The virtuous growth cycle with the 8 core growth components, shows how a traditional business system can be organized using the cycle concept. It starts with the conception of the great idea and ends with feedback from the community that is using the product. The 8 steps will require supportive growth components such as Capital, Co-creators (people), Computing (technology) and a strong Culture/ Capabilities. You could therefor argue that there are actually 12 growth components, 8 core components in the cycle and 4 supporting ones.
Virtuous Growth Cycle
Founded on the Creation Cycle
A new creation, whether it’s the development of a concept, project, product or solution will benefit from following the “8 step creation cycle” described in the other subtab and illustrated below in the inner cycle. In order to effectively adapt it to your business situation consider your current business systems and see how different functions already relate to the sequence of the 8 creation steps. Successful businesses generally have well defined structures and sequences of events with established teams performing the tasks necessary for all areas. Each functional growth step can create in the same way as the creation cycle, which works well in the development and implementation of all types of ideas, tasks and projects. While the cycle concept may seem new, upon reflection, you will see that these creation steps are actually generic and define the actual creative process.
Strong benefits
The benefits of using Virtuous Growth’s “Business Creation Cycle” methodology grow and increase in effectiveness the more people use it within the organization. The eight creation steps form a natural cycle that once established easily defines a common way of co-creating, streamlines activities, and facilitates greater ease of communication. Many companies understand this and have implemented own versions of similar “virtuous” business creation cycles. The key, which some may have missed, is to always connect the completion of any cycle to the beginning of all subsequent related cycles. In other words, be sure to establish a strong feedback loop so that all accumulated information and experiences of a cycle are effectively brought forward into the next one.
Possible pitfalls
One pitfall is the failure to consider external sources of feedback, such as that from customers and partners, from one cycle into the next. Internal awareness of this point is essential so that the relevant community is invited into the next co-creative cycle to continue innovation as well as conceive and create new related products. Remember that the market too has its own cycles. It is important to have a continuous, co-creative and collaborative approach to explore the growth opportunities until the market fully matures. The larger and most powerful brands understand this principle which is why they continue to succeed.