Emerald Publishing Limited
Copyright © 2019 by Emerald Publishing Limited
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ORGANIC GROWTH DISCIPLINES
Healthy companies continue to find ways to grow organically. Dr Sudharshan provides a thoughtful framework for thinking about organic growth and the strategic decisions required to achieve it.
Paul Rooke, Former Chairman and CEO, Lexmark International, Inc
[A] very timely book at a time when the economy is growing slowly and the organic growth commands a higher premium over mergers and synergy. I congratulate Professor Sudharshan for suggesting, in very practical ways, how a company can grow organically at each step of the value creation process from knowledge to technology to building blocks to offerings in the market place.
Jagdish N. Sheth, PhD, Charles H. Kellstadt Professor of Business, Goizueta Business School, Emory University
Organic growth strategies are fundamental in building successful and sustainable enterprises. Dr Sudharshan provides a practical framework for growing organically. A must read for leaders interested in building companies with steady and sustainable growth.
Mahendran Naidu, President and CEO, IKIO, Chief Operating Officer, Institute for Lean Systems
This book can be a very useful resource for organizations pursuing organic growth strategies. The framework provided in the book can be handy for business leaders in their strategic planning process. The book can help managers in setting goals of organic growth, generating alternatives to achieve them and select the best one among them. It provides interesting insights about how organizations compete, innovate, develop products and eventually create value for customers. Overall, it provides insightful perspectives on various disciplines for growing organically.
Anand Kumar Jaiswal, Associate Professor, Indian Institute of Management, Ahmedabad
Whereas growth is a key strategic goal for most firms, organic growth is a key indicator of the health and sustainability of the firm. Despite the wide recognition of the critical importance of growth for firms, managers and scholars alike too often rely on simplistic heuristics and oversimplified theories. In a really accessible way, Sudharshan is bringing back in a novel framework the complex nature of corporate strategy growth by drawing on a set of six scientifically validated organic growth disciplines, which together provide the basis for a roadmap for innovative growth strategies.
Professor Dr Olivier Furrer, Chair of Marketing, University of Fribourg, Switzerland
ORGANIC GROWTH DISCIPLINES: A STRATEGIC FRAMEWORK FOR IMAGINING BUSINESS GROWTH OPPORTUNITIES
University of Kentucky, USA
United Kingdom – North America – Japan – India – Malaysia – China
Emerald Publishing Limited
Howard House, Wagon Lane, Bingley BD16 1WA, UK
First edition 2019
Copyright © 2019 Emerald Publishing Limited
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British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
ISBN: 978-1-78973-876-6 (Print)
ISBN: 978-1-78973-875-9 (Online)
ISBN: 978-1-78973-877-3 (Epub)
List of Figures
|Figure 1.1||Ansoff Matrix|
|Figure 1.2||A Stylized View of the Value Creation Process: Hierarchy of Knowledge – Product Market Development|
|Figure 1.3||From Knowledge to Product Markets: ipCG-Dyson Example|
|Figure 3.1||Flavr Savr2 Tomato Development: Five Level Hierarchy Diagram|
|Figure 3.2||Gartner Hype Cycle for Emerging Technologies|
|Figure 3.3||Norwegian Gas Technologies → Market Map|
|Figure 3.4||Norwegian Gas Processing Technologies Taxonomy Map|
|Figure 3.5||Norwegian Gas Technology Intention Map|
|Figure 3.6||Norwegian Gas Overall Technology Strategy Map|
|Figure 4.1||Technology Imitation Versus Leapfrogging in Response to Advancement by Competitor|
|Figure 5.1||Map of the US Midwest|
|Figure 5.2||Chasm Group's Pictorial View of Ideal Customer|
|Figure 5.3||Customer Decision Journey Flowchart|
|Figure 5.4||Rail Europe: Map of Customer Touchpoints|
|Figure 5.5||Rail Europe Experience Map|
|Figure 5.6||IdeaRocket Customer Journey Map (Nasoi, 2017)|
|Figure 5.7||The OCC Framework|
|Figure 5.8||Belief-Goals-Expectations-Predictions-Behavior Model|
|Figure 5.9||Affect Computation|
|Figure 5.10||3D Object Printing from Thoughts at Thinker Thing, a Start-up Based in Santiago, Chile (Copyright: Nisha Ligon)|
|Figure 5.11||A Tiny Object Based on a Human's Thoughts (Copyright: Thinker Thing): Claimed to Be World's First Such Object|
|Figure 6.1||Comparative Chart of Fechner's Law k Values for a Product Line of Length n[k = (Price of highest product/Price of lowest product)(1/(n−1))]|
|Figure 6.2||Three Internet Refrigerators|
|Figure 6.3||GE Kitchen Tablet|
|Figure A1||Fechner's Law Application for VW Cars for a Product Line of Length n[k = (Price of highest product/Price of lowest product)(1/(n−1))]|
|Figure A2||Fechner's Law Application for Chevrolet Cars for a Product Line of Length n[k = (Price of highest product/Price of lowest product)(1/(n−1))]|
|Figure A3||Fechner's Law Application for BMW Cars for a Product Line of Length n[k = (Price of highest product/Price of lowest product)(1/(n−1))]|
