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 HorizonBusiness grows through different horizonsEvery horizon represents a different stage in the creation and development of a business:Different business initiativesDifferent management challenge
Growth HorizonsHorizon 3Create Viable OptionSeed growth optionsHorizon 2ProfitTest business modelBuild emerging businessReplicate proven business modelHorizon 1Extend and defend core businessManage for profitabilityNowTime (years)Future
Horizon 1Business initiatives:Defend core businessGenerate cash, profit, and skill as a resource for growth
Horizon 1 (2)Management challenge:To shore up competitive positionsTo capture what potential remains in the core businessTo continue innovation that can incrementallyextend their growth and profitability
Horizon 2Business initiatives:To build emerging business that could be earning generatorTo increase revenue
Horizon 2 (2)Management challenge:To take advantage before competitors doTo establish potential advantage
Horizon 3Business initiatives:To explore option tomorrow business, future opportunities
Horizon 3(2)Management challenge:To develop good ideas into horizon 3To seed numerous options business
Unhealthy Pattern
Managing 3 HorizonsDevelop many businesses in parallelManage the horizons concurrently not sequentlyPay 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 GrowthTo sustain profitable growth, the company needs a healthy flowHorizon 3 options flow into Horizon 2 growth engines and ultimately into Horizon 1 core businessStaircases to growth are one step at a time to manage risksMarket uncertaintyCapabilities gap
Staircases ArchitectureSeeding the initial growth optionsTesting commercial viability the business modelReplication and extension the business modelManaging profitability
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Business horizon