Business Development & Renewal Process

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Analysing the flow of value from strategic intent to customers and prospects in order to identify core points for business renewal.

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Business Development & Renewal Process

  1. 1. Business Development & Renewal Process Dr. Elijah Ezendu FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr
  2. 2. Objectives At the end of this course, participants would be able to do the following: • Explain business life cycle • Distinguish between business growth and business development • Explain the concepts of business development • Identify the process for implementing business renewal • Coordinate execution of business renewal within a firm
  3. 3. “In growing, highly competitive businesses, the life cycle's predictable patterns help CEO's and their managers develop insight as to what problems need to be corrected first.” - Jack Veale, The Business Life Cycle
  4. 4. What is Business Life Cycle? A business life cycle depicts the stages of advancement which a business goes through in the course of activities.
  5. 5. Executives and managers must be able to identify the actual position of a firm and the next destination in its business life cycle, in order to establish appropriate business plan for driving the business portfolio in accordance with strategic intent.
  6. 6. Contemporary Model of Business Life Cycle Formation Growth Maturity Decline Stage I Stage II Stage III Stage IV
  7. 7. Seven-Stage Model of Business Life Cycle Seed Start-Up Growth Established Expansion Mature Innovate Decline
  8. 8. The First Stage (Seed) This is the conception of business as an idea or clicking thought Highlights: Resolution on ownership structure and business advisors Challenges: Finance and Market HR Focus: Availability of Appropriate Talent
  9. 9. The Second Stage (Start-Up) At this juncture, the business commences operation as a legal entity and attempts to move its products or services to consumers. Highlights: product development, customer base, competitiveness, cash flow management and market presence Challenges: Strategy, Competitive Intelligence, HR and Financial Planning HR Focus: Human Resource Composition, Organisational Systems and Reward Management
  10. 10. The Third Stage (Growth) This involves great increase in customer base and revenue. Highlights: Modulated Financial and Management Systems, Increased Administrative Protocols, and growth in staff strength Challenges: Delegation, Managerial efficiency and effectiveness HR Focus: Talent Management, Career Path Analysis, Cultural Alignment, and Performance Management
  11. 11. The Fourth Stage (Established) At this stage, the business goes through a momentary slow-down in growth rate and upholds its market share. Highlights: Cost Management, Productivity Enhancement, Outsourcing, Alliance Development and Management, Business Process Reengineering plus Increased Automation Challenges: Organisational Agility, Strategic Roadmap Management HR Focus: Motivation, Performance Reengineering, and Retention
  12. 12. The Fifth Stage (Expansion) This parades exploration and exploitation of markets for evolving the business. Highlights: Aggressive Marketing, Highly Structured Value Engineering, Channel Development and Management, Alliance Development and Management, and Technology-Driven Competitive Advantage Challenges: Diversification Strategies, Investment Management and Strategic Alignment HR Focus: Human Resource Development, Workload Analysis and Management, and Organisational Development
  13. 13. The Sixth Stage (Mature) This is characterized by great drop in sales growth and occurrence of negative cash flow. Highlights: Cost Management, Financial Management and Market Challenges: Organisational Leadership HR Focus: Leadership Development and Reward Management
  14. 14. The Seventh Stage (Decline/Innovate) At this point, the business tends to stray into moribundity and its leaders may decide to innovate for growth and expansion or allow it to continue declining and finally harvest the assets. Highlights: Financial Management, Due Diligence, Competitive Intelligence, Strategy and Corporate Restructuring Challenges: Ownership Resolution, Strategic Alignment, Opportunities Profiling and Decision Dynamics HR Focus: Organisational Restructuring, Human Resource Planning and Retention
  15. 15. Business Growth Business growth involves the increase in top line through increased sales or enhancement of bottomline by decreasing cost.
  16. 16. Why the Focus on Business Growth  Capacity Utilization  Increase in Profit  Increase in Market Share  Survival  Visionary Drive  Prestige  Exploitation of Opportunities  Influence  Knack for Accomplishment
  17. 17. The Focus of Business Growth Business Growth focuses on each stage of the a business life cycle. Business growth strategies are usually short term and structured to suit the events and conditions at the particular position where a firm is located in its business life cycle.
  18. 18. Business Development is a process, programme, technique and system for mapping, optimizing and controlling the value flowage of an organization from strategic intent to worth consumption.
