Business Strategy Transformation Quiz

Strategies in a Disruptive World

• The introductory session focuses on the new paradigms of strategy in a fast-changing and disruptive world.
• The ultimate goal is to understand new strategy paradigms and frameworks to enable companies to analyze evolving disruptive trends.
• Companies should anticipate future scenarios and develop successful strategies and implementation plans.
• Objectives include coping with changing business landscapes, recognizing disruptive innovation value for customers and the organization, and understanding how emerging trends influence the organization/industry.
• The session also addresses how leaders should deal with future scenarios.
• The strategic landscape (self, chessboard, mountain, star) helps visualize a company's psychological reality.
• Self: internal resources, skills, values, attributes.
• Chessboard: competitive position, dynamics.
• Mountain: issues, challenges, goals.
• Star: enduring social, transformative purpose.
• Strategic intent is a vision for an organization's future, a marathon run in a 400-meter sprint.
• The course aims at providing frameworks for addressing different strategic problems.
• Specific skills, including understanding the hidden processes behind transformations, analyzing current disruptive trends, and anticipating future scenarios, are crucial.

Introduction to the course

• There's no single approach to business strategy today; many companies emerge from disruption.
• Many companies are born with a strategic intent that goes beyond traditional strategic plans.

The strategic landscape

• The visualization of a company’s possible trajectory, from the current situation to the long-term future possibilities.

The "Strategic Landscape"

• The landscape represents psychological reality of the future.
• Self: Resources, capabilities, skills, values, and attributes as a strategic player.
• Chessboard: Competitive positioning, and competitive dynamics within the industry.
• Mountain: Issues and challenges the company faces, and major goals/objectives.
• Star: Enduring guiding social, transformative, or economic purpose.

The strategic intent

• A vision for an organization's future.
• Includes creating a sense of urgency, personalizing challenges, providing needed skills, tackling one challenge at a time, and establishing clear milestones.
• Aiming to stay ahead of competition by building layers of advantages, searching for loose bricks, changing the terms of engagement, and competing through collaboration.

Strategic intent - The idea into practice

• Strategic intent is like a marathon run in a 400-meter sprint.
• Managers are encouraged to let chaos reign and then reign in chaos repeatedly.

The new scenario for incumbent companies

• An incumbent is a leading company in an industry.
• Incumbents may hold the greatest market share or influence within the market.
• Existing companies may create barriers for new competitors to enter a market effectively.
• Sustainable competitive advantage comes from operational effectiveness (competence enhancement of pre-existing product qualities/applications) or strategic positioning (delivering unique value).
• Sustainable advantage depends on either improving existing solutions from competitors' designs, making them better or focusing on exclusive value for consumers in the product.
• Modern technology disrupts and affects market structure in different ways.
• Incumbents must adapt to survive and grow in a rapidly changing business environment.
• Technologies like the Internet intensify competitive rivalry, reduce entry barriers, and shift bargaining power towards buyers.
• Profitability of an industry relies on competitive pressures (e.g., threat of new entrants, threat of substitutes).

The impact of technology on strategy

• Strategies rely on understanding the effect of digital transformation and technological improvement.
• Digital transformation often leads to exponential business change.
• The Internet changes and affects market structure in various ways, such as by changing the bargaining power of either customers or suppliers through creating new channels to reach buyers, influencing competitive rivalry, reducing the entry barriers for new players.
• The impact of technology on industry and competitiveness is significant.

How the internet influences industry structure

• Internet reduces barriers for new entrants, changes supplier and customer bargaining rules, and changes competitor dynamics.

How is technology changing our strategic environment?

• New business models are crucial for creating sustainable advantage. Understanding core competencies and business ecosystems allows managers to leverage resources effectively.
• Creating value nets and business ecosystems is important for strategic advantage.
• Understanding innovative approaches, like value innovation, to create uncontested market spaces is key for strategic advantage.

New business model drive innovation

• New corporate entities based on collaborative innovation and outsourcing to specialists are emerging.

Building new Sources of Competitive Advantage

• Dynamic Specialization, making difficult decisions to focus on areas of world-class capabilities as a platform for aggressive growth is essential for gaining strategic advantage.
• Connectivity and Coordination, Learning how to access and mobilize the resources of others is important for adding value for customers.
• Leverage Capability Building, recognizing that the best way to build capability is through close collaboration with other specialized companies.

Position within the network

• Specialist: A small number of activities offered to many partners.
• Integrator: Coordinates numerous partner activities and adds some internal activities to deliver unique value.
• Platform: Brings together various user groups and establishes frameworks and rules for accessing services/transactions.

Management of Relationships within the Network

• A table showing different kinds of relationships, from strong ownership to market to weak relationships, along with a corresponding level of coordination, dependence, and value capture.

Business Model Innovation

• Business Model Innovation (BMI) is about changing the game when traditional strategies are insufficient, adapting to change through new strategies.
• Open Business Model strategy has to do with acquiring resources to complement a company's products.
• Game-changing moves include beating intense competition through innovation, extending a business model, extracting brand value, and capturing new value.

Strategic Principles

• Strategic principles for competing in the digital age focus on enhancing interactions among customers, suppliers, stakeholders and employees in a transparent way.
• Algorithms crunch big data, helping manage decisions and improve performance across business functions.
• Enabling new business or operating models, like peer-to-peer innovation or customer service, disintermediates existing customers.

Homework- Methodology

• Each team chooses one disruptive exponential tech and industrial sector to analyze how it impacts/disrupts the sector over the next 10 years.
• The deliverable is a 6–7-minute video presentation broken into two phases.

Disruptive Trends

• Includes trends like: Genetics, Synthetic Biology, Brain-Computer Interfaces, Automation & Robotics, Industry 4.0, 3D printing, Cultured cells & meat, quantum computing, Artificial Intelligence, AI devices, Metaverse, Decentralized Finance (DeFi), Anti aging, Space exploration, Digitalization of investing, trading and digital wallets.

The Apple turnaround

• Apple's history, from its early technology to its emergence in the smartphone market, is detailed.
• The company's successes and failures are discussed, particularly its struggles and subsequent turnaround.
• Discussions cover topics such as the reasons behind Apple's early successes and later struggles, the key to its successful turnaround, Jobs' leadership and strategies.
• Business models, technological convergence, and the future of Apple are also considered.

Explore the key concepts of business strategy and model transformation in this engaging quiz. Understand how companies adapt and thrive in a competitive landscape, with a special focus on Apple's turnaround under Steve Jobs. Test your knowledge on strategic intent, resources, and the modern business ecosystem.