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Shaping_Strategy- Hagel et al


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  • 1. 2304 – Media Management
    ShapingStrategy in a World of Constant Disruption
    Hagel, Brown and Davidson (2008)
    Group 3a
  • 2. What are “Shaping Strategies”?
    • Mobilize global ecosystems and transform industries and markets – sometimes dramatically
    • 3. In other words - to broadly redefine the terms of competition for a market sector using a positive, galvanizing message that promises benefits to all who adopt the new terms
    • 4. These strategies can be very powerful when they work but they also concentrate risktothe shaping company
    • 5. The article looks first at changes in infrastructure that are making these strategies more viable and attractive
    • 6. Then it explores the key elements that must come together to execute positive shaping strategies
    • 7. Finally it examines how to use those strategies
    Group 3a
    2304 – Media Management
  • 8. From Bedrock to Plasma – The Changing Infrastructure
    • We live in an era of profound and acceleratingchange
    • 9. Historically: Disruption followed by stabilization (e.g. sudden changes through steam engine, electricity, etc. which then became a standard)
     This is not true anymore!
    • A new kind of infrastructure is evolving built on the sustained exponential pace of performance improvements in computing, storage and bandwidth
    • 10. Because the underlying technologies are developing continuously and rapidly, there is no prospect for stabilization
    • 11. These new opportunities are open to small as well as big companies
    Group 3a
    2304 – Media Management
  • 12. 2. Rethinking the Substance of Strategy
    • Companies should not simply adapt to their surroundings – it will make them miss the real opportunities
    • 13. They should act more boldly!
    • 14. They should strive to shape global ecosystems and thereby fundamentally alter industries and markets
    • 15. The challenge for a potential “Shaper” is to diminish perceived risk and maximize perceived rewards for a large number of actors
    • 16. “Successful shapers reduce fear and magnify hope”
    Group 3a
    2304 – Media Management
  • 17. 3. The Three Elements of a Shaping Strategy
    Group 3a
    2304 – Media Management
  • 18. a. The Shaping View
    ”.. changes the way potential participants percieve market opportunities”
    • Helps focus participants
    • 19. The shaping view is never very detailed, it leaves much roomforrefinement
    • 20. A shaping view strives to imagine what an industry or market could look like and challenge conventional assumptions about what success requires
    • 21. They should focus tangibly on where to invest energy, attention and capital
    Group 3a
    2304 – Media Management
  • 22. b. The Shaping Platform
    ”.. clearly defined standards and practices that helps organize and support the activities of many participants”
    • Provides leverage to reduce the investment and effort participants need to make
    • 23. A set of Shaping Platforms typically offer one of two forms of leverage:
    Development leverage:
    Reduces the investment required to build and deliver products or services
    b. Interaction leverage:
    Reduces the cost and effort required for a many different types of participants to coordinate their activities
    Group 3a
    2304 – Media Management
  • 24. c. The Shaping Acts and Assets
    “…are bold acts or careful use of assets that prove to participants that the project will succeed”
    • Act - example: the shaping company engages in high risk to prove its belief
    • 25. Asset - example: the shaping company has enough assets to back the project up
    Group 3a
    2304 – Media Management
  • 26. Real World Example: Google’s Android
    • On September 23rd, 2008 version 1.0 of Android was released
    • 27. Goal: Establish an open-source operating system which could be accessed and edited by everybody, not just restricted to the producing company
    • 28. This was a totally new approach in the area of mobile phones
    • 29. The project was backed up by the Open Handset Alliance, a consortium of several companies including Texas Instruments, Google, HTC, Intel, LG, Motorola, , Samsung Electronics, Sprint Nextel, T-Mobile and others
    • 30. Shaping View:
    » Establish an open-source operating system for mobile phones and thus change the market radically
    • Shaping Platform:
    » Development leverage, make use of a wide network of involved participants
    • Shaping Acts and Assets:
    » Project backed up by Google and its huge assets and knowledge
    Group 3a
    2304 – Media Management