation strategy and company focus
Strong costumer understanding and feedback mechanism
Clear leader / follower strategy
Consumer insights and trend analysis capabilities
Ability to incorporate and extend external ideas
Incentives to promote ideation
Project selection:
Few large big bets
Incremental customer driven improvements
Incorporates breakthrough/core research/technologies
Linkproject selection to overall strategy
Clear governance and decision making
Effective tools to track and measure value
Product Development:
Disciplined and effective stage/gate process
Bottleneck and “congestion” elimination
Effective translation of customer requirements to product design
Clear metrics supported with “tough” decisions
Effective project and resource management
Efficient R&Dmachine – high quality at low cost in short time
Commercialization:
Cross-functional collaboration
Sales and marketing capabilities
Strong market sensing capability - costumer, competition
Robust investment planning
End-to-end product life cycle management

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AOSI-2007-CASOG-55829

2. How significant a strategic advantage does Knowledge Online provide
for Booz,Allen? Does it differentiate the company's service from
competitors?
Strategic Advantage:

Knowledge Benefits

Intermediate Benefits

Organizational Benefits

Yes, it differentiates the company's service from competitors because some of the best
consulting opportunities are not through generic knowledge management assignments,
but on exploiting the knowledge dimension as a servicedifferentiator in existing
consultancy lines of business practice. For example, strategic reviews, customer
relationship management, process improvement and better innovation are typical of
consultancy areas that can be enhanced through applying the knowledge dimension. [1]

3. What management, organization, and technology issues had to be
addressed when building KOL? How successful was KOL as asolution?
Management [3]
The management strategy to become more efficient involved three dimensions:
Acquiring information about the structure and economics of the industry or
market
Applying the frameworks or models developed in previous engagements to the
present client’s situation
Benefiting from lessons learned about the process of managing previous
projects of a similar character,to avoid repeating the mistakes of the past, and
utilize all that could be known about best practices across all of Booz-Allen.
Organization [3]
Create Special Interest Groups (SIGs), who were groups of consultants with specific
shared interests brought together under an informal infrastructure.

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AOSI-2007-CASOG-55829
Create Knowledge Managers, who were active...
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