Presentation Two

“achieving ambitious

business growth”

Iain Bruce & Jamie McCallum | Matrix Innovation Team

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

recap:

workshop 1

highest & bestinnovation leadership model

Exercise: Highest & Best: Innovation Leadership

Business Life Cycle

vision & objectives

Be honest about your growth aspirations……

Time

£ / €

(now) 5 Years

Want to get to here?

Normal Incremental

Growth Continues.

Sales stay the same.

Past Future

New and Different

Same Old Stuff

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?

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?

exercise:

vision

options for growth

exercise:pipeline growth assessment

GROWTH PIPELINE

All values are Millions

Sales Today

Sales 3 Years Ago Sales Goal 3 Yrs

Actual Growth 3 Yr Growth Goal

Incremental Incremental

Estimate

Market growth or

"working harder"

Market growth or "working

harder"

£ 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

£0.00 £0.00

3 Yr Growth Goal £0.00 - Incremental Est. £0.00 - Systemic Est. Net Value £0.00 = Pipeline Gap (Excess) £0.00

25% - Who knows?

Probability Ranges

* List only initiatives with RAW potential for generating at least 10% growth. This standard is key for

small and mid sized companies because 1) it keeps the focus on the big stuff and 2) all ideas have a

"probability" of success thus "shooting high" guarantees a payoff.

90% - Absolute certainty

75% - There are a few unknowns

50% - Odds are good but there are many unknowns

Total Systemic Growth Total Systemic Net Value

Tangib le initiatives or "working smarter"

What we've done to grow Our Growth Pipeline*

Tangib le initiatives or "working smarter"

Actual Growth over 3 Years

Systemic Systemic Estimate

3 Year Growth Goal

Strategic Questions

Today

Which customers do we serve

today?

Who are our competitors today?

What are our products/markets

today?

What is our basis of differentiation

today?

What skills or capabilities make us

unique today?

Where does value lie today?

In the Future

Which customers will we serve in the

future?

Who will our competitors be in the future?

What will our products/markets be in the

future?

What will the basis of differentiation be in

the future?

What skills or capabilities will make us

unique in the future?

How will we build future value?

NE

W

MA

RK

ET

S

EX

IST

ING

MA

RK

ET

S

EXISTING

PRODUCTS

NEW

PRODUCTS

market

development

market

penetration

unrelated

diversification

product

development

exercise:pipeline growth assessment

(part II)

NE

W

MA

RK

ET

S

EX

IST

ING

MA

RK

ET

S

EXISTING

PRODUCTS

NEW

PRODUCTS

market

development

market

penetration

unrelated

diversification

product

development

ADAPTPromise & Product

for Mutual Profits

LEADWOW’s

for Mutual Profits

NEW

Customers

& Markets

CURRENT

Customers

CURRENT

Capabilities

NEW Products

& Services

The Big Opportunities for

SIGNIFICANT PROFIT GROWTH

ADAPT

IMPROVE LEAD

NEW Customers

& Markets

CURRENTCustomers

NEW Products

& Services

CURRENTCapabilities

Perpetual Profit Cycle

ADAPT

IMPROVE LEAD

NEW Customers

& Markets

CURRENTCustomers

NEW Products

& Services

CURRENTCapabilities

The Perpetual Profit Cycle &

identifying yourinnovation “sweet spots”

CAPABILITIES MARKETS

Capabilities

• We sell fish

• We smoke fish to produce distinct

flavour profiles

Resources

Tangible

Resources

Intangible

Resources

Human

Resources

Physical

Financial

Intellectual Property

Use of Technology

Relationships

Networks

Awards

Quality – be specific

Reputation – be specific

Skills

Competencies

Knowledge

Expertise

Culture

Motivation

Values

- beliefs

- attitudes

- behaviours

Capability Tangible

Resources

Intangible

Resources

Human Resources

Sell Fish Shop

Chilled Counter

Fish

Ice

Till

Supplier Rel’s

Reputation for fresh

fish

Personality

Arithmetic

Profit focused

Smoke Fish Fish

Preparation area

Clean room

Kiln

Storage area

Salt

Wood

Flavourings

Packaging

Vacuum packer

Recipe

HACCP process

Supplier rel’s

Patent

Fish Smoker’s

Association

Great Taste awards

25 years experience

- preparation

- fileting

- smoking

- packaging

Professional

Knowledge sharing

Profit focused

Employee benefits

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?

Key Success

Factors

Core Competencies

Capabilities

Tangible

Physical

Financial

Intangible

IP

Technology

Relationships

Quality

Reputation

Human

Skills

Knowledge

Culture

Motivation

Values

Big Changes

SOCIAL INFLUENCES

TECHNOLOGICAL INFLUENCES

ECONOMIC INFLUENCES

ENVIRONMENTAL INFLUENCES

POLITICAL / LEGAL INFLUENCES

exercise:

Big Changes

idea engineering exercise:

customer problems

First FAIL FAST FAIL CHEAP

Action Plan

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

PurchasesHow many times in a year will a repeat

purchaser buy?

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

Purchases

How many times in a year will a repeat purchaser

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

next stage:

assessment

Noon

Thu 29th November

email:

caroline.hunter@matrixuk.com

Growth Plan

Submission Info:

Tue 4th December Invest NI

Bedford Street

Belfast

Wed 5th December InterTradeIreland

Newry

Thu 6th December Athlone

Presentation Dates

growth plan

thinking time…