A business concept encompasses every business
activity undertaken by an enterprise in creating value for customers, suppliers
and other stakeholders. Therefore, business concept extends its arch from manufacturing
a product to marketing it successfully in order to amass revenue. Creating a
business concept is an easy task if you adopt a three step approach explained
below:
1. Concept generation: Generation of business concepts could
take place in two forms: in-box solutions that have had previous history of
successful implementations or out-of-box solutions that originate with
parameters un-known or not tested before. More is merrier when it comes to
concept generation in the second group because innovation has the underpinning
of success today.
2. Concept evaluation: In evaluating concepts, you go in quick
steps through screening and scoring processes. As you begin to screen, most, if
not all, concepts would fall on the way side. If there is no viable option you
have to brainstorm once again. If you have concepts worthy of further analysis
you have to apply a scoring system.
One such scoring system that is widely used is Pugh
Matrix. It is an evaluation tool, where you presume a base case with score of 5
and rank the new concepts introduced by your team on the scale 1-5-9. Any
concept that is worse than the base case is ticked 1, concepts equal to base
case is marked 5 and the ones that are better than base case are scored 9.
3. Concept selection: Out
of the concepts that had a score of 9 you need to select the one that can
balance internal capability and external opportunity. It is not the question of
maximizing revenue that matters here. Rather how the business concept you have
zeroed-in optimizes internal and external dimensions, production and marketing
and risk and reward. The concept that has the best line of fit must be chosen.
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business
Strategist
No comments:
Post a Comment