• Innovative Strategies That Create More Profits

Tag: Strategy

Why Is a Broad Perception Critical For Creativity, and Decision Making.

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A cloud of insight 

A broader perception is indeed critical for understanding, creativity, and decision-making, and

the reasons why it’s often overlooked in education are complex and multifaceted.

To visualize different perspectives, I have a great story from one of Edward De Bono’s books on Thinking.

It demonstrates why you need to go beyond the obvious. A group of young boys are standing around, and they decide

to tease Billy once again. So they show Billy two coins, a large one worth a dollar and a small one worth two dollars,

and tell him to pick one. He picks the large one, and the group laughs and has a good time at Billy’s expense.

So anytime the boys need a good laugh, they offer Billy the same two options. He keeps picking the

large coin, to their delight. One day, an older man sees what happened and says to Bily, you picked the wrong coin;

the smaller one is worth twice as much as the larger one. Billy says, “I know that. But, if I picked the small coin,

they would never keep coming back again and again to give me money/” Your perspective can make a big difference.

 

 Here’s Why a Broader Perspective Matters

Creativity:

Breaking free from the box: Broadening your perception exposes you to new ideas, challenges assumptions,

and fuels your imagination. This freedom opens up possibilities for unconventional solutions and groundbreaking innovations.

Cross-pollination of ideas: Combining diverse perspectives gives birth to novel concepts and approaches.

Imagine combining scientific principles with artistic expression or merging business models from different industries – endless possibilities.

Thinking outside the lines: By stepping outside your comfort zone and embracing the unfamiliar,

ou tap into your latent creative potential and break free from the constraints of conventional thinking.

The Power of Perspective: Some Numbers.

 

Research paints a compelling picture. Studies by the University of Chicago found that teams that are diverse

in perspective outperform homogenous ones by 60%. A Harvard Business Review analysis revealed that CEOs

with broader perspectives generated 20% higher revenue. And, in a surprising twist, a Stanford study showed

that simply imagining another person’s perspective can boost your creativity by 25%.

 

These stats show that perspective hacking is the ultimate mental multi-tool. It unlocks doors to:

More brilliant Strategies: By considering multiple viewpoints, you anticipate blind spots

and craft strategies that adapt to the shifting landscape.

Faster Problem-Solving: Different perspectives reveal hidden connections and cracks in

the problem, leading to quicker, more effective solutions.

Untapped Creativity: Stepping into another’s shoes sparks unexpected connections,

igniting the fires of innovation and generating novel ideas.

 

Here Are Some Ways to Cultivate a Broader Perception 

 

Seek out diverse perspectives:

1. Read books and articles from different viewpoints.

2. Watch documentaries on unfamiliar cultures.

3. Engage in conversations with people from different backgrounds.

Challenge your assumptions:

Question your own biases and beliefs and actively

seek out evidence that contradicts your expectations.

Embrace curiosity:

Stay curious about the world and explore new ideas and experiences.

Travel and immerse yourself in different cultures:

Experiencing different ways

of life can expand your worldview and challenge your assumptions.

 

Conclusion

By actively cultivating a broader perception, you can become a better understander, creator, and

decision-maker, navigating the world’s complexities with greater confidence and success.

It’s now your turn. Break free from tunnel vision and boost your creativity and decision-making.

No Amount of Analysis Can Reveal a Concept That Isn’t Already There

Posted on by harborcapitalgroupinc

Looking at stack og books

 

In the quest for understanding, our minds have an incredible capacity for analysis.

We scrutinize data, dissect problems, and employ various methodologies to uncover hidden truths. Yet, amid this analytical journey,

you must remember a fundamental principle: no amount of analysis can reveal a concept that isn’t there.

 

Many people confuse creativity with artists. For example, if you are analyzing a painting by a renowned artist.

The colors, brushstrokes, and composition captivate your attention. So, you dig deeper into the painting’s meaning.

You explore every detail, seeking symbolism and significance. However, the artist did not intend to

embed a particular concept or message within the artwork. So, no amount of scrutiny will reveal an embedded concept.

The concept must first exist in the mind of the creator. This principle holds true for various aspects of life, 

including science, business, and personal relationships. 

Here are some key considerations:

 

Clarity of Intent: beginning with a clear intent in mind is essential. Whether launching a marketing campaign,

Conducting scientific research or embarking on a creative project, you must define the objective

you wish to explore. Without this clarity, analysis becomes directionless.

 

Creativity and Innovation: The creation of new concepts often involves an element of creativity and innovation.

These concepts emerge from the imaginative and inventive aspects of human thinking.

No amount of analysis alone can substitute for the spark of creativity that gives birth to novel ideas.

 

Misguided Efforts: Without a pre-existing concept or intent, rigorous analysis can lead to misguided efforts.

Researchers may sift through data, finding patterns that appear meaningful but are, in fact, random noise and wasted resources.

 

Communication and Collaboration: Effective communication relies on a shared understanding of concepts.

In collaborations, partners must align on the fundamental concepts underlying their work.

Communication and experience can help progress.

 

Personal Growth: Individuals often use self-analysis and introspection to discover or refine concepts and values.

This process can be enlightening and transformative. However, one cannot unearth a concept within oneself that doesn’t exist in some form.

 Conclusion

 

Understanding the limitations of analysis in revealing concepts that aren’t present underscores the importance

of intentional creativity. It encourages us to clarify our objectives, foster innovation, and approach analysis

to illuminate existing concepts rather than conjure new ones.

 

Furthermore, it prompts us to appreciate the richness of human creativity and the power of imagination.

Concepts, after all, are born from the depths of our minds, often as a response to the world’s complexities and challenges.

 

In essence, while analysis is a formidable tool for unraveling the intricacies of our world, it can only unveil

what is already there, waiting to be discovered. To uncover new concepts, we must use the magic of our minds to interrupt

our existing mental patterns and create new patterns, concepts, and ideas that reveal the answer to our sought-after objective. 

 

More information on many topics is also available through the  Website.  

Why Both Research and Diagnosis are Invaluable Tools in Your Strategy Toolkit

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Once you have identified your objective, you are ready to begin researching the “problem” preventing you

from reaching your objective. Typically, research is the first step to gaining the knowledge needed to understand the problem.

But, more than research alone, you must also diagnose the situation to get the information you need to solve the problem. Why?

 

Research is a process of gathering, analyzing, and interpreting information to gain new knowledge.

Its purpose is to contribute to your existing body of knowledge. 

Diagnosis is identifying the cause or nature of a specific problem or condition. It’s about

determining what is wrong or why something is not functioning as expected.

A McKinsey study showed that prominent company CEOs made the right decision 52% of the time.

This blog post on why research and diagnosis are crucial to getting the correct information will

help you get the right information to make better decisions more often.

 

Much of the strategy is asking what is going on here. The fundamental question

is not just deciding what to do but comprehending the situation.

 

  Navigating Business Challenges: Research vs. Diagnosis 

 

In a dynamic business landscape, making informed decisions is paramount. Two essential processes

that drive these decisions are research and diagnosis. While they share commonalities, they serve distinct

purposes when addressing business problems or seizing opportunities. 

Much of the strategy is asking what is going on here. The fundamental question is not just about deciding

what to do but comprehend the situation. 

 

In this blog post, I explore the differences between conducting research and performing a diagnosis

in the context of solving business challenges and capitalizing on opportunities.

 

The Art of Research

 

Research is a systematic and comprehensive exploration of subject matter, often involving data collection,

analysis, and interpretation. Business research is used to understand markets, industry trends, customer behavior,

and competition. It’s a tool for acquiring knowledge to shape strategic decisions. Following is an outline of this discovery process.

 

1. Scope: Business research can be extensive, aiming to understand a particular area comprehensively. For example,

a company may conduct market research to assess consumer preferences and industry trends.

2. Objectives: The primary objective of business research is knowledge acquisition. It seeks to answer

questions and uncover patterns that can inform strategy, product development, marketing campaigns, and more

3. Data Collection: Researchers gather data from various sources, such as surveys, interviews,

market analysis, and historical data. This data is analyzed to extract insights.

