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 industries
2. 3 pilars of meaning based strategic
management
costumer
Wirtz,SJ
3. 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 alike
being 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
4. 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
6. Part 1:
The company links the inside performance with the market performance
Leadershi
p
Meaning
based
inside
outside
People
Promotion
Positioning
Materialisatio
nbased
Production
Product/Service
Place
Efficiency
based
Process
Price
Strength and Weakness SW OT Opportunity and Threat
Wirtz,SJ
7. There two genuine strategy development processes with
implication for strategic change management
A. Prescriptive model of business strategy
Options
Environment
Purpose
Options
The prescriptive
strategy process
Lynch, 2008
Choice
Implement
Resources
Options
is the usual approach and neglects often the limitations that an
existing organisation and its culture limits the strategic options
8. B. Emergent model of business strategy
The emergent
strategy process
– based on Quinn
1990, Senge 1990,
Argyris 1977,
Mintzberg 1987
and others
Environment
Purpose
Resources
Strategy
development and
implementation
Keypoint: creative,
experimental, more
difficult to describe
but essential
according Lynch,
9. What is strategic change management?
One approach to emergent processes
Environment
Strategic Change
Management issues to open
the company towards
networking
Purpose
Resources
,
Strategy
development and
implementation
Emergent theories
include:
•Survival-based
•Uncertainty-based
•Human resource-based
•Innovation and learningbased
13. Current wave of business model: e.g. Osterwalder:
Key
Partners
Key
Activities
Key
Resources
Cost
Structure
Value
Proposition
Customer
Relationships
Customer
Segments
Channels
Revenue
Streams
Consider important environment issues but more as impact on the company than stepping stone
14. 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
Wirtz,SJ
15. In emerging markets a SWOT analysis should be extended highlighting the evaluation,
estimation process by regrouping SWOT into a:
SOWT Analysis
inside
Strengths
outside
Opportunities
OverEstimate
Under-
Weaknesses
Threats
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
16. Exploring emerging environment and create meaning based activities
The cynefin framework
Watch the explaination: http://www.youtube.com/watch?v=N7oz366X0-8
17. 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
Wirtz,SJ
18. 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.
19. 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
20. - Part 2:Extend the integration of important elements into the strategic management
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
21. Thought-concept Communication based sense
making and receptivity
Z
The 3 pillars are the axes x,y,z,
Resource based corporate
Strategic Management
X
Y
Co-operation based Strategic Management
Wirtz,SJ
22. Communication based sense
making and receptivity
Z
The 3 pillars are the axes x,y,z,
4 reference platform focus on 4 strategic elements
Resource based corporate
Strategic Management
X
Y
Co-operation based Strategic Management
Wirtz,SJ
23. Communication based sense
making and receptivity The 3 pillars are the axes x,y,z,
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
Y
Co-operation based Strategic Management
Resource based corporate
Strategic Management
X
Wirtz,SJ
24. Communication based sense
making and receptivity
Z
z4
Concept
Execution
z3
Concept
Execution
z2
Concept
Execution
z1
y1
Concept
This will lead to 64 activity blocks
differentiated according strategy concept
and strategy execution
Resource based
corporate St.M
Concept
Execution
Concept
Execution
x1
Concept
Execution
x2
Concept
Execution
x3
Concept
Execution
x4
Concept X
Execution
y2 Execution
Concept
y3 Execution
y4
Concept
Execution
Y
Co-operation based St.M
Wirtz,SJ
25. Communication based sense
making and receptivity
Z
Resource based
corporate St.M
Hard-ware
Y
Co-operation based Strategic Management
Soft-ware
Tech-ware
Customer/ X
User - ware
Wirtz,SJ
26. Communication based sense
making and receptivity
Z
Resource based
corporate St.M
CustomerX
What industries How solutions Technology
arena one is in commercialized other than used experience mgt.
Y
Co-operation based St.M
Wirtz,SJ
27. Communication based sense
making and receptivity
Z
Resource based
corporate St.M
Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content
Delivery
Y
Co-operation based St.M
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
Wirtz,SJ
28. Communication based sense
making and receptivity
Z
Resource based
corporate St.M
Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content
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
Y
slowly as differentiation opportunity, cost reduction in
Co-operation based St.M outsourcing delivery and insourcing improved content
Wirtz,SJ
29. Communication based sense
making and receptivity
Z
Eco-system 1, traditional collaboration
based mostly on company strength and
perceived opportunity
Resource based
corporate St.M
Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content
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
Y
slowly as differentiation opportunity, cost reduction in
Co-operation based St.M outsourcing delivery and insourcing improved content
Wirtz,SJ
30. Communication based sense
making and receptivity
Z
Uncontrollable social
media already
disrupts and makes
ecosystem 1
additionally volatile
Eco-system 1, traditional collaboration
based mostly on company strength and
perceived opportunity
Market-com,
social media
Resource based
corporate St.M
Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content
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
Y
slowly as differentiation opportunity, cost reduction in
Co-operation based St.M outsourcing delivery and insourcing improved content
Wirtz,SJ
31. Communication based sense
making and receptivity
Z
Uncontrollable social
media disrupts and
makes ecosystem 1
volatile
Expanding to ecosystem 2.0
Eco-system 1, traditional collaboration
based mostly on company strength and
perceived opportunity
Market-com,
social media
Resource based
corporate St.M
Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content
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
Y
slowly as differentiation opportunity, cost reduction in
Co-operation based St.M outsourcing delivery and insourcing improved content
Wirtz,SJ
32. 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,SJ
33. 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,SJ
34. 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
35. 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
Wirtz,SJ
36. Expanding to eco-system 2.0:
Moore describes the evolutionary stages of a business-ecosystem as forms of cooperative
challenges
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.
