Shaping_Strategy- Hagel et al
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Shaping_Strategy- Hagel et al

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    Shaping_Strategy- Hagel et al Shaping_Strategy- Hagel et al Presentation Transcript

    • 2304 – Media Management
      ShapingStrategy in a World of Constant Disruption
      Hagel, Brown and Davidson (2008)
      Group 3a
    • What are “Shaping Strategies”?
      • Mobilize global ecosystems and transform industries and markets – sometimes dramatically
      • 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
      • These strategies can be very powerful when they work but they also concentrate risktothe shaping company
      • The article looks first at changes in infrastructure that are making these strategies more viable and attractive
      • Then it explores the key elements that must come together to execute positive shaping strategies
      • Finally it examines how to use those strategies
      Group 3a
      2304 – Media Management
    • From Bedrock to Plasma – The Changing Infrastructure
      • We live in an era of profound and acceleratingchange
      • 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
      • Because the underlying technologies are developing continuously and rapidly, there is no prospect for stabilization
      • These new opportunities are open to small as well as big companies
      Group 3a
      2304 – Media Management
    • 2. Rethinking the Substance of Strategy
      • Companies should not simply adapt to their surroundings – it will make them miss the real opportunities
      • They should act more boldly!
      • They should strive to shape global ecosystems and thereby fundamentally alter industries and markets
      • The challenge for a potential “Shaper” is to diminish perceived risk and maximize perceived rewards for a large number of actors
      • “Successful shapers reduce fear and magnify hope”
      Group 3a
      2304 – Media Management
    • 3. The Three Elements of a Shaping Strategy
      Group 3a
      2304 – Media Management
    • a. The Shaping View
      ”.. changes the way potential participants percieve market opportunities”
      • Helps focus participants
      • The shaping view is never very detailed, it leaves much roomforrefinement
      • A shaping view strives to imagine what an industry or market could look like and challenge conventional assumptions about what success requires
      • They should focus tangibly on where to invest energy, attention and capital
      Group 3a
      2304 – Media Management
    • 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
      • 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
    • 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
      • Asset - example: the shaping company has enough assets to back the project up
      Group 3a
      2304 – Media Management
    • Real World Example: Google’s Android
      • On September 23rd, 2008 version 1.0 of Android was released
      • Goal: Establish an open-source operating system which could be accessed and edited by everybody, not just restricted to the producing company
      • This was a totally new approach in the area of mobile phones
      • 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
      • 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