Extension
Investment Horizon
Extension is about generating new business by extending products with new capabilities.
Investment Horizons: Maintenance • Improvement • Extension • Disruption
Purpose
Extension (or Horizon 2) is about generating new business by extending products with new capabilities.
Horizon 2 encompasses emerging opportunities, including rising entrepreneurial ventures likely to generate substantial profits in the future, but that could require considerable investment.
Horizon 2 dives into the realm of emerging prospects. These could be novel business features, budding startup ideas, or innovative new projects adjacent to the current core business. While they show potential for generating profits in the foreseeable future, they also come with their set of risks and might demand some capital input. Teams invest in these ideas when they foresee future growth potential, even if there aren't immediate revenue sources.
Notes
In some older pictures, you see the letter A instead of E. We changed Augmentation to Extension because it’s an easier word to understand.
The four focus areas in the unFIX model allow you to annotate your organization design to clarify what happens where. Which teams are responsible for Maintenance and Improvement? Where does Extension take place in the company? And does management give sufficient attention to Disruption in the same Base, or do you expect other Bases to take care of this?
Rules / Constraints
We have not yet identified any special rules or constraints.
“The biggest risk of all is not taking one.”
(Source: Mellody Hobson)