Strategy experts from all industries gathered for the 5th Horváth-Strategy-Network meeting in Düsseldorf on November 8th. The focus of the event was on the systematization of business models. In addition, common strategy challenges and pitfalls were discussed in small groups based on some real-life examples provided by participants.
In his keynote speech, Dr. Oliver Greiner, Partner and Head of Competence Center Strategy, Innovation & Sales, explained the audience how Horváth & Partners have added a new component to the traditional strategic planning process: In addition to the environmental analysis, strategy development, implementation, and control, Horváth’s integrated strategy process includes a phase of business models analysis and development.
Fig. 1: Integrated strategy process by Horváth & Partners (Copyright Horváth & Partners)
In this phase, the elements and characteristics of the various business models existing within the enterprise are analyzed in detail, refinded, and aligned with each other for maximum performance. Based on some examples of successful business models, such as MAGNUM ice cream, Dr. Greiner illustrated how well the components of these business models are aligned having a cumulative impact on the market success.
To analyze business models, Horváth & Partners have developed what they call the „7-K Principle.” A guest blog post on the subject will be posted here soon!
Quite impressed were participants by the fact how many different business models may coexist within a company - in some cases it is more than 1,000! Good then, that there is a method for “decoding” them.
Given the large number of business models, software can help to systematize and evaluate them within the strategic planning process.