Business Development & Renewal Process Dr. Elijah Ezendu FIMC, FCIM, FIIAN, FBDI, FAAFM, FAAPM, FCCM, MIMIS, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CCIP, CMC

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

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

“ 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

“ 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

What is Business Life Cycle? A business life cycle depicts the stages of advancement which a business goes through in the course of activities.

A business life cycle depicts the stages of advancement which a business goes through in the course of activities.

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.

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.

Contemporary Model of Business Life Cycle Formation Growth Maturity Decline Stage I Stage II Stage III Stage IV

Seven-Stage Model of Business Life Cycle Seed Start-Up Growth Established Expansion Mature Decline Innovate

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Business Growth Business growth involves the increase in top line through increased sales or enhancement of bottomline by decreasing cost.

Business growth involves the increase in top line through increased sales or enhancement of bottomline by decreasing cost.

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

Capacity Utilization

Increase in Profit

Increase in Market Share

Survival

Visionary Drive

Prestige

Exploitation of Opportunities

Influence

Knack for Accomplishment

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.

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.

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.

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.

Levels of Business Development

Product Level of Business Development 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. Disruptive Development: This is geared for evolving novel innovation to embody fresh bundle of value proposition. For example, bringing forth a totally new product.

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.

Disruptive Development: This is geared for evolving novel innovation to embody fresh bundle of value proposition. For example, bringing forth a totally new product.

Commercial Level of Business Development Market Development: This involves increasing the entire market of a firm by charting value proposition to new prospects. Channel Development : This focuses on aligning, structuring and evolving a firm’s channel in compliance to the strategic-fit. Value Chain Development : This deals with systematic modification and enrichment of a firm’s value chain for competitiveness.

Market Development: This involves increasing the entire market of a firm by charting value proposition to new prospects.

Channel Development : This focuses on aligning, structuring and evolving a firm’s channel in compliance to the strategic-fit.

Value Chain Development : This deals with systematic modification and enrichment of a firm’s value chain for competitiveness.

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.

The corporate level of business development boosts up competitive positioning of a firm’s total value proposition through restructuring, realignment and change.

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.

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.

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 .

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 .

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

“ 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

Product Innovation Disruptive Innovation Application Innovation Line Extension Innovation Marketing Innovation Process Innovation Platform Innovation Integration Innovation Business Model Innovation Value Chain Innovation Structural Innovation Experiential Innovation Innovation Paths at the Heart of Renewal Processes

Product Innovation

Disruptive Innovation

Application Innovation

Line Extension Innovation

Marketing Innovation

Process Innovation

Platform Innovation

Integration Innovation

Business Model Innovation

Value Chain Innovation

Structural Innovation

Experiential Innovation

Ted Zoller’s Leveraging Approach for Business Renewal The ventures advantage Its place in the market landscape How customers perceive the firm and product Firm’s ability to execute

