In pursuing growth and knowing where to focus your innovation efforts, not only is it important to understand product life cycles, business life cycles, portfolio management and how to extract synergies, but also to ensure that the business remains in alignment with the business environment. Maintaining alignment involves more than operational improvements to drive efficiencies. It requires strategic alignment to ensure the appropriate fit with the shifting opportunities and threats presented by the business environment.
Invariably, change in the external environment creates opportunities and threats that require strategic innovation to transform the business model and/or internal business systems, and reinstate alignment. Any misalignment between the environment and the business will cause growth and profitability to evaporate.
As time passes, changes occur in both the operating environment and the way the business is functioning. If the business and environment are not both tracking in the same direction, this results in a misfit that threatens business performance and potentially its survival.