e. Strategy October 2000 e. Strategy -- Day 1 Inventing Marketspace for Internet Success Two Day Workshop October 2000 Stuart Henshall 1 stuart@henshall. com
e. Strategy October 2000 2 stuart@henshall. com
e. Strategy October 2000 Re-Inventing or Inventing? 3 stuart@henshall. com
e. Strategy October 2000 Why e. Strategy to invent the future? • “No matter how good your product you are only 18 months away from failure. ” • “You can’t shrink yourself to greatness!” • “Good Strategy is always subversive. ” • “Best Practice destroys companies and industries but still have to do it. ” • “Strategy as a Process of Discovery (rather than positioning)” • “It is no good sticking to your knitting if there is no demand for sweaters. ” • “Strategy is where to you want to go and how to get there. ” • “Maximise knowledge creation / minimise risk. ” Gates, Peters, Hamel, Porter, Prahalad, Nalebuff 4 stuart@henshall. com
e. Strategy October 2000 Discussion: Exploring Our Perspectives § How has your organization responded to the Internet? § Where are your current web initiatives concentrated? E. g. B 2 B, B 2 C, C 2 B, or C 2 C? § What new business model or net initiative do you find most interesting? § What is your core business in 5 years time? 5 stuart@henshall. com
e. Strategy October 2000 Outline: Day One - Inventing New Marketspace • • Orient & Explore the Driving Forces Changing Strategy Tools and Assessment Assess New Models Develop New Functionalities / Internet DNA Day Two - New Opportunities for Wealth Creation • • New Roles for COMsumers Synthesizing Emerging Business Issues Scanning Agenda Engaging the Organization 6 stuart@henshall. com
e. Strategy October 2000 Bubble or new order? 7 stuart@henshall. com
e. Strategy October 2000 “When new technologies disrupt entire industries, the worst thing you can do is stay close to your customers” Clayton Christensen “In the network economy, producing and consuming fuse into a single verb: prosuming” Not just technology but the power of: disruptive ideas Kevin Kelly 8 stuart@henshall. com
e. Strategy October 2000 Are common references more than just talk? • • • Globalization Intangibles Netification Atoms to Bits Speed - Real-time - 24/7/365 Mass Customization 9 stuart@henshall. com
e. Strategy October 2000 Discussion: Yes or No? • Will the web reshape your marketplace? • Are new players most likely to re-shape your competitive landscape? • Are your web initiatives a core business function? • Will your organizational structure change significantly? • Are you waiting for a web team to figure it out? 10 stuart@henshall. com
e. Strategy October 2000 Evidence of real economic productivity in new processes? Truly efficient companies, particularly in the first couple of waves of change, will be able to drive (overall) productivity at 20% - 40% per year. ” Typical Bank Transaction - 60 times! • • Teller $1. 25 Phone $. 54 Atm $. 24 Internet $. 02 Job application Health Care Co. John Chambers - Cisco Sept. 2000 • Traditional $128. 00 • Internet $. 06 11 stuart@henshall. com
e. Strategy October 2000 Discussion: Amazon or E-bay? • Where would you place money for the long term? Amazon or E-bay? Why? • Will Amazon ever make a profit? • What assets justify Amazon’s valuation? 12 stuart@henshall. com
e. Strategy October 2000 Discussion: Driving Forces / Emerging Models Driving Forces Emerging Models 13 stuart@henshall. com
e. Strategy October 2000 Evolution in e. Markets • • • Markets Industry Business Models Organizations Individuals Where is your attention? 14 stuart@henshall. com
e. Strategy October 2000 Starting points: § How quickly are new Internet models proliferating that expand the scope, scale and markets for information assets? § With exchange costs near zero how large is the opportunity for real-time information aggregation? § If Consumer data and knowledge become the most important resource in the knowledge economy, who will control it? 15 stuart@henshall. com
e. Strategy October 2000 How will markets and approaches evolve? What will prevail? End to End B 2 B One to Many B 2 C Supply Driven Old World 2000 Customer - Led New World Many to One C 2 B 2010? Many to Many C 2 C 16 stuart@henshall. com
e. Strategy October 2000 What drivers are at work on Industry Structure? Integration driven by: • Best practice in firm • Avoidance of intermediate stage competition • Economies of co-ordination Dis-integration driven by: • Best practice outside the firm • Rise of new entrants or new technologies and business models. • Falling costs of co-ordination Where is the tipping point where all businesses become web-businesses? 17 stuart@henshall. com
