Analysing the flow of value from strategic intent to customers and prospects in order to identify core points for business renewal.

1. Business Development
&
Renewal Process
Dr. Elijah Ezendu
FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM,
PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr

2. Objectives
At the end of this course, participants would
be able to do the following:
• Explain business life cycle
• Distinguish between business growth and
business development
• Explain the concepts of business
development
• Identify the process for implementing
business renewal
• Coordinate execution of business
renewal within a firm

3. “In growing, highly competitive
businesses, the life cycle's predictable
patterns help CEO's and their
managers develop insight as to what
problems need to be corrected first.”
- Jack Veale, The Business Life Cycle

4. What is Business Life Cycle?
A business life cycle depicts the
stages of advancement which a
business goes through in the course
of activities.

5. Executives and managers must be able to
identify the actual position of a firm and
the next destination in its business life
cycle, in order to establish appropriate
business plan for driving the business
portfolio in accordance with strategic
intent.

6. Contemporary Model of Business Life Cycle
Formation
Growth
Maturity
Decline
Stage I Stage II Stage III Stage IV

7. Seven-Stage Model of Business Life Cycle
Seed
Start-Up
Growth
Established
Expansion
Mature
Decline
Innovate

8. The First Stage (Seed)
This is the conception of business as an
idea or clicking thought
Highlights: Resolution on ownership
structure and business advisors
Challenges: Finance and Market
HR Focus: Availability of Appropriate Talent

9. The Second Stage (Start-Up)
At this juncture, the business commences
operation as a legal entity and attempts
to move its products or services to
consumers.
Highlights: product development,
customer base, competitiveness, cash
flow management and market presence
Challenges: Strategy, Competitive
Intelligence, HR and Financial Planning
HR Focus: Human Resource
Composition, Organisational Systems
and Reward Management

10. The Third Stage (Growth)
This involves great increase in customer
base and revenue.
Highlights: Modulated Financial and
Management Systems, Increased
Administrative Protocols, and growth in
staff strength
Challenges: Delegation, Managerial
efficiency and effectiveness
HR Focus: Talent Management, Career
Path Analysis, Cultural Alignment, and
Performance Management

11. The Fourth Stage (Established)
At this stage, the business goes through a
momentary slow-down in growth rate and
upholds its market share.
Highlights: Cost Management, Productivity
Enhancement, Outsourcing, Alliance
Development and Management,
Business Process Reengineering plus
Increased Automation
Challenges: Organisational Agility,
Strategic Roadmap Management
HR Focus: Motivation, Performance
Reengineering, and Retention

12. The Fifth Stage (Expansion)
This parades exploration and exploitation of
markets for evolving the business.
Highlights: Aggressive Marketing, Highly
Structured Value Engineering, Channel
Development and Management, Alliance
Development and Management, and
Technology-Driven Competitive Advantage
Challenges: Diversification Strategies,
Investment Management and Strategic
Alignment
HR Focus: Human Resource Development,
Workload Analysis and Management, and
Organisational Development

13. The Sixth Stage (Mature)
This is characterized by great drop in sales
growth and occurrence of negative cash
flow.
Highlights: Cost Management, Financial
Management and Market
Challenges: Organisational Leadership
HR Focus: Leadership Development and
Reward Management

14. The Seventh Stage
(Decline/Innovate)
At this point, the business tends to stray into
moribundity and its leaders may decide to
innovate for growth and expansion or allow it
to continue declining and finally harvest the
assets.
Highlights: Financial Management, Due
Diligence, Competitive Intelligence, Strategy
and Corporate Restructuring
Challenges: Ownership Resolution, Strategic
Alignment, Opportunities Profiling and
Decision Dynamics
HR Focus: Organisational Restructuring, Human
Resource Planning and Retention

15. Business Growth
Business growth involves the increase
in top line through increased sales
or enhancement of bottomline by
decreasing cost.

16. Why the Focus on Business Growth
Capacity Utilization
Increase in Profit
Increase in Market Share
Survival
Visionary Drive
Prestige
Exploitation of Opportunities
Influence
Knack for Accomplishment

17. The Focus of Business Growth
Business Growth focuses on each
stage of the a business life cycle.
Business growth strategies are
usually short term and structured to
suit the events and conditions at the
particular position where a firm is
located in its business life cycle.

18. Business Development is a
process, programme, technique
and system for mapping,
optimizing and controlling the
value flowage of an organization
from strategic intent to worth
consumption.

