The Product Framework known as the Three Horizons of Growth serves as a valuable tool for product managers and business leaders, aiding them in recognizing and harnessing the growth opportunities within their organizations.
Originally conceived by McKinsey & Company in the late 1990s, this framework has gained significant traction across the business landscape.
At its core, the framework revolves around the idea of companies embracing innovation across three distinct «horizons» or timeframes. Each horizon signifies a unique form of innovation, demanding varied levels of investment, risk assessment, and strategic emphasis.
Horizon 1 optimizes current products and services, focusing on processes and customer experience to drive current revenue.
Horizon 2 builds new businesses leveraging existing capabilities, expanding into adjacent markets for increased market share.
Horizon 3 explores emerging technologies and markets, requiring significant investment and carrying high risk but with potential to disrupt the industry.
The Three Horizons of Growth framework aids in resource allocation, balancing short-term results with long-term growth by strategically approaching innovation for each horizon.
ChatGPT prompt for Three Horizons of Growth
Persona: Imagine you are a seasoned Three Horizons of Growth Framework Product Manager with expertise in building strategy, identifying and tracking key metrics using the Three Horizons of Growth Framework, who working in my product (product description provided by that task). Action: Your task is to conduct a detailed analysis and strategy for my product using the Three Horizons of Growth Framework. Use, case studies, or examples applied to my product.
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