e. Strategy October 2000 How will knowledge types impact new economy business models? Explicit Knowledge Tacit Knowledge • • • Knowledge that has been articulated and codified in words or numbers Can be retrieved from the tacit knowledge grid and transmitted relatively easily. Intuitions, perspectives, beliefs and values that result from experience Can best be communicated interpersonally through dialogue with use of metaphors The mindsets (or mental models of individuals and the collective mindsets of the organizational culture. 18 stuart@henshall. com
e. Strategy October 2000 So many new ways to capture attention? Upcoming Data Explosion • • GPS systems Wireless SMART things, things that think, SENSORS Voice, voice activation Wearable always on computing Nano, manufacturing at the molecular level Genomics and Bio-informatics 19 stuart@henshall. com
e. Strategy October 2000 New marketspace fueled by knowledge / global connectivity. Demand Driven Idea Driven Open / Facilitating Many to Many C 2 C Competing for Knowledge End to End B 2 B Competing for Attention cy it en lic par p s Ex ran T Many to One C 2 B Closed/ Mediating Process Driven Supply Driven One to Many B 2 C it ac st T ru T Different Knowledge Markets? • How is competitive space changing? What opportunities for codification and standards? • What’s the real worth of a datamine? How might new recipes be found? • How will consumers gain leverage in data markets? • Where are new forms of idea exchanges emerging? 20 stuart@henshall. com
e. Strategy October 2000 Will new info aggregators rule? How quickly will your business become commoditized? • • • lowest price / easy to switch direct sourcing transparent margins informed customers inventory eliminated multiple model and feature combinations • new functionality • scope vs scale • agents see www. botspot. com • What % before current model breaks down? 10% now, 30%? • Old value chain deconstructed, no meaning in old context! • Profit a function of Innovation • Recombinant models? • New Alliances? 21 stuart@henshall. com
e. Strategy October 2000 E-commerce changing traditional strategy approaches Idea Driven Open / Facilitating O V pt al im ue iz at io n l na y io at enc r pe fici O f E y nc Data Markets Competing for Knowledge Efficiencies & Standards Efficiencies Connectivity Processes Recipes Many to Many C 2 C Competing for Attention it e lic par p s Ex ran T Aggregation Agents / Bots Navigators Info-mediaries One to Many B 2 C Closed/ Mediating Process Driven it ac st T ru T 22 stuart@henshall. com
e. Strategy October 2000 Changing Rules for Consumer Attention • • • Open source movement Competing for permission 1 to 1 marketing - personalization From killer website to web business Markets are conversations 23 stuart@henshall. com
e. Strategy October 2000 Emerging knowledge markets driven by new interactions Idea Driven Open / Facilitating Conversations Facilitated Co-creation C 2 B Competing for Knowledge End to End Efficiencies B 2 B & Standards Competing for Attention cy it en lic par p s Ex ran T Many to One Data Markets e tim ns al tio Re nc Fu Idea Exchanges Datamines Closed/ Mediating Process Driven Customization Datamines Collaborative Filters it ac st T ru T P Pe riv rm ac is y / si on 24 stuart@henshall. com
e. Strategy October 2000 Tomorrow’s attention? Demand Driven Idea Driven Open / Facilitating Competing for Knowledge End to End B 2 B Many to Many C 2 C Competing for Attention cy it en lic par p s Ex ran T Many to One C 2 B ew Are n lities na nctio from fu ng comi re? he One to Many B 2 C Closed/ Mediating Process Driven Supply Driven it ac st T ru T 25 stuart@henshall. com
e. Strategy October 2000 Changing approaches to market • • • Customers Product Operational C 2 C / P 2 P Real-time Privacy / Permission Value Optimization Operational Efficiency Community Market Connectivity 26 stuart@henshall. com
e. Strategy October 2000 Current Models and Tools Learning Objectives: • How do you model your business? • Describe your planning system. • What’s in your strategy toolkit? • Overturning strategic assumptions! 27 stuart@henshall. com
e. Strategy October 2000 Discussion: Starting Point Modeling the Business • As a group select a business, either one you all use or one someone can represent. • Using post-its, how would you model it? How and where is the value created? How are the components defined? 28 stuart@henshall. com
e. Strategy October 2000 Traditional Strategy Assumptions and Themes • Industry Structure is a given • Differentiation within a structure possible • Limited number of Strategic Options • Stability of Industry Structures • Barriers to Entry Did we see the underlying patterns and assumptions? 70’s How do you Integrate? 80’s How do you explain profits? 90’s How do you root in competencies? 00’s ? Create wealth in a Knowledge Economy? 10’s ? Facilitate migration in ecological systems? ? 29 stuart@henshall. com
