Bioinspired Strategic Design (2024) | Sample Course Notes | September 2023

Bioinspired
Strategic Design
Course Notes Based on
Finkenstadt, Daniel J., & Eapen, Tojin T. (2024)
Bioinspired Strategic Design. Productivity Press / Taylor & Francis, LLC. Forthcoming.

Bioinspired Strategic Design: Course Timeline
Week 1:
Survivability
Factors
Week 2:
Nature-Inspired
Strategies
Week 3:
Final Project

WEEK 1: SURVIVABILITY FACTORS
Bioinspired Strategic Design

The Living Company
• In the book, The Living Company, published in 1997,
Arie de Geus asked why some companies survive
while others have a brief existence.
• Four characteristics of long-lived companies.
• First, they were sensitive to changes around them
• Second, they had a strong sense of identity.
• Third, they were tolerant, encouraging experimentation.
• Finally, they were financially conservative.

The Squirrel’s
Dilemma
Faced with the three-fold
challenges of limited food,
changing weather, and predators,
how does a squirrel make
decisions about stocking nuts?

Threats to Survival of Organism (Organization)
• (Limited) Resources (Ro)
• (Changing) Environment Forces (Fo)
• (Hostile) Observers (Ob)
Ob
Fo
Ro
S
Source: Eapen & Finkenstadt (2022)

Forces-Resources-Observers Analysis
• Forces → Resources
• Forces → Observers
• Observers → Resources
• Resources → Observers
Ob
Fo
Ro
S

Forces-Resources-Observers Analysis
• (Resources → Forces)?
• (Observers →Forces)?
Ob
Fo
Ro
S

Survivability Factors: ERP
• Efficiency E → Resource (Ro)
• Resilience R → Forces (Fo)
• Prominence P → Observers (Ob)
P
E
R
S
Ob
Fo
S
Ro

Efficiency and Survivability
• Efficiency is the ability of an entity to maximize the use of available resources and minimize
waste.
• Efficiency is crucial when resources are limited or hard to find. In a resource-scarce
environment, organisms that efficiently use resources are more likely to survive for two
reasons. First, existing resources can be utilized for more extended periods. Second, high-
efficiency levels also allow an entity to redirect its efforts from searching, gathering, and
competing for resources that can reduce survivability.
• A high level of efficiency is achievable in the presence of low variability in internal and
external conditions. For example, variation in the amount of food available requires an
organism to store excess resources internally for consumption when food is scarce, leading
to a loss of immediate efficiency.

Resilience and Survivability
• Resilience relates to the management of uncertain changes in the environment. Resilience is
particularly helpful to survival in the light of unexpected changes and an abundance of
resources. An entity can increase its resilience by maintaining slack or redundancy in some
form, which comes at the cost of efficiency.
• One form of resilience observed commonly in nature involves animals storing food internally
or externally during winter. The resilience of business and sports teams is represented by its
“bench strength,” where substitutes are available for current resources.
• The substitutes are available to take over in the case of changes in the form of demand,
increase in demand, or if current sources are incapacitated or become unavailable.
Resilience also involves the ability to recover quickly from damage.

Prominence and Survivability
• The third survival-related goal, prominence, relates to an entity’s ability to attract or evade the
attention of other decision-making (“target”) entities in the environment.
• In order to improve its survivability, an entity might decide to increase its prominence to
attract the attention of potential mates, prey, investors, or customers.
• Conversely, an entity might decrease its prominence to reduce attention from potential
predators, competitors, and instigators of hostile takeovers.
• The desired direction and intensity of the prominence depend on the specific nature of its
interaction with surrounding decision-making entities.

Prominence and Survivability
• Occasionally, the same entity can desire both increased and decreased attention from the
same target entity type.
• An organism may both desire or attempt to avoid the attention of a potential mate at different
times.
• In a similar vein, a company may try to avoid the attention of certain types of customers, such
as bargain hunters, while trying to draw interest from profitable customers.

Survivability Factors: ERP
• Efficiency E → Resource (Ro)
• Resilience R → Forces (Fo)
• Prominence P → Observers (Ob)
• [Resilience P → Observers (Ob)]
P
E
R
S
Ob
Fo
S
Ro

Survivability Factors: ERP Interrelationships
P
E R
S

Efficiency-Resilience Linkage
• “If you want to go fast, go alone. If you want to go far, go together.” – African Proverb
• The reason why high levels of efficiency and resilience can be difficult to achieve
simultaneously at the same time in the near term can be understood when we look at
the role played by redundancy in establishing resilience.

