Most companies fail in the market even with highly
innovative business concept because they fail to follow two golden rules before
launching it. The unspoken rules are development and validation of business
concept. Here is a preview:
1. Concept development: Once you have zoomed in on a workable
business concept you have got to add flesh and bones. In other words, you have
to develop it from the stretch. Copy paste does not work here. If you are
already in business you must appoint a task force comprising heads of operations,
human resource, marketing, finance and technology to look at the new business
concept in two streams: Up-stream
and down-stream:
In the up-stream segment business concept is
developed taking into account objectives, purposes, key resources, key partners
and key activities so that value proposition is seamless. On the down-stream it
must address the needs of the ultimate users, customer segments, and customer
relationship and distribution channels and how these work towards value
proposition.
2. Concept validation: After developing a business concept in both
streams it must be subjected to internal and external validation. Internally it
must conform to corporate belief system, shared culture and the obvious
necessity to conform to internal standards covering sustainable profit for the
business. External validation is via industry standards, B2B & B2C ethics,
customer perception of quality and durability and overall market acceptance.
A product concept might have made waves on the
drawing board. Nonetheless it could prove to be a laggard in the market. Initial
public issues of many technology related stocks suffer the fate of
under-subscription because either or both internal and external dimensions are not
validated to the satisfaction of investing public
It is not that market has no appetite to absorb
technology stocks. Rather there is no convincing financial proof made available
to the market ensuring that both internal and external dimensions are validated
before launch.
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business
Strategist
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