4. Outputs: Research outcomes are often reports, market analyses, whitepapers, or data-driven recommendations.

They contribute to the body of knowledge and guide future actions.

5. Nature: Research is an ongoing process that only sometimes leads to immediate solutions.

It lays the foundation for informed decision-making and can be used in various business contexts.

 

The Science of Diagnosis

 

Diagnosis is a focused inquiry to identify the root cause or nature of a specific problem or opportunity. In a business context,

diagnosis is instrumental in pinpointing issues within an organization, product, or process that help determine the cause of

the situation or problem. All of this enables you to determine how you might solve the problem.

 

1. Scope: Diagnosis has a narrow scope, concentrating on a specific issue or opportunity. For instance,

a business might diagnose operational inefficiencies affecting production output.

2. Objectives: The primary objective of diagnosis is to uncover the cause of a problem or the nature 

of an opportunity. It seeks to answer the “why” behind a situation.

3. Data Collection: The data collected in a diagnosis is tailored to the specific issue or opportunity

under investigation. It may involve examining financial records, conducting performance audits, or assessing workflow.

4. Outputs: The output of a diagnosis is a precise determination of the problem’s cause or the

nature of an opportunity. It serves as the foundation for implementing targeted solutions.

5. Nature: Diagnosis is action-oriented, with its findings directly influencing decisions and solutions.

It is typically problem-focused and aims to drive immediate improvements.

 

Both research and diagnosis are invaluable tools in the business toolkit. Still, they serve distinct roles in problem-solving and opportunity seizing. 

Research provides the knowledge and context necessary for informed decision-making, offering a broader perspective.

 Diagnosis, conversely, narrows the focus to identify specific issues or opportunities and is instrumental in implementing targeted solutions.

Successful businesses often employ a combination of research and diagnosis, recognizing that a holistic

approach to decision-making involves understanding the broader landscape and addressing specific internal challenges.

 By knowing when to research and when to diagnose, organizations can navigate the complex terrain of

business with confidence and agility, turning challenges into opportunities for growth and success.

 

Caution: Pay Attention To Your Biases

 

Bias can play a significant role in business research and diagnosing a business situation or problem.

Bias can skew the collection and interpretation of data, leading to accurate or complete assessments.

Here’s how bias can impact both research and diagnosis.

 

In Business Research:

 

1. Selection Bias: When conducting research, there may be a tendency to select data sources, surveys, or

participants that align with preconceived notions or desired outcomes. This bias can lead

to a sample that only accurately represents part of the population.

2. Confirmation Bias: You may unconsciously seek evidence supporting your beliefs or hypotheses

while ignoring or downplaying conflicting information. This confirmation bias can lead to a skewed analysis of data.

3. Cultural Bias: Cultural biases can affect how research questions are framed, impacting the data collected

and the interpretation of results. You may unintentionally overlook culturally diverse perspectives.

4. Publication Bias: In academic and industry research, there’s often a bias toward publishing positive results

and overlooking studies with negative or inconclusive findings. This bias can create a skewed body of knowledge.

 

In Diagnosis of Business:

 

1. Cognitive Biases: Diagnosing business situations may be susceptible to cognitive biases such as anchoring

(relying too heavily on the first piece of information encountered), availability heuristic (overvaluing

readily available data), and overconfidence bias (overestimating one’s knowledge or abilities).

These biases can influence the assessment of problems.

2. Emotional Bias: Emotions can cloud judgment when diagnosing a business situation. Fear,

over-optimism, or attachment to particular solutions, can lead to biased assessments and decisions.

3. Groupthink: In group settings, such as board meetings or team discussions, groupthink can occur. This bias

involves conformity to the dominant perspective within the group, even if it’s not the most accurate assessment of the situation.

4. Status Quo Bias: People are often biased toward maintaining the status quo, even when evidence suggests

a need for change. This bias can hinder the diagnosis of problems that require significant adjustments.

5. Sunk Cost Fallacy: You may be influenced by the resources (time, money, effort) already invested in a particular

course of action, even when it’s clear that changing direction is the better choice. This fear can lead to a biased assessment of the situation.

 

How To Mitigate Biases:

 

To mitigate bias in both business research and diagnosis, you should adopt some of these practices:

1. Diverse Perspectives: Encourage various participants, teams, and perspectives to minimize biases from homogenous groups.

2. Transparency: Be transparent about research methods, data sources, and the reasoning behind diagnosis to allow for scrutiny and accountability.

3. Peer Review: Subject research findings and diagnoses to peer review or external evaluation to identify and address biases.

4. Challenge Assumptions: Encourage a culture where assumptions are regularly challenged and alternative viewpoints considered.

5. Training and Awareness: Training and awareness programs help individuals recognize and mitigate biases in their decision-making processes.

6. Data Quality: Ensure that data collected for research is representative and free from biases. Your critical thinking techniques should be put to work.  

7. Third-Party Consultation: In some cases, bringing in external consultants or experts can provide an unbiased perspective on business problems.

8. Continuous Learning: Encourage a culture of constant learning and adaptation based on evidence and feedback.

 

Biases can significantly impact business research and diagnosing business situations or problems. Recognizing and actively working

to mitigate bias is crucial for making well-informed decisions and arriving at accurate diagnoses.

It fosters a more objective, evidence-based approach to addressing business challenges and opportunities.

 

 What are the benefits of researching and diagnosing when confronted

with a complex problem or risky opportunity?

 

Combining both research and diagnosis when confronted with a complex problem or a risky opportunity

offers numerous benefits that can significantly enhance decision-making and problem-solving processes:

 

1. Comprehensive Understanding: Research provides a foundation of knowledge and data, while diagnosis adds

depth and context. Together, they offer a more comprehensive understanding of the situation, enabling a more accurate assessment.

2. Enhanced Problem Framing: Research helps identify the core elements of a problem or opportunity, while diagnosis

allows for a deeper exploration of its underlying causes, contributing factors, and implications.

This process leads to a well-framed problem or opportunity statement.

3. Informed Decision-Making: The combination of research and diagnosis equips decision-makers with the information

to make well-informed choices. It reduces the reliance on guesswork, particularly in complex or risky situations.

4. Risk Mitigation: Diagnosis helps identify potential risks and challenges that might not be immediately

evident through research alone. This proactive approach allows for risk mitigation strategies to be developed.5. 

5. Innovative Solutions: Diagnosis provides information that encourages creative thinking by uncovering hidden connections

and perspectives. It can lead to innovative solutions that are not apparent solely through research.

6. Resource Allocation: Research and diagnosis assist in identifying where resources should be allocated for the most significant

impact. This allocation ensures that efforts focus on the most critical aspects of the problem or opportunity.

7. Efficiency: While research provides a wealth of information, diagnosis helps sift through the data to extract what is most

relevant. This efficiency saves time and resources by concentrating efforts on critical areas.

8. Adaptability: Combining research and diagnosis allows for flexibility in decision-making. New insights or

changes in the situation can be accommodated more readily, ensuring that strategies remain relevant.

9. Clarity in Communication: A combination of research and diagnosis results in more precise and

compelling communication of findings and recommendations to customers, stakeholders, or team members.

10. Continuous Improvement: Integrating research and diagnosis fosters a culture of constant

improvement. Organizations and individuals become better equipped to tackle future

challenges and opportunities effectively.

11. Alignment of Objectives: Research and diagnosis help align objectives and strategies with the underlying i

ssues or goals. This alignment ensures that actions taken are directly relevant to addressing the problem or seizing the opportunity.

11. Long-Term Sustainability: Solutions derived from a combination of research and diagnosis are often more

sustainable because they address root causes and consider long-term implications.

12. Confidence in Decisions: Decision-makers can have greater confidence in their choices based on a

thorough understanding of the situation through research and diagnosis.