|Figure A4||Fechner's Law Application for Toyota Cars for a Product Line of Length n[k = (Price of highest product/Price of lowest product)(1/(n−1))]|
|Figure A5||Fechner's Law Application for Honda Cars for a Product Line of Length n[k = (Price of highest product/Price of lowest product)(1/(n−1))]|
|Figure A6||Fechner's Law Application for Nissan Cars for a Product Line of Length n[k = (Price of highest product/Price of lowest product)(1/(n−1))]|
|Figure A7||Fechner's Law Application for Tesla Cars for a Product Line of Length n[k = (Price of highest product/Price of lowest product)(1/(n−1))]|
|Figure A8||Fechner's Law Application for BMW SUVs for a Product Line of Length n[k = (Price of highest product/Price of lowest product)(1/(n−1))]|
|Figure A9||Fechner's Law Application for iPhones for a Product Line of Length n[k = (Price of highest product/Price of lowest product)(1/(n−1))]|
|Figure 7.1||Chesbrough's Open Innovation Paradigm|
|Figure 7.2||Specialization of Countries in Specific Technologies|
|Figure 7.3||Illustrative Example of Visual Patent to Product Mapping for Dyson|
|Figure 7.4||System of Systems Example|
|Figure 7.5||Stages of Machine Involvement in Performing Actions|
|Figure 7.6||How a Blockchain Works|
|Figure 7.7||Industry by Industry Value of Implementing Blockchain|
|Figure 8.1||Sustainability Over Years|
|Figure 8.2||Probability of Transition from H to H, M, L (Based on Revenue), and B by Observation Window Length|
|Figure 8.3||Probability of Transition from M to H, M, L (Based on Revenue), and B by Observation Window Length|
|Figure 8.4||Probability of Transition from L to H, M, L (Based on Revenue), and B by Observation Window Length|
|Figure 8.5||Stylized Model of Product Life Cycle|
|Figure 8.6||ROA, ROS, ROE Plotted Against Growth Rate|
|Figure 8.7||Sweet Spot for Growth|
|Figure 8.8||Step by Step Calculation of Relative Value of Growth (RVG)|
|Figure 8.9||Fortune 500 Overlap 1955 and 2017|
|Figure 8.10||Zappos 10 Core Values|
|Figure 8.11||Megatrends by Substantive Areas|
|Figure 8.12||Megatrends by Direction of Change|
|Figure 8.13||Megacities 2025|
|Figure 8.14||A Vertical City: Singapore|
|Figure 8.15||Example of Vertical Farming in Abandoned Shipping Containers|
|Figure 8.16||Fundamental OGD Steps Summary by Disciplines and Their Elements|
|Figure 8.17||OGD Strategy Roadmap|
I need to first express a deep sense of gratitude for the privilege and opportunity I have had to pursue the life of an academic. This life as an academic, starting with my education at IIT, Madras (though I did not realize it at that time), has given me the freedom to cultivate various and evolving interests. For this freedom and evolution, I owe tremendous appreciation to my educators, coauthors, colleagues, and students. I owe nature whatever endowments I have that allow me to learn. I am grateful to my parents K. Devanathan and Rajam Devanathan for nurturing me in every way possible with deep love and affection. I am grateful for the summers my father-in-law, Professor R. Vijayaraghavan, has spent with us in Nicholasville and conducting dinner table seminars for us on physics and Tamil literature and poetry.
I cannot thank my wife, Nalini, enough for being supportive no matter what. She is such a sport for listening to my musings on all things. Her intelligence, charm, and wit have sustained me in my travels through the twists and turns of life.
Our children and their spouses have been a tremendous source of positive energy that needs to be acknowledged. Venkat with his determination, resilience, and diligence has inspired me so much. Amit with his skepticism, broad range of knowledge, and incisive questioning has forced me to try to keep current and sharp. Sangita with her ease of commanding difficult matters and total love for us has filled our lives with hope.
Megan, like Nalini maintains a poise that is admirable. Adam with his fondness for Lego has rekindled the little boy in me.
I wish to especially thank the Graduate School of Business (now the Katz School of Business) at the University of Pittsburgh and the Department of Business Administration at the University of Illinois, Urbana-Champaign's College of Commerce and Business Administration (now the Gies College of Business) for their open intellectual environments that permitted me to pursue interdisciplinary learning and research. I also wish to acknowledge the support provided to me at the University of Kentucky.
I acknowledge the push to finish energy I derived from my enthusiastic first readers Professors Scott Dacko, Olivier Furrer, Jagdish Sheth, and R. Venkatesh.
I thank my editors Charlotte Wilson and Charlotte Maiorona, at Emerald, for their expert guidance through the process.
To our grandsons Preston, Reyan, and Maxwell who are accelerating in every dimension—my hope is that the world will be a safer place for your generation. I also wish that you will optimally use your talents to grow to your full potentials as individuals; fulfill your dreams and ambitions; challenge all assumptions; be innovative; and contribute to making society so much better. To you, my beloved grandsons, I dedicate this book.