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Agility Benchmarking

Agility Benchmarking. By: Victoria Arnold Tammy Kieper Kendall Tupper Diane Vavrasek. ALDI’s Discount Supermarket. ALDI (ALbrecht-Discount) opened its first store in 1948 in Essen The two brothers wanted to offer high quality

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Agility Benchmarking

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  1. Agility Benchmarking By: Victoria Arnold Tammy Kieper Kendall Tupper Diane Vavrasek

  2. ALDI’s Discount Supermarket • ALDI (ALbrecht-Discount) opened its first store in 1948 in Essen • The two brothers wanted to offer high quality products at non-compete prices • Today, there are 7,544 ALDI (Nord/SUED) outlets on 3 different continents

  3. The geographical division

  4. ALDI’s Principles • ALDI’s guarantee is INCREDIBLE VALUE EVERY DAY • "Top quality at incredibly low prices" • "Spend a little, live a lot" • The discount supermarket is specialized in staple and other inexpensive household items (labeled own brand) • Special weekly offers include electronic devices, clothing … to diversify the assortment • Aldi's "strictly no frills" approach keeps costs low • Aldi's minimal staffing levels compress expenses • The discount stores are kept small shops to avoid high RE prices

  5. Agile Aspects of ALDI: “When attacked, a decentralized organization tends to become even more open and decentralized.”(page 21) ∙ ALDI long time accused of selling low-quality products found its way into mainstream by diversifying its assortment (cook books, electronics …) ∙ ALDI feels strongly that the company’s success can be attributed to its decentralized organizational structure ∙ According to some sources, every week an ALDI store opens somewhere in the world reinforcing its market presence and agility Source: Van Meggelen, Madsen, Smith, 2005 & Brafman, O., Beckstrom, R., 2006

  6. Agile Aspects of ALDI: “An open system doesn’t have central intelligence; the intelligence is spread throughout the system”(page 39 & 40) ∙ ALDI’s flat hierarchy gives open space to local store management and ALDI N/S are independent organizations ∙ The main objective of the Albrecht brothers was and is to improve the system (catalysts) ∙ ”Konsequent einfach” (by consequence, simple) is one of ALDI’s principals: there are no concepts longer than one page to keep the system simple Source: Van Meggelen, Madsen, Smith, 2005 & Brafman, O., Beckstrom, R., 2006

  7. Agile Aspects of ALDI: “Open systems can easily mutate”(page 40) ∙ ALDI, among Germany’s top five supermarket discount chains, has managed to become one of the 8 biggest textile distributors, and gained a 18% market share in the “health-product” industry ∙ Entry barriers are low however, ALDI’s thirst for innovative projects (Yesss…) keeps them ahead of their main competitor Lidl ∙ ALDI has proven its adaptability to political and economic decisions (Euro-Teuro, open hours, wages …) Source: Van Meggelen, Madsen, Smith, 2005 & Brafman, O., Beckstrom, R., 2006

  8. ALDI’s Mission: ALDI’s mission is to stay loyal to its principle, as to know providing customers with high quality products for very low prices “They will always stay leaders because they trust in their people” “The concept of simplicity and discount of ALDI has been imported into other industries (Porsche)” (Page 4) Source: Van Meggelen, Madsen, Smith, 2005

  9. Digium’s Asterisk * ∙ Asterisk Software was developed in 1999 by Mark Spencer while he was working for Digium ∙ He wanted to provide his customers with 24-hour technical support ∙ He created telephony system that could connect via software to the CPU that interfaced with a telephone circuit Source: (www.digium.com) & (Van Meggelen, Madsen, Smith, 2005)

  10. PBX System Example: Source: www.quintum.com/images/Remote-Office-PBX.jpg

  11. Digium’s Values: ∙ Asterisk was built with the customer’s ideas in mind ∙ Open source development ∙ Offers free downloadable software ∙ Customers include small, medium, or large sized organizations, & individual home owners ∙ Provide customers with consulting and technological support Source: (www.digium.com) & (Van Meggelen, Madsen, Smith, 2005)

  12. Agile Aspects of Digium: “When attacked, a decentralized organization tends to become even more open and decentralized.”(page 21) ∙ Many organizations fear computer hackers because they of the potential degradation of computer systems ∙ Digium feels their success is attributed to employees’ ability to hack into different systems ∙ Digium encourages these abilities – feel hackers built the internet and the Apple computer & they will continue to play a large role in creating future telecommunication services Source: Van Meggelen, Madsen, Smith, 2005 & Brafman, O., Beckstrom, R., 2006

