1.1 - Define the business concept and long-term vision
PCF ID: 17040 | Elements: 35 | Metrics Available: N | Benchmarkable: 2
Definition
Creating a conceptual framework of the organization's business activity and strategic vision with long-term applicability. Scout the organization's internal capabilities, as well as the customer's needs and desires, to identify a fit that can be used to advance a conceptual structure of the organization's business activity. Conduct analysis in light of relevant externalities and large-scale shifts in the market landscape.
Overview
This process group covers define the business concept and long-term vision within the broader context of Develop Vision and Strategy.
Process Hierarchy
Processes
| ID | Process | PCF ID | Sub-elements | Metrics |
|---|---|---|---|---|
| 1.1.1 | Assess the external environment | 10017 | 10 | Y |
| 1.1.2 | Survey market and determine customer needs and wants | 10018 | 3 | Y |
| 1.1.3 | Assess the internal environment | 10019 | 6 | N |
| 1.1.4 | Establish strategic vision | 10020 | 3 | N |
| 1.1.5 | Conduct organization restructuring opportunities | 16792 | 7 | N |
1.1.1 - Assess the external environment
PCF ID: 10017
Definition: Assessing all forces, entities, and systems that are external to an organization but can affect its operation. Analyze far-reaching currents in the macroeconomic situation, assess the competition, evaluate technological changes, and identify societal as well as ecological issues of concern. Create a big-picture understanding of externalities, with sufficient depth across individual aspects.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 1.1.1.1 | Identify competitors | 19945 | 0 | N |
| 1.1.1.2 | Analyze and Evaluate competition | 10021 | 0 | N |
| 1.1.1.3 | Identify economic trends | 10022 | 0 | N |
| 1.1.1.4 | Identify political and regulatory issues | 10023 | 0 | N |
| 1.1.1.5 | Assess new technology innovations | 10024 | 0 | N |
| 1.1.1.6 | Analyze demographics | 10025 | 0 | N |
| 1.1.1.7 | Identify social and cultural changes | 10026 | 0 | N |
| 1.1.1.8 | Identify ecological concerns | 10027 | 0 | N |
| 1.1.1.9 | Identify intellectual property concerns | 16790 | 0 | N |
| 1.1.1.10 | Evaluate IP acquisition options | 16791 | 0 | N |
1.1.1.1 - Identify competitors
Definition: Identifying your competitors, their service and/or product. Evaluating competitors strategies to determine their strengths and weaknesses relative to those of your own product or service.
1.1.1.2 - Analyze and Evaluate competition
Definition: Assessing the competitive forces in the marketplace that could potentially affect the organization. Analyze various aspects of business competition including competing firms. Aggregate competitive intelligence, create benchmarks to juxtapose processes and performance metrics, and inject crucial information about the competition into management models to synthesize insights.
1.1.1.3 - Identify economic trends
Definition: Determining large-scale macroeconomic shifts and trends, with medium to long-term relevance for the organization. Vet the immediate and the larger economic ecosystem to identify broad-based movements that affect the organization. In the immediate vicinity, for example, examine the stock price of key vendors/suppliers in the organizational value-chain. In the larger economic ecosystem, analyze according to geographical distribution where factors such as interest rates, taxation structures, oil prices, and unemployment rates are explored.
1.1.1.4 - Identify political and regulatory issues
Definition: Identifying areas of concern pertaining to public policy and regulation, established by sovereign or multinational authorities. Examine various regions and geopolitical formations to identify those political and regulatory issues-present or developing-that can potentially affect the organization. Plan for an iterative process, partitioned across regional and geopolitical entities that have a direct bearing on the organization's activities. Assess changes in environmental compliance, product standards, trade barriers, etc.
1.1.1.5 - Assess new technology innovations
Definition: Assessing developments in technologies presently being used by the business, new technologies that have a potential for the business, and any disruptive innovations. Conduct a survey of advancement in technologies that are already deployed with inputs from the personnel closely working with them, tracking utility and feasibility for deployment. Arrange for mid- to senior-level management personnel who explore contingent uses to assess new and disruptive technologies. Follow up with desk research, involving physical scoping and viability assessment.
1.1.1.6 - Analyze demographics
Definition: Analyzing statistical data relating to the size, distribution, and composition of relevant populations, as well as their characteristics. Perform quantitative analysis over raw data-sets gathered from well-founded sources such as government census or large, private databases. Consider employing primary research in collecting required statistics. Use comprehensive studies (reports, briefs, and articles) to assist with the analysis, in place of raw data.
