Discovery-driven planning - Wikipedia

Be specific about what you expect from the business using the reverse-income statement as a tool. (e.g., required profits = necessary revenues minus allowable costs.) Don't start with the costs and hope the profits will flow. Figure out what profit will make this venture worthwhile, then work backward to figure out what it will take to get there.

A Refresher on Discovery-Driven Planning

06/10/2017 · Discovery-driven planning is a practical ..
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13/02/2017 · A Refresher on Discovery-Driven Planning

Wharton's Ian MacMillan and Columbia's Rita Gunther McGrath, articulated a system they term "discovery-driven planning" in their August 2000 book, The Entrepreneurial Mindset. "[D]iscovery-driven planning," they wrote in an earlier article, "acknowledges that at the start of a new venture, little is known and much is assumed." This they contrast with conventional, "platform-based" planning, in which "assumptions underlying a plan are treated as facts -- givens to be baked into the plan -- rather than as best-guess estimates to be tested and questioned."

Discovery Driven Planning - McDonough School of …

For launching a new venture, they advocate drawing up a checklist of all key assumptions, a timetable for proving each one, and what they call a "reverse income statement" -- a list of threshold economic criteria that must be met if the project is to go forward.

Discovery-driven planning offers firms an organized approach to planning for new ventures in emerging markets.
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Discovery-Driven Growth A Breakthrough Process to …

Given the uncertainty of new disruptive technology markets, discovery-driven planning drives firms to make assumptions about the organization and the emerging markets, then revise these assumptions as the market develops.

Discovery-Driven Planning (English) – Gründer-Institut …

Discovery-driven planning is a powerful tool for any significant strategic undertaking that is fraught with uncertainty - new product or market ventures, technology development, joint ventures, M&A programs, strategic alliances, even major systems redevelopment. Discovery-Driven Planning forces managers to articulate what they don't know, and it forces a discipline for learning. As a planning tool, it thus raises the visibility of the make-or-break uncertainties common to new ventures and helps senior managers address them at the lowest possible cost.

PowerPoint presentation on Discovery Driven Planning ..

The initial Reverse Income Statement. Discovery-Driven Planning starts with the required profit and works up to determine how much revenue is needed and the cost allowed to generate that revenue. In the above example, the required revenue would be $4,000,000 (a 2.5% market share), allowing a total cost base of $3,600,000.

Technical Note: Putting Discovery-Driven Planning to …

Unlike conventional approaches, which focus on projections and prematurely define specific targets, discovery-driven planning focuses on meeting assumptions at key milestones and continually planning and adapting while the emerging market ev...