e. Strategy October 2000 Old Views of Strategy are dead! • Industry Structure: • View tries to predict winners, using a static view that if the structure is A then the profit is B. Helps to explain why winners are winners. (Porter) • Guru Think: • Adapted from current excellent companies and written into management books. (Hamel & Prahalad) 30 stuart@henshall. com
e. Strategy October 2000 Mintzberg thinking In St tend ra te ed gy Deli bera Unrealized Strategy Str t te S g ate trate y gy Realized Strategy n Em rge e 31 stuart@henshall. com
e. Strategy October 2000 Getting a flavor for e. Strategy? CK Prahalad-1999 • • • Theory of innovation and discovery Create a social architecture and get individuals at the heart of the process Values give energy and enthusiasm to us all We need to develop communities of interest Continued searching for new sources of advantage Being unique. Creating wealth, reducing risk in new investments and use of manager’s time. Inventing new rules and new games. • Inventing new market space • Providing new functionality • Creating new networks • Stimulating new wealth creation 32 stuart@henshall. com
e. Strategy October 2000 Why is e redefining strategy? • • Ecological Emerging Endless Energetic Engaging Entertaining Enveloping Environmental Discuss: • How does your planning process work? • Who? Participants? • Time? Frequency? • Resource allocations • Play? 33 stuart@henshall. com
e. Strategy October 2000 Three challenges for the e. Strategist • Strategic opportunities are created by the spontaneous creation of new business models. (Strategies are solutions that deal with problems) • Opportunities are created by industry transitions, but to understand transitions need to turn industries upside down. • Stimulating growth that generates further learning by the network or whole system. 34 stuart@henshall. com
e. Strategy October 2000 Plus…. Most companies wreck their own strategies • Sustaining a unique position requires tradeoffs. Trade-offs are incompatibilities between positions that create the need for choice. – Providing more of A necessitates less of B – Serving Customer X well means not serving customer Y. • Tradeoffs increase the cost of imitation and thwart competitors Michael Porter 35 stuart@henshall. com
e. Strategy October 2000 And…. . Change can be difficult. • Beware of simple singular changes • Activities are complementary when changes that increase Boundaries the effectiveness of some activities in the group influence change to take Uncertainty Importance place in others. • Only a small % (<5%) of co’s do all three simultaneoulsly Structures Processes Change Renewal 36 stuart@henshall. com
e. Strategy October 2000 An emerging school of thought? 37 stuart@henshall. com
e. Strategy October 2000 Yesterday’s strategy questions: asked about a business • Why do your customers buy from you, why don’t they go to a competitor, or make it (do it) themselves? • Which competitor do you admire most? Why? • In what respects are you different? What is unique about you? • How do you justify your superiority claim? • How do you sustain your uniqueness? Why can’t competitors not do the same thing and in that way compete away your competitive advantage? • Where do you make your strategic investments, that allow you to maintain your distinctiveness? 38 stuart@henshall. com
e. Strategy October 2000 Changing concepts • • • new economic networks non-linear growth more gives more make virtuous circles follow the free anticipate the cheap feed the web first knowledge resources the net wins chaordic organisations shifting boundaries of loyalty and affiliation 39 stuart@henshall. com
e. Strategy October 2000 Network Economics • Five Key Rules • Shapiro & Varian • Exploit the “Network Effect • Differentiate your information product • Don’t overprotect your property. • Lock-in Users (& Wisdom Employees) Knowledge • Cooperate on Information Standards Data 40 stuart@henshall. com
e. Strategy October 2000 Changing Forms of Value Creation Integrator (linear to market) P&G, Nestle, NZDB Layer Player (horizontal resources) Temporary Employment Agency Orchestrater (Knowledge Strategies) Nike, Sara Lee Market Manager (e. g. portal) Sabre, Autobytel, Marshall Industries 41 stuart@henshall. com
e. Strategy October 2000 Linking the Chain Figure 1: Inter-enterprise Business Processes Enabled by E-Commerce Applications http: //www. firstmonday. org/issues/issue 4_12/fingar/index. html 42 stuart@henshall. com
