Rita Gunther McGrath and Ian C. MacMillan tell about discovery-driven planning and a process to successfully venture into a new business. When a business moves into an unknown market in order to expand and increase overall revenue a large amount of risk will ensue. The risk factor comes from making assumptions in an area of business unknown to the company. This article proposes Discovery-Driven Planning, proposing a specific process dealing with the many risk factors, which gives the new business venture a much better chance of success.
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by in Harvard Business Review on March 01, 2005
In this article Rita Gunther McGrath and Ian C. MacMillan look at business propositions that increase profitability if implemented successfully. The main idea discussed is "redefining your business's profit drivers". This includes looking at the units you sell and redefining your sales and billing practices. In turn this is a low cost low risk process that adds value to your business and leaves your competitors straining to keep up. If done well, this aggressive business change can create an entrance barrier allowing your newly defined business to be more profitable longer. Not only does this article discuss "redefining your business's profit drivers", but it lays out a process making it possible to successfully utilize this strategy.