37. Part three: Construct building blocks and stepping stone
Communication based sense
making and receptivity
Expanding to ecosystem 2.0:
Z
IMC, gurus
brand identity,
Trendsetters
Four additional areas of focus are added
ITC, tele-matic,
Graphics, EsRP
Market-com
Social media
Resource based
corporate St.M
Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content
Delivery
Standardization
Virtual company
network
Y
Co-operation based St.M
Wirtz,SJ
38. Communication based sense
making and receptivity
Z
IMC, gurus
brand identity,
Trendsetters
Expanding to eco-system 2.0
Integrated market communication addressing inside
and outside of companies, instrumentalization of gurus,
Brand Identity of joint service, people connected leader
ITC, tele-matic,
Graphics, EsRP
Market-com
Social media
Resource based
corporate St.M
Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content
Delivery
Standardization
Virtual company
network
Y
Co-operation based St.M
Wirtz,SJ
39. Communication based sense
making and receptivity
Z
Expanding to eco-system 2.0
IMC, gurus
brand identity,
Trendsetters
ITC, tele-matic,
Graphics, EsRP
Market-com
Social media
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
Resource based
corporate St.M
Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content
Delivery
Standardization
Virtual company
network
Y
Co-operation based St.M
Wirtz,SJ
40. Communication based sense
making and receptivity
Z
Expanding to eco-system 2.0
IMC, gurus
brand identity,
Trendsetters
ITC, tele-matic,
Graphics, EsRP
Market-com
Social media
Resource based
corporate St.M
Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content
Delivery
Standardization
Virtual company
network
Y
Co-operation based St.M
Achieving fast accepted standards in the network is a power,
definition and user’s rights of IP is changing, free-conomics
Wirtz,SJ
41. Communication based sense
making and receptivity
Z
Expanding to eco-system 2.0
IMC, gurus
brand identity,
Trendsetters
ITC, tele-matic,
Graphics, EsRP
Market-com
Social media
Resource based
corporate St.M
Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content
Delivery
Standardization
Virtual company
network
Value chain co-operation among different companies, no red
tape management, success orientation with failure tolerance,
Y
Co-operation based St.M connecting leadership
Wirtz,SJ
42. Communication based sense
making and receptivity
Z
IMC, gurus
brand identity,
Trendsetters
ITC, tele-matic,
Graphics, EsRP
Market-com
Social media
Expanding to eco-system 2.0
Integrated market communication addressing inside
and outside of companies, instrumentalization of gurus,
Brand Identity of joint service, people connected leader
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
Resource based
corporate St.M
Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content
Delivery
Standardization
Achieving fast accepted standards in the network is a power,
definition and user’s rights of IP is changing, free-conomics
Virtual company
network
Value chain co-operation among different companies, no red
tape management, success orientation with failure tolerance,
Y
Co-operation based St.M connecting leadership
Wirtz,SJ
43. Communication based sense
Expanding to eco-system 2.0,
making and receptivity
Integrating 4 levels of conjoint orientation
Z
and meaning oriented activities:
IMC, gurus
Brand identity
Trendsetters
ITC, tele-matic,
Graphics, EsRP
Market-com
Social media
Industry codes,
symbols, slogan
Content
Content
Delivery
Standardization
Virtual company
network
Y
Co-operation based St.M
Dialogue, ideatizing
Creating knowledge
communities,, action
platforms
Tech-integration,
virtualization, cloud,
3 D printing, AR , IPE
Standards,royalties,
POS, on/offline,
connectivity, longtail
m-commerce, blogs
CustomerWhat industries How solutions Technology Cost control, Web3.0 X
C.I.,perceived quality,
arena one is in commercialized other than used experience mgt.
cost
open vs closed, CSR,
bundeling, investor relat
The four areas focus the co-operation and dysfunctional discussions on a cohort of issues,
therefore leading to integration and new arena
differentiation. It provides meaning through
understanding arising solution providers’ challenges.
Wirtz,SJ
44. Communication based sense
Expanding to eco-system 2.0,
making and receptivity
Integrating 4 levels of conjoint orientation
Z
and meaning oriented activities:
IMC, gurus
Brand identity
Trendsetters
ITC, tele-matic,
Graphics, EsRP
Market-com
Social media
Industry codes,
symbols, slogan
Content
Content
Cost control, Web3.0
C.I.,perceived quality,
cost
open vs closed, CSR,
bundeling, investor relat
POS, on/offline,
connectivity, longtail
m-commerce, blogs
CustomerX
What industries How solutions Technology
arena one is in commercialized other than used experience mgt.
Delivery
Standardization
Virtual company
network
Y
Co-operation based St.M
Dialogue, ideatizing
Creating knowledge
communities,, action
platforms
Tech-integration,
virtualization, cloud,
3 D printing, AR , IPE
Standards ,royalties,
Wirtz,SJ
45. It results in 3D
cube with 64
activity blocks like
Wirtz,SJ
46. Z
Communication based sense
making and receptivity
It results in 3D cube with
64 activity blocks like a
rubic cubic.
X
Y
Co-operation based Strategic Management
Resource based
corporate Strategic
Management
47. 64 buildings block need then to be filled out and differentiated according to
Strategic concept and strategic execution:
Block: x4,y4,z4
Facilitating partner co-operation and
managing the experience over time
Concepts:
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