  19. 19. Levels of Business Development Corporate Commercial Product
  20. 20. Product Level of Business Development 1. Incremental Development: This focuses on growing the functionality and relevance of current bundles of value proposition. For example, moving an item to a level of additional functionality by adding more features. 2. Disruptive Development: This is geared for evolving novel innovation to embody fresh bundle of value proposition. For example, bringing forth a totally new product.
  21. 21. Commercial Level of Business Development 1. Market Development: This involves increasing the entire market of a firm by charting value proposition to new prospects. 2. Channel Development: This focuses on aligning, structuring and evolving a firm’s channel in compliance to the strategic-fit. 3. Value Chain Development: This deals with systematic modification and enrichment of a firm’s value chain for competitiveness.
  22. 22. Corporate Level of Business Development The corporate level of business development boosts up competitive positioning of a firm’s total value proposition through restructuring, realignment and change.
  23. 23. The Focus of Business Development Business Development focuses on structuring appropriate strategic map for a firm’s business portfolio, so as to ensure continuity, viability and accomplishment of strategic intent. Business Development is usually geared for long term survival.
  24. 24. Case Study In 2003, the management of Philips observed drawbacks in its business activities. On reviewing the firms position, issues identified included decentralized business planning, logistics and accounting; 7 Business Units; 21 Creation Teams; Each Team had individual R&D approach; Distinct regional marketing programmes; Undifferentiated business models; USA operations focused on improving retail position; In-house infrastructure; Large own consumer service organisation. It decided to implement business renewal strategies and the targets achieved in 2005 included centralized business planning, logistics and accounting; 3 Business Units; 12 Creation Teams; aligned R&D roadmaps; coherent global marketing approaches; business model adapted to life-cycle; USA operations implemented lean organisation and global programmes to drive business; outsourced, shared service centres; outsourced consumer service organisation. As a result, the firm achieved reduction of 400 million Euro operating cost by second quarter of 2005.
  25. 25. Business Renewal “Business Renewal encompasses a number of overlapping traditional and modern process areas. In your organization these might include: strategy formulation, innovation, business development, eBusiness strategies, strategic marketing, competitor intelligence, and business network development & management.” - Manyworlds
  26. 26. Innovation Paths at the Heart of Renewal Processes 1. Product Innovation 2. Disruptive Innovation 3. Application Innovation 4. Line Extension Innovation 5. Marketing Innovation 6. Process Innovation 7. Platform Innovation 8. Integration Innovation 9. Business Model Innovation 10.Value Chain Innovation 11.Structural Innovation 12.Experiential Innovation
  27. 27. Ted Zoller’s Leveraging Approach for Business Renewal 1. The ventures advantage 2. Its place in the market landscape 3. How customers perceive the firm and product 4. Firm’s ability to execute
  28. 28. Competency for Renewal Process Discovery Creation, recognition, elaboration, articulation of opportunities (Conceptualization) Incubation Evolving the opportunity into a business proposition (Experimentation) Acceleration Ramping up the business to stand on its own (Commercialization) Adapted from Radical Innovation Group
  29. 29. Dr. Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing, Interim Management, CSR, Leadership, Project & Programme Management, Cost Management, Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, Cloud Computing, eLearning & International Business. He holds proprietary rights of various systems. He is currently CEO, Rubiini (UAE); Hon. President, Worldwide Independent Inventors Association; Special Advisor, RTEAN; Director, MMNA Investments Limited. He had functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Turnaround Project Director, Consolidated Business Holdings Limited; Lead Consultant/ Partner, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Director, The Greens; Chief Advisor/Partner, D & E; Vice Chairman, Refined Shipping; Director of Programmes & Governing Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola University of Technology, Nigeria; Editor-in-Chief & Chairman of Editorial Board, Cost Management Journal; National Executive Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business Administration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He is an author & widely featured speaker in workshops, conferences & retreats. He was involved in developing Specialist Master’s Degree Course Content for Ladoke Akintola University of Technology (Nigeria) and Jones International University (USA). He holds Interim Management Assignments on Boards of Companies as Non-Executive Director.
  30. 30. Thank You

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