A propsoed model for enterprise capacity building and development stages

A Model for

Enterprise Capacity

Building and

Development Stages

Tarek Salah Kamel Capability Development Unit Manager

[email protected]

v3.0 , 19th of September 2012

mailto:[email protected]�

Agenda

Model Introduction

Model Objectives

Model Outline

Model Details

Model Introduction

The proposed Model for Enterprise Capacity Building and Development Stages aims to set reference capacity building packages and support programs to business enterprises that are tightly coupled to their maturity level. This should maximize the value proposition of ITIDA capacity building programs to a beneficiary enterprise and validate the eligibility to enroll, yielding an optimum ROI for such support programs.

Model Objectives

The Model aims to: Identify reference maturity levels for business enterprises.

Clearly describe the important characteristics of each level, detailing what capacity building areas are needed to effectively advance the enterprise into a higher level.

Assign ITIDA programs for capacity building according to these maturity levels, so that business enterprises should be eligible for a certain program if only they are at the correct maturity level.

Model Details

Startup (Existence & Business

Viability)

Survival (Early-Stage

Growth & Strategic Focus)

Success (Accelerating

Growth & Systems Building)

Take-Off (Sustaining Growth &

Expansion)

Maturity (Corporate

Management)

Size

Micro Enterprises

Small Enterprises

Medium Enterprises

Large Enterprises

Listing the characteristics describing each maturity level and unique to it Characteristics

Listing the challenges facing the business enterprise specific to each maturity level Challenges

What the enterprise management should critically think about to guarantee business health? Critical Questions

At each maturity level the management should have a specific focus to sustain growth Should Focus on

Assessment dimensions specific to each maturity level (Capitalizing on ATOS Soft Model) Assessment Areas

The capacity building areas needed at which maturity level Capacity Building

Needs

Allocation of Capacity building support programs according to the Maturity level Capacity Building Programs

Listing the challenges facing the business enterprise specific to each maturity level

What the enterprise management should critically ask about to guarantee business health?

At each maturity level the management should have a specific focus to sustain growth

Assessment dimensions specific to each maturity level

The capacity building areas needed at which maturity level

Allocation of Capacity building support programs according to the Maturity level


Viability)






Expansion)

Maturity (Corporate

Management)

Size

Micro Enterprises

Small Enterprises

Medium Enterprises

Large Enterprises

Challenges

Critical Questions

Should Focus on

Assessment Areas

Capacity Building Needs

Capacity Building Programs

Model Details

Characteristics








Viability)






Expansion)

Maturity (Corporate

Management)

Size

Micro Enterprises

Small Enterprises

Medium Enterprises

Large Enterprises


Challenges

Critical Questions

Should Focus on

Assessment Areas



A Business plan exists with an appropriate business model

Secured Financing for the startup phase

A ready product for market with differentiated value over competitors.

Securing the 1st customer(s)

No profit yet

Demonstrated as a workable business entity

A defined strategy to follow.

Connected to the business plan.

Crossing the chasm phase (from early adaptors to early majority)

Revenue starts to increase but no break even yet

Revenues/customers are increasing with new opportunities

A more structured strategy

Organizational structure roles and responsibilities get clearly defined

A more matured business plan

Basic Systems of management, HR, finance, IP, quality and control deployed

Products versions and services types exist.

Moving into new markets with new product/service development

New horizons of growth capitalizing on the existing capabilities

Formalizing the company culture

Rationalizing the strategy development process with detailed operations policy and processes

A more matured organizational structure

Research collaboration, technology transfer, commercialization.

Employee performance evaluation

A well-managed structured framework for strategy development

The organizational structure is well-matured to support formal innovation management best practices

Marketing and sales departments are linked to engineering and customer relations departments to support development of new product/services that really meet customer expectations

Quality and control policy is critically followed

Formal R&D Employee talent

development framework

Model Details







Viability)






Expansion)

Maturity (Corporate

Management)

Size

Micro Enterprises

Small Enterprises

Medium Enterprises

Large Enterprises


Challenges

Critical Questions

Should Focus on

Assessment Areas



Challenge of market acceptance.

