Date post: | 26-Jun-2015 |
Category: |
Business |
Upload: | hery-azwan |
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Business Horizon
Business Trends
Level of business uncertainty
Competition for Resources
Price Stability in Question
Shifting Consumptions Pattern
Metaphysical Quality
A Bigger Role of Government
Age of Value
Competitive Advantage
Mass Uniqueness
Growth Horizon
• Business grows through different horizons• Every horizon represents a different stage in
the creation and development of a business:– Different business initiatives– Different management challenge
Growth Horizons
Profit
Now Time (years) Future
Horizon 1
Horizon 2
Horizon 3
Extend and defend core business
Build emerging business
Create Viable Option
Seed growth options
Replicate proven business model
Manage for profitability
Test business model
Horizon 1
• Business initiatives:– Defend core business– Generate cash, profit, and
skill as a resource for growth
Horizon 1 (2)
• Management challenge:– To shore up competitive positions– To capture what potential remains in the core
business– To continue innovation that can incrementally
extend their growth and profitability
Horizon 2
• Business initiatives:– To build emerging business that could be earning
generator– To increase revenue
Horizon 2 (2)
• Management challenge:– To take advantage before competitors do– To establish potential advantage
Horizon 3
• Business initiatives:– To explore option tomorrow business, future
opportunities
Horizon 3(2)
• Management challenge:– To develop good ideas into horizon 3– To seed numerous options business
Unhealthy Pattern
Horizon 1 2 3
1Under siege X X X
2Losing the right to grow X V V
3Running out of steam V X X
4Inventing a new future X X V
5Generating ideas but not new business V X V
6Failing to seed for the future V V X
Managing 3 Horizons
• Develop many businesses in parallel• Manage the horizons concurrently not sequently• Pay attention to:– Extend and defend today’s profit generators in
horizon 1– …while simultaneously building horizon 2 business
that will become drivers of medium term revenue growth
– …while also pursuing option in horizon 3 that will secure the company’s longer-term future
Staircases to Growth
• To sustain profitable growth, the company needs a healthy flow– Horizon 3 options flow into Horizon 2 growth
engines and ultimately into Horizon 1 core business
• Staircases to growth are one step at a time to manage risks– Market uncertainty– Capabilities gap
Staircases Architecture
• Seeding the initial growth options• Testing commercial viability the business
model• Replication and extension the business model• Managing profitability
Thank You