Post by account_disabled on Dec 26, 2023 2:44:05 GMT -5
We have argued that companies should build a business creation engine that can continuously launch innovative new business models, but to date, to our knowledge, no company has built such a durable capability. We believe this continued growth engine will quickly prove to be the company's most valuable asset, delivering growth and creating new markets. But the behaviors required to unlock this growth potential are very different from those required to successfully exploit existing markets. As the journey metaphor we propose here illustrates, the challenge is that we need to transform an event—the act of creating a new business and a new business model—into a repeatable process at the company level. It must be a process because events are discrete activities with clear beginnings.
Endings whereas processes are continuous and dynamic. Lessons learned from previous events do not transfer naturally or easily to subsequent events, resulting in the same mistakes being repeated over and over again. Instead, the process can essentially be a learning opportunity, incorporating what was discovered in previous iterations into future attempts. As a process, the act of creation will improve over time Job Function Email List and increase its ability to uncover unfinished customer work and create new markets; success rates will increase as the process improves, creating a virtuous cycle of growth. While we have yet to discover a perfect example of this discipline, we have been tracking the efforts of some leading companies working to build this capability.
While it's too early to consider any of these as success stories, we can still discern five approaches that we think have the potential to succeed. Let's look at each of these methods in turn. Uncover future growth gaps by understanding the stage each business unit is in. In our courses at Harvard Business School, we teach students to use a tool called a master project plan to allocate funding for different types of innovation. 11 The program classifies innovations based on their proximity to existing products and markets and specifies the funding allocation required for each category. We see this tool in action here too. The innovation team at health care organization based in Charlotte, North Carolina, conducted such an analysis and determined that additional innovation efforts are needed.
Endings whereas processes are continuous and dynamic. Lessons learned from previous events do not transfer naturally or easily to subsequent events, resulting in the same mistakes being repeated over and over again. Instead, the process can essentially be a learning opportunity, incorporating what was discovered in previous iterations into future attempts. As a process, the act of creation will improve over time Job Function Email List and increase its ability to uncover unfinished customer work and create new markets; success rates will increase as the process improves, creating a virtuous cycle of growth. While we have yet to discover a perfect example of this discipline, we have been tracking the efforts of some leading companies working to build this capability.
While it's too early to consider any of these as success stories, we can still discern five approaches that we think have the potential to succeed. Let's look at each of these methods in turn. Uncover future growth gaps by understanding the stage each business unit is in. In our courses at Harvard Business School, we teach students to use a tool called a master project plan to allocate funding for different types of innovation. 11 The program classifies innovations based on their proximity to existing products and markets and specifies the funding allocation required for each category. We see this tool in action here too. The innovation team at health care organization based in Charlotte, North Carolina, conducted such an analysis and determined that additional innovation efforts are needed.