Post on 30-Apr-2020
Strategic agility – a survey of Strategic agility a survey of organizational capability to cope with turbulent environmentswith turbulent environments
Anders Ekmananders.ekman@adocus.com
Adocus Business Solutions
2008-04-132
OverviewOverview
BiographBiography
What is strategic agility and why is it important?What is strategic agility and why is it important?
From strategic drivers of change to strategic agility
Agility consulting services
Collaboration discussion
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Further information
Biography – Anders EkmanBiography – Anders Ekman
W i k MBA (2006)Warwick MBA (2006)
Strategic alliances and business strategy Accenture (2005-2007)Strategic alliances and business strategy Accenture (2005-2007)
St t i lli d t t IBM ( )Strategic alliances and account management IBM (2003-2005)
Alliance management Rational Software (1999-2003)g ( 999 3)
M.Sc. CSE (1992), Lic.Eng. (1994)
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Warwick MBA (2006)Warwick MBA (2006)
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MBA Dissertation – Industry patterns of IT-enabled agilityEuropean survey on European survey on IT-enabled agility
Scientifically validated and calibrated research instrument (CFA / EFA)
Industry benchmarks
Intra-organizational analysis of agility bottlenecks
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Intra-organizational analysis of agility bottlenecks
What is strategic agility?What is strategic agility?
Agility definition – Four strategic dimensions of agile competition (Goldman et al. 1995)
• Enriching the customer • Enriching the customer • Cooperating to enhance competitiveness• Organizing to master change and uncertainty• Leveraging the impact of people and information
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Why is strategic agility important?Why is strategic agility important?
Organizational environments – From economies of scale and Organizational environments – From economies of scale and scope to economies of speed and synergies
Local markets merge into an increasingly ”Winner takes all” logic becomes g g ydynamic global marketplace where new
bases for competition emergeWinner takes all logic becomes
increasingly common
Organizational survival Organizational survival –Lean and fragile vs. mean and agile
Organi ations that are setup to cope ith placid and protected en ironments of the past
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Organizations that are setup to cope with placid and protected environments of the past will underperform and ultimatively fail in increasingly dynamic environments
Strategic drivers of changeStrategic drivers of change
Macro-environmentGlobalization Information TechnologyGlobalization Information Technology
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2008-04-139
GlobalizationGlobalization
Free tradeFree trade
Foreign investment
Liberalization of capital
Labor mobility
L l k t i t l b l k tLocal markets converge into a global market that knows no national borders
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[McAleese 2004]
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Information TechnologyInformation Technology
• High speed fixed line andCommunication • High-speed fixed-line andmobile communication
Communication bandwidth
• Vast amounts of complex dataStorage capacity
• Massive data collection and sophisticated analysis
Computing power
Complex data can be collected, processed,
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p , p ,and transferred anywhere instantly
Characterization of organizational environments
Macro-environment
Globalization Information Technology
Organizational environmentg
Dynamism Complexity Munificence
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2008-04-1312
Characterization of organizational environments
• Instability• TurbulenceDynamism
• Heterogeneity• DispersionComplexity Dispersionp y
• Capacity for growthMunificence Capacity for growthMunificence
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[Dess and Beard 1984]
2008-04-1313
DynamismDynamism
3) Disturbed
4) Turbulent field
5) Partitioned environment
2) Placid clustered
3) Disturbed reactive
1) Placid random
clustered
[M C d S l k 1984]
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[McCann and Selsky 1984]
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ComplexityComplexity
Simple strategiesSimple strategiesfor a complex world
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[Kurtz and Snowden 2003]
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MunificenceMunificence
Supply/demand imbalances
Cyclical demand fluctuations
Industry maturity
R l d li i l d i iRegulatory and political decisions
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2008-04-1316
HypercompetitionHypercompetition
Rapidly escalating competition based on Rapidly escalating competition based on price-quality positioning
Competition to create new know how and establish Competition to create new know-how and establish first-mover advantage
C titi t t t i d t bli h d Competition to protect or invade established product or geographic markets
Competition based on synergetic alliances
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[D’Aveni 1995]
New bases for competitionNew bases for competition
Macro-environment
Globalization Information Technology
Organizational environment
gy
Organizational environment
Dynamism Complexity Munificence
New bases for competition
S d S i
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Speed Synergies
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New bases for competition –economies of speed
Joseph Schumpeter (1883 1950)Joseph Schumpeter (1883-1950)
Punctuated equilibria – Creative destruction –q bdisruptive change• Dynamic capabilities
Kill li ti
kill your darlings• Continuous innovation –
first mover advantage• Killer applications first mover advantage• Instant imitation –
second-mover advantage
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2008-04-1319
New bases for competition –economies of synergies
KDemand side externalities • Kazaa• Skype • YouTube
Demand-side externalities – From the law of
diminishing return to the law of plenty
• VHS vs. BETAStandards wars • LP vs. CD
• Blue Ray vs. HD-DVD
Standards wars –The winner takes it all
• LinkedIn• Letsbuyit
Syndication –Network of loosely
connected agents or
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y• Opensource
connected agents or clusters of agents
Strategic drivers of change create a need for strategic agility
Macro-environmentGlobalization Information Technology
Organizational environmentDynamism Complexity Munificence
New bases for competitionSpeed Synergies
Strategic agility
Speed Synergies
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Strategic agility
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Strategic agility –l d f il d illean and fragile vs. mean and agile
Lean organizations are well-suited to predictable environments (type 1 – 3 environments) ( yp 3 )
However, disruptive change can bring lean i i d h i korganizations down on their knees
Agile organizations prosper in highly uncertain Agile organizations prosper in highly uncertain environments (type 4 and 5 environments)
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Strategic agility along organizational dimensions
ManagementManagementprocesses
StructureStrategygy
[S tt M t 1990]
TechnologyIndividuals
[Scott-Morton 1990]
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Technologyand roles
Agility consulting servicesAgility consulting services
Agility benchmarkingAgility benchmarking• Adocus Business Solutions™ has agility benchmarks for various
industries* – we can benchmark the strategic agility of an dust es e ca be c a t e st ateg c ag ty o a organization against its industry peers
Agility profiling• A chain is as strong as its weakest link – we can profile the strategic
agility of an organization to identify internal agility bottlenecks
ili lib iAgility calibration• We can help to improve the strategic agility of an organization by
resolving agility bottlenecks
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resolving agility bottlenecks* Ekman and Angwin (2007)
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Further informationFurther information…Contact details• Anders Ekman Adocus Business Solutions• Anders Ekman, Adocus Business Solutions• Email: anders.ekman@adocus.com• Phone: +46 70 549 99 09
Publications• Ekman and Angwin (2007) Industry patterns of agility: a study of the role of
Information Systems and Information Technology as an antecedent of t t i ilit ithi E i ti I t ti l J l f strategic agility within European organisations, International Journal of
Agile Systems & Management (IJASM)• Ekman (2006) MBA Dissertation, WBS0260309,
Warwick Business School, UK
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