Presentation Two
- 2. “achieving ambitious business growth” Iain Bruce & Jamie McCallum | Matrix Innovation Team
- 3. Agenda 1. Recap Workshop 1 2. Introduction to Highest & Best – Innovation Leadership 3. Growth Aspirations and Growth Strategy 4. Core Competence: Identifying your “Innovation Sweet Spot” 5. Big Opportunities – Changes in Your Environment 6. Idea Engineering 7. Fail Fast & Cheap Action Planning 8. Discussion: Next-stage Assessment 9. Application Thinking Time
- 5. highest & best innovation leadership model
- 6. Exercise: Highest & Best: Innovation Leadership
- 9. Be honest about your growth aspirations…… £/€ Want to get to here? New and Different Same Old Stuff Normal Incremental Growth Continues. Sales stay the same. Past Future (now) 5 Years Time
- 10. What are your personal drivers? • Secure your retirement? • Grow the value of the business to sell it? • Make a better return on your efforts? • Make more profit now? • Pass something on to the next generation of the family? • Provide more secure employment for more people? • Give something back to society/the community? • Make the most of your potential? • Do something no-one else has done? • Achieve something that no-one else thought was possible? • Be remembered? • Have fun?
- 11. 1. What are you seeking to be in four years time? 2. What are your economic goals? 3. What products / services will you be delivering? 4. Where will you compete geographically? 5. Who are your customers? 6. What technology will you employ? 7. What are your fundamental values, attitudes and beliefs? 8. What are your major strengths and competitive advantages? 9. What is your desired public image? 10. What are the desires of the key stakeholders in the business? 11. How many employees will you need to deliver the above?
- 12. exercise: vision
- 15. GROWTH PIPELINE All values are Millions Sales Today Actual Growth over 3 Years 3 Year Growth Goal Sales 3 Years Ago Sales Goal 3 Yrs Actual Growth 3 Yr Growth Goal Incremental Incremental Systemic Systemic Estimate Estimate Market growth or Market growth or "working Tangib le initiatives or "working smarter" Tangib le initiatives or "working smarter" "working harder" harder" £ What we've done to grow Our Growth Pipeline* Raw Value Prob. Net Value Scout £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 Total Systemic Growth £0.00 Total Systemic Net Value £0.00 3 Yr Growth Goal £0.00 - Incremental Est. £0.00 - Systemic Est. Net Value £0.00 = Pipeline Gap (Excess) £0.00 Probability Ranges 90% - Absolute certainty * List only initiatives with RAW potential for generating at least 10% growth. This standard is key for 75% - There are a few unknowns small and mid sized companies because 1) it keeps the focus on the big stuff and 2) all ideas have a 50% - Odds are good but there are many unknowns "probability" of success thus "shooting high" guarantees a payoff. 25% - Who knows?
- 16. Strategic Questions Today In the Future Which customers will we serve in the Which customers do we serve future? today? Who will our competitors be in the future? Who are our competitors today? What will our products/markets be in the What are our products/markets future? today? What will the basis of differentiation be in What is our basis of differentiation the future? today? What skills or capabilities will make us What skills or capabilities make us unique in the future? unique today? How will we build future value? Where does value lie today?
- 17. EXISTING NEW PRODUCTS PRODUCTS MARKETS EXISTING market product penetration development MARKETS NEW market unrelated development diversification
- 18. exercise: pipeline growth assessment (part II)
- 19. EXISTING NEW PRODUCTS PRODUCTS MARKETS EXISTING market product penetration development MARKETS NEW market unrelated development diversification
- 20. The Big Opportunities for SIGNIFICANT PROFIT GROWTH NEW ADAPT Customers Promise & Product & Markets for Mutual Profits CURRENT LEAD Customers WOW’s for Mutual Profits CURRENT NEW Products Capabilities & Services
- 21. Perpetual Profit Cycle NEW Customers & Markets ADAPT CURRENT IMPROVE LEAD Customers CURRENT NEW Products Capabilities & Services
- 22. The Perpetual Profit Cycle & NEW Customers & Markets ADAPT CURRENT IMPROVE LEAD Customers CURRENT NEW Products Capabilities & Services
- 23. identifying your innovation “sweet spots”
- 24. CAPABILITIES MARKETS
- 26. Capabilities • We sell fish • We smoke fish to produce distinct flavour profiles
- 27. Resources Tangible Intangible Human Resources Resources Resources Physical Intellectual Property Skills Financial Use of Technology Competencies Relationships Knowledge Networks Expertise Awards Culture Quality – be specific Motivation Reputation – be specific Values - beliefs - attitudes - behaviours
- 28. Capability Tangible Intangible Human Resources Resources Resources Sell Fish Shop Supplier Rel’s Personality Chilled Counter Reputation for fresh Arithmetic Fish fish Profit focused Ice Till Smoke Fish Fish Recipe 25 years experience Preparation area HACCP process - preparation Clean room Supplier rel’s - fileting Kiln Patent - smoking Storage area Fish Smoker’s - packaging Salt Association Professional Wood Great Taste awards Knowledge sharing Flavourings Profit focused Packaging Employee benefits Vacuum packer
- 29. Competency Tests: 1. Can anyone from outside the company easily identify all of the resources involved and how they interact with each other? 2. Would a major issue arise if a key member of staff left the organisation? 3. Could your competitors copy this capability easily? 4. Does this capability offer long lasting competitive advantage?
- 30. Key Success Factors Core Competencies Capabilities Tangible Intangible Human Physical IP Skills Financial Technology Knowledge Relationships Culture Quality Motivation Reputation Values
- 31. Big Changes
- 36. POLITICAL / LEGAL INFLUENCES
- 38. idea engineering exercise: customer problems
- 39. First FAIL FAST FAIL CHEAP Action Plan
- 40. Item Estimate A Final Decision Makers How many customers or purchase occasions exist? B Concept Persuasion What % buy when they see the concept? C Marketing Support What % get to see the concept? D First Purchase Revenue How much do they spend 1st purchase? E Repeat Rate % What % of first purchasers will buy again? F Repeat Purchase Revenue How much do repeat purchases cost? G Number of Repeat How many times in a year will a repeat Purchases purchaser buy?
- 41. Item Estimate A Final Decision Makers How many customers or purchase occasions exist? B Concept Persuasion What % buy when they see the concept? C Marketing Support What % get to see the concept? D First Purchase Revenue How much do they spend 1st purchase? E Repeat Rate % What % of first purchasers will buy again? F Repeat Purchase Revenue How much do repeat purchases cost? G Number of Repeat How many times in a year will a repeat purchaser Purchases buy? Trial Sales = A x B x C x D Repeat Sales = A x B x C x E x F x G Total Sales = Trial Sales + Repeat Sales
- 43. Growth Plan Submission Info: Noon email: Thu 29th November caroline.hunter@matrixuk.com
- 44. Presentation Dates Tue 4th December Invest NI Bedford Street Belfast Wed 5th December InterTradeIreland Newry Thu 6th December Athlone