13 Minimized Guesswork: The blend of research and diagnosis reduces guesswork and assumptions,

reducing the likelihood that you will make decisions based on incomplete or biased information.

14. Better Problem-Solving Culture: Organizations prioritizing research and diagnosis foster a culture

of evidence-based decision-making and critical thinking, leading to better problem-solving capabilities.

 

Example:

 

According to Edward de Bono, diagnosis can transform one’s view of the situation, bringing 

a radically different perspective to bear—for example, IBM. 

 

IBM was struggling in the computer market in the 1990s. Many products were involved in complete computer systems,

and many companies specialized in selling each. Competition for each of the products was intense. When Lou Gerstner

became CEO in 1993, he examined how IBM struggled against the competition.

 

His research and diagnosis concluded that IBM was the only company that could deliver large, fully customized

computer systems. He changed the company from focusing on individual products to a company focused on a completely

integrated computer system company. IBM was the only company in the market that could do that. That insight turned

the company around and made it the premier company in the market.

 

Conclusion

 

Combining research and diagnosis enhances decision-making, mitigates risks, fosters innovation, and ultimately leads to

more effective solutions for challenging problems or risky opportunities. This holistic approach ensures that decisions

are based on a deep understanding of the situation and its underlying dynamics.

How Business Strategies Impact Your Success

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An effective business strategy is the basis for a successful business in our over-communicated and

constantly changing markets. According to a McKinsey report, about 80% of large companies say

they have a strategy, but few have one. Mostly, they have goals, but goals — without a plan (a strategy) to achieve them

— are just wishes.

 

In a nutshell, this article is about how business strategies impact your success. Your business strategy

is your story, and it’s your story that creates buyers. So, your Strategy is the key to a

compelling story. Think Whole Foods, Dell Computers, or Netflix.

 

Once you have your Strategy and value proposition, you can create your marketing strategy,

which is how you tell your story.  If you are looking for ways to increase your revenues and profits?

Or make your competition irrelevant? Or build more value into your offering? You will want to read this article.

Why Business Strategies Are Critical To Your Success

Integrated business and marketing strategies are critical to your company’s success. However,

you have to start with your business strategy first. This article blog offers an overview of a business strategy and how to create a business strategy.  

Business strategies offer the critical tools you need to create value for your targeted audience or even reshape

your market if your market is not growing. Your business strategy is your story. Think Apple, Wal-Mart or Nivida.

Also, as the pace of change accelerates, it doesn’t matter what industry, market, or

niche you are in, you may need to stay agile and innovate your strategies or get left behind.

 Do You Have a Goal or a Clearly Defined Objective? Unfortunately, goals are essential aspirations,

but a goal without a strategy is simply a wish. To reach your goal, you need to turn that goal into a

single, reachable, and measurable objective. Then, you can create a strategy and pathway to achieve that objective.

 

This Strategy could be –in descending order–a corporate, business market, functional, or product strategy.

Then, focus and concentrate actions and resources against those objectives. You achieve what you focus on.

What Is An Innovative Strategy?

A brief description and example.

An innovative business strategy can be summarized as a clearly defined plan a person or team must

perform to achieve the company’s growth and future sustainable goals. While all innovation strategies are

different, they should outline your organization’s innovation activities and objectives to help you achieve them.  

The Harvard Business Review describes creating a strategy as determining how innovation will c

reate value for potential customers and ways to capture that value. Plus, which types of innovation to pursue?

Product designs must evolve to stay competitive, and innovation strategies must evolve as the environment changes.

Good business innovation strategies must be simple, straightforward, and easily understood by all participants.

You want everyone on the same page. And remember, if it is a product or marketing strategy,

your innovation strategy must sync with your overall business strategy.

If you maintain your traditional business strategy because “that’s the way you have always done it,

” that Strategy could get you in trouble sooner or later. Think Kodak and their inventions of

digital photography or Blockbuster’s unwillingness to give up their retail stores and go to streaming.

The Difference Between Tactics And Strategy  

These terms are not interchangeable.   

Strategy and tactics are very different, although they are often used interchangeably.

Strategies are solutions to problems (objectives) and refer to long-term objectives.

Tactics refer to the specific actions required to achieve those objectives.

Three Levels of Strategy That Drive Sales

The process is the same, but the three levels must be coherent.

 

Strategy has three levels: Corporate, business (units), and functional (departments).

Corporate: Senior management determines the company’s mission and long-term performance.

They guide decisions about growth, acquisitions, diversification, and investments.

Business:  These strategies integrate into the corporate vision but focus on specific companies.

They focus on turning business objectives into Strategy and how the business will compete in the marketplace.

Functional. These strategies determine how the functional departments like production,

marketing, R&D, H.R., and other departments will support the corporate and business Strategy.

The Key Elements Of Strategies That Drive Sales

The process of analyzing and creating a strategy 

Strategies vary in depth and complexity depending on their objective. The following are the critical

components of most strategies. There are many different ways to analyze and create a strategy.

For this article, I use a description and explanation from Professor Richard Rumelt’s book Good Strategy/Bad Strategy

that is easy to understand and use. It offers a simple understanding of a complex subject.  

One: Start with your vision, aggressiveness, and key objective or problem. This task may

be more complicated than you think because team members will have different ideas about

the critical issue or problem. You need to come to a consensus on the fundamental problem or opportunity.

 

Two: Diagnose the problem or obstacle that is preventing success. This research

will be extensive and include many types of analysis, such as SWOT analysis, market analysis,

potential customer analysis, competitive analysis, industry analysis, and much more. This analysis

also includes trends, opportunities, and potential issues that will or could impact the market positively or negatively.

I prefer the term diagnosis to research because the solution could be hidden anywhere,

so you don’t rely on just backward booking research like analytics. Yes, this does take time, but the return on your investment is huge!

A few examples are design and engineering (BMW), chain-link systems (Walmart stores), and

anticipation (Toyota and hybrid technology). Ignoring trends can also be harmful. Think Kodak or Blockbuster. 

    

Three: Insight and Innovation. Analyses look backward from yesterday’s data, which is necessary.

But, you also have to look forward to where the diagnosis can lead to creativity, insight, and innovation to solve the problem.

Our minds are wired for creativity; many techniques help create “out-of-the-box ideas.” There are

many creative techniques, and we cover those in our Insigt/Innovation articles in the ClickVisor Insight/Innovation module. 

 How does insight happen? Insight” feels right”. It’s truth self-evident. The flash of insight is just

that (ie. Sam Walton saw stores as nodes in a logistics system rather than individual stores.

Store rivals that failed to achieve new insights were put off balance, striking at the edges rather than at the center of strength.)

Insights do not automatically awaken at our call. They can’t be guaranteed, but they can be aided.

The key source of design insight is a clear diagnosis of the structure of the challenge, especially looking at:  

1. persistence, 

2. Analogy (examples and lessons of others)

3. Point of view (search more broadly) perspective

4. Making explicit assumptions 

5. Asking why and 

6. Recognizing your unconscious constraints.

Focusing on the problem — looking only at a part but in more detail — can make part of it more transparent and easier to deal with.

Four: The Guiding policy. The guiding policy evaluates and decides which innovative

ideas you will use from the many ideas and concepts created in the insight/innovation process.

You have to decide what the company will do and what it will not do because no company has

unlimited time, talent, and financial resources to do everything. So you will have to make some

difficult decisions. However, your choices will jump-start your company in the right direction.

 Five: Coherent actions. You can’t stop once you have defined your guiding policy.

You must take the coordinated actions required to carry out the guiding policy. 

These actions have to be integrated with your Strategy and are what give your strategy power.

If monitored and measured, these actions will also validate your Strategy or give you the

information you need to make adjustments and changes. They help you achieve the result you want.

   Seven Benefits of Your Innovative Strategy

Significant benefits of having an innovative strategy to drive sales.

 

Think about this. What if you didn’t have a strategy and were making decisions 

based on impulse? How would you compete in the marketplace if you needed a strategy?

