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Convergence Drives Strategic Planning in 2013 - Part 1

  
  
  
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Part One: What's on Your Strategic Menu? - Some Factors to Consider

Domestic and international politics, finances and markets loom large in organizational planning in 2013, but the trend towards global development remains a constant in this convergent economy. Global development is expanding, and an important factor to consider when planning and developing strategy for new markets and sustainable innovation models. With resources and markets scattered all over the globe, if you're in business, you're global, at least on some level.

When it comes to planning and global markets, leadership needs to consider the driving forces of convergent economies. For businesses with traditional organizational structures and stereotypical roles this brings continuing challenges. To facilitate forward movement they will likely be required to allow new ideas to find form and implementation. As convergence gains momentum, this primary leadership competency of strategically allowing flow and change becomes no longer optional, but necessary to design an organization's desired future.

With commercial businesses, governments, and NGO's increasingly finding the need and desire to converge to facilitate global development, grow the global economy, attain global resources, and manage suppliers, customers, employees, partners and technologies, these new strategic alliances will continue to blur lines. These collaborations will for instance, create new issues and challenges for stakeholders, funding, competition, growth opportunities, to cite just a few.

Within old markets innovation is essential to survival. New ideas are copied so easily across single sectors, that far from being a fad, innovation is vital to existence. Whether talking automobiles in the US market, opening new Asian markets for products, or even fundraising for non-profits, new ideas become global property in a sense, as soon as they see any form of media, so acting fast and decisively is a priority; and then be ready to do it again and again. In other words, keep acting like an entrepreneur, Think Small and Fast

Customer driven innovation resized 600

Customer driven innovation is apparent in the new Ford Escape with it hands-free lift-gate. What a great idea for the owner out shopping, without a hand free to open the hatch. Campbell's 2013 growth strategy includes expanded presence in emerging markets. North America will see increased offerings in soup, simple meals and healthy beverage choices - more aware consumers want quick, but nutritionally better choices. President and Chief executive Officer Denise Morrison stated that Campbell's will carefully attend to its core business, "while we shift our center of gravity toward new consumer groups, new consumer needs, new consumer platforms and new geographies."

Keeping ahead of the curve means harvesting innovative ideas from all available sources, including customers, suppliers, and adjacent sectors as well as your in-house intrapreuneurs. We've seen enormous growth in cross-sector convergence giving rise to new products and markets. Cosmeceuticals, Nutricosmetics, Nutraceuticals and Digital/Analog are just a few examples of scientific advancements and markets converging, and these are huge new markets. 

As technologies and markets continue to advance there is every reason to believe this is just the beginning. Identifying your core competencies, keeping inquiry going on all fronts, adjusting to sector trends, recognizing convergences and knowing how to position products are all essential for innovation, growth and sustainability.

Targeting new opportunities requires both innovation and branding strategies. Take for example how Mazda has chosen to structure and innovate in the global market. Recognizing that larger rivals tend to aim for market center, where size alone gives them an edge, Mazda adjusted its aim and found success targeting "inside high" for their cars. Mazda continually identifies and tweaks their "strike zones" for cars, sports cars, minivans and B-cars in the US, Europe and Japan, where markets are always changing and evolving, as well as in emerging markets.

Branding innovation resized 600

Effective innovation for consumer goods, while challenging to come by, is always the key to sustained competitive advantage. Convergence presents challenges, but also many more opportunities. Take for instance, two brands teaming up.  Pepsi Max Citrus Freeze and Doritos Jalapeno Fire launched a "complementary flavors" joint promotional campaign. Reportedly there was a significant increase in sales for both products as it drove consumers to purchase both together.

Co-creation as best practice has its place, when well placed. Customer communities and co-creation must figure ever larger in the strategic planning process. The process must create brand value and customer value for further innovation to continue to deliver sustainability.

So, what does your plan look like for the coming year? Does it include new global markets, new cross-sector markets, better customer out-reach, new alliances, niche markets, or still undecided?

What about the role of developing emerging markets, global development and the global convergent economy?

Watch for:

Convergence Drives Strategic Planning in 2013 - Part Two: Global Scale "Convergent Thinking"- The New Main Course?

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