Business Development & Renewal Process
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Transcript of Business Development & Renewal Process
Business Development &
Renewal Process
Dr. Elijah EzenduFIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM,
PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr
ObjectivesAt 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
What is Business Life Cycle?
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.
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
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
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
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
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
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
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
Business Growth
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 ShareSurvival Visionary DrivePrestigeExploitation of Opportunities InfluenceKnack 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 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
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.
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.
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 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.
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.
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
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
Innovation Paths at the Heart of Renewal Processes
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
Adapted from Radical Innovation Group
Competency for Renewal Process
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) and Hon. President, Worldwide Independent Inventors Association. He functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting, Nigeria; Chairman (Certification & Training), Lead Assessor & Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Lead Consultant, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Director, Fortuna, Gambia; Director, The Greens; Director of Programmes & 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, Cost Management Journal; Council Member, Institute of Internal Auditors of Nigeria. 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 (Nig) and Jones International University (USA). He also works as Adjunct & Visiting Professor of Universities and holds Interim Management Assignments on Boards of Companies.
Thank You