When establishing a business strategy, CEOs and other executives often do it on random criteria. However, it is necessary to determine specific criteria and axes beforehand. In fact, every organization is particular and has its specificities, which implies different approaches in terms of strategies. The strategy you decide to implement has to be adapted to your business requirements. However, there are 5 key cornerstones that are the basis of successful strategies. They are defined and exposed in Vivek Sood’s book, The 5-STAR Business Network (http://bit.ly/5-STARBN). In fact, this book is entirely based on this approach of the 5 key factors that will help you build a great business strategy. The very essence of this book relies on business networks, and how they must be built. According to Vivek Sood, there are 5 stars that will enable you to build the best business network. The first one is innovation or “Fire-Aim-Ready (FAR) Innovation”, as Vivek Sood defines it. This is the first cornerstone of your 5-STAR Business Network. Innovation have been existing for a long time, but this is a specific approach, on which every organisation must base its strategy. In fact, this book explains how to combine the key factors to be more efficient and effective, at the same time. Although innovation has already played great roles in business, like during the Industrial Revolution, this is not the same any more. Nowadays, innovation must be steady and specific, relying on your business area. Besides, it is not only about products, but also management innovations or strategy innovations can be found. The second star is “$eed-to-$tore ($t$) Efficiency”, a term that needs to be explained in more details, but we will dedicate an entire article to this term. To explain it shortly, $eed-to-$tore Efficiency relies on a good management of the supply chain and of the entire process, from procurement to storage and distribution. In fact, this is all about management, and its efficiency obviously. Then, Transaction Optimisation Profitability is also a key cornerstone. This is obviously about profit. With this expression, “5-STAR”, Vivek Sood explains how to capture the more profit you can, by using efficiently your business and supply networks. In fact, everything relies on your network. Networks are becoming bigger and bigger and they are now the main cause on which all your decisions and strategies depends. Transaction Optimisation Profitability (TOP) is the way you use your network to capture the greatest profit and value. The fourth key of your 5-STAR Business Network is Advanced Product Phasing (APP). This term will also be defined in a later article. What we can say for now is that APP is about product life cycle and innovation cycle. You must pay attention to them in order to act accordingly and make your business evolve in agreement with these cycles. Finally, the last one is Results-focused Outsourcing and Modularisation (ROM). This is quite a complex one, but also very important. Indeed, it will be the subject of Vivek Sood’s next book: Outsource, Outsmart, Outprofit. This term reveals the power of modularisation and networks will play a great role in this strategy establishment and implementation. Consequently, we have here the 5 key cornerstones of a great business network. They can now be defined as business boosters because they can push your business towards great results if they are well aligned and well used together. by Anais Lelong
5 Business Boosters
TIME TO READ
January 8, 2019
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