Shaping_Strategy: Hagel et al


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Shaping_Strategy: Hagel et al

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