Archive for the ‘Business Model’ Category

The “Learning Hub”

Thursday, April 24th, 2008

What’s next in corporate education? Our agile corporate learning programs have evolved over the past 5 years through successive approximations, i.e. experimentation. Our current framework is that of a Learning Hub (LH) which is designed to promote on-going, self-directed learning among our clients’ workers at all levels.

Why this approach—why now? Simply put, we’re seeing corporate learning increasingly move away from a traditional skills training-passive learning approach to more of a performance engineering process, and for good reason.  Traditional training doesn’t build the capabilities that today’s market leading companies need to succeed.  Moreover, it doesn’t address the needs of sophisticated learners in the Knowledge Economy.

In contrast to conventional training, our efforts are directed at improving overall organizational capabilities while stressing frontline performance — connecting performance to the desired business impact. We’re aiming at driving performance improvement through all levels of the organization.

In addition to building the skills, knowledge and talents needed to improve performance now, we help clients anticipate the skills, the knowledge, the talents necessary as consumer demands shift over the 18-24 months.

The LH isn’t a training center, or a set of dedicated classrooms. It’s conceptual — a web-enabled learning environment that provides access to a wealth of knowledge resources–both internal and external. It entails on-line learning, peer collaborations, links to outside resources, and partnerships with academic institutions, all intended to deliver knowledge that is necessary at the moment the employee needs it.

The LH enables leaders to be able to emphasize the importance of learning to the success of the organization. It enables our clients to come together around a shared educational platform. This formal approach to on-going learning enables different units to come together which is one of those key business challenges that organizations are dealing with today – that is, trying to get different work groups to collaborate.

Technology is enables access to and connectivity with resources that couldn’t otherwise be reached in person. It also allows us to do things such as simulations — a lot of things that we can practice, which we would not be able to do in the operational environment, are enabled by technology.  This is aparamount in a world where workers are distributed across continents.

And we bring technologies that simulate the work setting. The result is there’s no demarcation between the learning environment and the work setting. So, when learners move from the LH Lab to their day-to-day jobs, it’s a seamless transition.

Learners come to the LH environment expecting not only to get particular knowledge or skills but they expect to enjoy a learning experience that contribute to their ability to effectively engage customers while also feeling more confident and therefore more satisfied workers.

U.S. airline mergers re-visited

Wednesday, April 23rd, 2008

What follows the Delta-Northwest merger? United Airlines and Continental have been talking, despite Continental’s independent culture.  Whether this deal goes down or not is heard to tell.  But more mergers seem likely if not inevitable.

The forecast for airlines is gloomy and getting darker by the day. Network carriers in the U.S. are facing high costs for aircraft ownership, fuel, labor and maintenance. With rising fixed costs, no pricing power and negligible profit margins, reducing capacity to relieve pricing pressure seems to be mission imperative.  But network carriers are reluctant to reduce their inventories much further.

Due to their low credit ratings, airlines can’t borrow money at reasonable rates to invest in more fuel efficient planes and more efficient facilities.

All this means that the industry will have to consolidate – out of sheer necessity – despite the thorny challenges of integrating large, people-intensive organizations and fragmented legacy systems.

Can consolidation fix the ailing economics of the airline industry?

It’s too early to tell, but it probably won’t be enough.  In the end, new and innovative airline business models are needed to solve the industry’s deep, structural problems.

Airline disruptions and mergers

Tuesday, April 15th, 2008

While considering the much anticipated Delta-Northwest merger, with many more mergers on the horizon, I recalled Clayton Christensen’s book The Innovator’s Dilemma.

He pointed out how the Southwest Airlines model is “disruptive” because their low-cost strategy targeted customers who had been using trains and buses and or those who used out of the way airports.

But, Christensen believes that low cost carriers have a limited shelf life, because the incumbents can ultimately match them on the cost side, whereas the incumbents can’t climb the value chain.

I wonder what comes next in the evolution of airline service models – few of which are working well in mature markets, particularly in the U.S. and Europe.  Carriers suffer from overcapacity during down cycles like this while customers receive less than stellar service.

Just when we figured there’s nothing new and interesting in the industry comes Virgin America’s innovative business model. Their planes feature custom-designed leather seats, mood-lighting, and the best in-flight entertainment (IFE) system in the industry with on-demand TV and movies, high end games, music and even online chats with other customers.

The IFE is a great example of how the airline got it right.  As a practical matter, customers can plug their devices into USB ports.  The real genius is that the system runs on twin Linux servers–meaning an “open source” platform that is equipped to handle a range of new software and harware add-ons down the road.  This innovation occurred because the company had the wisdom to recruit forward-thinking, Silicon valley engineers – not airline entertainment vendors – to design it.

And, the airline managed all of this using a surprisingly lean, yet scalable operations model.  By allocating costs on non-perishable components that customers value, Virgin has come up with an effective airline model that will alter the way we think about flying.

While the legacy carriers fight it out using conventional warfare, Virgin America is rolling out new, novel features that today’s high value customer desires.  That’s what’s next – along with more mergers among the majors.

P.S. [April 18, 2008], Notice Time magazine’s 4-17 article, “Richard Branson’s Flight Plan”.

EM learning model

Tuesday, March 11th, 2008

We’re developing, in successive approximations, a hybrid model of delivering premium training to emerging companies—those emerging regions that are clamoring for competitive capabilities to succeed in a world with more competitors along with more demanding customers.

It features, among other things, ”modular” content design which enables us to reduce development cycles and labor without compromising content quality.  A new quick-check knowledge management system is powering this effort.

Today, many organizations offer innovative solutions for improving knowledge transfer, as well as products that enhance the learner experience. But, we want to go further by translating our vision for delivering premium learning services to emerging markets where we can achieve superior learning outcomes at significantly reduced costs.

We aim to further our mission of creating substantial business impact through initiatives designed to provide research-based solutions, expertise and structured peer interaction.

And, of course, we must do all this without compromising quality.  Not easy, but worth the effort to be sure.