insead 4.cssg 3 axes of meaning based strategic management
Post on 21-Oct-2014
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DESCRIPTION
It refers to 2 additional dimensions in strategic management based on the experience that companies co-create also much more with other companies in an extended eco-system.including content and delivery. In addition to understanding the vector of technology the communication part of symbols, social media, telematic and concept gurus enables a better understand why and what we are doing in emerging new overlapping industriesTRANSCRIPT
Wirtz,SJ
Wirtz,SJJ
3 pilars of meaning based strategic management
costumer
Wirtz,SJ
Context:
- Customer experience management become more and more a differentiation activity
- In agile markets were new market profiles arose and are co-created the customer approach has to be integrated in any activity a company gets involved with partners as
- - building trust- - creating mutual understanding of moving targets in emerging
industries and- - considering the service encounter attitude and treatment as
applicable to people and companies alikebeing in co-operation network.
- The ecosystem approach can indicate some of the strategic issues one has to address in strategic management
- It implies and somewhat applies that the term sustainable competitive advantage will be transformed into
- Transient as well as co-constructed competitive advantage as in emerging markets a priori concepts may fail as a paradigm shift happens.
Wirtz,SJ
Approach:
Part one:- Look at companies orientation about its environment in emerging markets
Part two:- Extend the integration of important elements into the strategic management
Part three:- Construct building blocks and stepping stone
Highlight finally what this has to do with meaning based
Wirtz,SJ
People Promotion
Process Price
The company links the inside performance with the market performance
inside outside
Meaning based
Leadership
Materialisationbased
Efficiency based
Production Product/Service
Positioning
Place
Strength and Weakness SW OT Opportunity and Threat
Wirtz,SJ
Part 1:
There two genuine strategy development processes with implication for strategic change management A. Prescriptive model of business strategy
Environment
Resources
Purpose
Options
Options
Options
Choice Implement
The prescriptive strategy process Lynch, 2008
is the usual approach and neglects often the limitations that an existing organisation and its culture limits the strategic options
B. Emergent model of business strategy
Environment
Resources
Purpose
Strategy development and implementation
Keypoint: creative, experimental, more difficult to describe but essential according Lynch,
The emergent strategy process – based on Quinn 1990, Senge 1990, Argyris 1977, Mintzberg 1987 and others
What is strategic change management?One approach to emergent processes
Environment
Resources
Purpose
Strategy development and implementation
Emergent theories include:•Survival-based•Uncertainty-based•Human resource-based•Innovation and learning-based
,
Strategic Change Management issues to open the company towards networking
Wirtz,SJJ
Wirtz,SJJ
“Ideating” the other side of innovation by Govindarajan, V, Trimble,C 2010
Wirtz,SJJ
KeyPartners
Key Activities
Value Proposition
CustomerRelationships
CustomerSegments
KeyResources
Channels
Cost Structure
RevenueStreams
Current wave of business model: e.g. Osterwalder:
Consider important environment issues but more as impact on the company than stepping stone
Wirtz,SJJ
The environment needs also to be perceived as constructed and playground for creating emerging markets through co-creation with other companies considering them as lead customers7partners
We genuinely underestimate our weakness and threats to our organization. We have difficulties to embrace vagueness, ambiguity and enter into co-operation without contractual arrangements and wishful outcomes
SOWT Analysis
Strengths Opportunities
ThreatsWeaknesses
outsideinside
Over-EstimateUnder-
In emerging markets a SWOT analysis should be extended highlighting the evaluation, estimation process by regrouping SWOT into a:
Exploring emerging environment and create meaning based activities
The cynefin framework
Watch the explaination: http://www.youtube.com/watch?v=N7oz366X0-8
Wirtz,SJJ
Simple, in which the relationship between cause and effect is obvious to all, the approach is to Sense - Categorise - Respond and we can apply best practice.
Complicated, in which the relationship between cause and effect requires analysis or some other form of investigation and/or the application of expert knowledge, the approach is to Sense - Analyze - Respond and we can apply good practice.
Complex, in which the relationship between cause and effect can only be perceived in retrospect, but not in advance, the approach is to Probe - Sense - Respond and we can sense emergent practice.
Chaotic, in which there is no relationship between cause and effect at systems level, the approach is to Act - Sense - Respond and we can discover novel practice.
The fifth domain is Disorder, which is the state of not knowing what type of causality exists, in which state people will revert to their own comfort zone in making a decision.
That comfort zone including organizational ones can be the biggest hurdle for process driven innovation
Product centered management is still somewhat restricting companies to improve customer-focused services and grow with new service business models.
Many organizations have set the target to launch and develop new customer services as a key element in their strategy.