Answer: Having a strategy is critical to a company’s success. Following are some of the benefits you 

will enjoy doing and keep you motivated because you will be building the results you want.  

 

 One: Creates A Competitive Advantage. An innovative strategy enables you to improve every

aspect of your business model. Your Strategy allows you to maximize your resources, reduce unnecessary

costs, improve your value proposition, and create a competitive advantage that would be difficult for the competition to copy. 

 

Two:  Improves Your Financial Success. A strategy requires you to review your costs and

eliminate any unnecessary charges. It also requires you to look for ways to enhance your

offering, add premium pricing, create new offerings, or even enter new markets.

 

Three: Enables You To Make Better Decisions. Because you are analyzing your

current situation and creating a vision for the future, You will use your experience and

critical and creative thinking skills to broaden your perceptions of the company, industry,

markets, products, and services. This type of analysis will enable you to make better decisions.

    

Four: Helps Build Your Distinctive and Memorable Brand. Because of all your work

in preparing and creating your Strategy, you will know who you are and your audience. 

 

Five: Plan For Today And The Future. To create a strategy, you must identify the key

steps to reach your goals. This plan requires you to define and evaluate your company and your

offering (value proposition’s) strengths and weaknesses to determine what, if anything, has to improve or be eliminated.

It also helps you plan and allocate resources more efficiently and anticipate resource requirements

needed in the future. You will have to challenge some entrenched assumptions to do this.

 

Six: Improves Your Organization And Processes. A strategy helps you organize the company

to support your values and help you reach your goals. It can get your entire organization

on board and focused on helping execute the tasks needed to reach your goals. 

This focus is vital because the execution of your Strategy is as important as the Strategy itself.

Poor execution — rather than the Strategy — is the primary reason a plan fails.

You need all team members aboard and sold on the Strategy.

 

Seven: It gives Management Control and Reduces Risks. A strategy gives

you control all activities that affect your goals and let you measure progress. 

 

Conclusion

About 80 percent of companies believe business strategies are essential, and many believe

they have a strategy. Unfortunately, few do. What they have are mission statements and goals. 

But goals are broad aspirations and wishes unless you have an innovative strategy to define

a pathway to achieve those goals. An innovative strategy describes how the company

will capture new or additional ways to create value and which innovations to pursue.

 

There are also three innovative strategy levels:

corporate, business, and functional (department responsibilities).

 

A business model canvas is a conceptual structure that explains the viability of the business through

the company’s essential nine components. Companies use many different business models

—many of which you are familiar with – like E-commerce, subscription, and direct sales.

Business models are essential for every new and established business and must be updated

with market changes and customer values. If you do, you could avoid future trends or challenges.  

 

The way to approach business model innovation depends on the company’s situation. Does it have

a significant problem preventing it from achieving its objective, or does it need to break out of

the competitive market or the company’s market is slowing down, and it needs to find new buyers?

 

In short, it creates a competitive advantage, improves financial success, enables leadership to make

better decisions helps build your brand for the future, enhances the function

of your organization, gives management better control, and reduces risk.

 

 The First Five Steps To Create Your Business Strategy Journey. 

   

Go through the five steps below and begin to question and probe for answers to each question.

Preparing an overview of how you will assemble your business plan will take some time. This process will be time

well spent. On the other hand, set a time limit for getting this done. Take all the benefits that result from a business strategy. 

 

Step One: Establish a plan to keep up with the constant pace of change in your marketplace.

Involve your team. If you have three people, you will get three different answers to the questions and other responses to future suggestive ideas.

It would be best if everyone were on the same page when you executed your proposed Strategy. 

  

Step Two: Determine the overall objective of your future Strategy. How aggressive do you

want to be? Do you have a specific problem to solve or an opportunity you want to achieve?

Are you looking for an incremental or radical program?

 

Step Three: Go through the first three steps in creating your Strategy.

Define your objective – which has to be the most critical one, achievable and measurable.

Diagnose the problem/opportunity– you only need information that helps you solve the problem; you don’t have to write an encyclopedia.

Step Four: Determining your general policy. This step is difficult because it means saying “no” often.

You have a concept you want to implement and limited time, talent, and money to do everything, 

so saying no to additional ideas is challenging. Then, put your plan together on how you will execute this Strategy.

 

Step Five: Monitor and measure the results of your programs and adjust as often as necessary.

This strategy program is a work in progress, so there will be many starts, stops, and rewrites.

 

Stay positive and believe in what you are doing, and you get what you focus on.

Strategies For Competitive Markets

Posted on by harborcapitalgroupinc

 

Strategies For Competitive Markets

Customers demand that businesses give them something new in our constantly changing world.

 

The way to do that is with innovative strategies. However, this results in releasing more than 30,000 unique products each year

—and about 95 percent fail, according to Harvard Business School professor Clayton Christensen.  

At the same time, many businesses need help coping with a fiercely competitive marketplace

or need to rely more on current customers. Some are reluctant to make changes because of potential risks.

The solution to many of these problems is incremental innovation –

– rather than radical or disruptive innovation– to improve their value proposition continuously and, subsequently, their overall results.

 

What is incremental innovation?

 

Incremental innovation is a series of a company product or service improvements.

There are two basic types of innovation: incremental and radial. 

Incremental innovations are when companies make small changes to existing products

through incremental improvements to the business model to improve customer retention and marketing.

These developments also help improve efficiency, productivity, and competitive differentiation. 

Radical innovations transform the business model altogether. It transforms an existing system,

design, or invention into something new. These innovations can change parts of the system or the entire product process.

Radical innovators create an entirely new market for their products.  

However, only some products or procedures are brand-new ideas. Most new product

s are alterations or new applications of existing products, with some twist in design, function, portability, or use. 

For example, Apple didn’t invent the mobile phone but kept innovating it over the years.

Now it’s one of the world’s most profitable companies.

 

In a large study by McKinsey & Company, they were told by business leaders that many companies

were putting less emphasis on radical innovation and more focus on incremental innovation. 

These companies focus on improving their significant products, exploiting known opportunities, conserving cash, and minimizing risk.  

However, they concluded that more urgent actions are required in turbulent times. For example,

  1. Adapting their core products and service to meet changing custom

2. Identify and quickly respond to opportunities created by these market changes

3. Restart their innovative programs and allocate resources as needed

4. Develop products and services to be ready for post-crisis recovery.

 

 Examples of Innovation Strategies For Competitive Markets

 

Gillette had created and patented a unique razor handle and inexpensive replacement blades.

They upgraded the handles with innovations like pivoting heads. When the patented handle expired,

they replaced the expensive handle with a cheaper one and sold “improved,” more expensive blades.   

Coca-Cola has been innovating and staying relevant with line extensions for over 100 years.

For example, Cherry Coke, Coke with lime, and Diet Coke. They have remained relevant as trends change.  

Apple iPhone was introduced in 2007 with few features. Here are a few examples.

From small metal flip phones to glass with touchable features, from 3G to 5G to small phones to large,

multipurpose phones with cameras to thousands of apps so you can even do your banking on the phone, 

 

 Focus On Your Entire Business Model

 

Often, incremental innovations focus on the company’s specific product or service. This focus is fine,

but I suggest starting with your business model and examining every area within that model

— plus your competitor’s business model. Look at every value proposition of your offering, brand, and more.

Another strategy is to set up a schedule for each iteration. When implemented, you will have a period of exclusivity.

Then hit your competitors with another significant improvement.

When you have gone through your entire business model, your competitors will find it difficult to copy your value-price offering. 

Or look at improving just two or three areas and implement them.

Then come back and innovate another two or three areas several months later

and not only impress your customers but also drive your competitors crazy and make it hard for them to copy you.

 

Creativity

 

Entrepreneurs work with two types of thinking. Linear thinking—sometimes called vertical thinking

—involves a logical, step-by-step process. In contrast, creative thinking is more often lateral,

in which established logical thought patterns are purposefully ignored or challenged. 

According to Wikipedia, lateral thinking indirectly solves problems using a creative

approach where the reasoning process is only sometimes obvious. It involves ideas that may take time to be noticeable. 

