Keynote: Status of Business Development Research & Practice

BUSINESSDEVELOPMENTstatusofresearchandprac<ce

Keynote30.June2016©2016HansEibeSørensen BusinessDevelopment-statusofresearchandprac<ce 1

Agenda•  Premiseandbackground•  Businessdevelopmentresearch– Theliterature– Theconstruct– Theacademicchallenge

•  Businessdevelopmentprac<ce– Whatandwhereisbusinessdevelopmentthen?– Thebusinessdeveloper/integra<nggeneralists

•  Somerecentresearch(if<me)3BusinessDevelopment-statusofresearchandprac<ce©2016HansEibeSørensen

Thekeynote’spremise

•  Whydowerunbusinesses?–  Tomakeownersmakemoremoneythanfroman‘alterna<veinvestment’

•  Howdowesecuretemporaryorsustainedprofits?–  Compe<veadvantage–  ValuableandRareresourcesandcapabili<es

thatarefounda<onforInimitablestrategies–  SoundOrganiza<on

•  Businessdevelopment–  isacapabilitythatassuresbe^erprepara<onandimlementa<onofgrowthopportuni<es

4BusinessDevelopment-statusofresearchandprac<ce©2016HansEibeSørensen

Somebackgound

Generalconfusionaboutbusinessdevelopment’sactualmeaning,organiza<on,tasks,processesandpeopleGooglehitson”BusinessDevelopment”

–  2005:59.300.000

–  2015:159.000.000

–  2016:97.900.000(earlierthisyear:186.000.000–didGooglegrowwiser?)

Lessthan15publishedacademicpapersonbusinessdevelopment

©2016HansEibeSørensen 5BusinessDevelopment-statusofresearchandprac<ce

TheBDliterature–ashortstory•  Conceptualwork

–  Bussgangetal.(2012)andSørensen(2012)andBurgelman(1983)•  Case-basedwork

–  medium-sizedtechnology-basedfirm(Ui^enbogaardetal.,2005)andITSMEs(DavisandSun,2006),

–  biotechfirms(KindandKnyphausen-Aufseß,2007;LorenziandSørensen,2014),

–  Interviewswithbusinessdevelopmentexperienced(EidhoffandPoelzl,2014;Giglieranoetal.,2011)

–  contentanalysisonbusinessdevelopmentjobpos<ngs(Turgeon,2015)

•  Survey-basedwork–  Sørensen(2016)–andTrichterbornetal.(2015)

•  ForthcomingspecialissueinIJEIMinafewmonths


Whatisbusinessdevelopment,really?•  Developingthebusiness?•  Sales?•  KeyAccountManager?•  IT-programmer?•  Corporatefinance?•  Managerofoffshoring?•  Productdevelopment?•  Strategydevelopment?•  Theemployeewereally

can’tfindalabelfor?


Businessdevelopmentdefined•  Businessdevelopmentrefersto

1.  thetasksandprocessesconcerninganaly<calprepara<onofpoten<algrowthopportuni<es,

2.  thesupportandmonitoringoftheimplementa<onofgrowthopportuni<es,

3.  butdoesnotincludedecisionsonstrategyandexecu<onofgrowthopportuni<esortheiractualimplementa<on.

•  Contextualdemarca<onsongrowthopportuni<es–  Non-trivialandnon-strategic–  Withinconstraintsofstrategicmomentumandcorporatestrategy


Theacademicchallenge

UniqueBDac,vity?

No Yes

Labe

ledBD

?

Yes

Confusedotherbusinessac<vity

Trvebusinessdevelopment

No

Otherbusinessac<vity

Dormantbusinessdevelopment


Howwellaconstructachievesempiricalandtheore<calmeaning,i.e.constructvalidity,liesintheheartofscien<ficprogress(Nunnally&Bernstein,1994;Sørensen&Slater,2008)

Businessdevelopmentprac<ce•  Lesserconfusionaboutbusinessdevelopment’sactual

meaning,organiza<on,tasks,processesandpeoplenow?•  Let’sborrowatypicalchallenge:“Itisfashionableforaspeech-makingpresidentthesedaystocontendthathiscompanyis’market-oriented.’Heseldomdefinestheterm,rarelygoesintofurtherdetail,andfrequentlyisnotquitesurewhathehassaid.”

(Lear,HBR1963)“WedidnotseetherelevanceoftheBDfuncRon;otherwise,wewouldhaveimplementedthisfuncRonearlier”(Kind&Knyphausen-Aufseß,2007)


GrowthOpportunity

WhereisBusinessDevelopment?


Research

ProductDevelopment

BusinessDevelopment

DailyOpera,ons

StrategyDevelopment

Sales/Marke,ng…

Screening Decision Screening

Opportunitygenera,onplanning,screening

‘MarketLaunch’planning Implementa,on Business-as-usual

:Func<on:Stage

Legend

Source:Sørensen(IJEIM2016)

TheBusinessDeveloper

•  Businessdevelopersareintegra<nggeneralist;–  Havingprac<calknowledgeableaboutthetechnology,product,customervalues,andindustrydynamics

–  Beingcapabletothinkconceptuallyandabstractandnotjust“closingdeals”

–  Havingspecialistsknowledgefrommul<plebusinessfunc<ons

–  Havingexperiencewithbothtopmanagementandwithworkinginline-func<ons.


“thinkslikeseniormanagement,butlocatedatatac,callevel”

Theintegra<nggeneralist

14BusinessDevelopment-statusofresearchandprac<ce©2016HansEibeSørensenSource:adaptedfromSørensen(2012)

Summary•  Premiseandbackground•  Businessdevelopmentresearch– Theliterature– Theconstruct– Theacademicchallenge

•  Businessdevelopmentprac<ce– Whatandwhereisbusinessdevelopmentthen?– Thebusinessdeveloper/integra<nggeneralists

•  Somerecentresearch(didwehave<me?)15BusinessDevelopment-statusofresearchandprac<ce©2016HansEibeSørensen

16©2016HansEibeSørensen

Manythanks!!

Q&AHansEibeSørensen,PhDHybrid,AssociateProfessor,biotechentrepreneur,[email protected]/in/hanseibe

BusinessDevelopment-statusofresearchandprac<ce

FirstBD-performancestudy•  Data

–  73CEOresponsesfromasampleof205growthfirms(OECD,2007)

–  Firmsestablishedpriorto2006,10-250employees(full-<meequivalents)in2008,andaverageyearlygrowthof20%inemployeesduring2008-2011.

•  Mainvariables–  BusinessPlanning–  BusinessDeveloperSupport–  BusinessDevelopment

•  Results

©2016HansEibeSørensen 17

BD(BP*BDS)BDSBP

BD

BDS

BP

PERF

Note:Graphsarecorrela<ons

BusinessDevelopment-statusofresearchandprac<ce

Source:Sørensen(IJEIM2016)

…andallthatyoutube


Keynote: Status of Business Development Research & Practice

Business

Transcript of Keynote: Status of Business Development Research & Practice