The ventures advantage

Its place in the market landscape

How customers perceive the firm and product

Firm’s ability to execute

Competency for Renewal Process Adapted from Radical Innovation Group

Dr. Elijah Ezendu is a multidisciplinary professional whose business experience mounts through diverse fields. He is a Certified Management Consultant, licensed by International Council of Management Consulting Institutes which has a Special Consultative Status in United Nations Economic and Social Council. As a result of his strides in management consulting, he received Merit Award for Excellence in Consulting. He is concurrently Senior Partner, Shevach Consulting; Director of Strategy and Performance, Fortuna; Lead Assessor and Member of Governing Council, Institute of Management Consultants; Director of Training, International Council of Business Development Professionals; Member of Marketing Committee, International Council of Management Consulting Institutes; Honorary Global Advisor, International Project Management Commission; and Programme Coordinator (Nigeria), Regent Business School, South Africa. He holds a doctoral degree in Management from St. Clements University, British West Indies. He is a Chartered Manager certified by Canadian Institute of Management, Canada and holds numerous professional qualifications including Master Project Manager; Project Manager E-Business; Fellow, Institute of Management Consultants; Fellow, Certified Institute of Cost Management; Fellow, Institute of Business Development; Fellow, American Academy of Financial Management; Fellow, Institute of Internal Auditors; Member, Nigerian Institute of Training and Development; Member, Institute of Analytics Professionals; Associate, Chartered Institute of Personnel Management of Nigeria; Associate, Chartered Institute of Arbitrators (Nigeria). He is a Certified Business Development Analyst and Competitive Intelligence Professional. Additionally, he is an information technology management professional certified by Institute for the Management of Information Systems, UK along with Microsoft Corporation, USA and stands as a Member of International Association of Software Architects. He is an outstanding motivational speaker with a knack for recalibration of positive influence; and a world-class consultant, who has functioned as Speaker/Facilitator at myriad programmes of professional institutes, international development organisations, private and public firms including extra-governmental agencies and institutions. He is a prolific writer and author who had served as Editor-in-Chief, Cost Management Journal; Part-Time Lecturer & External Examiner (MBA Programme), Ladoke Akintola University of Technology; Director of MBA Programme (Nigerian Outreach), Management Institute of Canada; Chief Operating Officer, Rohan Marine; Second Vice President and Member of Governing Council, Certified Institute of Cost Management; Director of Programmes and Member of Governing Council, The Institute of Business Development; Director, Refined Shipping; and Examiner to various Professional Institutes.

Dr. Elijah Ezendu is a multidisciplinary professional whose business experience mounts through diverse fields. He is a Certified Management Consultant, licensed by International Council of Management Consulting Institutes which has a Special Consultative Status in United Nations Economic and Social Council. As a result of his strides in management consulting, he received Merit Award for Excellence in Consulting. He is concurrently Senior Partner, Shevach Consulting; Director of Strategy and Performance, Fortuna; Lead Assessor and Member of Governing Council, Institute of Management Consultants; Director of Training, International Council of Business Development Professionals; Member of Marketing Committee, International Council of Management Consulting Institutes; Honorary Global Advisor, International Project Management Commission; and Programme Coordinator (Nigeria), Regent Business School, South Africa. He holds a doctoral degree in Management from St. Clements University, British West Indies. He is a Chartered Manager certified by Canadian Institute of Management, Canada and holds numerous professional qualifications including Master Project Manager; Project Manager E-Business; Fellow, Institute of Management Consultants; Fellow, Certified Institute of Cost Management; Fellow, Institute of Business Development; Fellow, American Academy of Financial Management; Fellow, Institute of Internal Auditors; Member, Nigerian Institute of Training and Development; Member, Institute of Analytics Professionals; Associate, Chartered Institute of Personnel Management of Nigeria; Associate, Chartered Institute of Arbitrators (Nigeria). He is a Certified Business Development Analyst and Competitive Intelligence Professional. Additionally, he is an information technology management professional certified by Institute for the Management of Information Systems, UK along with Microsoft Corporation, USA and stands as a Member of International Association of Software Architects. He is an outstanding motivational speaker with a knack for recalibration of positive influence; and a world-class consultant, who has functioned as Speaker/Facilitator at myriad programmes of professional institutes, international development organisations, private and public firms including extra-governmental agencies and institutions. He is a prolific writer and author who had served as Editor-in-Chief, Cost Management Journal; Part-Time Lecturer & External Examiner (MBA Programme), Ladoke Akintola University of Technology; Director of MBA Programme (Nigerian Outreach), Management Institute of Canada; Chief Operating Officer, Rohan Marine; Second Vice President and Member of Governing Council, Certified Institute of Cost Management; Director of Programmes and Member of Governing Council, The Institute of Business Development; Director, Refined Shipping; and Examiner to various Professional Institutes.

Thank You Dr. Elijah Ezendu elezendu@yahoo.com, 234 8033024596, 234 8058835237