Challenge of pursuing niche opportunities.

Challenge of not to burn through what little cash exists.

Challenge of not having enough cash to stay in business

Challenge of failing at competition

Challenge of focus on the business the company is in and not being distracted by other business opportunities.

Challenge of a more severe competition

Challenge of finding enough talents to sustain growth

Challenge of Changes to the business model to pursue tempting opportunities

Challenge of Client satisfaction

Challenge to succeed in innovation for the new horizons of growth

Challenge to Control expenses

Challenge to form strategic alliances

Challenge of nurturing client loyalty and engagement in product/process improvements

Challenge of Developing and retaining internal high talents.

Knowledge and innovation management challenges

Challenge of Disruptive technology from competitors and startups

Challenge of not being agile in response to critical business problems

Challenge to protect the brand

Challenge to protect the intellectual properties


Model Details






Viability)






Expansion)

Maturity (Corporate

Management)

Size

Micro Enterprises

Small Enterprises

Medium Enterprises

Large Enterprises


Challenges

Critical Questions

Should Focus on

Assessment Areas



Can we get enough customers, deliver our products, and provide services well enough to become a viable business?

Can we expand from that one/few key customer(s) or pilot project to a much broader sales-based business?

Do we have enough financing resources to cover the considerable cash demands of this start-up phase?

Has the company team skills and competencies proved high enough to meet the challenge of running a viable business enterprise?

Has our business model proved successful or we need to improve it?

What VCs or Angel investors we could approach?

Can we generate enough cash to stay in business and finance growth?

Are we in a better knowledge of our customers to effectively satisfy their needs and meet their expectations?

Is our business model still valid or we need to improve it?

How shall we respond to the faced competition?

Is our marketing strategy really competitive?

What financing resources should we target?

Should we revisit our strategy and business model based on our new knowledge of the market and competition?

Should we expand and get new resources or stay stable and profitable?

What is the most effective organizational structure to capitalize on?

What key professional talents we need to bring in?

What are the appropriate systems we need to deploy for effective management?

What are the new horizons of growth in terms of market segments or industry sectors that are related to our existing capabilities?

How can we innovate new products and services to serve new horizons of growth?

How to adapt and improve our organizational structure to serve best our expansion strategy?

Who are the strategic partners that we should make alliance with to succeed in an even tougher competition?

Should we go public?

How technological trends, market alterations, and tough competition could affect our business health and sustainability? (A forecasting response strategy is needed)

How to enrich company citizenship and loyalty?

What best innovation management practices should we deploy?

How to cultivate Entrepreneurship?

How can we play an effective role to be pioneers in the industry ecosystem development? (Collaboration, consortium initiatives, CSR)


What the enterprise management should critically think about to guarantee business health?

Model Details





Viability)






Expansion)

Maturity (Corporate

Management)

Size

Micro Enterprises

Small Enterprises

Medium Enterprises

Large Enterprises


Challenges

Critical Questions

Should Focus on

Assessment Areas



Start-ups require establishing a customer base and market presence along with tracking and conserving cash flow.

In the Survival phase focus is on securing enough cash for growth and knowing customers better to adapt and improve the value proposition of the company to satisfy their needs and meet their expectations.

Growth life cycle businesses are focused on running the business in a more formal fashion to deal with increased sales and customers. Better accounting and management systems will have to be set-up. New talented employees will have to be hired to deal with the influx of business

Focus is on adding new products or services to existing markets or expanding existing business into new markets and customer segments with possible new product and technology development.

Focus is on market and technology leadership competition. Deploying formal best practices for management and customer interaction. Mature internal processes for quality, control and innovation management.