1.1.1.7 - Identify social and cultural changes
Definition: Distinguishing changes in societal makeup, as well as the cultural composite. Isolate shifts in the societal composition and distribution, as well as the value systems and attributes that bind the organization together. Analyze well-regarded publications--and gather the perspective of public intellectuals and opinion leaders--on relevant issues.
1.1.1.8 - Identify ecological concerns
Definition: Identifying changes in ecological ecosystems that can be directly or indirectly detrimental to the organization. Analyze ecological factors within the immediate ecosystem for near to middle-term impact. Analyze the ecology, at large, to get a sense of long-term shifts and concerns. Gather analyses from research publications. Speak to subject matter experts. Engage with advocacy groups, lawyers, journalists, and the active populations.
1.1.1.9 - Identify intellectual property concerns
Definition: Establishing measures and procedures for identifying various intellectual property threats and concerns.
1.1.1.10 - Evaluate IP acquisition options
Definition: Establishing and defining measures and methods for valuation and acquisitions of IP. Defining the value of intellectual property for buying and licensing of IP rights.
1.1.2 - Survey market and determine customer needs and wants
PCF ID: 10018
Definition: Examining the market to identify customer required solutions. Assess the relevant market(s) to determine the products/services that are needed or wanted by customers. Carry out quantitative and qualitative analyses to capture and investigate products/services. Employ creative techniques that allow for a closer appreciation of the customer, and design relevant solutions.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 1.1.2.1 | Conduct qualitative/quantitative research and assessments | 10028 | 0 | N |
| 1.1.2.2 | Capture customer needs and wants | 19946 | 0 | N |
| 1.1.2.3 | Assess customer needs and wants | 19947 | 0 | N |
1.1.2.1 - Conduct qualitative/quantitative research and assessments
Definition: Investigating key market features and customer characteristics, using qualitative and quantitative measures to capture relevant aspects. Distill key ingredients that allow the organization to Capture customer needs and wants [19946], and Assess customer needs and wants [19947]. Conduct standardized appraisals by defining selection parameters and setting quotas.
1.1.2.2 - Capture customer needs and wants
Definition: Identifying and collecting customers' wants and needs of a product and/or services from a marketing perspective. Identify which consumer needs are important and whether needs are being met by current products/services.
1.1.2.3 - Assess customer needs and wants
Definition: Creating customer profiles to get a picture of customers and their needs. Identify particular groups of people/organizations that benefit from your product/services and then selling to them.
1.1.3 - Assess the internal environment
PCF ID: 10019
Definition: Undertaking a review of the organization's in-house skills and resources in order to create a big-picture understanding of internal capacities. Assess the organization's capabilities in order to advance the advantageous and weed out the detrimental aspects. Identify synergic associations within the backdrop of the forces and players active in the market, and take into account all externalities.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 1.1.3.1 | Analyze organizational characteristics | 10030 | 0 | N |
| 1.1.3.2 | Analyze internal operations | 19948 | 0 | N |
| 1.1.3.3 | Create baselines for current processes | 10031 | 0 | N |
| 1.1.3.4 | Analyze systems and technology | 10032 | 0 | N |
| 1.1.3.5 | Analyze financial health | 10033 | 0 | N |
| 1.1.3.6 | Identify core competencies | 10034 | 0 | N |
1.1.3.1 - Analyze organizational characteristics
Definition: Identifying and examining key attributes that differentiate the organization in the market and those that underscore the core of its operations. Consider how the organization functions. Reflect over tangible and intangible aspects in order to spot critical correlations and the interplay between these attributes. Have senior executives conduct the analysis, with input from management and operational personnel.
1.1.3.2 - Analyze internal operations
Definition: Identify key elements of operations and measure effectiveness of these elements within internal operations.
1.1.3.3 - Create baselines for current processes
Definition: Establishing baselines that provide standards for assessing performance levels and allow for a relational benchmarking of current processes. Undertake a survey of archival performance records, conducted in conjunction by the management and the operations personnel. Take into account the organization's internal objectives, particularly for process improvement and enhancement. Understand industry best practices.
1.1.3.4 - Analyze systems and technology
Definition: Analyzing the capabilities of technology and process automation systems deployed within the organization in order to direct future associated processes. Conduct a broad-based survey to examine various aspects associated with such systems and technologies, with the objective of identifying key facets that are of interest. Investigate the intended purpose, purpose served, utility, longevity, remaining service-life, repair or service requirements, etc.
1.1.3.5 - Analyze financial health
Definition: Appraising the financial state of the organization so that management can create resource allocation strategies. Scrutinize the organization's financials--including balance sheets, statements of income, cash-flows, equity holdings, and liquidity--with the objective of understanding the organization's financial health and capacities. (This analysis directly feeds into Conduct organizational restructuring opportunities [16792] and Define a business concept and long-term vision [17040].)