Lateral thinking involves ideas that may only be obtainable with a step-by-step approach.

It solves problems using an indirect method. Rather than going from A directly to B,

you start from a different place, not on the A to B road. 

You begin at location C, which is lateral (at an angle) to the A to B road.

This process causes your mind to think of new, different ways to reach your destination at B.

It is a powerful way to generate very creative ideas. You can learn more about lateral thinking

from Edward De Bonos’ book, “The use of lateral thinking,” or our blog on lateral thinking.

Edward De Bono also links lateral thinking to humor, where your mind has to switch from

a familiar pattern to an unexpected one that generates surprises and new insights.

This innovative thinking process is a powerful creative tool worth your time learning.  

 

 The Benefits of Incremental Innovation 

 

Instead of risking radical innovations, many companies are now pouring their development

budgets into incremental innovations. Also, many customers prefer upgraded products

over radical new products. This incremental strategy gives the company additional cash to work toward radical innovations.   

An incremental innovation strategy enables you to retain your market share by staying relevant.

But you also have to understand what your clients want. For example,  

 Incremental innovations allow you to stay ahead of your competition while taking negligible risks

and using limited financial resources. Customer satisfaction with your offering creates customer retention. 

Radical innovations are essential to an organization’s long-term strategy,

but short-term upgrades to existing products keep customers interested in your business.

 

If you keep the products you have now without keeping them up to date,

you could be in trouble as the economy and markets change in the future.

 

Conclusion

 

With our constantly changing economy and a competitive marketplace, the solution is

to develop an incremental innovation strategy. These small and often frequent changes help improve efficiency,

customer retention, and competitive differentiation. Apple is a perfect example of how to do it.  

When looking for areas to improve, be positive in your approach. Don’t focus on problems.

Focus on the opportunities that will result from your efforts. Also, broaden your perspective and use both vertical and lateral thinking skills.

The benefits from this incremental innovation can be powerful and include:

Staying relevant to your market, Improving your growth with minimal risk, and retaining clients longer.

Protect yourself from a changing economy and marketplace. Innovative Strategies For Competitive Markets

 

Steps To Create Incremental Innovations?

 

Step One: Start by studying your current customers and competitors. Include their business models.

Step Two: Look at all the modules in your business model. Don’t ask, “What’s wrong?”

Ask, “How can I make this module (product, price, performance, Etc.) better?

When you are looking for ideas, keep your questions positive. Focusing on the positive will result in positive answers. 

Step Three: Select a reachable, measurable objective and do the research needed to expand that objective. 

Step Four: Get several ideas for each module. The more modules you examine,

the stronger your innovation will be. Select which idea you will implement

(this may be challenging because you may only be able to execute some of your ideas simultaneously.

Step Five: Make sure you have the time and resources, test it, then iterate and try again.   

Cheers.    Jim Zitek

You should take a look at these blog posts also:

Innovative strategies that create revenues

Harborcapitalgroupinc.com

Incremental Innovation For Competitive Markets

Posted on by harborcapitalgroupinc

Incremental Innovation For Competitive Markets

 

In our constantly changing world, customers demand that businesses give them something new,

which results in the release of more than 30,000 unique products each year —and about 95 percent fail,

according to Harvard Business School professor Clayton Christensen and (northeastern.edu)

At the same time, many businesses need help coping with a fiercely competitive marketplace

or need to rely more on current customers. Some are reluctant to make changes because of potential risks.

The solution to many of these problems is incremental innovation — rather than radical or disruptive innovation

— to improve their value proposition continuously and, subsequently, their overall results.

 

What is incremental innovation?

 

Incremental innovation is a series of improvements to a company’s existing products or services.

There are two basic types of innovation: incremental and radial.

Incremental innovations are when companies make small changes to existing products through incremental improvements

to the business model to improve customer retention and marketing.

These developments also help improve efficiency, productivity, and competitive differentiation.

Radical innovations transform the business model altogether.

It transforms an existing system, design, or invention into something new.

These innovations can change parts of the system or the entire production process.

Radical innovators create an entirely new market for their products.

However, only some products or procedures are brand-new ideas.

Most new products are alterations or new applications of existing products, with some twist in design, function, portability, or use.

For example, Apple didn’t invent the mobile phone but kept innovating it over the years.

Now it’s one of the world’s most profitable companies.

 

 In a large study by McKinsey & Company, they were told by business leaders that

many companies were putting less emphasis on radical innovation and more emphasis on incremental innovation.

These companies focus on improving their major products, reviewing known opportunities, conserving cash, and minimizing risk.

However, they concluded that more urgent actions must be taken in turbulent times. For example,

Adapting their core products and service to meet changing customer needs

Identify and quickly respond to opportunities created by these market changes

Restart their innovative programs and allocate resources as needed

Develop products and services to be ready for post-crisis recovery.

 

  What Are Some Examples of Incremental Innovation

 

Gillette had created and patented a unique razor handle and inexpensive replacement blades.

They upgraded the handles with innovations like pivoting heads. When the patented handle expired,

they replaced the expensive handle with a cheaper one and sold “improved,” more expensive blades.

Coca-Cola has been innovating and staying relevant with line extensions for over 100 years.

For example, Cherry Coke, Coke with lime, Diet Coke, Etc. They have managed to be relevant as trends change.

Apple iPhone was first introduced in 2007 with few features. Here are a few examples.

From small metal flip phones to glass with touchable features, from 3G to 5G to small phones

to large, multipurpose phones with cameras to thousands of apps so you can even do your banking on the phone.

 

Focus On Your Entire Business Model

 

Often, incremental innovations focus on the company’s specific product or service.

This focus is not a problem, but I suggest starting with your business model and examining every area within that model —

plus your competitor’s business model. Look at every value proposition of your offering, brand, and more.

Another strategy is to set up a schedule for each iteration. When implemented, you will have a period of exclusivity.

Then hit your competitors with another significant improvement.

When you have gone through your entire business model, your competitors will find it difficult to copy your value-price offering.

Or look at improving just two or three areas and implement them.

Then come back and innovate another two or three areas several months later and

not only impress your customers but also drive your competitors crazy and make it hard for them to copy you.

 

Creativity

 

Entrepreneurs work with two types of thinking. Linear thinking—sometimes called vertical thinking—

involves a logical, step-by-step process. In contrast, creative thinking is more often lateral,

in which established logical thought patterns are purposefully ignored or challenged.

According to Wikipedia, lateral thinking is solving problems indirectly using a creative approach

where the reasoning process is only sometimes obvious. It involves ideas that may take time to be noticeable.

Lateral thinking involves ideas that may only be obtainable with a step-by-step approach.

It solves problems using an indirect method. Rather than going from A directly to B, you start from a different place, not on the A to B road.

You begin at location C, which is lateral (at an angle) to the A to B road.

This process causes your mind to think of new, different ways to reach your destination at B.

It is a powerful way to generate very creative ideas.

You can learn more about lateral thinking from Edward De Bono’s book, “The use of lateral thinking,”

or from our blog on lateral thinking.

Edward De Bono also links lateral thinking to humor, where your mind has to switch from

a familiar pattern to an unexpected one that generates surprises and new insights.

This innovative thinking process is a powerful creative tool worth your time learning.

 

 The Benefits of Incremental Innovation 

 

Instead of risking radical innovations, many companies are now pouring their development budgets

into incremental innovations. Also, many customers prefer upgraded products over radical new products.

This also provides the company with additional cash that allows them to work toward more radical innovations.

An incremental innovation strategy enables you to retain your market share

by staying relevant. But you also have to understand what your clients want. For example,

 Incremental innovations allow you to stay ahead of your competition while taking negligible risks and using limited financial resources.

Customer satisfaction with your offering creates customer retention.

Radical innovations are essential elements of an organization’s long-term strategy,

but short-term upgrades to existing products keep customers interested in your business.