  13. Agile Aspects of Digium: “An open system doesn’t have central intelligence; the intelligence is spread throughout the system”(page 39 & 40) ∙ Digium does not assign employees specific tasks ∙ Promotes idea sharing amongst workers with diversified industry and experience backgrounds ∙ Digium employees are equipped with advanced problem solving skills and are highly motivated by innovation ∙ Digium’s culture - customers having total say in the design of their telecommunication service Source: Van Meggelen, Madsen, Smith, 2005 & Brafman, O., Beckstrom, R., 2006

  14. Agile Aspects of Digium: “Put people into an open system and they’ll automatically want to contribute”(Page 74) ∙ Digium’s competitors (AT&T and Verizon) utilize small work teams to develop new products whereas Digium creates work teams that consist of hundreds of employees contributing in brainstorming sessions Source: Van Meggelen, Madsen, Smith, 2005 & Brafman, O., Beckstrom, R., 2006

  15. Agile Aspects of Digium: “Open systems can easily mutate” (page 40) ∙ With the development of Asterisk, Digium wants and encourages others to enter into the market ∙ Very low barriers to entry ∙ “It is now possible for someone with an old $200 PC to develop a communications system that has intelligence to rival the most expensive proprietary systems.”(page 208) Source: Van Meggelen, Madsen, Smith, 2005 & Brafman, O., Beckstrom, R., 2006

  16. Digium’s Mission: To encourage the telecommunications industry to evolve into an era of flexibility and creativity “These people (the Digium community) all share a common belief: that the telecommunications industry needs a proper revolution. Asterisk is the catalyst.”(Page 4) Source: Van Meggelen, Madsen, Smith, 2005

  17. Google: Overview • Google, first officially established in 1998, was the brainchild of Larry Page and Sergey Brin • Page and Brin developed a new approach to online search out of a Stanford dorm room • The new type of search had the unique ability to analyze the “back links” in a website • Two short years after conception, in 2000, Google became the world’s largest search engine

  18. Google: What is it? • Google is named for the mathematical term “Googol” or a 1 followed by 100 zeros • The term was coined by Milton Sirotta and made popular in the book “Mathematics and the Imagination” • Company lore states that the name Google was chosen because Googol reflects the company’s mission to organize the enormous amount of information on the web

  19. Google: Products • Google generates revenues through two venues: • Targeted advertising • AdWords, AdSense • Online search services • Google Search Services • Google hosts a large number of “Google Domains” • Finance, News, Images, Video, Earth

  20. Google: Mission • Google’s mission is “to organize the world’s information and make it universally accessible and useful” • Continuously thinking about ways technology can improve existing ways of doing business • Exploration of new areas and ideas • Nurture the new areas and make them prosper

  21. Google: Philosophy • Never settle for the best • Google still remains committed to providing the best level of service to those who seek information regardless of where they are located • Continuous commitment to innovation, trailblazing and the creation of the perfect search engine

  22. 10 things Google has found to be true 1. Focus on the user and all else will follow. 2. It’s best to do one thing really, really well. 3. Fast is better than slow. 4. Democracy on the web works. 5. You don’t need to be at your desk to need an answer.

  23. 10 things Google has found to be true 6. You can make money without doing evil. 7. There’s always more information out there. 8. The need for information crosses all borders. 9. You can be serious without a suit. 10. Great just isn’t good enough.

  24. Google: Agile • Strong sense of corporate values and mission aligns all employees in the organization • Strong employee engagement • Employees incorporate values into everyday life at Google • Google continuously looks to extend its reach • Translating web pages • Customizable ads

  25. Google: Agile • Small managerial hierarchy • Little to no communication barriers • Employees wear “several hats” • Hiring is based on ability and not experience “Because everyone realizes they are an equally important of Google’s success, no one hesitates to skate over a corporate officer during roller hockey.”

  26. Google: Continuing on… “The perfect search engine would understand exactly what you mean and give back exactly what you want.” –Larry Page

  27. W.L. Gore • Founded in 1958 • Currently 7,500 employees • 45 Locations around the world • Revenues of over $1.98B • Profitable for 35+ consecutive years • Best known for Gore-Tex fabric

  28. Gore’s Competitors • Belden CDT Inc- cable and wire products • Burlington Worldwide- manufactures barrier fabrics • Sustained competitive advantage lies in the organizational culture and structure

  29. Gore’s Culture • Team based environment • Fosters personal initiative • Encourages innovation • Promotes person-to-person communication among all associates • No formal mission statement

  30. Lattice Structure • No chains of command or predetermined channels of communication • “Associates” & Sponsors • Leaders emerge through “followership” • Compensation tied to individual’s contributions • Outcomes

  31. Common ThemesOrUnique Differences?

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