Efficiency-Resilience Linkage
• High levels of resilience are often achieved by introducing multiple redundancies
such as components, resources, and capabilities. These redundancies are
maintained at a cost and can impinge on short-run efficiency.
• An animal may collect and maintain different food reservoirs in summer if it believes
that acquiring them would be difficult in the winter. However, these additional
reservoirs would require immediate extra effort and the provision of storage and
mechanisms that protect the resource from loss or damage. High levels of efficiency,
in turn, are often achieved at the cost of reliability by eliminating redundancy.

Prominence Linkages
• It is clear that in considering how an action aimed at improving efficiency impacts prominence
directly, we should also consider how it influences prominence via its influence on resilience.
First, let us look at the relationship between efficiency and prominence. We have seen that
changes in prominence emerge from (1) the presence of unusual attributes and (2) relative
change in attributes.

Prominence Linkages
• Large size is often associated with prominence.
• Thus, an action that leads to increased efficiency can often lead to a decrease in prominence
simply because efficient systems are typically smaller than less efficient systems with
redundant components.

Prominence Linkages
• A highly efficient business firm employing fewer individuals would be less prominent than a
business firm with many employees. Yet, the efficiency gained from leaner operations
(smaller size) could also generate higher margins, attracting more investment attention.
• Sudden changes in an entity’s attributes (such as size, color, or speed) can increase
prominence, even if the change aims at increasing efficiency.

Survivability Factors: ERP Influences
ERP Factor Influences on ERP factors Influences on Survivability
Efficiency (E)
E+→R+; E+→R-; E-→R+; E-→R-
E+→P+; E+→P-; E-→P+; E-→P-
E+→S+; E+→S-; E-→S+; E-→S-
Resilience (S)
R+→P+; R+→P-; R-→P+; R-→P-
R+→E+; R+→E-; R-→E+; R-→E-
R+→S+; R+→S-; R-→S+; R-→S-
Prominence (P)
P+→R+; P+→R-; P-→R+; P-→R-
P+→E+; P+→E-; P-→E+; P-→E-
P+→S+; P+→S-; P-→S+; P-→S-

Exercise: Personal Decision-Making
• Analyze a recent or impending personal decision using the ERP framework.
• What are the relevant Forces-Resource-Observers?
• Which of the ERP factors does your decision primarily relate to?
• How does your decision impact the other two factors?
• What would you do to minimize any adverse impact on survivability?
• Which of the ERP factors are you (1) naturally good at, (2) would like to improve?

Survivability in Hostile Environments

ERP Analysis: Aircraft Survivability
• How can a military aircraft be designed to improve survivability?
• Resources-Forces-Observers
• Efficiency-Resilience-Prominence

Aircraft Survivability
• The interactive role of the ERP trifecta factors in maintaining survivability can be
illustrated using the challenge of designing survivable military aircraft.
• Survivability in the context of military crafts such as fighter aircraft and naval ships is
the capability to withstand hostile environments.
• Lessons from aircraft survivability can contribute to our understanding of business
survival in hostile environments.

Aircraft Survivability
• Robert E. Bell defined aircraft survivability as “the
capability of an aircraft to avoid or withstand a man-
made hostile environment.”
• Ball identified four system-level elements essential for
aircraft survivability – detectability, susceptibility,
vulnerability, and recoverability

Bell’s System Elements in Aircraft Survivability
Design Element Definition Relationship with ERP Factors
Detectability The likelihood that the
aircraft is detected
Low detectability is associated with low prominence, high
efficiency, and low resilience. Both high and low detectability can
improve survivability based on target observer.
Susceptibility The likelihood that the
aircraft gets hit
Lower susceptibility is associated with higher efficiency, and lower
prominence
Vulnerability The likelihood that a hit
kills the aircraft
Higher vulnerability is associated with lower resilience. Lower
prominence is associated with lower vulnerability (i.e. stealth)
Recoverability The likelihood the
aircraft recovers from a
hit
Higher recoverability is associated with higher resilience.
Efficiency could increase recoverability if a system is more energy
efficient in times of energy depletion (i.e. loss of fuel due to a
strike) and lower weight could allow for easier and longer gliding
when power systems are destroyed

Stealth Bomber
The B-2 Stealth Bomber of the
US Air Force is one of the most
survivable aircraft in the world.

Aircraft Survivability: ERP Factors
• We demonstrate the importance of this elaboration by showing the value of both low
and high detectability. A lost trekker might benefit from both high detectability (from a
search crew) and low detectability (from wild animals).
• Thus, detectability can be both positively and negatively associated with survival.
Similarly, an aircraft with low detectability may escape enemy fire, and one with a
high level of detectability can avoid being caught in a friendly fire when surrounded
by enemy aircraft.

