AFTER researching enterprises here and overseas, IBISWorld has come up with its Top 10 successful practices of the world's best firms.
Sticking to the Top 10 could be what takes a business to its next step.
Focus on a single industry
"Specialisation is critical," says IBISWorld Australia general manager Jason Baker.
"Position yourself as a major, niche or ultra-niche player."
Pursue intellectual property
The mix of unique systems, special competencies, cultures, patents, copyright, technology, processes, formulas, skills and brands is vital.
Value it and R & D "above all other assets," Mr Baker says. "It is the holy grail of an enterprise."
Outsource non-core activities
Outsourcing in the interest of flexibility, enterprise growth and focus will help you get ahead.
Don't buy hard assets
Mr Baker says businesses should reject owning hard assets (land, buildings, equipment, stock and debtors), via securitisation, operating lease and factoring.
Create a virtual business
It is important to create a virtual corporation structure, drawing upon strategic alliances, networks, and/or franchising, based on the concept that the most powerful assets an enterprise has are its intellectual property, followed by cash strength.
Have an external focus
Plan outside-in, not inside-out, by understanding the external business environment before fashioning your own enterprise, its strategy, structure and management, Mr Baker advises.
Go global
IBISWorld advises expanding overseas because the aggregation of nations into regional economies paves the way for the "global village".
At the very least, companies should strive to understand and emulate world best practice for their own industry, in their own country.
Develop a unique culture
Create it with equal opportunity, contractualism (rather than owner-employee status) and vision.
Be a leader
"Leadership is, by nature, demanding of special attributes such as loneliness in ultimate decision-making," Mr Baker says. "Leadership is the opposite of management: it involves more external focus than internal."
Follow best-management practices
Value leadership over management, keep operations simple, develop achievable visions, have sound business financing, encourage employee self-development and embrace the borderless world.
The Courier-Mail