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Posts Tagged ‘Ideation’

Valuation – The Worth of an Idea

November 13, 2010 Leave a comment

Entrepreneurs have a steady stream of thought and they keep generating ideas. There is a lot of work however with these idea machines as they need to develop the capability to sift through these ideas and freeze in over the opportunities. Opportunities are best described as the value generated for which there can be a given financial transaction made; with repeatability and room for enhancing the value. The opportunity should offer a good yield and capable of generating revenue that’s more than the unified expense for the opportunity.

Core Value: If the opportunity is long sustaining and if business can exploit the platform and evolve better profitability, the more comprehensive the solution is. The market need to see ‘value’ in the solution, the value need to be visible when viewed across varied perspectives. When the market scans for a value stack in a solution, the strength of the solution should excite the prospects. The solution stack should be a ‘Fit Gap’ over needs and when evaluated from an internal and an external perspective; internally the solution should address minimal investment, expanding existing capabilities over technology, operations, resources. Externally it needs to address needs of the market at large as a bundle.

Evaluation: The value of the idea and the impending solution can be evaluated by performing
1. Market centric Valuation – taking into consideration the Market Need + Solution Fit + Value Derivations.
2. Technical Feasibility Study of the solution – Performing a Technical feasibility study scrutinizes the need for the technology indulgence of the idea before its maturity and during market adoption, the ease + the scalability + the interops + simplifications, all counts.
3. Commercial Capability study – Evaluating the commercials will be done over two perspectives, the internal returns over expenses, ease of formulation, leveraging of existing business and the markets value for purchase scaling up performances or driving optimizations.
4. Competition Analysis – Positioning and Strategies – Complete landscape analysis over competition + Postioning + Market differentiator services offering be performed to ensure that the best strategy is drafted.

Jesu Valiant

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Need to Diversify | Extending Organizational Competencies

November 3, 2010 1 comment

Realigning the focus and diversifying has its distinct advantages in any situation and in any market. Diversification from the core provides an opportunity to create additional value to consumers and brings revenue opportunities without much of an ado. Diversification = Growth Strategy.

Market Realities: Organizations have evolved their practices and processes around native offerings; over years of exposure they accumulate strengths to further drill deep into the niche they offer. The vertical bore brings out more quality of service and matures business value. In such a space there will be  many a competitor in the same eco-system with much deeper strengths and maturity; Consumers are spoiled for choice among this competition. Business are cost leaders, have strong brand names, share customers, share characheristics, operate similar, compete nect to neck, share management techniques etc., The candidature sway can only be attributed to external factors like ads, verifyable case studies, consultant backing, customer referrals etc., and not really on ‘whats on offer’ as everyone offers almost the same with very little between. Prolonged existance and anchoring of organizations over the same service vertical will not be wise in the face of growing competition and the thirst to increase revenues.

Framework: Visual Verbatim to be appended

Diversifying from the Core’: When strategies are draw over diversification, there is always a choice. The choice of choosing to build based on your core competency and extend the diversified idea as an offshoot [or] get into a hyper mode by jumping from the native skin adapting in a different landscape altogether. Service companies can diversify from core and feel accomplished as risks are absolutely negligible, there is a strong possibility to utilize native resources over people and infrastructure. Investments and expertise can be applied across establishing a strong backup and support, vital to any new inception. Grade A corporate rung will have the choices to make when diversifying, anywhere down the ladder there is a strong pressure applied over GTM and Operational strategies which will in turn reflect upon exploiting existing relations rather than gearing to launch an all-out open market campaign. Tapping into existing relations will yield good results if you offer solutions and services extensions from the current anchoring. It makes great sense selling and in the conversions.

Pre-Requisites: Diversification can be successful if our core services are at the pinnacle of excellence. We would never want to look at getting caught with poor performance results over our core services; the focus then need to shift back to stabilize the platform from where bread is knead. Selling these ‘Value’ services will be done on the current ‘performance’ platform. Diversify for revenues, diversify over current excellence, when diversifying from core.

Success Factors: Product branding, selling – BD, strong process map, strong service delivery routines, open – case studies, clear engagement routines, leadership awareness.

Case Studies:
1. GE – Jack Welch transformed GE from a purely manufacturing company into a more diversified company. As a result of GE’s corporate strategy and complex diversification, in 1996, GE Capital Services earned US$4 billion. In 2005, GE services agreements increased to $87 billion, up 15% from 2004. In particular, financial services revenues increased 12% to $59.3 billion.
2. ITC – ITC’s non-cigarettes businesses continued to grow at a scorching pace, accounting for a bigger share of overall revenues. “The non-cigarette portfolio grew by 37.6% during 2006-07 and accounted during that year for 52.3% of the company’s net turnover,” an ITC release said. ITC was known for its Tobacco products predominantly, the decision to diversify boosted revenue.

Jesu Valiant

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