4 Strategic Planning Tools For Business Model Innovation and Business Strategy Design

here are strategic planning tools for pretty much any objective a business executive can conceive of. However, for managers and entrepreneurs wishing to innovate their business model, it can be challenging making the leap from conventional thinking to the sort of creative but realistic thinking from which the next buy Windows 7 Home Premium SP1 generation of sustainable profits can develop.

Knowing the types of tools you can use for various kinds of business strategy tasks can you get far more innovative results from your strategy development sessions while cutting the time it takes to arrive at good business models.

Tools for Mapping and Dominating Uncontested Market Spaces

1. Strategy Canvas

The Strategy Canvas is a tool first introduced in the book, “Blue Ocean Strategy” by W. Chan Kim and Renee Mauborgne. It is a chart that plots the positions of business competitors relative to the factors important to the customer marketplace. The horizontal axis plots the factors of competition (hopefully established through customer knowledge), and the vertical axis plots the degree of offering or service level.

Using this chart differences between current and potential business competitors can be graphically portrayed. The primary point of the strategy canvas is to illustrate divergence between market and business strategies as it relates to customer needs. By using a strategy canvas, you can create a new value innovation that breaks the conflict between low cost and differentiation – the heart of blue ocean strategy.

The strategy canvas is also a great tool for USP development.

2. Strategic Control Point Index

This is a tool used to assess the level of strategic control a business has in its industry relative to competing businesses and organizations. It was best articulated by management consultant Adrian Slywotzky in “The Profit Zone” (a book which I highly recommend). The strategic control point index classifies these control points according to the level of “profit-protecting power” they confer to a business.

Simply put, it is a simple description of the path to monopoly power (or at least near-monopoly) in any business design. The profit protecting power of these strategic control points go from “None”, “low”, “medium” to “high”. Some examples of strategic control points given by Slywotzky include:

10 to 20 percent cost advantage in commodity product (low)
One-year product development lead (slightly higher, but still low)
Two-year product development lead (medium)
Brand, copyright (slightly higher, but still medium)
Customer relationship ownership (High)
String of superdominant market positions (Higher)
Management of the Value Chain (Even higher)
Standards Ownership (Highest)

3. 6 Paths Framework

This analytical tool is another from “blue ocean strategy” and masterfully gives strategists a way to think across the “six conventional boundaries of competition” to systematically construct new assumptions and stimulate product or business design breakthroughs. The idea is that one of these unconventional ways of looking at the competitive landscape may crack open a strategic buy Windows 8 Professional Key breakthrough.

a) Look across industries – Compete with alternatives and substitutes for your product/service rather than those you think are your competition.

b) Look across strategic groups – Look at how your new strategy can be developed between the naturally assumed strategic boundaries in your industry.

c) Look across the chain of buyers – Consider how you can change the game by changing the defined “primary buyers.

d) Look across complementary products and services – Thinking about the whole system of your customer’s typically solution (in which your current offering might be just a small part).

e) Look across functional or emotional appeal – Examine how you may be able to create a new value curve by adding emotion to a functionally oriented industry, or removing stripping out emotion and reducing a product or service to its functional core.

f) Look across time – Adjust your time horizon to a different point or cycle than is typical in the rest of your industry.

4. Business Design Matrix

The business design matrix is a great analytical tool that you can use to help understand and analyze “at a glance” the business models of your competitors. It is largely derived from the work of Dr. Adrian Slywotzky. The criteria across which you analyze your competitors as well as your own organization include:

Customer selection
Profit Capture System(s)
Differentiation / Strategic Control
Scope of offerings and presence

These core four considerations provide a foundation for deciding marketing strategy – a foundation upon which a larger business strategy can comfortably rest.

Gogo Erekosima, The Small Business Digital Coach is the CEO and Lead strategist at Idea Age Consulting – a Denver Marketing Consulting [http://www.ideaageconsulting.com] firm that promises to grow your small business by 24% or more in 24 weeks or less using their customized Business Growth Action MAPS.

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Practical Business Tips – 5 Questions to Ask When Creating a Business Model

If you have never started a company before then beginning with a business model can be the ticket to your success. It is easier to get moving when you have a template than it is to build from a blank canvas. This article looks at five considerations for selecting a business model.

#1) Where to find a successful approach?

It is good to start with companies in your field to see what works and where there are opportunities for improvement. But you can also look outside the industry to get great ideas. Observe industry leaders and study their successes. Be creative and compile best practices in such a way that you make them your own.

#2) What skills do you need?

A new business model may require additional skills that you do not possess. If so, consider getting more training. Use this opportunity to read, listen, and get more experience in the areas where you need to develop. Another alternative is to hire out your weakness by building a team that provides buy Office Professional Plus 2016 Key the expertise you need.

#3) What resources must you secure?

Whether you are starting a new company or reinventing an existing one, you may need to secure more resources to move to the next level. Some examples of resources that you may need include money, people, and equipment. Consider what industry leaders are doing and the resources that make it possible for them to achieve extraordinary results.

#4) What will it cost?

There is an investment cost for implementing your business start-up, expansion, or growth model. Look into the capital requirements as you go through each of the decision points. A good rule of thumb is to start with a budget. Creating your ideal company can be exciting and having a budget helps you maintain financial discipline in the process.

#5) When should you start?

Putting the new model in action requires research and planning that you can done in stages. Start with the objectives that you want to achieve then create a reasonable timeline for the results. Consider current capacity and financial resources as you make your decision.

The purpose of using a business model buy Office Professional Plus 2013 Key is to accelerate results using proven practices for success. They are a great way to get big business results on a small business budget. To keep building momentum it is important to have measures to monitor performance. Track results and be willing to make needed adjustments along the way.

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Business Model YOU – Book Review

Gifted teacher/trainer, entrepreneur

Tim Clark is a gifted teacher/trainer and entrepreneur. He is an international bestselling author, who holds master’s and doctorate degrees in business, and is currently serving as a visiting professor at the University of Tsukuba in Tokyo. Tim presently leads the personal Business model movement at BusinessModelYou.com…

Define yourself through a business model perspective

Tim Clark presents 5 sections (Canvas, Reflect, Revise, Act & Extras) as he reveals his model “You” perspective. He shares the following ideas: “Business model thinking… ” (Ch. 1), “Identify your career purpose” (Ch. 5), “Get ready to reinvent yourself” (Ch. 6), “Calculate your business value” (Ch. 8), and much more.

Building your personal life/business model

Tim Clark communicates and educates using definitions, clear illustrations, and practical examples. He is concise and comprehensive in his approach, sharing with clinical precision. He defines a business model as, “At the most basic economic level, a business model is the logic by which an organization sustains itself financially.”

In an effort to help readers to create their perfect profession, Clark applies a business approach to help his audience to redefine their lives. He uses bold statements to persuade, stating, “Dream jobs are more often created than found, so they’re rarely attainable through conventional searches.” He promotes proactive activity.

Tim employs quotations to impress points. In discussing the identification of career purpose he quotes Bruce Hazen saying, “If you don’t realign your work with your purpose, you’re just going to relocate that problem… ” And from Carmine Gallo he states, “Only three percent of all people have the courage to find and follow their dreams… ”

Clark provokes with prodding questions as, “Do you enjoy your Customers? Who is your most important Customer? Do you need new Customers? What elements of your services are truly valued by the Customer?”

Bottom-line thinking focuses readers upon results. Tim Clark suggests, “… all organizations need viable.. models, and “viable” means more cash comes in than goes out… ” How will you establish this in your life/business?

Interactive-personal model process

Tim Clark helps readers to reformat their lives through an interactive-personal model process.

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