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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 Horizon 3 Create Viable Option Seed growth options Horizon 2 Profit Test business model Build emerging business Replicate proven business model Horizon 1 Extend and defend core business Manage for profitability Now Time (years) Future
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 incrementallyextend 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
Managing 3 Horizons Develop many businesses in parallel Manage the horizons concurrently not sequently Pay attention to: Extend and defendtoday’s profit generators in horizon 1 …while simultaneously buildinghorizon 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
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Business horizon

  • 3. Level of business uncertainty
  • 8. A Bigger Role of Government
  • 12. 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
  • 13. Growth Horizons Horizon 3 Create Viable Option Seed growth options Horizon 2 Profit Test business model Build emerging business Replicate proven business model Horizon 1 Extend and defend core business Manage for profitability Now Time (years) Future
  • 14. Horizon 1 Business initiatives: Defend core business Generate cash, profit, and skill as a resource for growth
  • 15. Horizon 1 (2) Management challenge: To shore up competitive positions To capture what potential remains in the core business To continue innovation that can incrementallyextend their growth and profitability
  • 16. Horizon 2 Business initiatives: To build emerging business that could be earning generator To increase revenue
  • 17. Horizon 2 (2) Management challenge: To take advantage before competitors do To establish potential advantage
  • 18. Horizon 3 Business initiatives: To explore option tomorrow business, future opportunities
  • 19. Horizon 3(2) Management challenge: To develop good ideas into horizon 3 To seed numerous options business
  • 21. Managing 3 Horizons Develop many businesses in parallel Manage the horizons concurrently not sequently Pay attention to: Extend and defendtoday’s profit generators in horizon 1 …while simultaneously buildinghorizon 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
  • 22. 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
  • 23. Staircases Architecture Seeding the initial growth options Testing commercial viability the business model Replication and extension the business model Managing profitability