Model Details





Viability)






Expansion)

Maturity (Corporate

Management)

Size

Micro Enterprises

Small Enterprises

Medium Enterprises

Large Enterprises


Challenges

Critical Questions

Should Focus on

Assessment Areas





Model Details


Assessment dimensions specific to each maturity level (Capitalizing on ATOS Soft Model)



Viability)






Expansion)

Maturity (Corporate

Management)

Size

Micro Enterprises

Small Enterprises

Medium Enterprises

Large Enterprises


Challenges

Critical Questions

Should Focus on

Assessment Areas





Model Details




Basic Business Administration knowledge (Entrepreneurship, Innovation, Business Model Development, Strategy setting, Marketing, Sales, Finance, .. etc.)

Basic Soft Skills (Team working, presentation and communication skills, negotiation, Business writing, .. etc)

Technical training in related areas.

+ Executing Strategy and

Alignment Financial Management

of Small Firms Competitive Marketing Basic Operations

Management Data Analysis and

Decision Making

+ Strategic Management Organizational

Behavior and Structure HR Management Quality and Control Operations

Management Financial Planning,

Reporting and Control Technology

Management Supply-Chain

management Marketing and Sales

Management

+ Economics for

Business Decision Making (Micro-Macroeconomics/

Business and Public Policy

Innovation Management

Globalization and Emerging Markets

Talent and Skill Development

Advanced HR Systems Corporate Financial

Management Leadership

Communications IP Management

+ Corporate Strategy and

Technology Policy Advanced Innovation

Management Entrapreneurship Competing Globally Total Quality

Management Talent and Knowledge

Management Technology Foresight

and Forecasting Corporate Social

Responsibility Technology licensing

and Commercialization Corporate Leadership


Viability)






Expansion)

Maturity (Corporate

Management)

Size

Micro Enterprises

Small Enterprises

Medium Enterprises

Large Enterprises


Challenges

Critical Questions

Should Focus on

Assessment Areas


ITIDA Capacity Building Programs



Model Details






Viability)






Expansion)

Maturity (Corporate

Management)

Supporting Graphs

Model Details

Relaxed Model Description Figures

SUPPLEMENT

Model Outline Maturity Levels for Business Enterprises


Viability)






Expansion)

Maturity (Corporate

Management)

The Model provides an overview description for each stage for: Company Normal Size Characteristics Challenges Critical Questions Should Focus on Assessment Areas Capacity Building Needs ITIDA Capacity Building Programs

Model Details


Viability)






Expansion)

Maturity (Corporate

Management)

Size

Micro Enterprises

Small Enterprises

Medium Enterprises

Large Enterprises



Viability)






Expansion)

Maturity (Corporate

Management)

The Model provides an overview description for each stage for: Company Normal Size Characteristics

Listing the characteristics describing each maturity level and unique to it

Challenges Critical Questions Should Focus on Assessment Areas Capacity Building Needs ITIDA Capacity Building Programs

Model Details


Viability)






Expansion)

Maturity (Corporate

Management)


Startup A Business plan exists with an appropriate business model Secured Financing for the startup phase A ready product for market with differentiated value over competitors. Securing the 1st customer(s) No profit yet

Model Details


Survival Demonstrated as a workable business entity A defined strategy to follow. Connected to the business plan. Crossing the chasm phase (from early adaptors to early majority) Revenue starts to increase but no break even yet


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Success Revenues/Customers are increasing with new opportunities A more structured strategy Organizational structure roles and responsibilities get clearly defined A more matured business plan Basic Systems of management, HR, finance, IP, quality and control

deployed Products versions and services types exist.


