McKinsey's 3-Horizon model McKinsey (The Alchemy of Growth) encompasses three horizons of growth and innovation into which companies can be classified:
Horizon 1 represents the current core business of a company. Projects in horizon 1 relate to optimizing the entire chain of the (sustainability) process at the customer using the best available technology and insights at competitive/market-based conditions. Think of process optimization, for example, by removing interfering substances in residual flows or by thickening (reducing) the volumes to be discharged.
Horizon 2 relates to emerging technologies in companies that can, in time, become a new core business. This concerns new and existing techniques that are ready for production, but not yet common business. Think, for example, of initiatives of urban mining and plastic-to-oils.
Horizon 3 relates to new developments that require a further growth trajectory to be ready for entry into the market, often in collaboration with knowledge institutions and/or start-ups. These are innovative, often disruptive developments with a longer-term horizon based on, for example, changing legislation and regulations or sustainability ambitions.