19. Levels of Business Development

20. Product Level of
Business Development
1. Incremental Development: This
focuses on growing the functionality and
relevance of current bundles of value
proposition. For example, moving an
item to a level of additional functionality
by adding more features.
2. Disruptive Development: This is
geared for evolving novel innovation to
embody fresh bundle of value
proposition. For example, bringing forth
a totally new product.

21. Commercial Level of
Business Development
1. Market Development: This involves
increasing the entire market of a firm by
charting value proposition to new
prospects.
2. Channel Development: This focuses
on aligning, structuring and evolving a
firm’s channel in compliance to the
strategic-fit.
3. Value Chain Development: This deals
with systematic modification and
enrichment of a firm’s value chain for
competitiveness.

22. Corporate Level of
Business Development
The corporate level of business
development boosts up competitive
positioning of a firm’s total value
proposition through restructuring,
realignment and change.

23. The Focus of Business
Development
Business Development focuses on
structuring appropriate strategic
map for a firm’s business portfolio,
so as to ensure continuity, viability
and accomplishment of strategic
intent.
Business Development is usually
geared for long term survival.

24. Case Study
In 2003, the management of Philips observed drawbacks in its
business activities. On reviewing the firms position, issues
identified included decentralized business planning, logistics
and accounting; 7 Business Units; 21 Creation Teams; Each
Team had individual R&D approach; Distinct regional
marketing programmes; Undifferentiated business models;
USA operations focused on improving retail position; In-
house infrastructure; Large own consumer service
organisation.
It decided to implement business renewal strategies and the
targets achieved in 2005 included centralized business
planning, logistics and accounting; 3 Business Units; 12
Creation Teams; aligned R&D roadmaps; coherent global
marketing approaches; business model adapted to life-cycle;
USA operations implemented lean organisation and global
programmes to drive business; outsourced, shared service
centres; outsourced consumer service organisation. As a
result, the firm achieved reduction of 400 million Euro
operating cost by second quarter of 2005.

25. Business Renewal
“Business Renewal encompasses a
number of overlapping traditional and
modern process areas. In your
organization these might include:
strategy formulation, innovation,
business development, eBusiness
strategies, strategic marketing,
competitor intelligence, and business
network development & management.”
- Manyworlds

26. 1. Product Innovation
2. Disruptive Innovation
3. Application Innovation
4. Line Extension Innovation
5. Marketing Innovation
6. Process Innovation
7. Platform Innovation
8. Integration Innovation
9. Business Model Innovation
10.Value Chain Innovation
11.Structural Innovation
12.Experiential Innovation
Innovation Paths at the Heart of
Renewal Processes

27. Ted Zoller’s Leveraging Approach
for Business Renewal
1. The ventures advantage
2. Its place in the market landscape
3. How customers perceive the firm and
product
4. Firm’s ability to execute

28. Adapted from Radical Innovation Group
Competency for Renewal Process

29. Dr Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise
in Interim Management, Strategy, Competitive Intelligence, Transformation, Restructuring, Turnaround
Management, Business Development, Marketing, Project & Cost Management, Leadership, HR, CSR, e-
Business & Software Architecture. He had functioned as Founder, Initiative for Sustainable Business
Equity; Chairman of Board, Charisma Broadcast Film Academy; Group Chief Operating Officer, Idova
Group; CEO, Rubiini (UAE); Special Advisor, RTEAN; Director, MMNA Investments; Chair, Int’l Board of
GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training),
Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management
Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Lead
Consultant/ Partner, JK Michaels; Turnaround Project Director, Consolidated Business Holdings Limited;
Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles),
Fortuna, Gambia & Malta; Chief Advisor/ Partner, D & E; Vice Chairman of Board, Refined Shipping;
Director of Programmes & Governing Council Member, Institute of Business Development, Nigeria;
Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic
Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria;
Country Manager (Nigeria) & Adjunct Faculty (MBA Programme), Regent Business School, South Africa;
Adjunct Faculty (MBA Programme), Ladoke Akintola University of Technology; Editor-in-Chief, Cost
Management Journal; Council Member, Institute of Internal Auditors of Nigeria; Member, Board of
Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business
Administration and Fellow of Professional Institutes in North America, UK & Nigeria. He is Innovator of
Corporate Investment Structure Based on Financials and Intangibles, for valuation highlighting
intangible contributions of host communities and ecological environment: A model celebrated globally
as remedy for unmitigated depreciation of ecological capital and developmental deprivation of host
communities. He had served as Examiner to Professional Institutes and Universities. He had been a
member of Guild of Soundtrack Producers of Nigeria. He's an author and extensively featured speaker.

30. Thank You