How Pivoting Your Enterprise Strategy Impacts Your Business Model and Business Processes
Business Strategy, Business Models, and Business Processes are presented as points along the same continuum of business operations between the conceptualization, planning and execution steps in an enterprise. The impact of a pivot on the strategy can have a potentially tremendous impact on your business model and business processes. Strategy pivots can create ripples or tsunamis in the business models and business processes. How do you anticipate and cope with these?
In this article (Part 1), I lay the groundwork for understanding this impact by clarifying the definition and relationship between these concepts, understanding how they interact with each other, and what is the scope of their influence within an organization.
In most companies, the Supply Chain function is considered the workhorse of the enterprise; the function that is mandated to deliver what Marketing has conceived and Sales is selling. At best, it is ignored when things go right (“they’ve just done their jobs”) and given a patronizing pat on their backs, and at worst, it is blamed for everything that goes wrong (“product didn’t reach market fast enough; no product on shelf; didn’t have the mix that the customer wanted”), like the recent Whole Foods nightmare. Yet, the Supply Chain function can be the driving force of the firm’s dynamic capabilities, which are “the firm’s ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments” (David J. Teece, Gary Pisano, and Amy Shuen). These dynamic capabilities are essentially the manifestation of business model agility.
Click on the button below to see the full article on @Medium.
In Part 1 of this series, we talked about definitions and key general principles for an enterprise to be mindful and adopt the tenets of being profitable while also caring for and making sustainable their Environmental practices, be concerned and do more on the Social front in terms of their employees and the communities where they are based, and have strict and comprehensive systems of internal and external Governance (ESG). In Part 2 we developed the notion of ESG further through a specific case study on Unilever and what it takes to actually embed the principles in the operational way-of-working of the business. In Part 3 (this article), we finish up this series with a proposition of an ESG-centric business model design, using the Business Model Beacon framework as a guide. In this article I will discuss the architecture and characterization of business models in general, and specifically, a new framework for developing a business model with an ESG core, and create the foundation for a new series of articles on Designing Multidextrous Business Ecosystem Models (MBEMs).
Click on the button below to read the full article on @Medium.
In Part 1, I discussed the rising tide of the ‘ESG movement’ by corporations adopting and embedding ESG principles within the functional activities of their organizations. I provided a conceptual framework for the different concepts surrounding ESG and gave a logical order as to how they map to each other. Further, I discussed some of the top-down and from-the-trenches views on ESG principles. There is no doubt that ESG is here to stay and increasingly investors, governments, employees, and customers are looking towards how companies are incorporating these principles into their business models. But how do we make businesses not just adopt these principles as a veneer on top of business-as-usual behavior? Therein lies the rub — ‘embedding’ vs. ‘acting’ — whereas the former will be sustainable and will do real good, the latter will simply create a facade of seemingly-legitimate action without any real underlying benefit.
Part 2 (this article) is about getting more into ESG in terms of ‘integrating’ it into a business vs. ‘embedding’ it. I also get into some examples of companies who I think are ‘living’ ESG principles, and finally, offering some preliminary thoughts about how one would characterize a business model that embeds ESG principles into its core.
Click on the button below to access the full article on @Medium.