e. Strategy October 2000 Integrating applications Figure 7: Key Application Drivers for I-Markets http: //www. firstmonday. org/issues/issue 4_12/fingar/index. html 43 stuart@henshall. com
e. Strategy October 2000 Cisco Model: good/services, knowledge and intangibles Flows & Influence Source: www. actnet. com 44 stuart@henshall. com
e. Strategy October 2000 How do you create a value web? M Sawhney Business 2. 0 45 stuart@henshall. com
e. Strategy October 2000 Focus on Customers M Sawhney Business 2. 0 46 stuart@henshall. com
e. Strategy October 2000 M Sawhney Business 2. 0 47 stuart@henshall. com
e. Strategy October 2000 Discussion: Modeling II • Reviewing your model, the Cisco and Swahney examples. Could new ways emerge to model your example? • Reviewing your model what are the four or five functions that are most important? Why? • Underlying structure? Influence? • What issues are emerging for how we should begin to model our organizations? 48 stuart@henshall. com
e. Strategy October 2000 New Models! Learning Objectives • new models • functionalities • web taxonomies • client is server • swarms! • pricing / strategies / usability 49 stuart@henshall. com
e. Strategy October 2000 From aggregated buy to auction! How shall I shop? 50 stuart@henshall. com
e. Strategy October 2000 Real time payments without a bank! How will I pay? 51 stuart@henshall. com
e. Strategy October 2000 New methods to share and distribute! How will I network? 52 stuart@henshall. com
e. Strategy October 2000 Species versus species • • New competitive landscape Genetic structure Idea genes new DNA of value Viruses infect the network Fast Company August 2000 53 stuart@henshall. com
e. Strategy October 2000 Web Taxonomy and Functionalities • • Where is the gene pool? How do you categorize them? Can you identify new functionalities? Are new hives emerging? Best of web searches+ 54 stuart@henshall. com
e. Strategy October 2000 “Functionalities” the DNA for tomorrow’s strategist! • Functionalities are the DNA which enable the business to interact with its customers • Just as the different genomes contribute to success or failure of an animal species so it is with these business models – only life and death is faster! 55 stuart@henshall. com
e. Strategy October 2000 Functionalities around ebay Auctions www. ebay. com Browsing Reporting Realtime Auctions Feedback • Categorization • Forums Safe Harbor Passwords Registration Personalization Privacy Policy ebay pioneers the market. Position circa mid 1999 Search 56 stuart@henshall. com
e. Strategy October 2000 Functionalities for emerging marketspace • Deconstruct any internet business into its component functionalities and show the “genes” combine to create the business and thus its value. • Competitors with more of the right genes will ultimately destroy businesses with inferior DNA. Possible clues for the investor and manager. 57 stuart@henshall. com
e. Strategy October 2000 Functionalities around the online auction market Anywhere Browsing Mail Reporting Contact Realtime Feedback Auctions Rates Categor. Compar. Appraisals ization isons Auction Forums Counters News Links Safe Passall Harbor words Auctions Payment Regis. Person. Systems tration alization Privacy E-Post. Search Policy cards www. ebay. com www. auctionwatch. com • • Ebay pioneers the market. Massive number of new entrants Auctionwatch links auctions Simplifies search and find function 58 stuart@henshall. com
e. Strategy October 2000 Discussion: Creating Corporate DNA! • Functionality: How might changing Internet functionality re-define your model? Reorganize as the customers value star? • Intermediation: Identify intermediaries that change the proposition behind your business or industry. Using the additional functionalities identified in the list identify new possible combinations. • What value added benefits are provided by this proposition? Who’s who in the food chain? Are new possible species emerging? 59 stuart@henshall. com
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e. Strategy October 2000 Explore new marketspace • Metrics for knowledge and attention • Evolving web functionalities • Developing the value star around cognitive space? 61 stuart@henshall. com
