The Invincible Company

The Invincible Company explores the secrets of a successful company by proving how focusing on strengthening the core business values and operations while concentrating on R&D in parallel is a better strategy than just disrupting continuously and seeking new markets.

Essentially, a strong company must focus on a multitude of internal and external factors to build long-term success. According to the author, this can be done through two core portfolios: The “explore portfolio” and the “exploit portfolio”.

The first one focuses on innovation, research and development of new ideas, and other future benefits in relation to the level of risk. This portfolio mostly focuses on ROI (return on investment) from future projects. The exploit portfolio targets the opposite type of projects. It focuses on strengthening the core operational aspects.

The exploit portfolio targets the strengths and weaknesses of a company and tries to improve the business overall. These two portfolios are essential for any company that wishes to keep up with the consumer changes and demands, while also maintaining a strong position in the market.

Nevertheless, both projects require different teams and a skilled workforce that matches the requirements of working in innovation on one side and strengthening core operations on the other. The two teams should collaborate frequently and maintain an open communication line, yet focus on their particular tasks.

Explore projects are an essential part of any future growth strategy of a company. Although they can’t provide a guaranteed value for the company they are necessary for the long-term survival of any business. Therefore, a good executive will acknowledge their nature and try to switch their focus on reducing uncertainty.

Reducing risk and increasing the acceptance rate of such projects can happen in two stages: the design loop and the testing loop. The design loop is the initial phase where team members generate ideas, design prototypes, uncover flaws in the process, and adapt as they go.

The testing phase is about experimenting with the product, producing evidence about the real-life experience of using it, and strengthening its design if needed. This phase is essential to reduce the flaws of the prototype and therefore the risk that comes with bringing it to market.

A wise executive will allocate all the necessary resources to conduct such research at any given point, and be proactive in the production of new offerings. However, it’s best to maintain a healthy dose of skepticism and minimalize errors and implied risks at all times.

The Business Model Canvas is a visualization method for companies who want to improve their model, cut on costs, increase efficiency, or get a better overall view of their organization. This canvas has three main points of analysis: the front end,…