| To succeed in the long-term, focus on the middle-term. | |
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MedLine Citation:
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PMID: 17642127 Owner: NLM Status: MEDLINE |
Abstract/OtherAbstract:
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When a mature company fails to endure over the long term, it's often due to the "Horizon 2 vacuum," argues Moore, author of Crossing the Chasm and several other books on innovation strategy, and managing director of the consulting firm TCG Advisors. The reference is to the strategic horizons outlined by McKinsey's Mehrdad Baghai and colleagues in The Alchemy of Growth: Horizon 1 is today's cash-generating business, Horizon 2 is the set of innovations just being commercialized, and Horizon 3 consists of forward-thinking R&D. Most companies understand they must invest in their future, so the funding and management of Horizon 3 is not the problem. The trouble starts when those innovations are brought to market and must compete with the mainstay business for company resources. They disappear from top management's radar screen and suffer a level of neglect few ventures could survive. Cisco Systems is one company that has recognized the problem and tried to address it. To begin with, CEO John Chambers has insulated Horizon 2 projects from many of the pressures of Horizon 1--for example, by reorchestrating sales coverage so that emerging markets won't be neglected. He has also kick-started some Horizon 2 businesses by augmenting them with acquisitions, increasing their scale, and giving them more management attention. For the same reason, he has challenged his head of product development to think in terms of new businesses, not simply new products--knowing that the latter tend to get lost in salespeople's bags. Most important, Cisco is handicapping its Horizon 2 projects so that they need not compete head-to-head with established businesses. Their success is judged by metrics that are appropriate to new businesses, and they are given the benefit of Cisco's best managerial talent. |
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Authors:
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Geoffrey A Moore |
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Publication Detail:
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Type: Journal Article |
Journal Detail:
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Title: Harvard business review Volume: 85 ISSN: 0017-8012 ISO Abbreviation: Harv Bus Rev Publication Date: 2007 Jul-Aug |
Date Detail:
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Created Date: 2007-07-23 Completed Date: 2007-12-20 Revised Date: - |
Medline Journal Info:
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Nlm Unique ID: 9875796 Medline TA: Harv Bus Rev Country: United States |
Other Details:
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Languages: eng Pagination: 84-90, 192 Citation Subset: H |
Affiliation:
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TCG Advisors, San Bruno, California, USA. gmoore@tcg-advisors.com |
Export Citation:
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APA/MLA Format Download EndNote Download BibTex |
| MeSH Terms | |
Descriptor/Qualifier:
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Administrative Personnel Consumer Satisfaction Economic Competition Humans Industry / organization & administration* Leadership* Organizational Affiliation Organizational Innovation* United States |
From MEDLINE®/PubMed®, a database of the U.S. National Library of Medicine
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