This SAP Executive Insight explains the challenges inherent in three common growth models and describes how to implement a solid, flexible, and adaptive foundation that supports corporate growth objectives.
ENABLING GROWTH FOR Midsize Companies
Three Strategies for Growing your Business
SAP Executive InsightSolutions for Midsize CompaniesGrowth is back on the executive's agenda. Enterprises are seeking growth in new markets, in new products and ser-vices, and even in new business models. Continuous organic growth requires operational excellence and a long-term orientation. Companies looking for more rapid expansion leverage mergers and acquisitions or rearrange their core processes entirely.
Growth is challenging executives today from a strategic as well as an operational perspective. Academic research and a variety of other studies have estimated that 50%-80% of deals fail to reach their projected results. Many compa-nies that experience rapid organic growth become over-whelmed and fail to remain profitable as their infrastructure needs expand disproportionately. Few companies are agile enough to adjust their business models as fast as neces-sary or desirable.
This SAP Executive Insight explains the challenges inher-ent in three common growth models and describes how to implement a solid, flexible, and adaptive foundation that supports corporate growth objectives.. W hich growth strategy best fits my business objectives?. H ow do I ensure that my business grows successfully?. W hat role does IT play in enabling growth?
2 SAP Executive Insight - Enabling Growth for Midsize CompaniesEXECUTIVE AGENDA
At a Glance
Growth Strategies The Importance of IT Blueprint for Success
Companies pursue three fundamental No matter which approach to growth Growth is, by nature, a change to the strategies to achieve their aspirations your enterprise follows, the right IT existing business structure. Embracing for growth: strategy is a critical success factor. and dealing with this type of change ..Organic growth. Companies enter Without it, the rapid scaling of the busi- requires people, processes, and sys-new geographic markets, sell new ness that accompanies successful tems to support the overall strategy.products into an existing customer growth might put projected benefits of ..Drive operational excellence. Mas-base, or pursue new customers by the acquisition at risk. tering and standardizing core organi-employing new channels. ..Enable profitable growth. The zational processes are essential for ..Acquisitive growth. Companies increase in business complexity in freeing up resources to focus on acquire new markets, reduce cost fast-growth environments often cre- growth and reaping the associated with synergies and vertical integra- ates more overhead structure, poten- benefits. Without control over opera-tion, or obtain new products and tially reducing profitability. A tions, hypergrowth can be over-technologies through a merger and state-of-the-art IT infrastructure whelming and put your company at acquisition (M&A) strategy. allows management to remain in con- risk. ..Business model innovation. Chang- trol and realize economies of scale ..Focus on organizational capabili-ing the core of the business model through shared services and self- ties. Growth depends largely on your can bring rewards and unleash phe- service provisioning. organization's ability to adapt to nomenal growth. No longer restricted ..Limit risk exposure. An integrated change. Creating a change-ready to high-tech companies, growth enterprise platform overcomes the organization and managing talent through new business models is now risk associated with system- effectively are crucial.explored by enterprises in nearly all scalability limits as well as regulatory ..Incorporate flexibility into your busi-industries. risks typically associated with fast- ness architecture. Growth requires growing organizations. process flexibility and change readi-..Accelerate value creation. Growth ness. Implementing an enterprise doesn't wait for your business. The business process platform allows for ability to integrate systems faster and changing processes at the speed of to adapt processes to changes business. Moreover, an open technol-quickly is critical in staying ahead of ogy platform provides better connec-the competition and finding new ave- tivity to customers, suppliers, and nues for growth. employees.
SAP Executive Insight - Enabling Growth for Midsize Companies 3ORGANIC GROWTH
Growing from the core
With the tightening of the credit market Addressing... [download for more]
