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Charles Alter Consultant, United States
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Innovation Strategy: The Three Horizons of Growth (McKinsey)
One of ways of thinking about innovation strategy is to use the 3 Horizons of Growth developed by Steve Coley at McKinsey.
The framework provides a useful mold to formulate an organization’s product and service portfolio strategy. It's a diagnostic tool that allows for evaluating the health of a product/service strategy pipeline and for setting up the alignment of short, medium, and long term (innovation) plans of an organization. The model describes 3 innovation horizons in the following manner:
 - Horizon #1: The Core Business that is most associated with the company in its current state. This typically is an established business that requires most of the attention of the company’s employees and generates the bulk of the sales volume, cash flow and profit. The focus in Horizon #1 is on “Defending and Extending” the core business and on superior execution.
- Horizon #2: Includes all Emerging Opportunities that could be a variety of new business opportunities that the company has developed, licensed or generated from partnerships and strategic alliances. The focus in Horizon #2 is on leveraging “Positional Advantage” and forcing these opportunities to further prove themselves and gain steam, possibly to become part of the core business in the future.
- Horizon #3: Represents Innovative New Ideas for profitable growth in the future. Focus here is on clustering ideas into themes, sorting out the good and great ideas and feeding them so they can emerge from the Horizon #3 incubator to become Emerging Opportunities.
Source: The Alchemy of Growth, Mehrdad Baghai, Stephen Coley, and David White.
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Jeff Miles Business Consultant, Australia
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Three Horizons Concept
Great thought prompter. I will use this at my next...
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Edith Ohri, Israel
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New Ventures have only Horizon 3
Why starting with a core business when in new vent...
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Jorge Urrea Consultant, Mexico
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3 Horizons of Growth
I agree with Edith Ohri and, as usually, the artic...
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Vincenzo Rogione Management Consultant, Italy
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Three Horizons: Why?
Though I appreciate Charles' comment, in my opinio...
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Anna hanooman ICT Consultant, Trinidad and Tobago
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Extensions for the 3 Horizons of Growth
I agree with Ohri. In my humble opinion, the three...
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M Y Zainudeen Management Consultant, Sri Lanka
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Three Horizons of Growth is in Practice for Ages
Edith is correct, not only this model is in the sc...
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Charles Alter Consultant, United States
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Three Horizons of Growth Relevant for Established Businesses
@Edith Ohri: admittedly, the three horizons are me...
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simon haafs Student (MBA), Netherlands
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How to Implement the 3 Horizons within 1 Company
I underscribe the model. The challenge is to integ...
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Gary Stead Director, United Kingdom
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3 Horizons : Sources for Ideas for Innovation
It seems the real innovation is in horizon 3. The ...
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Rajan Johri India
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Combine the Three Horizons of Growth with the 5 C's of Marketing Strategy
You can augment the 3 horizons with the 5 C's of M...
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MdL Mario TERRALAVORO Interim Manager, Italy
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Balancing Product's Innovations and Future Products
The 3 Horizons combine looking at future products ...
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KATHRYN STEINER, MBA Entrepreneur, United States
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Three Horizons of Growth Understandable and Useful Across Sectors / Industries
@Charles Alter: hello Charles, you have explained ...
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Feraidoon Bakhtiari CxO / Board, Iran
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3 Preparation Stages for Horizons of Growth
I like the idea and I share the concepts with part...
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Saeed Khodaee Director, Iran
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Status Quo to Boost Future Plans
@Edith Ohri: undoubtedly, without maintaining the ...
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SAMUEL NDUATI MBUGUA Management Consultant, Kenya
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The Three Horizons and Competitiveness
Whereas the main objective of the three horizons i...
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marc romano, United States
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3 Horizons of Growth is Still Valuable as a Foundation
This basic framework is very sound. It provides a ...
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Leodegardo M. Pruna Professor, Philippines
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Three Horizons of Growth
The first horizon to my mind is where an enterpris...
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Sorni Tindanzo Namateng Student (University), Ghana
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Three Horizons of Growth are Practical
Thank you Charles, today is my first time at 12man...
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Tadeusz Sudol Strategy Consultant, Poland
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Where to Hunt for Innovation Ideas?
@Gary Stead: The answer is: everywhere, but the pr...
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Raghu Bala Manager, United States
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The Right Distribution of Resources over the 3 Horizons
Businesses struggle with distributing resources to...
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Osama Kamal Management Consultant, Egypt
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Exploring Uncertainity with the 3 Horizons of Growth
It's like these 3 horizons. I will use the model i...
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SAMARENDRA KUMAR MOHANTY India
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Innovation Strategy: the Three Horizons of Growth (McKinsey)
@Edith Ohri: steps 1-2 are required to generate re...
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Brijesh Dave Manager, India
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Three Horizon Concept for Challenging the Status Quo
Good concept to generate thoughts to challange the...
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Falk Heinrichsohn Business Consultant, Portugal
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Look out of the Window and see 3 Horizons
The three horizon approach may help with the probl...
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Dr zahra gheidar Consultant, Iran
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Time is Important Point
Certainly, these frameworks are usual steps for es...
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Charles Alter Consultant, United States
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Three Horizons of Growth all about Innovation and Marketing
Thank you to everyone who has replied and shared t...
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Aladdien Mohamed Manager, Saudi Arabia
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Don't Focus too much on Horizon 1
Actually I have a comment on stage 1. Organization...
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Jaap de Jonge Editor, Netherlands
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Senior Managers Should Focus on Horizons 2 and 3
That's right, the 3 horizons of growth are especia...
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Cristina Isenrath Director, Argentina
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Where are the Resources..
@Gary Stead: more looking inside ourselves... To f...
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GAMANSON Management Consultant, Sri Lanka
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Protect your Bread and Butter First
Any business has to ensure first it survives in th...
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Martin Kerr Project Manager, Australia
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Consistent Context Using Horizons
In our organisation the 3 horizons are standard di...
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Jaap de Jonge Editor, Netherlands
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All 3 Horizons are Important, but...
@Gamanson: all 3 are (equally) important for any b...
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Sandy Findlay, United Kingdom
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The 3 Horizons of Growth Help to Decide on Innovation Resources
Excellent model for drawing attention on where res...
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Francesco Cuoco, Italy
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3 Horizons of Growth... Only for Large Companies?
Seems a correct approach for medium- large compani...
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Julius Belleza CEO, United States
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3 Horizons of Growth Reminds and Helps us Prepares for Change
I agree with Gamanson and Aladdien Mohamed. For bu...
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Charles Alter Consultant, United States
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Three Horizons of Growth at SMEs
@Francesco Cuoco: For SMEs (small - medium size en...
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FUNSHO Accountant, Nigeria
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Consider the Reasons for Growth in 3 Horizons
Business growth cannot be limited to these 3 horiz...
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Olawale Christopher Olamiju Financial Consultant, Nigeria
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3 Horizons Model - A Good Start for the Strategic Planning Process...
No doubt, this 3 horizons model is not cast in sto...
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Leodegardo M. Pruna Professor, Philippines
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Time to Spend on Each Innovation Horizon
@Zahra Gheidar: there is no fixed rule on how much...
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ENRIQUE CARLOS POZO, Spain
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Transversal Innovation
I think the three horizons must be parallels, not ...
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KATHRYN STEINER, MBA Entrepreneur, United States
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Differentiating Critical Functions and Costs
@Charles Alter: innovation is probably also known ...
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Htin Kyaw Myint Manager, Myanmar
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Quite Useful Model for our Organisation
In fact, it is quite a good model for our organiza...
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KATHRYN STEINER, MBA Entrepreneur, United States
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Model for Industries That Have Complex Logistics
This model would be interesting to translates into...
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Dr zahra gheidar Consultant, Iran
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Length of Horizons is Vital
Certainly measuring a precise, definite time and d...
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John Moses Manager, Nigeria
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3 Horizons Model is about Strategy Stages
Looking at the three horizons, it is all about dif...
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Francesco Cuoco, Italy
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The 3 Horizons for Growth
I think that the model is quite generic. The real ...
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Charles Alter Consultant, United States
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Stabilizing Current Business can be hard in case of Disruptive Innovations
@Francesco Cuoco: I think that's exactly the point...
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jasmin, Lebanon
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This is only a Theoretical Framework
This framework helps you how to think but not how ...
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Francesco Cuoco, Italy
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Combine 3 Horizons of Growth with SWOT Analysis
@Jasmin: I guess the two methodologies complement ...
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Ionelia Iftimie Director, Romania
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3 Horizons of Growth
I think this proposal would be an interesting star...
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Margaret Management Consultant, Australia
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Broader Horizon Scanning
@Gary Stead: Other (related) Industries, Research ...
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Rick Mueller Professor, United States
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A Quick Reminder to (and Request Of) Everyone
While this is an intriguing discussion, I see litt...
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