Business Strategy | What Changes under Uncertainty
Business model upheaval, the pace of technological change, the inter-connectedness of people ideas and economies, and shifting geo-political power are all challenging traditional ideas in business strategy.
This does not mean the end of strategic business planning.
What it does mean is that business strategy development must now be more like insightful conversation; rather than endless spreadsheets masquerading as strategic direction.
In addition strategists must understand, compete across, and adapt to, a much broader range of strategic environments, each requiring distinct approaches and capabilities.
Business Strategy | Positioning and Configuration
In simpler times firms who occupied a dominant position in the supply chain – or the business landscape – could still deliver above average returns even if they were sub-optimal in configuring and managing their internal resources and core competencies.
Similarly firms who exceled at configuring and managing their internal resources and core competencies, but did not occupy a dominant position in the competitive landscape, could also deliver above average returns.
Given the ease with which technology and capital can now reconfigure whole markets and business models, organisations must now excel at positioning and configuration.
And strategy development must now include both.
Business Strategy | Our Approach
The unique approach adopted by Inovyse ensures that as we develop and support business strategy for our clients, industry positioning and the configuration of resources and competencies are simultaneously considered and optimised.
At the core of our approach are four key principles:
1 Recognising the leverage and potential disruption of industry structure on strategic choices
2 Understanding that current industry conditions should not in isolation determine firm strategy;
3 Belief in the power of organisational actions to change and affect industry structure and firm performance; and
4 Acknowledging and harnessing serendipity and accident in developing strategy under uncertainty.