What is a strategic business driver?
Strategic business drivers are the factors that drive an organization’s business strategy and determine its long-term success. These drivers can be internal or external, and they can vary widely depending on the specific industry and market in which an organization operates.
How do I pinpoint strategic business drivers?
There are five basic checks to develop strategic business drivers.
Check One: What is the market demand? Clearly understand the needs and preferences of their target market to develop products and services that meet these needs and differentiate themselves from competitors. Market research and customer feedback are important tools for understanding market demand and identifying opportunities for growth.
Check Two: What is the competition? Organizations need to be aware of the competitive landscape in their industry and understand the strategies and tactics of their competitors. By analyzing the strengths and weaknesses of competitors, organizations can identify opportunities to differentiate themselves and gain a competitive advantage.
Check Three: What are the organization’s internal capabilities and resources? Organizations need to assess their own capabilities and identify areas where they can improve or optimize their operations. This can involve investing in new technologies, developing new products or services, or streamlining existing processes.
Check Four: What is the external environment, including economic, political, and social factors that can impact an organization’s operations? Organizations need to be aware of these factors and how they may change over time and develop strategies to mitigate potential risks and take advantage of opportunities.
Check Five: What is the impact of regulatory and legal requirements on their business strategy? These requirements can vary depending on the industry and the location of the organization, and failure to comply with them can have serious consequences.
Overall, strategic business drivers are the factors that shape an organization’s business strategy and drive its long-term success. By understanding and effectively managing these drivers, organizations can develop and implement strategies that enable them to thrive in a constantly changing business environment.