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e. Strategy October 2000 Cautions for Revolutionaries Consider some metrics to identify: • § § § Where are there scaling bottlenecks? Similarly where will new points of friction arise? Will everything scale? We need to also look for those things that won’t scale. E. g. customer support is having difficulty scaling. How do you handle flash point crowds? What is your web site coefficient? Where are you in the food chain? How many other web sites rely on you and vice versa? Of those you rely on what are their web site coefficients? In a community and cooperative world is your web site the coefficient king? Are you measuring inflows and outflows? Is your COMsumer community knowledge base and power increasing or decreasing? Are you actively connecting new markets, intermediating or facilitating? What metrics are you using to define the above? Are you measuring your adaptation and change. What level of transparency exists on your site? What happens if every one you ever did business with pooled their information? Simply everything is on the net. 63 stuart@henshall. com
e. Strategy October 2000 Possible trajectory for COMsumer empowerment • Information aggregation • Customized personalized Interactions • Empowered COMsumers participate in personal information markets COMsumer, the word coined to describe new empowered Tipping Point communities comes from the Latin com plus sumere Significance meaning - to take together. 64 stuart@henshall. com
e. Strategy October 2000 Changing role of information from a suppliers point of view Reach E- marketing enabled • • Direct Scope / Scale Transparent values / prices 24/7 -- Real-time Search / Finding Multipliers Info-mediaries Rich Info Traditional marketing trade-off Richness 65 stuart@henshall. com
e. Strategy October 2000 Framing aggregation power from a consumer point of view Value of connectivity E- marketing enabled • • Aggregation power driven by increasing computing power and declining cost of connectivity. From singular to community aggregation. Traditional marketing trade-off Richness 66 stuart@henshall. com
e. Strategy October 2000 Who will obtain value from mass customization? Value of connectivity E- marketing enabled • How is this space expanding? • Internet communications fueling massive new data sources. Think consumer information accounts and infomarkets Traditional marketing trade-off Quality of Relationships 67 stuart@henshall. com
e. Strategy October 2000 Empowering communities of consumers COMsuming Value of connectivity E- marketing enabled Communities • How is this COMsumer space Empowerment expanding? • Real-time information aggregation of consumer owned data records. Records reside with individuals and communities Traditional marketing trade-off Quality of Relationships 68 stuart@henshall. com
e. Strategy October 2000 COMsumer forces at play • How quickly will your business be commoditized? • How long before real dot-com enabled communities of consumers emerge / are empowered? • What is the role of transparency and trust? • At what point is data collection an invasion of privacy and permission withdrawn? • What is the impact of “real-time” on developing new consumer functionalities? 69 stuart@henshall. com
e. Strategy October 2000 Broad trend implications • The customers are in charge; a clear shift in the balance of power to customers (1 to 1 marketing) • Shifting the base of profits from data to information to knowledge to insights! • Shifting basis for Market influence from vertical integration to horizontal relationships, rise of alliances • From “proprietary-to-vendor” to open systems • Market share to competency share to share of mind • From quality to cycle time to real-time 70 stuart@henshall. com
e. Strategy October 2000 The COMsumer Manifesto 71 stuart@henshall. com
e. Strategy October 2000 COMsumers a new stage of e-commerce • The future will be shaped by new exchanges between communities of consumers empowered by the further evolution of the Internet. • The premise is that information belonging to communities of consumers will be the most important resource in the new knowledge economy. • COMsumer, the word coined to describe these communities comes from the Latin com plus sumere meaning - to take together. 72 stuart@henshall. com
e. Strategy October 2000 The COMsumer Manifesto 73 stuart@henshall. com
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e. Strategy October 2000 e. Strategy -- Day 2 The COMsumer Manifesto Two Day Workshop October 2000 Stuart Henshall 75 stuart@henshall. com
e. Strategy October 2000 Don Tapscott Business 2. 0 76 stuart@henshall. com
e. Strategy October 2000 New roles for consumers • • Consumer Power Communities evolution and examples www. realcommunities. com www. electric minds. com www. away. com www. epinions. com www. amazon. com www. arsdigita. com 77 stuart@henshall. com
e. Strategy October 2000 Personal information markets • What’s left if your consuming community takes charge? • COMsumer hives • Demand driven • Highly efficient and responsive information markets • Info-portfolios • We own so we care 78 stuart@henshall. com
