Business Strategy Development

Business strategy development is a specialized section of our method implementation, which provides development of strategy concepts in order to gain a stable competitive advantage.

 

The most effective way for your experts to become familiar with the methodology is through completing Sample Projects, assisted by experienced TRIZ specialists and accompanying GB Software. 

We have spent a lot of time and effort to redesign the system of the Inventive Principles used in classic TRIZ to make them applicable to any industry, not just technical applications. Using this GB system helps create strategy concepts.

 

There are many definitions of Strategy. We view Strategy as a system of three elements:

  • Goals - where the company should be in its long-term vision.
  • Tasks - measureable steps towards a goal.
  • Plans - projects controlled on a managerial level.

Example: President Kennedy formulated a strategy for NASA in 1960:

  • Goal: USA need to be the leader in space exploration.
  • Tasks: We will put a man on the Moon and successfully return him to Earth by the end of the decade.
  • Plans: NASA realizes the following programs:
    • Mercury (entering orbit)
    • Gemini (space docking)
    • Apollo (Lunar landing)

 

Business Strategy Development includes 6 steps:

  1. Define strategic goals.
  2. Build a function model of the current business.
  3. Perform SWOT Analysis. Usually after performing the SWOT analysis, businesses get stuck attempting to build a new concept. Using Structured Innovation allows us to bypass this pitfall.
  4. Integrate the results of the SWOT analysis with the function model. Strengths and Opportunities are added as useful functions and Weaknesses and Threats are added as harmful functions. As a result, we get a clearer picture, to which we can apply our Inventive Principles.
  5. Use the GB system of Inventive Principles, which allows us to generate progressive ideas to capitalize on Opportunities, use Strengths, eliminate Weaknesses and counteract Threats with a high rate of success.
  6. Combine ideas into concepts to develop a business strategy.

 

Example: Business Strategy Development

 

Chemical Company manufactures a general use product used in specialized product manufacturing. Chemical company wants to develop a strategy for integration into the specialized product industry.

 

1. Goal: Chemical Company takes the price-controlling position and can manufacture and sell specialized products at a high profit margin.

 

2. Business Function Model

This shows just the sales process - the full function model will contain other business functions.

 

3. SWOT Analysis

Strengths:

  • Global sales network
  • Our sales personnel knows the business of the specialized products.

Weaknesses:

  • The consumers of specialized products don't know us.
  • We don't have experience selling specialized products.

Opportunities:

  • The specialized product market is fragmented - only small enterprises.
  • 70% of our general use product is currently sold to manufacturers of specialized products.
  • Specialized product manufacturers are experiencing financial difficulties.

Threats:

  • Our current clients might leave if they see us as competition.

 

4. Function Model + SWOT

Strengths and Opportunities are added as useful functions. Weaknesses and Threats are added as harmful functions.

 

5. Guided Brainstorming Idea Generation (fragment)

Find a way to remove function "Current clients leave"

 

Idea: Principle "Separate": Choose the weakest manufacturer to create a new company and sell our specialized product through their existing channels.

 

Idea: Principle "Decelerate": Make long-term contracts with key clients prior to entering the specialized product market. This will allow us to retain current clients.

 

6. Development of Strategy Concepts

Concept 1: Restructure the market

  • Idea 1
  • Idea 7
  • Idea 12
  • ….

 

Concept 2: Strengthen alliances

  • Idea 3
  • Idea 9
  • Idea 22

 

 

Using the Business Strategy Development method you can:

  • Formulate realistic, strategic goals for your business.
  • Develop systems of tactical goals in strategic opportunities.
  • Create business concepts which allow you to pass the competition.
  • Develop a successful and more painless strategy of a paradigm shift.

 

Contact us or one of our partners to find out more information about our methodology and receive further details about the various cooperation opportunities.