Business Model Renewal: How to Grow and Prosper by Defying Best Practices and Reinventing Your Strategy

by Gorchels, Linda

• ISBN13: 9780071784030
• ISBN10: 0071784039
• Edition: 1st
• Format: Hardcover
• Copyright: 2012-04-03
• Publisher: McGraw-Hill Education

Summary

Forget business as usual. Don't believe everything you read about best practices. There is no magic bullet. When your market changes, you have to change your strategy and take control of your own success. You have to renew your business model. In a global market that is constantly evolving, you can't expect magic bullets or best practices-or any stand-alone business philosophy that many books and gurus offer-to guide your company through good times and bad. Instead you need to take an active role in reviewing and retooling your strategies. You need to stop thinking business as usual. You need Business Model Renewal-a groundbreaking book that provides a language and multiple frameworks for how to think about and implement business model reinvention. A full-range guide to synthesizing and applying the most up-to-date thinking in business today, Business Model Renewalchallenges you to re-evaluate your methods, rethink your options, and reignite your organization. Constantly challenging the mindset of tried and true numbers-based solutions such as market share, financials, and metrics, Gorchels integrates both traditional concepts and cutting-edge ideas to avoid the usual one size fits all approach that can stifle a company's growth. You'll learn how to build a custom-made business model that encompasses the totality of how your company produces value-including design, infrastructure, culture, operations, and more. You'll learn how to adapt to newest emerging technologies, how to cope with the biggest market fluctuations, how to serve the latest demographic shifts, and how to plan ahead for your company's future. Envisioning business model renewal efforts drives leaders and managers to deal with the ambiguity of future thinking. Shifts in technology, market needs, and competitive arenas can never be known precisely, but must nevertheless be anticipated. Scenario planning and other group-based, collaborative efforts to study the future are therefore necessary components of business model renewal. So, too, is corporate culture, decision making, business model portfolio design, and change management. That's why the frameworks in this book touch on all of these facets. Business Model Renewalwon't give you seven proven steps, five key principles, or even 10 irrefutable laws. But it will challenge you to do the hard work of broadening the perspectives of your firm, the ecosystem in which it exists, the role of your personal leadership, and the followership within your corporate culture.

Table of Contents

Author's Note	p. ix
Prologue	p. xi
Establishing Context	p. 1
Defy Best Practices	p. 3
Connect Strategies and Business Models
Consider the Ecosystem of Success
Are There Best-Practice Business Models?
Establish a Planning Framework
Context
Internal Scan
External Scan
Technology
Industry
Market
External Events and Trends
Porter's Five Forces
Strategic Decisions
Alignment
Interview with Kay Plantes (economist, corporate strategy expert, and author): The Importance of Developing a Business Model Portfolio
Define a Growth Agenda	p. 35
Beware of "One-Paradigm" Consultants (or Managers)
Growth from the Core
Pursuit of Quality/Efficiency Advantages
Pursuit of Marketplace Advantage
Innovating into New Areas
The Growth Portfolio
Sustaining Growth
Reinforcement and Protection Strategies
Stay the Course
Reduce the Scope
Defend the Perimeter
Renewal and Revitalization Strategies
Add New Value
Reposition
Extend the Base
Relaunch
Rationalization Decisions and Retirement Strategies
Transformative Growth
Disruptive Growth
Next Steps
Interview with Bob Arzbaecher (President and CEO of Actuant Corp): Sustainable Growth without Radical Change
Mental Models and Insights	p. 63
Foresight: Betting on Turbulence	p. 65
Every Business Decision is a Bet on the Future
Scenario Development
Process of Scenario Development
Define Scenario Development Team
Identify Drivers of Change
Create Scenarios
Determine How to Be Successful in Each of the Scenarios
Seek Common or Agile Components and Establish Strategic Direction
An Example: Corporate Energy Futures
A Few More Tips on Scenario Development
Group-Based Forecasting and Ideation
The Delphi Method
Prediction Markets
Integrated Roadmapping
Social Media Options
Foresight and Business Models
Interview with Peter Bishop (Associate Professor of Strategic Foresight and author): The Significance of Strategic Foresight in Thinking about the Future
Innovation: Looking for New Beginnings	p. 85
What is Innovation?
Product versus Business Model Innovation
Diffusion of Innovation
Innovating Existing Product Lines
Continual Idea Sources
Business Case Knowledge
Ingraining an Innovative Culture
Interview with Dave Franchino (President + Principal, Design Concepts, Inc.): Innovation from the Context of Business Models
Decision Making: Determining Direction	p. 111
The Basic Framework
High-Stakes Decision Making
Historical Data May Not Be Relevant
Many Decisions are Made under Stress
Serious Biases May Thwart Performance
The Consequences of a Wrong Decision are High
Many People are Involved in the Decision
Business Model Changes Trigger an Ecosystem of Decisions
Organizational Decision Making
Interview with John Conover (President, Ingersoll Rand Security Technologies): Decision Making is a Critical Part of Leadership
Business Models: Aligning to Make Things Happen	p. 129
Contextual Leadership	p. 131
The Role of the Individual in Leadership
Leadership and Followership
Emotional Intelligence
Transformational Leadership
Understanding the Need for Change
Creating a Shared Vision
Paving the Way
Building Leaders at All Levels
Leadership Essentials: Expert Advice Column
Passion
Focus
The Tyranny of the Urgent
Juggling Glass
Ownership
Interview with John Malanowski (VP-Human Resources, Kimberly-Clark Corporation- North Atlantic Consumer Products): The Importance of Leadership Talent Bench Strength in Business Model Renewal
Dynamic Strategy, Business Design, and Structural Alignment	p. 151
Big Picture Thinking Must Coexist with Nuts-and-Bolts Proficiency
An Iterative Planning Process
Where are You Now?
Where Do You Want to Go Long-Term?
What are You Going to Accomplish during This Planning Cycle?
Target Market
Planning FACTS
How are You Going to Accomplish Your Objectives?
What are Your Metrics for Tracking Results?
Dynamic Strategy and Business Model Renewal
Interview with Scott Lingren (Director of Corporate Strategy and Business
Transformation, Freescale Semiconductor): Cracking the Real-World Code for Linking Strategy with Implementation
The People Side of Alignment: Culture and Organizational Change	p. 179
The Monkey Parable
Corporate Culture
Leading Change
Sense of Urgency
Guiding Team
Powerful Vision
Share the Vision
Motivate Progress
Coordinate Short-Term Wins
Continuously Reinforce the Direction
Embed the Required Culture
Kaleidoscope or Binoculars
Corporate Culture and Business Model Renewal
Interview with Joan Finley, Ph.D. (Senior Program Manager, Baxter Healthcare): Orchestrating Business Model Renewal through Effective Organizational Change Initiatives
Index	p. 199
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