e. Strategy October 2000 COMsumer challenges to organizations • Internet courtesy means seamlessly providing your customers with electronic copies of all transactions into their info-accounts • Standards and formats for seamless data exchanges will grow in importance. • Real-time aggregation will enable the info records to be held by the individual consumers • Invest in creating new data-markets, rather than exploiting existing data mines, turn over your corporate databases about your customers to them! 79 stuart@henshall. com
e. Strategy October 2000 If the COMsumers own their own data, is this how they think about it? Info-Markets Our Info Community Leverage Private My Data Private my eyes only Data for Sale My info for payment Private Public Info-Accounts Public Blind Packets Negotiation without name 80 stuart@henshall. com
e. Strategy October 2000 Privacy approaches proliferating 81 stuart@henshall. com
e. Strategy October 2000 Privacy and security • How much is known about you? • How accurate is it? • How is the data exchanged, and do you have any control of the standard or format? • • • As data becomes more contested, competition for information will intensify. Consumer privacy will be more frequently violated. Rich, nameless, but highly distributed and encrypted data records are possible. Consumers will soon recognize that they do not have to share their info or data, By negotiating for their data they can either save money, or simply make dollars by selling their information or time. 82 stuart@henshall. com
e. Strategy October 2000 Possible models: How might they be brought together? • Go Fetch - Changing the couriers paradigm. My purchase, my collection system. • Anti-port - Who should own customer feedback? It’s our feedback! • Nutrinomics - sensors, nutritional information and genomics combine • Car purchase to meta-market; associated leverage. 83 stuart@henshall. com
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e. Strategy October 2000 Panel Session 85 stuart@henshall. com
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e. Strategy October 2000 Emerging Business Issues • • Empowering consumers Money making in a Napster world? Networks Intangibles etc. 87 stuart@henshall. com
e. Strategy October 2000 Will COMsumers emerge by traditional means? Even now, COMsumers are • Accumulating transaction information • Changing their behavior by searching the web for new functionalities • Listing their preferences for future purchases • The age of community owned information assets and info-exchanges for info-funds is just around the corner • Will information strategies change? • Will product and services strategies change? • Could other possible systems approaches emerge? 88 stuart@henshall. com
e. Strategy October 2000 Redirect information resources to responding! § Facilitate new markets don’t mediate a fixed space § Provide transparent information and docking (interconnect) systems. No record --- no business. § Adopt new adaptive approaches to information architecture and standards. § Turn over your corporate database to your customers. § Consider measuring the rate with which your COMsuming communities are learning. 89 stuart@henshall. com
e. Strategy October 2000 Plentiful information; COMsumer Product and Service Strategies Look to other scarcities that help to develop the value of their products and sustain their position. § Focus on design. Add tactile and personal touches § Generally the trend to transparency will make products and services delivery more functional, descriptive, factual, guaranteed, purpose driven. § Focus on integration, interconnectedness, and longevity or upgradablilty. § Re-evaluate your media position and communication mix. § Recognize your developers and personalize their contributions. 90 stuart@henshall. com
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e. Strategy October 2000 A different form of paradigm "I realized that this wasn't about swapping MP 3 s [music files] but a cool new technology. " It was the basis of a New Age search engine--one that wouldn't just search for music on people's computers but would hunt down anything anyone wanted to anonymously share with the outside world, ” Gene Kan 23 "The idea of file sharing is the most important development on the Web since the browser……. One of the problems with the recent evolution of the Internet is that it has become too centralized……. It's all up to something in the middle to determine what you see. Gnutella's technology blows that up. It mirrors the original architecture of the Internet. ” Marc Andreesen - Netscape Founder 93 stuart@henshall. com
