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Nowadays, organizations have to maintain growth by managing current activities while capitalizing on upcoming opportunities and trends. The Three-Horizons concept describes how value can be created through three timeframes also called Horizons.
• Horizon 1 consists of extending and maximizing the core business potential
• Horizon 2 consists of developing new adjacencies
• Horizon 3 consists of exploring new applications and trends
H1- EXPLORING THE VALUE
The capture and the creation of value rests in the market you serve, often that we overlook the industry needs and the audience desires. You explore value through market research and by analyzing the organization’s internal capabilities and vision. In today’s economy, it is not enough to solve a problem. You need to create enough value that the customer is willing to pay in exchange to your solution.
H1- DESIGNING THE VALUE
Designing the value consists first of all of identifying the right audience for our solution and its geographical market. Secondly, you need to establish the product “positioning” that allows the product/service to stand out from the competition. Then you create a brand that tells your story compellingly and engagingly.
H1- COMMUNICATING THE VALUE
Communicating the Value is one of the marketing main’ role. Once the value is created, it then needs to reach the right audience with the right message at the right time. You communicate the value through an integrated multimedia approach based on your audience behavior. The goal is to maximize the reach of your message with customization and relevancy.
H1- DELIVERING THE VALUE
The delivery channel can become very complex depending on the type of product and the context. Today, we often see a hybrid model where products are distributed directly from the manufacturer to the end user along with distributor under certain conditions. We often hear of an omnichannel strategy where the purchase of a service/product can be done through various ways. The Mix-Marketing, also known as the 4Ps (Place, Product, Promotion, Price) play an important role in the value delivery process.
H1- EXCHANGING THE VALUE
Exchanging value can also be interpreted as revenue models. Many revenues strategies can maximize the return on investment. Whether it is a pricing strategy such as price skimming or pricing tactics such as dynamic pricing, there is a model for each situation.
H2 – INCUBATION
Business incubation creates value by incubating and accelerating ideas that explore white spaces relevant to the core business and its adjacencies. Also, it helps the company finds new business models and applications in the next 3-5 years.
H2 – COLLABORATION
Joint venturing is when two organizations combine its forces to create new solution/product that will address future needs within a 3-5 years’ timeframe. The two models are either “Inside Out” which means taking a role of a supplier by providing the technology/solution while the other party handles the commercialization part, or “Outside In” which is the other way round. Partnering is becoming a new propeller for value creation.
H3 – DIVERSIFICATION
Creating value through diversification can be achieved through venture capitalism. This strategy allows the company the monitor of innovations and technologies in development. Diversification through investing in start-ups can be a viable strategy when capitalizing on new trends and upcoming opportunities. It allows the company to access new ideas and talent. Investing in various start-ups helps mitigate the risk when there is future uncertainty due to 5-10 years’ timeframe.