If you keep the products you have now without keeping them up to date,

you could be in trouble as the economy and markets change in the future.

 

Conclusion

 

With our constantly changing economy and competitive marketplace,

the solution is to develop an incremental innovation strategy.

These small and often frequent changes help improve efficiency, customer retention, and competitive differentiation.

Apple is a perfect example of how to do it.

When looking for areas to improve, be positive in your approach. Don’t focus on problems.

Focus on the opportunities that will result from your efforts.

You get what you focus on. Also, broaden your perspective and use both vertical and lateral thinking skills.

The benefits from this incremental innovation can be powerful and include:

Staying relevant to your market.

Improving your growth with minimal risk.

Retaining clients longer.

Protecting yourself from a changing economy and marketplace

To get a substantial update, innovate two or three business model modules.

I would love to hear how it works out.

Steps To Create Incremental Innovations?

 

Step One: Start by studying your current customers and competitors. Include their business models.

Step Two: Look at all the modules in your business model. Don’t ask, “What’s wrong?”

Ask, “How can I make this module (product, price, performance, Etc.) better?

When you are looking for ideas, keep your questions positive. Focusing on the positive will result in positive answers. 

Step Three: Select a reachable, measurable objective and do the research needed to expand that objective. 

Step Four: Get several ideas for each module. The more modules you examine,

the stronger your innovation will be. Select which idea you will implement (this may be challenging

because you may only be able to execute some of your ideas simultaneously.

Step Five: Make sure you have the time and resources, test it, then iterate and try again.   

 

 

 

 

 

Want A Creative Solution To An “Unsolvable” Problem?

Posted on by harborcapitalgroupinc

 

There Is A Creative Solution To Most Problems

 

You’ve done your research using (your analytics and other diagnoses) on the problem. Now you need a creative solution.

But all the research and data have looked backward at the information and concepts you already know.

You have to look forward, not just backward, to get an insightful or creative solution.

The way you do that is to use creative problem-solving techniques and tools.

If you do, you will be able to create a solution to your “unsolvable” problem.

 

 It isn’t that you can never get insight from all that research.

It can happen, but your mind already has all this information.

Your mind must be confronted with something new or different, requiring it to take an unfamiliar concept or word

and fight to fit it into your current mental database.

Therefore, the mind must fit this new word into what is already known and create a new concept.

Here is a simple example of how the creative minds works

Creativity is simply looking at things differently. Edward de Bono, in his book “Think,”

explains how the mind works this magic. Your mind continuously builds up knowledge over time.

Following is a game he uses to illustrate how the mind works. 

Start with the letter’ a’

Add the letter ‘t,’ and the new word is ‘at.’

Add ‘c”. The new term is ‘cat.”

Add o’. The new word is ‘coat.’

Add ‘r.,’ And things have to change. The new word is ‘actor”.  

But the letter ‘r’ required the mind to restructure the use of the previous words. This process is creativity.

Therefore, you need to get your mind off the traditional path to get new ideas.

A goes directly to B (the pattern already in your mind) and moves at a different angle

from the conventional thought pattern.

For example, you could use a random word to disrupt your known routine

and asymmetrically open your mind to a new way or idea you can choose to use or not.

This process also means that anyone can accomplish creativity.

It is a skill, not an exceptional talent only some people have.

Here is a great 4-minute video on creativity by Edward De Bono that you should see if you have time.

Use random word techniques to achieve creative solutions

You want to start by selecting some random words as your starting points.

One of the best ways is to use the dictionary. Open the dictionary to a random page,

put your finger on a random word, and select the closest word (a noun).

Choose about five more words. Write them down. 

 

Be sure you know the definition of each word because you will associate the characterizations of each word

with your focus idea or question (for example, create a new concept for a restaurant.).

Focus on the word and relate it to the question or problem you want to be solved. 

Work quickly through each word, but don’t judge your responses now.

Each idea response represents the possibility of a great idea.

Spend about 5-10 minutes exploring each random word. 

 

For example, focus on a concept for a new restaurant  Random word: wallet.

One concept would be a restaurant where people order food, pay immediately,

and take the food elsewhere to eat vs. ordering in, eating the food at the restaurant,

and only paying after eating. 

A restaurant where people are charged by the amount of time they spend at the restaurant. 

A restaurant known for one special, unique and expensive dish served at one particular time every day.  

This is only one creative technique of many. But, this random word technique is easy to use and can be done quickly.

We cover other techniques for individuals and teams as well.

 Creative Solution Concepts

According to Merriam-Webster, a concept is conceived in the mind: a thought, a notion.

For example, the concept of gravity.

The importance of concepts is developing alternatives and new ideas

by extracting the image and looking for ways to deliver this concept through a specific idea.

Ideas are a way of putting the concept into action.

The concepts you create can be functional or operational, and these concepts can be vague to very detailed.

You can create value concepts (why is this a value?)

Or purpose concepts (why are we doing this?) Also, descriptive ideas.

 

The importance of concepts is developing alternatives and new ideas

by extracting the concept and looking for ways to deliver this concept through a specific idea.

Ideas are a way of putting the concept into action.

There can be functional or operational concepts describing how something is done, from broad to detailed.  

There can be value concepts (why is this a value?)

Or purpose concepts (why are we doing this?)

And descriptive concepts.

Try this creative solution technique for yourself. 

Try it on a focus of yours. Take five words and give yourself 5-10 minutes for each word.

The more you do, the more you learn and the more ideas you will get.

Conclusion

You have to look forward, not just backward, to get an insightful or creative solution.

The way you do that is to use creative problem-solving techniques and tools.

If you do, you can create a solution to your “unsolvable” problem.

Creativity is simply looking at things differently.

Therefore, to get new ideas, you need to get your mind off the traditional path A to B

(the pattern already in your mind) and move at a different angle from the traditional thought pattern.  

The random word technique is a quick and efficient way to generate new concepts and ideas. 

The focus on a new kind of restaurant is an example.

The concepts you create can be functional or operational and can be very broad to detailed. 

 

To learn more about “How to get a creative solution to that “unsolvable” problem,” go to our website: https://https://harborcapitalgroupinc.com/wp-content/uploads/2024/07/Braintopview-1.jpg.com. 

PS. You may also be interested in our blog post:   https://https://harborcapitalgroupinc.com/wp-content/uploads/2024/07/Braintopview-1.jpg.com/a-strategy-for-business-growth-jim-zitek/

PPS. This post may be of interest as well: https://https://harborcapitalgroupinc.com/wp-content/uploads/2024/07/Braintopview-1.jpg.com/want-better-sales-results-tell-your-real-story/

Thanks for taking the time to read this, and I hope it gives you some food for thought.

Jim Zitek

 

How To Create Strategies For Business Growth

Posted on by harborcapitalgroupinc

How To Use Business Growth Strategies To Become A Superior Competitor  

 

If you are in a competitive market long-term, you will likely go out of business because eroding margins are the consequence of destructive competition.

Therefore, you need a powerful strategy for business growth to become a superior competitor.  

The good news is there are three strategies we will cover in this blog that you can repeatedly use:

keep creating new ideas and innovations to acquire new clients,

get them to purchase more,

and increase the number of times they buy each year.

Learn how to get out of that long-term competitive race with a superior, long-term strategy for business growth.

Our strategic framework will elevate your products and services over the competition—no more short-term tit-for-tat competitive strategy. 

You will have a process that will deliver endless business growth strategies, opportunities, and revenue growth, making you the market’s value leader.

Without the hype, buy now marketers we see so much of today.

 

This Strategy For Business Growth Blog Will Briefly Cover:  

1. How to make better decisions more often. It covers expertise and critical thinking from one’s perspective and vision.

2. Then, three ways to increase revenues and what you can afford to spend to acquire a new client.

3. And then, we will discuss only three things — business growth strategy, creative insights, and marketing strategy —

you can repeatedly use to keep improving value and increasing revenues and profits. 

Let’s talk about decision-making first because you may want to change how you approach decision-making.