e. Strategy October 2000 Changing the world? http: //www. napster. com/index. html 94 stuart@henshall. com
e. Strategy October 2000 How far can the Napster community go? Brokering new relationships! (1) The user logs on to the database, adding his music catalogs to a master database. (2) A song search is initiated through the Napster database. (3) Database finds the song on computer C. (4) User downloads song in MP 3 format directly from computer C. 95 stuart@henshall. com
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e. Strategy October 2000 Swarms: A bottom-up phenomena Fish in schools, birds in flocks, bees and ants in swarms, coordinated masses of individual “agents”. ------Boids ----- Craig Reynolds • As a Boid maintain a minimum distance from other objects and Boids in the environment • Try to match velocities with boids in its neighborhood • Try to move towards the perceived center of mass of Boids in its neighborhood 97 stuart@henshall. com
e. Strategy October 2000 Swarms: Evidence • • • Cybiko Xenote Graviton Indranet DSL networks 98 stuart@henshall. com
e. Strategy October 2000 Not everything can swarm • Tangible goods and process delivery – facilitated by banks – more transparent - more involving • What kind of organization rewards individuals for knowledge, – best leverages the co-creation activity? – rise of the incubator? • Is there any difference between employees and customers? • What are the implications for the firm? 99 stuart@henshall. com
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e. Strategy October 2000 Scanning from the future • What is the risk / opportunity for implementing e. Strategy approaches? • e-zines • intranets • discussion groups etc 101 stuart@henshall. com
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e. Strategy October 2000 Discussion: e. Strategy challenges • What key challenges are e. Strategy concepts presenting to the future of your business? And how will you address? • Brainstorm a list! • Agree on three key questions we must ask as estrategists? 103 stuart@henshall. com
e. Strategy October 2000 New strategy questions? - asked about community • What is your community network proposition for value creation? What holds it together? • Which new start-up or functionality do you admire the most? Why? • What is the unique combinatorial that makes you different? What is unique about this market? • How do you facilitate learning and knowledge creation? • How do you build alliances and further partnerships? Why would others prefer to join rather than compete? • Where is the personal time invested, that enables the community to expand its connectivity? 104 stuart@henshall. com
e. Strategy October 2000 Emergent strategies/ hidden rules - strategic conversations • • • new voices new conversations new perspectives new passions experimentation • experimentation vs. risk management Gary Hamel 105 stuart@henshall. com
e. Strategy October 2000 Users guide to holding a strategic conversation • • • Create a hospitable climate Establish an initial group, including key decision makers and outsiders Include outside information and outside people Look ahead far in advance of decisions Begin by looking at the present and past • • • Conduct preliminary scenario Work in smaller groups Play out the conversation Live in a permanent strategic conversation The question of identity: evading the “Official Future” Strategic conversations on a small scale Peter Schwartz “The Art of the Long View” 106 stuart@henshall. com
e. Strategy October 2000 The issue now for strategists and market makers? Competence Intellectual Leverage Capability 107 stuart@henshall. com
e. Strategy October 2000 The emerging “involve me” world High “Trust me” Trust “Involve me “Tell me” “Show me” Low High Transparency As trust diminishes, the demand for transparency in the form of assurance mechanisms increases Shell International SDG 108 stuart@henshall. com
e. Strategy October 2000 Knowledge turns • • Idea derived from Inventory turns indicator of the industrial era Knowledge Turns = Ability to build upon Other’s Capabilities * Level of Distrust • OC’s can be Individuals, Suppliers, Customers, Alliances, LOB’s etc Finding Faults 0. 1 0. 5 TRUST • 1 Finding Strengths 5 10 DISTRUST Multiplier scale runs from 0. 01 to 100 a very sensitive indicator; see “The Network Multiplier” at www. kcindex. com 109 stuart@henshall. com
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e. Strategy October 2000 Discussion starters: Developing the scanning agenda • Scanning for trust • Scanning to resolve whether information really wants to be free • How will you empower your customers? • How will money be made in a Napster style world? • Think upstream 111 stuart@henshall. com
