Innovation Strategy: The Three Horizons of Growth (McKinsey)

Disruptive Innovation
Knowledge Center

 

Next Topic

Disruptive Innovation > Best Practices

Charles Alter, Consultant, United States
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 (...) Read more? Sign up for free

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

Sign up for free     Log in


  Jeff Miles, Business Consultant, Australia
 

Three Horizons Concept

Great thought prompter. I will use this at my next (...)

  Edith Ohri
 

New Ventures have only Horizon 3

Why starting with a core business when in new vent (...)

  Jorge Urrea, Consultant, Mexico
 

3 Horizons of Growth

I agree with Edith Ohri and, as usually, the artic (...)

  Vincenzo Rogione, Management Consultant, Italy
 

Three Horizons: Why?

Though I appreciate Charles' comment, in my opinio (...)

  Anna hanooman, ICT Consultant, Trinidad and Tobago
 

Extensions for the 3 Horizons of Growth

I agree with Ohri. In my humble opinion, the three (...)

  M Y Zainudeen, Management Consultant, Sri Lanka
 

Three Horizons of Growth is in Practice for Ages

Edith is correct, not only this model is in the sc (...)

  Charles Alter, Consultant, United States
 

Three Horizons of Growth Relevant for Established Businesses

@: admittedly, the three horizons are meant for ex (...)

  simon haafs, Student (MBA), Netherlands
 

How to Implement the 3 Horizons within 1 Company

I underscribe the model. The challenge is to integ (...)

  Gary Stead, Director, United Kingdom
 

3 Horizons : Sources for Ideas for Innovation

It seems the real innovation is in horizon 3. The (...)

  Rajan Johri, India
 

Combine the Three Horizons of Growth with the 5 C's of Marketing Strategy

You can augment the 3 horizons with the to be gro (...)

  MdL Mario TERRALAVORO, Interim Manager, Italy
 

Balancing Product's Innovations and Future Products

The 3 Horizons combine looking at future products (...)

  KATHRYN STEINER, MBA, Entrepreneur, United States
 

Three Horizons of Growth Understandable and Useful Across Sectors / Industries

@: hello Charles, you have explained these critica (...)

  Feraidoon Bakhtiari, CxO / Board, Iran
 

3 Preparation Stages for Horizons of Growth

I like the idea and I share the concepts with part (...)

  Saeed Khodaee, Director, Iran
 

Status Quo to Boost Future Plans

@: undoubtedly, without maintaining the status quo (...)

  SAMUEL NDUATI MBUGUA, Management Consultant, Kenya
 

The Three Horizons and Competitiveness

Whereas the main objective of the three horizons i (...)

  marc romano
 

3 Horizons of Growth is Still Valuable as a Foundation

This basic framework is very sound. It provides a (...)

  Leodegardo M. Pruna, Professor, Philippines
 

Three Horizons of Growth

The first horizon to my mind is where an enterpris (...)

  Sorni Tindanzo Namateng, Student (University), Ghana
 

Three Horizons of Growth are Practical

Thank you Charles, today is my first time at 12man (...)

  Tadeusz Sudol, Strategy Consultant, Poland
 

Where to Hunt for Innovation Ideas?

@: The answer is: everywhere, but the process of i (...)

  Raghu Bala, Manager, United States
 

The Right Distribution of Resources over the 3 Horizons

Businesses struggle with distributing resources to (...)

  Osama Kamal, Management Consultant, Egypt
 

Exploring Uncertainity with the 3 Horizons of Growth

It's like these 3 horizons. I will use the model i (...)

  SAMARENDRA KUMAR MOHANTY, India
 

Innovation Strategy: the Three Horizons of Growth (McKinsey)

@: steps 1-2 are required to generate resources an (...)

  Brijesh Dave, Manager, India
 

Three Horizon Concept for Challenging the Status Quo

Good concept to generate thoughts to challange the (...)

  Falk Heinrichsohn, Business Consultant, Portugal
 

Look out of the Window and see 3 Horizons

The three horizon approach may help with the probl (...)

  Dr zahra gheidar, Consultant, Iran
 

Time is Important Point

Certainly, these frameworks are usual steps for es (...)

  Charles Alter, Consultant, United States
 

Three Horizons of Growth all about Innovation and Marketing

Thank you to everyone who has replied and shared t (...)

  Aladdien Mohamed, Manager, Saudi Arabia
 

Don't Focus too much on Horizon 1

Actually I have a comment on stage 1. Organization (...)

  Jaap de Jonge, Editor, Netherlands
 

Senior Managers Should Focus on Horizons 2 and 3

That's right, the 3 horizons of growth are especia (...)

  Cristina Isenrath, Director, Argentina
 

Where are the Resources..

@: more looking inside ourselves... To find resour (...)

  GAMANSON, Management Consultant, Sri Lanka
 

Protect your Bread and Butter First

Any business has to ensure first it survives in th (...)

  Martin Kerr, Project Manager, Australia
 

Consistent Context Using Horizons

In our organisation the 3 horizons are standard di (...)

  Jaap de Jonge, Editor, Netherlands
 

All 3 Horizons are Important, but...

