Rr Donnelley

Wrap-up of General Points

Patching. It is one of the distinctive strategic processes in rapidly changing markets. I then run through a quick lecturette on patching that covers the definition of patching, its importance in rapidly changing markets, the strategic use of patch (from COE, product patch at Compaq vs. customer patch at Dell, Honda’s innovative patching of products in the Japanese market), the almost counter-intuitive importance of patch size (Dell patch size has dropped even though total sales are up, wireless at H-P is too fragmented as five divisions have to coordinate), modularity of business units is necessary, and finally, examples of classic patching firms (Johnson & Johnson, H-P, 3M) as well as new economy ones (Sun, Dell).

Managerial roles. Business-level head as strategist/entrepreneur. Multi-business head as patcher as well as skills coach for business-level managers. Corporate level executive as shaper of the emergent strategy.

Transition from one patch arrangement to another: This is important in general, but the transition from probing to a new patch is especially critical. Probes are managed with an eye towards learning and even failing. Patches are managed for financial results. The transition between them is critical in rapidly changing markets.

Tie back: This is a classic case of a very uncertain market where how that market will emerge, when, and its effects on firms like Donnelley are essentially unknowable. Therefore, the best strategy is essentially improvisational. Refer back to the lessons from Chapter 2 plus Living on Internet Time or Microsoft: Multimedia Publications.

Wrap-up of Donnelley-specific Points

The Digital Division:

A premature patch. The business opportunity needed more probing. So if anything, its scale is too large and its objectives are too ambitious. While it can be debated whether the division is housed correctly, that was a much less important issue than scale or timing.

A problematic patch because...