Organizing Strategy and Entrepreneurship
L1: Intro + Strategy and Strategic Renewal
Strategy and strategic renewal
● strategy
● arena - whats gonna be the market? mass product or niche?
● vehicle - how are we gonna reach that market?
● differentiators - how to make sure customers choose us? quality, unique feature, price
● staging - when to do what? overhaul vs staged? are there hurdles to deal with first?
● economic logic? how do we obtain profit? stage or scope
,● all parts of the strategy diamond are coherent
● irl building strategy is not linear, many feedback loops
● Tools for strategic analyses
○ PEST (political, economic, social and technological) → external about macro env
○ Porter’s 5 forces → external, about industry and competitive forces
○ Porter’s value chain → internal, distinguishes activities, idea of cost structure
○ Mckinsey’s 7s model → internal, about shared values skills etc
○ Stakeholder analysis → about all other stakeholders having an interest and power
○ SWOT analysis → strengths, weaknesses, opportunities, threats
○ BCG matrix → market growth rate vs relative market share, about portfolio management,
placing all products on axes
○ Ansoff matrix → determining broad strategy, new products? new markets?
● key is to do the right analyses and not as many as you can
● key goal → robust consistency among elements of strategy
● Strategic renewal
○ strategic
■ longer-term prospect
■ critical influence on success or failure
○ renewal
■ to refresh or replace
, ○ refreshment of attributes, has a substantial effect on an organization and concerns long-term
prospects
○ not the same as strategic change
■ every renewal involves change
■ changes dont always come with renewal
○ not the same as innovation
■ same as with change
■ innovation does not necessarily have critical impact on an organizations long-term
prospects
○ 2 types
○ it depends on organization and context what they need
○ both can lead to major strategic changes
■ IBM
■ Amazon - kindle (discontinuous), but 99% is about small extensions of scope
Strategic planning and serious gaming
● strategic planning
○ all about preparing the organization for the future
○ BUT
■ hypercompetitive markets
■ differences compared to the past
, ○ from islands in a static environment → strategic planning for connected systems in a
hyper-dynamic world
■ dynamism → requires flexibility and creativity
■ connectedness → open-systems approach and collaboration
○ the formalized process to prepare for strategic decisisons
■ design, experience, creativity are crucial
● Key: Tools that combine the 3 elements
○ participatory techniques
○ rigorous analysis and flexibility
→ via serious gaming
● Serious gaming → dynamism and connectedness
○ meant to assist organizations
○ combination of
■ rigorous data and analyses
■ flexibility involved in game
■ participatory process
○ 5 C of policy gaming
■ mastering complexity
■ engaging in multilogue communication
■ inspiring creativity
■ seeking consensus
■ stimulating commitment to action
L2: Technological Disruptions
Technological disruptions
● Technology
○ the study of craftsmanship / methods
○ The tools, devices, and knowledge that mediate between inputs and outputs (process
technology) and/or that create new products or services (product technology) / Tushman &
Anderson; 1986
● Diffusion of technology
○ blue - how individuals adopt new technologies and products
L1: Intro + Strategy and Strategic Renewal
Strategy and strategic renewal
● strategy
● arena - whats gonna be the market? mass product or niche?
● vehicle - how are we gonna reach that market?
● differentiators - how to make sure customers choose us? quality, unique feature, price
● staging - when to do what? overhaul vs staged? are there hurdles to deal with first?
● economic logic? how do we obtain profit? stage or scope
,● all parts of the strategy diamond are coherent
● irl building strategy is not linear, many feedback loops
● Tools for strategic analyses
○ PEST (political, economic, social and technological) → external about macro env
○ Porter’s 5 forces → external, about industry and competitive forces
○ Porter’s value chain → internal, distinguishes activities, idea of cost structure
○ Mckinsey’s 7s model → internal, about shared values skills etc
○ Stakeholder analysis → about all other stakeholders having an interest and power
○ SWOT analysis → strengths, weaknesses, opportunities, threats
○ BCG matrix → market growth rate vs relative market share, about portfolio management,
placing all products on axes
○ Ansoff matrix → determining broad strategy, new products? new markets?
● key is to do the right analyses and not as many as you can
● key goal → robust consistency among elements of strategy
● Strategic renewal
○ strategic
■ longer-term prospect
■ critical influence on success or failure
○ renewal
■ to refresh or replace
, ○ refreshment of attributes, has a substantial effect on an organization and concerns long-term
prospects
○ not the same as strategic change
■ every renewal involves change
■ changes dont always come with renewal
○ not the same as innovation
■ same as with change
■ innovation does not necessarily have critical impact on an organizations long-term
prospects
○ 2 types
○ it depends on organization and context what they need
○ both can lead to major strategic changes
■ IBM
■ Amazon - kindle (discontinuous), but 99% is about small extensions of scope
Strategic planning and serious gaming
● strategic planning
○ all about preparing the organization for the future
○ BUT
■ hypercompetitive markets
■ differences compared to the past
, ○ from islands in a static environment → strategic planning for connected systems in a
hyper-dynamic world
■ dynamism → requires flexibility and creativity
■ connectedness → open-systems approach and collaboration
○ the formalized process to prepare for strategic decisisons
■ design, experience, creativity are crucial
● Key: Tools that combine the 3 elements
○ participatory techniques
○ rigorous analysis and flexibility
→ via serious gaming
● Serious gaming → dynamism and connectedness
○ meant to assist organizations
○ combination of
■ rigorous data and analyses
■ flexibility involved in game
■ participatory process
○ 5 C of policy gaming
■ mastering complexity
■ engaging in multilogue communication
■ inspiring creativity
■ seeking consensus
■ stimulating commitment to action
L2: Technological Disruptions
Technological disruptions
● Technology
○ the study of craftsmanship / methods
○ The tools, devices, and knowledge that mediate between inputs and outputs (process
technology) and/or that create new products or services (product technology) / Tushman &
Anderson; 1986
● Diffusion of technology
○ blue - how individuals adopt new technologies and products