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Take-Off Moving into new markets with new product/service development New horizons of growth capitalizing on the existing capabilities Formalizing the company culture Rationalizing the strategy development process with detailed

operations policy and processes A more matured organizational structure Research collaboration, technology transfer, commercialization. Employee performance evaluation


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Maturity A well-managed structured framework for strategy development The organizational structure is well-matured to support formal

innovation management best practices Marketing and sales departments are linked to engineering and

customer relations departments to support development of new product/services that really meet customer expectations

Quality and control policy is critically followed Formal R&D Employee talent development framework


Viability)






Expansion)

Maturity (Corporate

Management)



Viability)






Expansion)

Maturity (Corporate

Management)

The Model provides an overview description for each stage for: Company Normal Size Characteristics Challenges


Critical Questions Should Focus on Assessment Areas Capacity Building Needs ITIDA Capacity Building Programs

Model Details


Viability)






Expansion)

Maturity (Corporate

Management)

Startup Challenge of market acceptance. Challenge of pursuing niche opportunities. Challenge of not to burn through what little cash exists.


Model Details


Survival Challenge of not having enough cash to stay in business Challenge of failing at competition Challenge of focus on the business the company is in and not being

distracted by other business opportunities.


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Success Challenge of a more severe competition Challenge of finding enough talents to sustain growth Challenge of changes to the business model to pursue tempting

opportunities Challenge of client satisfaction


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Take-Off Challenge to succeed in innovation for the new horizons of growth Challenge to control expenses Challenge to form strategic alliances Challenge of nurturing client loyalty and engagement in

product/process improvements Challenge of developing and retaining internal high talents.


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Maturity Knowledge and innovation management challenges Challenge of Disruptive technology from competitors and startups Challenge of not being agile in response to critical business problems Challenge to protect the brand Challenge to protect the intellectual properties


Viability)






Expansion)

Maturity (Corporate

Management)



Viability)






Expansion)

Maturity (Corporate

Management)

The Model provides an overview description for each stage for: Company Normal Size Characteristics Challenges Critical Questions


Should Focus on Assessment Areas Capacity Building Needs ITIDA Capacity Building Programs

Model Details


Viability)






Expansion)

Maturity (Corporate

Management)

Startup Can we get enough customers, deliver our products, and provide

services well enough to become a viable business? Can we expand from that one/few key customer(s) or pilot project to a

much broader sales-based business? Do we have enough financing resources to cover the considerable

cash demands of this start-up phase? Has the company team skills and competencies proved high enough

to meet the challenge of running a viable business enterprise? Has our business model proved successful or we need to improve it? What VCs or Angel investors we could approach?


Model Details


Survival Can we generate enough cash to stay in business and finance

growth? Are we in a better knowledge of our customers to effectively satisfy

their needs and meet their expectations? Is our business model still valid or we need to improve it? How shall we respond to the faced competition? Is our marketing strategy really competitive? What financing resources should we target?


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Success Should we revisit our strategy and business model based on our new

knowledge of the market and competition? Should we expand and get new resources or stay stable and

profitable? What is the most effective organizational structure to capitalize on? What key professional talents we need to bring in? What are the appropriate systems we need to deploy for effective

management?


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Take-Off What are the new horizons of growth in terms of market segments or

industry sectors that are related to our existing capabilities? How can we innovate new products and services to serve new

horizons of growth? How to adapt and improve our organizational structure to serve best

our expansion strategy? Who are the strategic partners that we should make alliance with to

succeed in an even tougher competition? Should we go public?


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Maturity How technological trends, market alterations, and tough competition

could affect our business health and sustainability? (A forecasting response strategy is needed)

How to enrich company citizenship and loyalty? What best innovation management practices should we deploy? How to cultivate Entrepreneurship? How can we play an effective role to be pioneers in the industry

ecosystem development? (Collaboration, consortium initiatives, CSR)


Viability)






Expansion)

Maturity (Corporate

Management)



Viability)






Expansion)

Maturity (Corporate

Management)

The Model provides an overview description for each stage for: Company Normal Size Characteristics Challenges Critical Questions Should Focus on


Assessment Areas Capacity Building Needs ITIDA Capacity Building Programs

Model Details


Viability)






Expansion)

Maturity (Corporate

Management)

Startup Start-ups require establishing a customer base and market

presence along with tracking and conserving cash flow.