According to P. Moore ( 1993) In order to adapt to the fast changing customer
needs, delivery of the services requires an ecosystem of organizations..
In many large organizations there is a strong tendency to seek for the clarity of old clear product and organization focused operating models. The value chain thinking and connecting as well connected leadership models can create an extended ecosystem approach
A holistic change is needed in order to design and implement an operating model that enables integrating and managing a set of contracts, indicators and measurements aiming to efficiently adapt a network of organiztions from sales to operations to fulfill customer needs and manage customer expectations.By leveraging ecosystems, companies can deliver complex solutions while maintaining corporate focus but it has to be concerned to contribute to the ecosystem construction as well.
The idea is that each business in the “ecosystem” affects and is affected by the others,
creating a constantly evolving relationship in which each business must be flexible, adaptable and open to new partnerships and evolving networks
The idea is that each business in the “ecosystem” affects and is affected by the others, be it companies, individuals, trendsetters research organization, governments and certain socio-economic events like ageing of society, obesity..
creating a constantly evolving relationship in which each business must be flexible, adaptable and open to new partnerships and evolving networks
- Part 2:Extend the integration of important elements into the strategic management
Co-operation based Strategic Management
Communication based sense making and receptivity
X
Wirtz,SJ
Resource based corporate Strategic Management
Y
ZThe 3 pillars are the axes x,y,z,
Thought-concept
Wirtz,SJ
Resource based corporate Strategic Management
Co-operation based Strategic Management
Communication based sense making and receptivity
X
Y
ZThe 3 pillars are the axes x,y,z,
4 reference platform focus on 4 strategic elements
Wirtz,SJ
Resource based corporate Strategic Management
Co-operation based Strategic Management
Communication based sense making and receptivity
X
Y
ZThe 3 pillars are the axes x,y,z,4 reference platform focus on 4 strategic elements:
Connected and connecting leadership
Focus on technology and related innovation
Market management
Industry/Arena specific identity
Wirtz,SJ
Resource based corporate St.M
Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
ConceptExecutionz4
ConceptExecutionz3
ConceptExecutionz2
ConceptExecutionz1
ConceptExecutionx3 Concept
Executionx4ConceptExecutionx2Concept
Executionx1ConceptExecutiony1
y2 ConceptExecution
y3 ConceptExecution
ConceptExecutiony4
This will lead to 64 activity blocks differentiated according strategy concept and strategy execution
Wirtz,SJ
Resource based corporate St.M
Co-operation based Strategic Management
Communication based sense making and receptivity
X
Y
Z
Hard-ware Soft-ware Tech-ware Customer/User - ware
Wirtz,SJ
Resource based corporate St.M
Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
What industriesarena one is in
How solutionscommercialized
Technologyother than used
Customer- experience mgt.
Wirtz,SJ
Resource based corporate St.M
Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
What industriesarena one is in
How solutionscommercialized
Technologyother than used
Customer- experience mgt.
Competing companies in the same arena, e.g. coffee are very different how they commercialize and address customers/users: Nescafé, Starbucks, illy and how they expand their eco-system, focusing also on co-operation in content and delivery, manipulating, breaking industry communication codes and symbols
Delivery
Industry codes, symbols, slogan
ContentContent
Wirtz,SJ
Resource based corporate St.M
Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
What industriesarena one is in
How solutionscommercialized
Technologyother than used
Customer- experience mgt.
Delivery
This is the standard strategic management approach, based on a company focused control-equity with limited out-side in orientation and seeing costumer experience management slowly as differentiation opportunity, cost reduction in outsourcing delivery and insourcing improved content
Industry codes, symbols, slogan
ContentContent
Wirtz,SJ
Resource based corporate St.M
Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
What industriesarena one is in
How solutionscommercialized
Technologyother than used
Customer- experience mgt.
Delivery
Industry codes, symbols, slogan
This is the standard strategic management approach, based on a company focused control-equity with limited out-side in orientation and seeing costumer experience management slowly as differentiation opportunity, cost reduction in outsourcing delivery and insourcing improved content
Eco-system 1, traditional collaboration based mostly on company strength and perceived opportunity
ContentContent
Wirtz,SJ
Resource based corporate St.M
Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
What industriesarena one is in
How solutionscommercialized
Technologyother than used
Customer- experience mgt.
