Business Development and Change Management

  Go to the Business Development and Change Management Assessment

You have a process for selecting future markets / products / services
 
The business development process (which identifies opportunities for expanding markets, creating desirable products and developing appropriate services) remains, in most companies, the least well defined business process. Senior Managers must:
·         Establish how their team will identify customer needs and win orders
·         Gain company director commitment to invest in developing new products
Key Issues
·         Managers often understand production processes and how to design products, but tend to depend on unstructured ways of developing the business
·         The business development process must be flexible and designed to meet the needs of the company. It should have the following elements:
o    Identification of opportunities - review the market requirements, the available technologies, the risks and customer expectations
o    Evaluation of requirements – establish draft specifications of new products, concept designs, viable manufacturing methods, outline project plans, target product costs and technical and commercial risks
o    Product and project approval – prepare a justified business case that includes evaluation of markets, commercial opportunities, detailed technical product and equipment specifications with a time based project plan including resource requirements and costs,
o    Bid proposal – present business case for the investment, obtain commitments from senior management to support the bid and then win customer contracts or firm assurances of orders
·         The business case should be the business plan for the product, covering commercial exploitation of products in new and existing territories, and opportunities for spares, repairs and support services the customer pays for
·         Projects should be classified based on the commercial and technical risks
·         Each project should be reviewed by appropriate managers throughout the business development process and only sound cases allowed to proceed
·         Projects requiring high levels of investment involve significant technical risks and/or, for a crucial customer, must be reviewed at a higher level
·         Different processes may be required depending on the type of project and classification level; applying existing technology to similar applications is less demanding and a lower risk than innovating with new technologies 
Factors for Success      
Factors to  Avoid
1.     The process is defined and owned by the Chief Executive
2.     Weak projects are eliminated early
3.     Time scales are challenging but achievable
4.     Resources are finite and finances limited so managers set clear priorities
1.       Allowing marketing to introduce projects without evaluating their commercial return and/or impact on the business
2.       Embarking on projects that don’t have clear routes to market or potential customers
3.       Gambling on new research technologies
Who does this apply to?
Chief executives, directors, divisional directors and their senior managers
Realisable Benefits
Stream of timely new products that satisfy customers and generate good profits

Guides:

Business planningBusiness planning

Business planning

The business planThe business plan

The business plan

Selecting future marketsSelecting future markets

Selecting future markets

Drivers for changeDrivers for change

Drivers for change

Collecting informationCollecting information

Collecting information

Sales processSales process

Sales process

Selecting change projectsSelecting change projects

Selecting change projects

Managing projectsManaging projects

Managing projects

Controlling and reviewing projectsControlling and reviewing projects

Controlling and reviewing projects