e. Strategy October 2000 Discussion: Developing the scanning agenda Old Assumptions New Beliefs Implications for Strategy Research Scan Monitor 112 stuart@henshall. com
e. Strategy October 2000 Beyond the knowledge tree Leif Edvinsson Scandia 113 stuart@henshall. com
e. Strategy October 2000 Knowledge processes for Top Team, Working Leaders, Front Line Staff • Leadership (competency acquisition) TT – stretch capabilities / develop future scenarios, stakeholder network / knowledge goals (Hamel), • Learning (knowledge development) WL – deepen understanding of what is / past history, community of practice network (Senge) • Leverage (capability enhancement) FLS – harness speed, scale, scope of present activities, employees network of contacts (Kaplan) All Build Links to the Future 114 stuart@henshall. com
e. Strategy October 2000 Inventing the Future WL Leverage advantages by extending scope and scale Lea r g era v nin g e FLS Le Maintain vitality and deepen the understanding Stretch capabilities for continuous improvement TT Innovate or Evaporate ! 115 stuart@henshall. com
e. Strategy October 2000 Networking integrates the basis for e. Strategy Knowledge Strategies 116 stuart@henshall. com
e. Strategy October 2000 e. Strategy: Summary of concepts • Innovative concepts rule - short life cycles - the Internet is a revolutionary medium for positive economic feedback loops • Intangible assets are very much more valued at last! If possible rent -- don’t own -- your needed tangible assets • Complexity theory shows promise to help create tomorrow’s “community of influence”- driven organizations • Navigating the scenarios of the landscape for maximum reach and richness with minimum risk for consumers will see the development of community-owned networking portals whose leaders will invent the future • Consumers will claim the market capital represented by their personal information for themselves -- by becoming COMsumers!! 117 stuart@henshall. com
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e. Strategy October 2000 Communication process • Investigate & Follow-up • Building the Flight Simulator for my Network • Giving the “Elevator Speech!” 119 stuart@henshall. com
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e. Strategy October 2000 New E-Strategy Essentials • Conversations between a community of stakeholders about their con-joint future • A future navigating process for the agreed direction -strategic intent - which can learn from uncertainty • The community delivers the value network desired for all stakeholders and has the capability for ongoing self-renewal • From Value Appropriation to Value Creation for the Community is the new moral contract for delivering value to the wider society and growing their organization 121 stuart@henshall. com
e. Strategy October 2000 Future of e. Strategy • Strategy must be rooted in the language the community uses and the meaning of these individualised (intellectual / mental) concepts exploited through scenarios - so creating strategic options for the community. • Thus defining the new or augmented knowledge turns needs of the community is the prime output of the generation of strategic options. 122 stuart@henshall. com
e. Strategy October 2000 Discussion: Communicating e. Strategy • Investigate & Follow-up • Building the Flight Simulator for my Network • Giving the “Elevator Speech!” • • • What will we tell the people back home? Role play your first meetings with your colleagues In groups prepare a 5 min “event” for presentation to: – your subordinates, your peers, your boss, respectively. • Everyone should have a role in these attempts at “theatre-sports”! 123 stuart@henshall. com
e. Strategy October 2000 124 stuart@henshall. com
e. Strategy October 2000 Are you prepared to? • Radically change the way you think about work and your roles in organizations (especially large ones) • Make your organization a web-business • Expand your ‘community’ networks by a factor of 10+ • Scan for uncertainties and new functionalities • Extend your strategic conversation to cultivate new forms of involvement and feedback. • Seek to participate in world benchmarks and standard setting • Proactively manage your information assets 125 stuart@henshall. com
e. Strategy October 2000 Become a COMsumer • • Activist on data Demanding on transparency Understanding of consuming communities Facilitate innovation and empower markets • Go and encourage your organization to embrace the COMsumer movement. 126 stuart@henshall. com
e. Strategy October 2000 e. Strategy -Inventing Marketspace for Internet Success 127 stuart@henshall. com
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