competitive advantage cycle
TRANSCRIPT
TheCompetitive AdvantageCycle
FAMILIAR STRATEGICCHOICES & CAPABILITIES
UNFAMILIAR STRATEGICCHOICES & CAPABILITIES
UNCERTAIN STRATEGICCHOICES & CAPABILITIES
Horizon 1CONSOLIDATING THE CURRENT COMPETITIVEADVANTAGE
Horizon 2DEVELOPING THE NEXT COMPETITIVEADVANTAGE
Horizon 3EXPLORING OPTIONS FORFUTURE COMPETITIVEADVANTAGES
McKinsey’s frameworks “3 Horizons” and “Portfolio of Initiatives”describe the evolution of companies and business lines from theirCurrent Competitive Advantage to their Next & Future ones.
TIME
PROFIT& VALUE
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As we consolidate our Current Competitive Advantage, we focus onclosing the Strategic Coherence Gaps between our ExistingCapabilities and those Required to support our Strategic Choices.
STRATEGICHORIZON
TODAY
STRATEGICDESTINATION
TIME
PROFIT& VALUE
Current COMPETITIVE ADVANTAGE
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Out Current Competitive Advantage is a Transient one. We haveto enlarge our Strategic Horizon and define a New Transient Competitive Advantage and a New Strategic Destination.
TODAY
STRATEGICDESTINATION 1
TIME
PROFIT& VALUE New
COMPETITIVE ADVANTAGE
STRATEGICHORIZON
STRATEGICDESTINATION 2
TODAY
STRATEGICDESTINATION
Current COMPETITIVE ADVANTAGE
© 2015 - Strategic Systems Consulting
TODAY
STRATEGICDESTINATION 1
TIME
PROFIT& VALUE
STRATEGICDESTINATION 2
TODAY
STRATEGICHORIZON
STRATEGICDESTINATION
Because our Strategic Focus has shifted, we have to reallocate our resources to close the New Strategic Coherence Gaps and to buildor adapt the Capabilities that must support our New Strategic Choices.
STRATEGICHORIZON
New COMPETITIVE ADVANTAGECurrent
COMPETITIVE ADVANTAGE
© 2015 - Strategic Systems Consulting
Current COMPETITIVE ADVANTAGE
Current COMPETITIVE ADVANTAGE
TIME
PROFIT& VALUE
STRATEGICDESTINATION
As we consolidate our New Competitive Advantage, we have toextend our Strategic Horizon even more, exploring our possibleFuture Strategic Destinations.
STRATEGICHORIZON
TODAY
POSSIBLE FUTURESTRATEGIC
DESTINATIONS
EXPLORATORYSTRATEGICHORIZON
New COMPETITIVE ADVANTAGE
© 2015 - Strategic Systems Consulting
When we move along the Competitive Advantage Cycle, our StrategicFocus is shifting, closing in sequence the Strategic Coherence Gaps forthe Consecutive Strategic Destinations that we are aiming to reach.
A B DC
TIME
STRATEGICCOHERENCE
GAPS
TIME
STRATEGICFOCUS
(RESOURCES)
TIME
PROFIT& VALUE
STRATEGICDESTINATION 2
POSSIBLE FUTURESTRATEGIC
DESTINATIONS STRATEGIC
DESTINATION 1
Current COMPETITIVE ADVANTAGE
New COMPETITIVE ADVANTAGE
A
BC
D
© 2015 - Strategic Systems Consulting
TheCompetitive AdvantageCycle