Delivery
Industry codes, symbols, slogan
This is the standard strategic management approach, based on a company focused control-equity with limited out-side in orientation and seeing costumer experience management slowly as differentiation opportunity, cost reduction in outsourcing delivery and insourcing improved content
Eco-system 1, traditional collaboration based mostly on company strength and perceived opportunity
Market-com, social media
Uncontrollable social media already disrupts and makes ecosystem 1 additionally volatile
ContentContent
Content
Wirtz,SJ
Resource based corporate St.M
Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
What industriesarena one is in
How solutionscommercialized
Technologyother than used
Customer- experience mgt.Content
Delivery
Industry codes, symbols, slogan
This is the standard strategic management approach, based on a company focused control-equity with limited out-side in orientation and seeing costumer experience management slowly as differentiation opportunity, cost reduction in outsourcing delivery and insourcing improved content
Eco-system 1, traditional collaboration based mostly on company strength and perceived opportunity
Market-com, social media
Uncontrollable social media disrupts and makes ecosystem 1 volatile
Expanding to ecosystem 2.0
Wirtz,SJJ
Expanding to eco-system 2.0
According to James Moore 1993:Successful businesses are those that evolve rapidly and effectively. They must attract resources of all sorts, drawing in capital, partners, suppliers, and customers to create cooperative networks anticipate the managerial challenges of nurturing the complex business communities that bring innovations to market: Expansion Bring the new offer to a large market by working with suppliers and partners to scale up supply and to achieve maximum market coverage. Leadership Provide a compelling vision for the future that encourages suppliers and customers to work together to continue improving the complete offer. Self-Renewal Work with innovators to bring new ideas to the existing ecosystem
Wirtz,SJJ
Expanding to eco-system 2.0
Consumers are adopting increasingly active roles in
-co-creating marketing content with companies and their respective brands.
- In turn, companies and organizations are looking to online social marketing programs and campaigns in an effort to reach consumers where
they ‘live' online.
- However, the challenge facing many companies is that although they recognize the need to be active in social media, they do not truly understand how to do it effectively, what performance indicators they should be measuring, and how they should measure them ( Hanna R et all 2012 )
Wirtz,SJJ
Expanding to eco-system 2.0:Ecosystems are larger, more diverse, and more fluid than a traditional set of bilateral partnerships or complementors. By leveraging ecosystems, companies can deliver complex solutions while maintaining corporate focus:
Six keys to unlock ecosystem advantage:- pinpointing where value is created, - defining an architecture of differentiated partner roles, - stimulating complementary partner investments,- reducing the transaction costs, - facilitating joint learning across the network, and engineering effective ways
to capture profit. ( P.Williamson, A. de Meyer 2012)
Not ignoring three fundamental types of risk: -initiative risks—the familiar uncertainties of managing a project; -interdependence risks—the uncertainties of coordinating with comple-mentary innovators; and -integration risks—the uncertainties presented by the adoption process across the value chain. ( Ron Adner 2006 )
Wirtz,SJ
Expanding to eco-system 2.0:
Consumers are adopting increasingly active roles
- in co-creating marketing content - with companies and their respective brands.
In turn, companies and organizations are looking to online social marketing programs and campaigns in an effort to reach consumers where they ‘live' online. However, the challenge facing many companies is that although they recognize the need to be active in social media, they do not truly understand how to do it effectively, what performance indicators they should be measuring, and how they should measure them. ( see richthofer
Moore describes the evolutionary stages of a business-ecosystem as forms of cooperativechallenges
Birth Work with customers and suppliers to define the new value proposition around a seed innovation. Expansion Bring the new offer to a large market by working with suppliers and partners to scale up supply and to achieve maximum market coverage. Leadership Provide a compelling vision for the future that encourages suppliers and customers to work together to continue improving the complete offer. Self-Renewal Work with innovators to bring new ideas to the existing ecosystem.
Expanding to eco-system 2.0:
Wirtz,SJ
Resource based corporate St.M
Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
What industriesarena one is in
How solutionscommercialized
Technologyother than used
Customer- experience mgt.
Industry codes, symbols, slogan
Market-comSocial media
ITC, tele-matic, Graphics, EsRP
IMC, gurus brand identity, Trendsetters
Expanding to ecosystem 2.0:
Four additional areas of focus are added
ContentContent
DeliveryStandardization
Virtual company network
Part three: Construct building blocks and stepping stone
Wirtz,SJ
Resource based corporate St.M
Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
What industriesarena one is in
How solutionscommercialized
Technologyother than used
Customer- experience mgt.
Industry codes, symbols, slogan
Expanding to eco-system 2.0
Market-comSocial media
ITC, tele-matic, Graphics, EsRP
IMC, gurus brand identity, Trendsetters
Integrated market communication addressing inside and outside of companies, instrumentalization of gurus,Brand Identity of joint service, people connected leader
ContentContent
DeliveryStandardization
Virtual company network
Wirtz,SJ
Resource based corporate St.M
Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
What industriesarena one is in
How solutionscommercialized
Technologyother than used
Customer- experience mgt.