And we know you must make many daily decisions as a business leader. So, let’s start with a question.

 

With So Many Growth Strategy Decisions, How Often Do CEOs Make The Right Decision?

The answer is 52%. You only have to make the right decision 52% of the time to be a top decision-maker — 2% more than the flip of a coin.

Remember New Coke or the Edsel car? Billions were spent and lost by brilliant people making poor decisions.

Why is this number so low? The first reason may surprise you. It’s due to our reliance on expertise.

They specialize in their industry, markets, and products to get to the top of their company and industry.

They have built a kind of wall around their perception of the world.

They know the norms of their industry and are comfortable. So they are comfortable making informed decisions.  

 

Many Executives Have Put Themselves In A “Limited Perception Box.”

Executives often limit their business and industry worldview.

This limits their situational perception, which is a significant reason they can’t get past 52%. 

For example, If you looked at the front of a house, you would have a real, accurate perception of that house.

If someone else looks at that house from the rear, they would have a different and precise perception of it. 

 

Here’s a fun perception example that I like from Edward de Bono.

This group of 12-year-old boys tends to pick on or tease Bobby because the group thinks it’s fun.

They show him two coins one day, a large one (worth $1) and a smaller one. (worth $2).

Bobby picks the large one, and the group laughs and has a good time at Bobby’s expense.

They do this several times over the summer. 

One day, an older man sees what’s happening and afterward tells Bobby that the smaller coin is worth twice as much as the larger one.

Bobby says I know that. But, if I had taken the $2 coin, they would never have kept offering him the opportunity again and again.

Perceptions can be valuable and increase opportunities.

This short story shows how vital your perception is,

and the broader your perception, the better you will be at solving problems, coming up with new ideas, and making good decisions.

You can’t limit your perception of your industry, market, or how you think about your company.

 

Why “Perception” Matters When You Are Trying To Create Business Growth Strategies

 If I asked you what you do, you might answer: I own a hardware store, I am a doctor, or I manufacture light fixtures, or whatever.

You probably would say yes if I asked if you wanted to grow the business. 

So, now let me REFRAME your answer by changing your perception,

Let’s say your first answer was. “I own a hardware store, and I sell products and services.

That perception may then limit your market growth.

But what if you reframed your answer to, “I own a marketing company that sells hardware and services.”

Now, you have a different and much broader perception of what you do and how you would approach your objective or goal differently.  

 

Your job is marketing which means you focus on increasing sales and profits.

You can now focus on ethically building your company, sales, and profits, not as a hustler.

This change in perspective gives you a broader perspective and have you searching for ways to market your business by focusing on your clients.

Note: your focus is now on the client because a client is someone you care about and want to help solve their problems. A customer is a transitory perspective.

 

There Are Only Three Traditional Ways To Get Additional Revenues.

1.  Increase the number of your clients. Start by looking at the “lifetime value” of the client.

If you sell a product for 1,000 dollars, the client makes a purchase once per year,

and the average customer remains a client for five years; the lifetime value of that client is $5,000. 

I assume you would prefer the $5,000 to the $1,000. So, you now know you can spend up to $5,000 (less your costs) to acquire a new client.

If you could increase the number of clients by 10%, you would increase your revenues by 33.5 percent.

2. Increase the average size of the orders

Start by satisfying the client with add-ons or solving the client’s problem better or differently, which might require additional or different items.

Maybe the way they sell cars.

After you agree to purchase the car, they show you the sunroof to make your driving more fun, the better radio that brings in more stations, and more. 

3.  Increase the number of times they buy each year

Create other ways for clients to use your products or services.

A great example is American Express or Visa, which enables you to purchase plane tickets, theater tickets, and a frequent flyer miles incentive program.

Or maybe a special spring and fall sale at your store for current, specially invited clients only.

Those are all excellent traditional things you could do to improve your revenues. But an even better approach will give you continuous revenue growth.

 

How To Achieve A Sustainable Competitive Advantage

Generally, if you are in a competitive market long-term, you will likely go out of business because of eroding margins

due to the problematic competitive nature of competition. 

But, there are only three strategies you can repeatedly do to keep coming up with new ideas to get new clients and get them to purchase more,

plus increase the number of times they buy each year.

Revenue Opportunities Start With Your Strategy For Business Growth. 

Using your new perception, create a new strategy for your business

based on your goal or a problem that needs to be solved to reach your objective or goal.

We could talk for days about what strategy is, but Richard Rumelt, author and professor,

explains a practical and straightforward definition that makes a complex description simple and easy to understand

 

A strategy Process Is: 

1. Identify and define your problem or objective.

2. Diagnose the objective or situation (data is essential but not sufficient) because you rarely come up with new insight

because your mind is dealing with the information you already know

3. Innovate through insight and creative thinking. There are many innovative techniques you can use to create new ways of solving problems, and knowing how to reach the objective,

4. There is never enough time or money to do everything, so you must prioritize and ensure the solution conforms to your strategy

4. Prepare a coherent plan and execute it.

There is never enough time or money to do everything, so you must prioritize and ensure the solution conforms to your business growth strategy.

 

Then Creativity And Innovation:

I need to talk about innovation briefly because many people think they are not creative, but everyone is creative.

Again, Edward de Bono shows why your mind is set up to be creative.

It requires you to learn innovative techniques to put your mind in gear to do the creative work.

And it’s a great way to get business growth strategy ideas.

Humor is a beautiful example of how the brain works.

Humor indicates how our information system gives rise to perception and how you can see the world differently.

You might enjoy this example from a Winston Churchill story. 

A woman MP meets Churchill in the hallway (after lunch and a few drinks) and says to him,

“If I were married to you, I should put poison in your coffee.”

And he replies, “and if I were married to you, I should drink the coffee.” 

Our information system gives rise to perceptions and how you can see the world differently.

Perceptions set up in one way can suddenly be reconfigured in another way. Humor is the essence of creativity. 

One can use many creative thinking techniques to create different concepts, insight imaging, and ideas and turn them into innovations.

For example, the random word technique is an easy and quick way to get many ideas.

See our blog post, “How to turn negative problems into positive results. or Michael Muchalko’s book, “ThinkerToys.”  

 

Then Marketing Strategies For Business Growth

Marketing strategy and tactics are the third groups of tools we can repeatedly use to reach our objectives.

It begins with the same strategy format explained above — objective, diagnosis, insight, and a coherent execution plan — but is applied to marketing strategy.

Apply a market strategy to every tool used. For example, you need a marketing strategy in b2b for your website, blogs or ads, publicity, and other marketing tools.

You might want to see our blog posts on websites and value propositions.

For example, over one million blog posts are created every day.

How would a potential client find and read your blog post?

You need material the client is looking for, not necessarily the material you want to give him;

you need to be different and have a strategy and some creative insights to make it effective.    

Also, because your perspective is now broader, you can use marketing strategies and tactics – from any industry-

to get new clients, get them to purchase more items, and buy more often. 

 

Conclusion

Long-term, it is difficult to compete profitably in a competitive market because of eroding margins.

However, you can win this competitive race with better thinking, a broader perspective, and tools that can be used repeatedly.

To achieve a sustainable competitive advantage, you need to start with your business strategy for growth and keep adapting it to market and buyer changes.

Then use your creativity — everyone is built to be creative. It is a learned skill, not a talent. Learn to create ideas and then turn them into innovations.

Then create your marketing strategy for each objective and program  — like website, blogs, advertisements, publicity, etc. — you will use and make sure you also have a coherent execution plan.

How will you use this approach to strategy for business growth to drive more revenues and profits?

Tell us what you think  Also, if you would like more information like this blog post, sign up for our free blog post program.

PS. You might also be interested in the blog post, Why Your Business Growth Strategy Is Your Story.

Innovative Strategies: Leverage Potential Change

Posted on by harborcapitalgroupinc

Difficulty of making decisions about the future.

Exploit Market Changes

Industries and markets are constantly changing for many reasons, including technology, a new business model, or a pandemic.