Model Details


Survival In the Survival phase focus is on securing enough cash for

growth and knowing customers better to adapt and improve the value proposition of the company to satisfy their needs and meet their expectations.


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Success Growth life cycle businesses are focused on running the

business in a more formal fashion to deal with increased sales and customers. Better accounting and management systems will have to be set-up. New talented employees will have to be hired to deal with the influx of business


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Take-Off Focus is on adding new products or services to existing

markets or expanding existing business into new markets and customer segments with possible new product and technology development.


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Maturity Focus is on market and technology leadership competition.

Deploying formal best practices for management and customer interaction. Mature internal processes for quality, control and innovation management.


Viability)






Expansion)

Maturity (Corporate

Management)



Viability)






Expansion)

Maturity (Corporate

Management)

The Model provides an overview description for each stage for: Company Normal Size Characteristics Challenges Critical Questions Should Focus on Assessment Areas


Capacity Building Needs ITIDA Capacity Building Programs

Model Details


Viability)






Expansion)

Maturity (Corporate

Management)

Startup Assessment dimensions specific to each maturity level (Capitalizing on ATOS Soft Model) Assessment

Areas

Model Details


Survival


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Success


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Take-Off


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Maturity


Viability)






Expansion)

Maturity (Corporate

Management)



Viability)






Expansion)

Maturity (Corporate

Management)

The Model provides an overview description for each stage for: Company Normal Size Characteristics Challenges Critical Questions Should Focus on Assessment Areas Capacity Building Needs


ITIDA Capacity Building Programs

Model Details


Viability)






Expansion)

Maturity (Corporate

Management)

Startup Basic Business Administration knowledge (Entrepreneurship,

Innovation, Business Model Development, Strategy setting, Marketing, Sales, Finance, .. etc.)

Basic Soft Skills (Team working, presentation and communication skills, negotiation, Business writing, .. etc)

Technical training in related areas.

What the enterprise management should critically think about to guarantee business health? Capacity Building Needs

Model Details


Survival + Executing Strategy and Alignment Financial Management of Small Firms Competitive Marketing Basic Operations Management Data Analysis and Decision Making


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Success + Strategic Management Organizational Behavior and Structure HR Management Quality and Control Operations Management Financial Planning, Reporting and Control Technology Management Supply-Chain management Marketing and Sales Management


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Take-Off + Economics for Business Decision Making (Micro-Macroeconomics/ Business and Public Policy Innovation Management Globalization and Emerging Markets Talent and Skill Development Advanced HR Systems Corporate Financial Management Leadership Communications IP Management


Viability)






Expansion)

Maturity (Corporate

Management)

Model Details


Maturity + Corporate Strategy and Technology Policy Advanced Innovation Management Entrapreneurship Competing Globally Total Quality Management Talent and Knowledge Management Technology Foresight and Forecasting Corporate Social Responsibility Technology licensing and Commercialization Corporate Leadership


Viability)






Expansion)

Maturity (Corporate

Management)



Viability)






Expansion)

Maturity (Corporate

Management)

The Model provides an overview description for each stage for: Company Normal Size Characteristics Challenges Critical Questions Should Focus on Assessment Areas Capacity Building Needs ITIDA Capacity Building Programs


Model Details

Allocation of Capacity building support programs according to the Maturity level ITIDA Capacity Building

Programs


Viability)






Expansion)

Maturity (Corporate

Management)

Grow-IT for Micro and Small Enterprises

Grow-IT for Medium & Large Enterprises

Advanced Management Program (RAMP)

Skills Development Program

In-House Training Incentives

Business Linkages Programs

Access to Finance

ITIDA/EGX Partnership Program (Nilex)

Thank You

Industry Capacity Building Department

Information Technology Industry Development Agency (ITIDA)

A propsoed model for enterprise capacity building and development stages

Business

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