Strategy

Strategy is a systematic approach to solving a problem. Ten principles for effective and efficient planning 1. Make top-down target-setting a priority 2. Take an analyst's perspective: using metrics based on value drivers 3. Plan in less detail 4. Apply a different level of detail at each stage 5. Shorten the planning cycle: start planning later in the year 6. Balance ambitions against forecasting 7. Be adaptable and flexible 8. Rethink the incentive system 9. Manage tradeoffs: balance planning speed and planning deapth 10. Clarify governance and objectives Diagnosis Factors - Guiding Policy - Obstacles - Focus & Choice - Execution - (Chain-link) Performance hinges on the coherence between the components. A good strategy provides consistency, coherence, and alignment. - A good strategy provides a framework for making consistent decisions over time that build cumulatively toward a desired objective. - Strategy provides an integrating mechanism to ensure tactical decisions are coherent. - An R&D strategy needs to have a strategy that is aligned with the broader business strategy of the organization in which it operates. All strategies come down to certain "core hypotheses" about what it takes to win... Thus, at some level, all strategies are "bets". The game plan for an R&D organization can be broken down into 4 strategic levers: architecture, processes, people, and portfolio. The better approach depends on the organization's "core hypotheses" about what it takes to win. New products and services 1. Trend Analysis 2. Customer Needs and Pain Points 3. Solutions 4. Concept and Scenarios 5. Competitive Advantage 6. Relevant Market (Market Size and Positioning) 7. Business Model (Revenue and Partners) 8. Competition (Strengths and Weaknesses) 9. Aligned Business Strategy Business Model Innovation A business model consists of two essential elements - the value proposition and the operating model - each of which has three subelements. The value proposition answers the question, What are we offering to whom? It reflects explicit choices along the following three dimensions: Target Segment(s), Product or Service Offering, Revenue Model The operating model answers the question, How do we profitably deliver the offering? It captures the business's choices in the following three critical areas: Value Chain, Cost Model, Organization Scaling up can be the most critical step for Business Model Innovation.