Trekker Prominence
A lost trekker might benefit from
both high detectability (from a
search crew) and low
detectability (from wild animals).

Survivability Factors: SERPAS Model
P
E R
S
Sense Act
Ob Fo
Ro

Exercise: Survivability Analysis (1)
• What is the specific nature of threats and their distribution in the hostile environment?
• What are the essential resources that impact survival? How can efficiency improve
survivability? What are some of the steps the entity takes to improve efficiency?
• What are the environmental forces that threaten the existence of the entity? How can
the entity develop resilience against these forces?

Exercise: Survivability Analysis (2)
• What are the antagonistic objects encountered by the focal entity? Are there
prominence adaptations used to counter rivals and predators? What is the role of
high vs. low prominence in survival?
• What is the relative importance of each type of threat? What is the relative
importance of the ERP factors?
• What is the nature of the inter-relationship between the three ERP factors?
• What are some of the unique or idiosyncratic features of the entity or its
environments that play a role in its survivability?

Survivability Analysis
Squids Naval Ships Startups Supply Chains

Survivability Analysis: Squids
• Squids are a diverse species belonging to the family of cephalopods which also
includes cuttlefish, octopus, and nautilus (Hanlon and Messenger 2019). The specific
nature of the threat depends on the environment the individual species resides.
While squids can sometimes be threatened by limited food availability, and
environmental forces such as strong current, the most important common threat are
from predators.
• Different species of squids make up an important food source for birds, fish, and
sharks. Some squids feed on other squids. Several species have developed a large
number of prominence-related adaptations as a response to predation-related
threats. The number of prominence adaptation mechanisms in cephalopods has
been shown to be dependent on the complexity of the environment.

• Certain squid species possess a wealth of prominence adaptations that it can choose
to deploy in the presence of predators and rivals (DiMarco and Hanlon 1997).
• These strategies can be used to attract, avoid, hypnotize, sneak up on, threaten or
alert other entities. Some of these strategies have a social role.
• Sentinel squids often alert other squids about the approach of a predator. The large
array of prominence adaptations allows for flexible use of strategies based on
situational factors. For example, the choice of prominence mechanism is based on
the size of the predator.

• For a larger predator like a shark, the squid might choose a strategy such as hiding
or the use of ink for distraction. For predators that are smaller, the squid might resort
to startle behavior. Squids are required to balance their use of prominence
mechanism between antagonistic and friendly organisms. Certain squid species use
unilateral prominence displays to communicate different messages to different
entities (rivals vs. mates) at the same time.
• Size of the squid influence both its prominence and efficiency. Deep-sea gigantism is
observed in the giant squid. These creatures inhabit extraordinarily deep waters to
decrease prominence and improve efficiency. Such an action helps to conserve
energy as well as avoid attention.

Sentinel Squids
Sentinel squids often alert others
about the approach of a predator.

Survivability Analysis: Naval Ships
• The type of threat ships face depends on its operational goals and operating
environment.
• Most types of ships face resource limitations both in the form of energy and time.
Such threat is generally minor for most watercrafts and is rarely destructive.
• A rare example of a watercraft that ran of out of energy resources is submarine USS
R-14 (SS-91) which ran out of fuel while searching for a tugboat and had to rely on a
makeshift sail made from hammocks and blankets.

USS R-14 (SS-91)
This R-class coastal and harbor
defense submarine ran out of fuel
while searching for a tugboat and
had to rely on a makeshift sail
made from hammocks and
blankets.

• More significantly, large vessels also face threats from environmental forces such as
extreme weather, which increase their instability and place them at risk of flooding.
Such hostile conditions are also experienced by military ships who are also required
to be attuned to threats from enemy crafts.
• To navigate the above threats, military ships are required to make a tradeoff involving
all three ERP factors. For ships, higher efficiency translates to higher speeds (time)
and lower fuel consumption (energy). The consequence of higher efficiency can
include both higher and lower levels of prominence.
• More efficient ships may be faster in speed, making them more difficult to detect,
target or intercept by enemy crafts. However, in some situations, fast-moving crafts
may be more conspicuous relative to their background, risking detection.

• Higher efficiency can often result in lower resilience. Faster ships are required to
sacrifice hull strength in favor of speed to build and deploy as in the case of the
Littoral combat ship (O’Rourke 2011), a class of small combat ships designed for the
US Navy, first commissioned in 2008.
• A similar tradeoff is observed in the choice of aluminum alloys over steel as the
material of choice for naval structure. Aluminium alloy ships are generally less
expensive to build, lighter and faster.
• However, vessels made of aluminum alloys may be more vulnerable to extreme
loads such as underwater explosions and high velocity impacts from torpedos
(Galanis and Papazoglou 2007).

• