{"id":2010,"date":"2019-10-15T06:01:32","date_gmt":"2019-10-15T06:01:32","guid":{"rendered":"http:\/\/kusuaks7\/?p=1615"},"modified":"2024-03-12T12:51:45","modified_gmt":"2024-03-12T12:51:45","slug":"three-types-of-strategies-you-need-to-succeed","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/bigdata-cloud\/three-types-of-strategies-you-need-to-succeed\/","title":{"rendered":"Three Types Of Strategies You Need To Succeed"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2010\" class=\"elementor elementor-2010\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-15d2416a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"15d2416a\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8f85351\" data-id=\"8f85351\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4f9a18cf elementor-widget elementor-widget-text-editor\" data-id=\"4f9a18cf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tThe industrial age tricked us.\u00a0 It taught us that the path to success was to take a business, run its operations with absolute efficiency, and grow it to take advantage of scale effects.\u00a0 This plan worked well\u2026 until the advent of digital technologies \u2013 cloud, machines and data \u2013 which enabled companies to operate and grow in vastly different and more efficient ways.\u00a0 Suddenly, companies could produce intangible goods, like software, which could be sold infinitely, and networks which could reinforce growth and value or zero or near zero marginal cost.\u00a0 With this change, companies that offered goods and services were at an extreme disadvantage as investor dollars, customers, and employees started streaming to digital unicorns and trillion-dollar tech giants.\u00a0 Unfortunately, in the face of this challenge most leaders of product and service legacy firms are doubling down on their current business models by trying to improve operations, cutting costs and updating products.\u00a0 But it\u2019s not working.\u00a0 They need a new path forward, one that addresses three distinct horizons of innovation.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-97d14ac elementor-widget elementor-widget-text-editor\" data-id=\"97d14ac\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tSince the dawn of the industrial age, companies have competed on a level playing field, everyone either made physical goods or offered services.\u00a0\u00a0 What differentiated the good from the great companies was their execution.\u00a0 In this world of physicality, operating efficiently was the key differentiator.\u00a0 However, with the advent of the software, high speed communications, AI and the internet, there are new horizons of innovation, which bring new competitive advantages to those that embrace them.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9b86924 elementor-widget elementor-widget-text-editor\" data-id=\"9b86924\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul>\n \t<li><strong>Innovation Horizon 1 (H1)<\/strong>: Identify ways to do what you are already doing, but faster, better, and cheaper.\u00a0 For most companies, that means improving the way they make and sell physical products and human services but continuing to offer products through one-time transactions.<\/li>\n \t<li><strong>Innovation Horizon 2 (H2)<\/strong>: Create products and services that leverage scalable digital assets like data, patents, and software.\u00a0 Companies that are looking to Horizon 2 are exploring how to monetize data and capitalize on unique knowledge and create recurring revenue with subscription business models.<\/li>\n \t<li><strong>Innovation Horizon 3 (H3)<\/strong>: Build a new business model that is best defined as a multi-sided platform.\u00a0 Companies that are looking to Horizon 3 tap into networks that complement their core services and use machine learning and data to facilitate transactions among that network and the network bears the cost of growth and ownership.<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-014f7e1 elementor-widget elementor-widget-image\" data-id=\"014f7e1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/thumbor.forbes.com\/thumbor\/960x0\/https%3A%2F%2Fblogs-images.forbes.com%2Fbarrylibert%2Ffiles%2F2019%2F06%2F3-Strategy-Horizons-1.jpg\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b273901 elementor-widget elementor-widget-text-editor\" data-id=\"b273901\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: center;\"><span style=\"font-size: 11px;\">Leaders must think about strategy in three horizons\u00a0<small>AIMATTERS<\/small><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-45583a6 elementor-widget elementor-widget-text-editor\" data-id=\"45583a6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tToday, the savviest leaders are figuring out not just the H1 plays for their organizations, but also the H2 and H3 opportunities that will enable their organization to grow and compete.\u00a0 Obviously operations and execution in Horizon 1 cannot be ignored, but leaders need to push themselves out of historical industry and operating patterns to protect their firms from innovators who will gobble up the most valuable pieces of each industry\u2014the highly scalable Intellectual capital, software and networks\u2014and leave the dregs: slow growth, low margins, and eroding market values, for firms that remain stuck in a legacy mindset.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6cec5d3 elementor-widget elementor-widget-text-editor\" data-id=\"6cec5d3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tNow it is not to say that only companies \u201cborn\u201d into digital and network products can compete.\u00a0 Plenty of legacy companies have begun to create their three-horizon strategies with a combination of build, buy, and partner.\n<ol>\n \t<li>General Motors has\u00a0<a href=\"https:\/\/www.reuters.com\/article\/us-gm-selfdriving-cruise-insight\/gms-driverless-car-bet-faces-long-road-ahead-idUSKCN1MY0CK\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-ga-track=\"ExternalLink:https:\/\/www.reuters.com\/article\/us-gm-selfdriving-cruise-insight\/gms-driverless-car-bet-faces-long-road-ahead-idUSKCN1MY0CK\">invested in Cruise<\/a>, its autonomous car unit, and partnered with Softbank and Honda in order to shift from offering only physical cars, to software and platform-based mobility services that will compete with Uber and Lyft. In the retail space, Walmart is working hard on its Horizon 2 strategy with leveraging capability from Jet.com to build out its digital sales.<\/li>\n \t<li>Many software companies are seeing the benefit of Horizon 3 platforms. \u00a0For example, Salesforce has opened up market places that include their products and services as well as those of third-party providers to increase the value of their products.\u00a0 Microsoft, Apple, and Google have all seen the benefits of creating openness in their platforms for external providers as well.<\/li>\n \t<li>Amazon has gone the opposite direction, creating a Horizon 1 business in the manufacture and sale of its own hardware \u2013 Alexa. However, this strategy complements its digital and platform strategies well, because Alexa will create data that it can use in the sale of more products and services in its Horizon 3 marketplace.<\/li>\n<\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2a3a920 elementor-widget elementor-widget-text-editor\" data-id=\"2a3a920\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tYou may be looking at your own physical product or services company and wondering how well you\u2019re doing with a three-horizon strategy.\u00a0 Like many in the market, you may have only a Horizon 1 plan that will leave you operating an uncompetitive business, just a little bit better.\u00a0 Luckily there are some common paths forward that we can recommend.\n<ul>\n \t<li><strong>To build a Horizon 1 strategy:<\/strong>\u00a0Continue improving operations as you have always done but take care that you are also building in the internal infrastructure, capabilities and leadership skills to support more ambitious innovations.\u00a0 This means paying attention to the data created by customers, suppliers and even employees\u2019 interactions and ensuring that it is captured and usable.\u00a0 Data is the lifeblood of machine learning and every company has proprietary data that it needs to store, mine and use for its future.<\/li>\n \t<li><strong>To build a Horizon 2 strategy<\/strong>: Identify ways to create more scalable digital offerings and subscription offerings This may include expanding effectively to digital channels, selling or leasing data, or developing software.\u00a0 The key is to home in on the knowledge that your firm has, rather than the products you can product or the services you can offer.\u00a0 For example, Stitch Fix and Rent the Runway have shifted a traditional product (clothing) to an online channel and a subscription basis.<\/li>\n \t<li><strong>To build a Horizon 3 strategy<\/strong>: Tap into your networks and find ways to bring them together in an online platform.\u00a0 Social media and forums are a simple way to kick off these efforts.\u00a0 Find ways to facilitate value creation by the network\u2014whether they offer products and services, information, reviews, or new product ideas. Amazon is an obvious example, as they opened their online store to other retailers through their Marketplace, but networks are popping up in companies of all size and in all industries.<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c888c71 elementor-widget elementor-widget-text-editor\" data-id=\"c888c71\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tThe bottom line, every company needs to have a strategy for all three horizons: continue to optimize the core business, but also create subscription-based digital offerings and build a digital platform with network effect.\u00a0 Failing to do so will mean yielding market value, customers, and employees to companies who do.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The industrial age tricked us.\u00a0 It taught us that the path to success was to take a business, run its operations with absolute efficiency, and grow it to take advantage of scale effects.\u00a0 This plan worked well\u2026 until the advent of digital technologies \u2013 cloud, machines and data \u2013 which enabled companies to operate and<\/p>\n","protected":false},"author":69,"featured_media":4235,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[187],"tags":[95],"ppma_author":[1627],"class_list":["post-2010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bigdata-cloud","tag-big-data-amp-technology"],"authors":[{"term_id":1627,"user_id":69,"is_guest":0,"slug":"barry-libert","display_name":"Barry Libert","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","user_url":"","last_name":"Libert","first_name":"Barry","job_title":"","description":"Barry Libert is the co-founder of AIMatters, an AI startup serving the C-Suite with the first AI powered strategy platform. &nbsp;He serves on a number of boards and advises CEO of startups and large enterprises on becoming AI-first companies. He also co-wrote The Network Imperative: How to Survive and Grow in the Age of Digital Business Models published by HBR.&nbsp;"}],"_links":{"self":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/2010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/users\/69"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/comments?post=2010"}],"version-history":[{"count":5,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/2010\/revisions"}],"predecessor-version":[{"id":36376,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/2010\/revisions\/36376"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media\/4235"}],"wp:attachment":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media?parent=2010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/categories?post=2010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/tags?post=2010"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=2010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}