Business model innovation

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Business Model Innovation

Faculty: Dr Steyn Heckroodt

Date: 2014

Inspiring thought leadership across Africa

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OUTCOMES

Source: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za

© Dr Heckroodt, S

Analyse the concept of strategy and the process of developing corporate

strategy

Analyse and evaluate the processes of planning and developing a

corporate strategy

Analyse the strategy of a business in relation to the macro-environment

Motivate the role of a strategic plan in the achievement of an

organisation's mandate

Formulate an integrated strategy for an organisation based on the

analysis of the most viable strategic initiative/s

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FOCUS AND APPROACH

For your own interest – not to be

discussed during session

• Read the article and entertain the

thought on the relation between

understanding and knowing,

determining what possible value it

holds for your strategic thinking?

http://lectureonbusiness.com/blog/kno

wledge/


© Dr Heckroodt, S

http://lectureonbusiness.com/blog/knowledge/

http://lectureonbusiness.com/blog/knowledge/

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UNDERSTANDING

© Dr Heckroodt, S

“The better we can understand the cause-and-effect associations

between the things shaping our business and its markets, the better

placed we are to make strategic decisions to ensure effective future

performance…”

Tovstiga and Aylward (2008)

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THE SEQUENCE

© Dr Heckroodt, S

environmental scanning

execute scenario planning

appropriate strategy selection

Business performance

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INFORMATION

© Dr Heckroodt, SSource: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za

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STRATEGIC SELECTION


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ENVIRONMENT

© Dr Heckroodt, S © Dr Heckroodt, SSource: Amended from Heckroodt, S. Strategic Thinking – GAME OVER. Epubsa.co.za

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Practical

© Dr . Steyn Heckroodt

• Critically analyse your organisation’s current scanning (information gathering) processes and methodologies.

• Identify possible problems in the current and entertain an open discussion on some possible alternatives or better ways of doing it.

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PESTLE and Systems Thinking


For your own interest – not to be done during session

• Read the article and entertain the thought about moving beyond PESTLE, determining what value it holds for your strategic thinking?

http://lectureonbusiness.com/blog/should-management-move-beyond-pestle/




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DYNAMISM


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Strategic fitas a juncture

OpportunityThreat

OrganisationAbility

STRONG RELATIONSHIPSFLEXIBLE

STRATEGIC THINKING MODE


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STRATEGY AND COMPETITIVENESS


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NEW FRAMEWORK

© Dr Heckroodt, S


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Practical


• Critically analyse your organisation’s current competitive business model.

• Identify possible problems in the current and entertain an open discussion on some possible alternatives or better ways of structuring a competitive business model and maybe highlight some substantial organisational problems – maybe something that could be tackled through a BDAL project

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THINKING MODES

© Dr Heckroodt, S

DISORDERCHAOTICDomain of rapid response

ActSense

RespondSIMPLE

Domain of best practiceSense

CategoriseRespondPESTLE

segmentationand categorisation

COMPLICATEDDomain of experts

SenseAnalyseRespond

COMPLEXDomain of emergence

ProbeSense

RespondP-square

Source: Amended from Snowden and Boone, 2007. A Leader’s framework for decision making

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Dominant attribute

QualityPrice

Variety and Range

ConvenienceDemand


© Dr Heckroodt, S

STRATEGIC COMPETITIVENESS

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Simulation example…

Service leader

Commodity leader

Cost leader

Cost and service leader

Low

Hig

hLo

w

HighCost advantage

Valu

e a

dvan

tag

e

Source: Amended from Christopher, M. Third Edition. Logistics and Supply Chain Management. Pearson Education

STRATEGIC POSITIONING

© Dr Heckroodt, S

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Ideal Future

Current Future

Simulation example…

Low

Hig

hLo

w

HighCost advantage

Valu

e a

dvan

tag

ePOINT IN TIME

© Dr Heckroodt, S

Source: Amended from Christopher, M. Third Edition. Logistics and Supply Chain Management. Pearson Education

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Strategic fitas a juncture

OrganisationAbility

Internal Information Live

External Information Live

Strategic planning = alive = moves beyond

annual event

OpportunityThreat

PROBABILITYIM

PACT

STRATEGIC APPROPRIATENESS


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Practical


Analyse the concept of strategy and the process of developing corporate strategyPractice:Analyse in terms of appropriateness – not correctnessDo high-level contextual and transactional business environmental scanningUse either conventional or P-square frameworkDo internal environmental scanning, specifically looking at people, finance, infrastructure and informationProvide a qualitative opinion on whether the strategy is appropriate, based on the information to your disposal

Business model innovation

Business

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