Industry codes, symbols, slogan
Expanding to eco-system 2.0
Market-comSocial media
ITC, tele-matic, Graphics, EsRP
IMC, gurus brand identity, Trendsetters
The ITC is both enabler and biggest hurdle creating cooperate networks, incompatibility ,EsRP that is too company focused, telematic as a language, lack of engineers, execution control via access level to IT
ContentContent
DeliveryStandardization
Virtual company network
Wirtz,SJ
Resource based corporate St.M
Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
What industriesarena one is in
How solutionscommercialized
Technologyother than used
Customer- experience mgt.
Industry codes, symbols, slogan
Expanding to eco-system 2.0
Market-comSocial media
ITC, tele-matic, Graphics, EsRP
IMC, gurus brand identity, Trendsetters
Achieving fast accepted standards in the network is a power, definition and user’s rights of IP is changing, free-conomics
ContentContent
DeliveryStandardization
Virtual company network
Wirtz,SJ
Resource based corporate St.M
Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
What industriesarena one is in
How solutionscommercialized
Technologyother than used
Customer- experience mgt.
Industry codes, symbols, slogan
Expanding to eco-system 2.0
Market-comSocial media
ITC, tele-matic, Graphics, EsRP
IMC, gurus brand identity, Trendsetters
Value chain co-operation among different companies, no red tape management, success orientation with failure tolerance,connecting leadership
ContentContent
DeliveryStandardization
Virtual company network
Wirtz,SJ
Resource based corporate St.M
Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
What industriesarena one is in
How solutionscommercialized
Technologyother than used
Customer- experience mgt.
Industry codes, symbols, slogan
Expanding to eco-system 2.0
Market-comSocial media
ITC, tele-matic, Graphics, EsRP
IMC, gurus brand identity, Trendsetters
The ITC is both enabler and biggest hurdle creating cooperate networks, incompatibility ,EsRP that is too company focused, telematic as a language, lack of engineers, execution control via access level to IT
Integrated market communication addressing inside and outside of companies, instrumentalization of gurus,Brand Identity of joint service, people connected leader
Achieving fast accepted standards in the network is a power, definition and user’s rights of IP is changing, free-conomics
Value chain co-operation among different companies, no red tape management, success orientation with failure tolerance,connecting leadership
ContentContent
DeliveryStandardization
Virtual company network
Content
Wirtz,SJ Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
What industriesarena one is in
How solutionscommercialized
Technologyother than used
Customer- experience mgt.Content
Delivery
Industry codes, symbols, slogan
Expanding to eco-system 2.0,Integrating 4 levels of conjoint orientation and meaning oriented activities:
Standardization
Virtual company network
Market-comSocial media
ITC, tele-matic, Graphics, EsRP
IMC, gurus Brand identityTrendsetters
Dialogue, ideatizingCreating knowledgecommunities,, action platforms
Tech-integration, virtualization, cloud,3 D printing, AR , IPE Standards,royalties,
POS, on/offline, connectivity, longtail m-commerce, blogs
cost
Cost control, Web3.0 C.I.,perceived quality, open vs closed, CSR, bundeling, investor relat
The four areas focus the co-operation and dys-functional discussions on a cohort of issues, therefore leading to integration and new arena differentiation. It provides meaning through understanding arising solution providers’ challenges.
Content
Wirtz,SJ Co-operation based St.M
Communication based sense making and receptivity
X
Y
Z
What industriesarena one is in
How solutionscommercialized
Technologyother than used
Customer- experience mgt.Content
Delivery
Industry codes, symbols, slogan
Expanding to eco-system 2.0,Integrating 4 levels of conjoint orientation and meaning oriented activities:
StandardizationVirtual company network
Market-comSocial media
ITC, tele-matic, Graphics, EsRP
IMC, gurus Brand identityTrendsetters
cost
Cost control, Web3.0 C.I.,perceived quality, open vs closed, CSR, bundeling, investor relat
Tech-integration, virtualization, cloud,3 D printing, AR , IPE Standards ,royalties,
POS, on/offline, connectivity, longtail m-commerce, blogs
Dialogue, ideatizingCreating knowledgecommunities,, action platforms
Wirtz,SJ
It results in 3D cube with 64 activity blocks like
It results in 3D cube with 64 activity blocks like a rubic cubic.
Communication based sense making and receptivity
Z
Y
X
Co-operation based Strategic Management
Resource based corporate Strategic Management
64 buildings block need then to be filled out and differentiated according to Strategic concept and strategic execution:
Block: x4,y4,z4Facilitating partner co-operation and managing the experience over timeConcepts:Customer experience management applied to partners and competitors,Momentum Effect:
Execution: Forum, TED and clubs originating joint activities and providing solution in an open source ware, funding start ups and spin offs
Wirtz,SJ