The circumstances are only becoming more complicated. Gaining an advantage or outperforming other firms within a market is now more difficult than ever. Contributing to this limitation is saturation from many similar products. This leads to the question and the subsequent problem. How do we make PsiclePath and its products stand out? Avoiding the trap of creating an underperforming product in the bid to be innovative is crucial. Kim and Mauborgne (2002) compare strategic differences which lead to factors of competition. Although the scenario case study discussed is different from the simulation, the underlying idea of focusing on a factor that has a great effect on success is similar.
The problem presents itself despite PsiclePath’s SHV topping the charts. The take-over has led to a boost in SHV and is currently the primary contribution. Increasing PsiclePath’s SHV without relying on subsidiary SHV contribution is another matter.Taking note of the fact that good progress has many indicators and depends entirely on perception, a few observations were made. Slow growth of PsiclePath had been masked with the high SHV. Maintaining a high SHV is the main objective but growth cannot be neglected as the latter leads to the former. Analysis and questioning led to reasons for the slow growth. Focus had been on the major indicators of success. A change in decisions that we can make to promote growth would require a balance between risk, reward, and the impact on our SHV.
Davies and Easterby-Smith (1984) had suggested that development occurs best in an environment that is unfamiliar and new. Innovation is what is expected from our team and was considered the underlying idea behind our proposed solution. The solution is not as complex although it involves risk. The solution for slow growth was deemed compatible with our firm's overall strategy. Tackling the problem with my team required a look at the bigger picture after a step back. Gaining clarity and insight into both our strategy and that of other teams played its part of the solution.
Kim, W. C. & Mauborgne, R. (2002). Charting your company's future. Harvard Business Review, 80(6), 76–83
Davies, J., & Easterby-Smith, M. (1984). Learning and developing from managerial work experiences. Journal of Management Studies, 21(2), 169–182