1.1.3.6 - Identify core competencies
Definition: Determining a strategically significant aggregate of competence and capacities that differentiates the organization in the market. Identify distinguishing attributes including unique skills and resources and its brand and services in the marketplace. Have senior executives and management personnel assess competencies in order to further develop these capabilities into distinct commercial value propositions.
1.1.4 - Establish strategic vision
PCF ID: 10020
Definition: Establishing the organization's long-term vision as a strategic positioning and engagement of stakeholders. Institute the vision by creating strategic orientations of all stakeholders. Understand the strategy development frameworks in this context.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 1.1.4.1 | Define the strategic vision | 19949 | 0 | N |
| 1.1.4.2 | Align stakeholders around strategic vision | 10035 | 0 | N |
| 1.1.4.3 | Communicate strategic vision to stakeholders | 10036 | 0 | N |
1.1.4.1 - Define the strategic vision
Definition: Developing goals to define organizations vision. Define and document ideas, direction, and activities which enable the organization to reach these goals.
1.1.4.2 - Align stakeholders around strategic vision
Definition: Orienting those entities, associated with the organization that have a direct bearing on its operations and output, in a way that advances its strategic vision. Map all stakeholders in strategic configurations, within the architectural layout of the marketplace, and position the organization relative to them. (This exercise is undertaken by senior strategy personnel, drawing upon the process Define a business concept and long-term vision [17040].)
1.1.4.3 - Communicate strategic vision to stakeholders
Definition: Developing and executing communication strategies to convey an alignment plan of all organizational stakeholders, which helps the organization realize its vision. Create custom communication strategies and delivery channels with the objective of orienting stakeholders according to the configuration maps created in the process Align stakeholders around a strategic vision [10035]. Have senior strategy personnel closely collaborate with the communications/marketing team.
1.1.5 - Conduct organization restructuring opportunities
PCF ID: 16792
Definition: Examining the scope and contingencies for restructuring based on market situation and internal realities. Map the market forces over which any and all probabilities can be probed for utility and viability. Once the restructuring options have been analyzed and the due-diligence performed, execute the deal. Consider seeking professional services for assistance in formalizing these opportunities.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 1.1.5.1 | Identify restructuring opportunities | 16793 | 0 | N |
| 1.1.5.2 | Perform due-diligence | 16794 | 0 | N |
| 1.1.5.3 | Analyze deal options | 16795 | 4 | N |
1.1.5.1 - Identify restructuring opportunities
Definition: Identifying opportunities for restructuring the organization, through an analysis of internal viability and external contingency. Conduct a broad-based survey of the market landscape, taking the large-scale trends and movements into account, to determine the necessity and possibility of restructuring the organization. Review the organization's internal capacities, the readiness of its process frameworks, the robustness of its financials, the capableness of its systems, the resourcefulness of its personnel, etc. for assimilating an extensive overhaul.
1.1.5.2 - Perform due-diligence
Definition: Auditing the status quo of the probabilities, before formalizing any restructuring of the organization with another entity. Systematically investigate all entities discerned to be of interest in Identify restructuring opportunities [16793], to verify all tangible and substantial facts. Consider engaging specialist professional services including legal, accounting, and consulting help.
1.1.5.3 - Analyze deal options (4 tasks)
Definition: Examining various options shortlisted for assimilating new entities into the organization or dissociating from it. Undertake a piecemeal and comprehensive consideration of each option identified for acquisition, merger, de-merger, and divestment. Consider intangible and non-material aspects of the entities involved and synergic aspects. Consider the assistance of specialist professional services.
