Lecture 3 Flashcards
Emergent strategies
Develop over time though continual strategizing as a business balances its goals with changing circumstances.
Unplanned actions and initiatives from within an organization, requires:
1. Learning
2. Adaptation
3. Collaboration
Guided bij strategic intent
Exploitation
The use and development of things already known
- Seeking advantages
- Incremental changes
- Defend mature markets
- Refinement, choice, production, efficiency, selection, implementation, execution
Exploration
The pursuit of new knowledge of things that might come to be known
- Seeking opportunities
- Discontinuous changes
- Create new markets
- Search, variation, risk taking, experimentation, play flexibility, discovery, innovation
Failure trap
- Most new ideas are bad, most innovations are unrewarding
- Innovation is likely to perform poorly until experience has been developed
- Aspirations adjust downwards more slowly than upwards and exhibit optimistic bias
Only exploring new ideas gives no time to reflect, too much exploitation is alluring because of faster results
Competency trap
- Self-destructive product of learning
- Competence comes with experience
- Evident returns
- Opportunity cost of exploration increases
You forget about newcomers, the lower end niche market that can be vacuum and you can be easily exploited by new markets.
Self-organization
Capacity to react and change to create new systems and structures without being directed to do so.
Three requirements:
- Common identity & purpose
- Free flow of knowledge information
- Strong personal relationships
Competing at the edge of chaos (book)
- Chaos cannot be managed
- Sustaining or Disruptive innovation?
- Chaos or Rigidity?
- Change or Stability
CAS - Complex Adaptive Systems
Lead to a chain reaction within a company, which makes them different to copy and different to imitate
- Able to adapt
- Many independent agents
- Small actins at one level > huge consequences elsewhere
- Continuous change, no equilibrium
- Unpredictable outcome
- Self-organizing
Ambidexterity
A balance between exploration and exploitation; organizations should be capable of exploiting their existing competencies while simultaneously exploring new opportunities.
Architecture perspective
- Big picture: consistency between the 4 architectural pillars
- Contingency approach: different environments = different components
- Internal architecture
- External architecture
Complexity theory
Create an environment that encourages self-organization
Haier’s succes factors
- Flat organizational structure
autonomy + accountability
internal market mechanism
Haier Open Partnership Ecosystem (HOPE) - Customer-responsive innovation
- Operational excellence
Zero-defect policy
Continuous improvement
Internal competition - On-demand production and delivery
Tacit knowledge
Something that can not be written down = knowledge created through interaction
- Is not possible to regenerate is, because it is already generated
- Have the sane goal which makes it so effective
Types of innovation
Product, Service, Process, Market, Incremental, Sustainable, Radical and Disruptive
Incremental innovation
Small changes, mostly already existing problems and the company is making an improvement.
- Important to SUSTAIN competitive advantage