When this occurs, companies have two choices: adapt to current changes or, longer-term, be disrupted.

But, if you pay attention to these changes, you can develop innovative strategies for revenue growth and exploit these market changes. 

That is what we are going to talk about in this blog, how companies react to these changes, how you can adapt your strategy to these changes

to gain product value, revenues, and even a long-term monopoly in your market.  

Companies that do not adapt generally resort to inertia or entropy.

What is inertia?

Inertia is the unwillingness of the affected company to adapt.

Not adapting could be caused by routines (the way we have always done things) or an unwillingness to change strategies because it will hurt current profit streams.

They assume that these current profit streams will continue. 

However, this also opens up opportunities for others. For example, Netflix replaced Blockbuster. Walmart replaced K-Mart.

What is entropy?

Inertia generally leads to entropy. Entropy is not keeping your product line up to date and, therefore, losing clients, sales, and market share.

The primary reason entropy becomes the problem is that the company becomes less focused on its products,

often reduces prices and generally becomes less responsive to its customers. You might agree with Elon Musk, “I think you should always bear in mind that entropy is not on your side.

Again, entropy opens opportunities for competitors to innovative strategies for revenue growth.  Product-market fit is not a permanent status.

For example, the Encyclopedia Britannica was replaced by Wikipedia. Photographic film was replaced by digital cameras. 

Innovative Strategies: Examples of Potential Opportunities

Your strategic opportunity is to pay attention to these changes and be willing to innovate your products or services and experiment.

In that case, you can leverage your current strategy.

You can capitalize on these changes with new concepts, ideas, products, or services that should generate new revenues and profits for years to come. 

A few examples of potential innovative strategies for revenue growth in market changes are happening today.

 

Innovative strategies for potential changes in auto Insurance

Every car insurance company says -one way or another- you only pay for what you need.

And there are companies with apps comparing prices. How long can profitability last?

I also realize that much of their money is made on premiums and reinvesting premiums into other interest-paying assets.

But what happens when interest rates change, and the spread collapses?

 

What happens when car buyers switch from buying cars to subscribing to vehicles?

This concept is just getting started, but the idea is increasing globally.

Just pay a monthly fee and drive off the lot. You have a three-year subscription and can change car models every 12 months.

You subscribe at the dealership, and your monthly subscription includes insurance (they want to protect their asset.)

 

This concept is new, and I assume changes will be made along the way.

Other opportunities include electric cars, charging stations, gasoline prices, parts costs, and many more. 

Is there an opportunity for an innovative strategy for growth, or are insurance companies the next Blockbuster video rental company? 

How could you take advantage of these opportunities if you are in this industry? 

 

Innovative strategies for opportunities in the phone market

One telephone service company sells its service for $75 per month,

and another sells the same service with the same coverage for $25 per month.

Are costs plummeting, or are more and more competitors entering the market? 

Or are the phone companies still making money on phone sales?

But we see ads claiming you can save about 50 percent on some phones.

Are these companies simply discounting to get updates or new customers

— or calling it the marketing cost of acquiring a new customer who will eventually be profitable over the long term.

Plus, what technological advancements are going to happen? Will SMS messages all become MMS multimedia messages?

Will there be anyone left on laptops?  What will happen with 5 G?

How will this evolving industry affect your market, product, or service? And how quickly?

 

Innovative strategies for opportunities in the real estate market.

Real estate companies continue to reduce their commissions and have gone from 6% commission down to about half that amount.

Companies and agents use marketing companies to get listings and independent agents to sell homes.

This new sales model has dramatically reduced costs. 

There have also been new sales models like “ibuyers,” who buy a home in cash with no fees,

spend a few dollars updating the home, and resell the house for a profit. Can this last with higher interest rates and slowing house prices?

 

Also, many real estate companies own title companies because that is another way to “cross-sell” and increase their sales and profits.

But what if title companies begin using blockchain technology to make title registration faster, easier, and safer –maybe reducing title insurance? 

Or what if the real estate agent took the average discount the buyer wanted and gave the buyer a portion of that discount as a “bonus” at closing for buying the house?

That money would be much more valuable to the buyer than the small amount that would reduce the monthly payment.

Considering all the variables that go into the real estate market, how will this market change in the next 3-5 years?

How will the real estate companies deal with all the brick-and-mortar offices across the country? 

More changes and opportunities to come

Those few common examples are only the beginning of the changes we will see in the coming years.

For example, what will RoKo streaming television do to cable companies?

Or is Artificial Intelligence taking over more and more tasks?

Or are 3D printers building homes in a couple of days? 

 

The list could be extensive, but you get the idea: everyone is or will be affected by continuous changes in our world.

One way you can deal with these changes is to monitor the changes knowing that some companies

will adapt quickly while others will respond with inertia and/or entropy.

Those companies are easier to identify and give you time

to create and modify your strategy to be the value leader in your industry and market

-and maybe own the monopoly position in a new market niche.

 Conclusion

Gain Strategic Leverage From Market Changes

-Market fit continues to evolve and change with the economy and the customer’s needs and wants.

Therefore, stay alert and be ready to take advantage

of the many new opportunities to modify your strategy as required.

Who can argue with Elon Musk’s perception of the future?

He says, “you have to get into a new market several years ahead of the apparent trend to be a player in that market.” 

 

Cheers,

Jim Zitek

 

PS. If you would like to learn more about business growth strategies,

check out this blog post: Why your business growth story is your story

PPS If you want to get the right information at the right time, check out our website, 

 

 

Contents: Strategy

Posted on by harborcapitalgroupinc

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Pre Strategy

The Critical First Step Toward New Product Success

Part Two: How To Get Product Validation And Commitment

Start With Why

Competitive Market Strategy

What Is A Strategy?

How Innovative Strategies Drive Sales

Why Both Research and Diagnosis are Invaluable Tools in Your Strategy Toolkit

Getting To An Agreed Definition Of The Problem

The Foundation Of A Strategy Is The Kernel

General Policy and Cohort Action

Why Your Strategy’s General Policy Is Critical

How To Use Dynamics To Find The Strategic Highground

How To Identify And Use Your Competitive Advantage

Competition vs. Sur/petition, Part One          

How To Create Value Monopolies, Part Two

How To Set Your Company Apart From Your Competition

Creating And Sustaining A Competitive Advantage

Using Leverage

Leverage Strategy Through Inertia and Entropy

How To Use Anticipation As A Powerful Strategy Tool

Innovative Strategies For Revenue Growth: Exploit Market Changes

Blue Ocean Strategy

What Is Blue Ocean Strategy?

Creating Blue Oceans

The Blue Ocean Strategy Canvas

The Characteristics Of A Good Strategy

Reconstruct Market Boundaries/Path One

Path Two: Look Across Generic Groups Within Industries

Path Three: Look Across Your Chain Of Buyers 

Path Four: Look Across Complementary Products And Services

Path Five: Look Across Functional Or Emotional Appeal 

Path Six: Look Across Time

Storytelling

15 Benefits Of Storytelling In Businesses

Why A Core Story Is Critical To Your Success

How do you create a core story?

A Quick And Effective Way To Tell Your Story

What Information To Put Into Your Story To Make It Successful?  

Research/Diagnosis

Why Both Research and Diagnosis are Invaluable Tools in Your Strategy Toolkit

An alternative diagnosis with an emphasis on creating value vs. competitors

Diagnosis: Understanding your industry structure and its competitive forces

Six Different Ways To Diagnose Your Problem

How to use anticipation as a strategy tool

Creativity and Innovation

Why Everyone Has The Capability To Be Creative

Part Two: Turning Creativity Into Innovations

Insights, not data or information, lead to better strategic decisions.

An alternative way to get the insight you need to create your strategy

How You Approach Problem-Solving Matters

Solve Problems And Gain Insights Intuitively 

Create New Concepts Before Your Competitors Do 

Creative Results From Your Team  

The Random Word Technique/A Creative Tool For New Ideas

 Win or Fail

Why Do Some Strategies Fail?