| ID | Task | PCF ID | Definition |
|---|---|---|---|
| 1.1.5.3.1 | Evaluate acquisition options | 16796 | Appraising entities identified as being suitable for acquisition, taking into ac... |
| 1.1.5.3.2 | Evaluate merger options | 16797 | Appraising entities identified as being suitable for a merger, taking stock of t... |
| 1.1.5.3.3 | Evaluate de-merger options | 16798 | Evaluating departments and subsidiaries within the organization, and/or previous... |
| 1.1.5.3.4 | Evaluate divesture options | 16799 | Evaluating departments and/or subsidiaries within the organization to assess the... |
Change Summary (v7.2.1 vs v6.1.1)
Changes indicated by:
+XXXXX- New element added-XXXXX- Element removedcXXXXX- Element changedNEW- Newly introduced
Complete Element List with Definitions
All 35 elements
| ID | Name | Definition |
|---|---|---|
| 1.1 | Define the business concept and long-term vision | Creating a conceptual framework of the organization's business activity and strategic vision with lo... |
| 1.1.1 | Assess the external environment | Assessing all forces, entities, and systems that are external to an organization but can affect its ... |
| 1.1.1.1 | Identify competitors | Identifying your competitors, their service and/or product. Evaluating competitors strategies to det... |
| 1.1.1.2 | Analyze and Evaluate competition | Assessing the competitive forces in the marketplace that could potentially affect the organization. ... |
| 1.1.1.3 | Identify economic trends | Determining large-scale macroeconomic shifts and trends, with medium to long-term relevance for the ... |
| 1.1.1.4 | Identify political and regulatory issues | Identifying areas of concern pertaining to public policy and regulation, established by sovereign or... |
| 1.1.1.5 | Assess new technology innovations | Assessing developments in technologies presently being used by the business, new technologies that h... |
| 1.1.1.6 | Analyze demographics | Analyzing statistical data relating to the size, distribution, and composition of relevant populatio... |
| 1.1.1.7 | Identify social and cultural changes | Distinguishing changes in societal makeup, as well as the cultural composite. Isolate shifts in the ... |
| 1.1.1.8 | Identify ecological concerns | Identifying changes in ecological ecosystems that can be directly or indirectly detrimental to the o... |
| 1.1.1.9 | Identify intellectual property concerns | Establishing measures and procedures for identifying various intellectual property threats and conce... |
| 1.1.1.10 | Evaluate IP acquisition options | Establishing and defining measures and methods for valuation and acquisitions of IP. Defining the va... |
| 1.1.2 | Survey market and determine customer nee... | Examining the market to identify customer required solutions. Assess the relevant market(s) to deter... |
| 1.1.2.1 | Conduct qualitative/quantitative researc... | Investigating key market features and customer characteristics, using qualitative and quantitative m... |
| 1.1.2.2 | Capture customer needs and wants | Identifying and collecting customers' wants and needs of a product and/or services from a marketing ... |
| 1.1.2.3 | Assess customer needs and wants | Creating customer profiles to get a picture of customers and their needs. Identify particular groups... |
| 1.1.3 | Assess the internal environment | Undertaking a review of the organization's in-house skills and resources in order to create a big-pi... |
| 1.1.3.1 | Analyze organizational characteristics | Identifying and examining key attributes that differentiate the organization in the market and those... |
| 1.1.3.2 | Analyze internal operations | Identify key elements of operations and measure effectiveness of these elements within internal oper... |
| 1.1.3.3 | Create baselines for current processes | Establishing baselines that provide standards for assessing performance levels and allow for a relat... |
| 1.1.3.4 | Analyze systems and technology | Analyzing the capabilities of technology and process automation systems deployed within the organiza... |
| 1.1.3.5 | Analyze financial health | Appraising the financial state of the organization so that management can create resource allocation... |
| 1.1.3.6 | Identify core competencies | Determining a strategically significant aggregate of competence and capacities that differentiates t... |
| 1.1.4 | Establish strategic vision | Establishing the organization's long-term vision as a strategic positioning and engagement of stakeh... |
| 1.1.4.1 | Define the strategic vision | Developing goals to define organizations vision. Define and document ideas, direction, and activitie... |
| 1.1.4.2 | Align stakeholders around strategic visi... | Orienting those entities, associated with the organization that have a direct bearing on its operati... |
| 1.1.4.3 | Communicate strategic vision to stakehol... | Developing and executing communication strategies to convey an alignment plan of all organizational ... |
| 1.1.5 | Conduct organization restructuring oppor... | Examining the scope and contingencies for restructuring based on market situation and internal reali... |
| 1.1.5.1 | Identify restructuring opportunities | Identifying opportunities for restructuring the organization, through an analysis of internal viabil... |
| 1.1.5.2 | Perform due-diligence | Auditing the status quo of the probabilities, before formalizing any restructuring of the organizati... |
| 1.1.5.3 | Analyze deal options | Examining various options shortlisted for assimilating new entities into the organization or dissoci... |
| 1.1.5.3.1 | Evaluate acquisition options | Appraising entities identified as being suitable for acquisition, taking into account the restructur... |
| 1.1.5.3.2 | Evaluate merger options | Appraising entities identified as being suitable for a merger, taking stock of the restructuring opp... |
| 1.1.5.3.3 | Evaluate de-merger options | Evaluating departments and subsidiaries within the organization, and/or previously merged entities, ... |
| 1.1.5.3.4 | Evaluate divesture options | Evaluating departments and/or subsidiaries within the organization to assess the appropriateness of ... |
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