@: all 3 are (equally) important for any business, (...)

  Sandy Findlay
 

The 3 Horizons of Growth Help to Decide on Innovation Resources

Excellent model for drawing attention on where res (...)

  Francesco Cuoco, CEO, Italy
 

3 Horizons of Growth... Only for Large Companies?

Seems a correct approach for medium- large compani (...)

  Julius Belleza, CEO, United States
 

3 Horizons of Growth Reminds and Helps us Prepares for Change

I agree with and Aladdien Mohamed. For business s (...)

  Charles Alter, Consultant, United States
 

Three Horizons of Growth at SMEs

@: For SMEs (small - medium size enterprises) the (...)

  FUNSHO, Accountant, Nigeria
 

Consider the Reasons for Growth in 3 Horizons

Business growth cannot be limited to these 3 horiz (...)

  Olawale Christopher Olamiju, Financial Consultant, Nigeria
 

3 Horizons Model - A Good Start for the Strategic Planning Process...

No doubt, this 3 horizons model is not cast in sto (...)

  Leodegardo M. Pruna, Professor, Philippines
 

Time to Spend on Each Innovation Horizon

@: there is no fixed rule on how much time to spen (...)

  ENRIQUE CARLOS POZO, Project Manager, Spain
 

Transversal Innovation

I think the three horizons must be parallels, not (...)

  KATHRYN STEINER, MBA, Entrepreneur, United States
 

Differentiating Critical Functions and Costs

@: innovation is probably also known as research a (...)

  Htin Kyaw Myint, Manager, Myanmar
 

Quite Useful Model for our Organisation

In fact, it is quite a good model for our organiza (...)

  KATHRYN STEINER, MBA, Entrepreneur, United States
 

Model for Industries That Have Complex Logistics

This model would be interesting to translates into (...)

  Dr zahra gheidar, Consultant, Iran
 

Length of Horizons is Vital

Certainly measuring a precise, definite time and d (...)

  John Moses, Manager, Nigeria
 

3 Horizons Model is about Strategy Stages

Looking at the three horizons, it is all about dif (...)

  Francesco Cuoco, CEO, Italy
 

The 3 Horizons for Growth

I think that the model is quite generic. The real (...)

  Charles Alter, Consultant, United States
 

Stabilizing Current Business can be hard in case of Disruptive Innovations

@: I think that's exactly the point of the three h (...)

  jasmin
 

This is only a Theoretical Framework

This framework helps you how to think but not how (...)

  Francesco Cuoco, CEO, Italy
 

Combine 3 Horizons of Growth with SWOT Analysis

@: I guess the two methodologies complement each o (...)

  Ionelia Iftimie, Director, Romania
 

3 Horizons of Growth

I think this proposal would be an interesting star (...)

 
More on Disruptive Innovation
Summary
Forum
Timing is Important to Make an Innovative Idea Disruptive
🔥Innovation Ideas in Economic Slowdowns
Breakthrough versus Disruptive Innovation
Best Practices
Innovation Strategy: The Three Horizons of Growth (McKinsey)
🥈Disruptive versus Incremental Innovation
🥉Disruptive Innovation: Product versus Platform
The Jobs to be Done Approach (JTBD) and Disruptive Innovation
Strategic Options for Old-Technology Firms
Impact of the New Technology
Tips for Innovation Strategy
Typical Disruptive Technologies
How to Develop Disruptive Innovation Skills?
Disruptive Change and HR
Diversity of Perspective is Key to Disruptive Innovation
How to Find Innovative Ideas? From Analogous Markets...
How to Sustain Disruptive Innovation?
WHAT is Being Innovated? The 4 Ps of Innovation
Leadership and Taking Action
Asymmetric Innovation
Is Cirque du Soleil the iPhone or the Seiko of Circus?
Ways to Incorporate Disruptive Innovation as Part of the Management Agenda
Business Model Innovation
Disruptive Innovation or Improved Technology?
Slow Innovation: PROs, CONs and Tips
The Hybrid Innovation Approach to Manage Technological Disruptions
A Disruptive Innovation Questions what we Don't Know
Blue/Innovate and Red/Disrupt
Comparison Disruptive Innovation versus Blue Ocean Strategy
Disruptive Innovation and Public Sector Organisations
Disruptive Innovation: What Causes the Creative Leap?
Is Value Innovation Disruptive Innovation?
Leadership Skills / Approaches for Successful Innovation
Paradigmatic Changes Require Re-orientation of Ones World Views
The Resources-Processes-Values (RPV) Framework
Are Clayton Christensen’s Disruptive Innovation Characteristics Useful in Practice?
Better Input from Consumers Needed for Disruptive Innovation
Leapfrogging Technologies by Developing Countries
The Word 'Disruptive' in Disruptive Innovation
What is Disruptive Innovation Exactly? Definition
Distinguishing Three Types of Innovation
Is Disruptive Innovation Radical?
Special Interest Group Leader
Rick Mueller
Professor

Disruptive Innovation
Knowledge Center

 

Next Topic



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2020 12manage - The Executive Fast Track. V15.6 - Last updated: 1-10-2020. All names ™ of their owners.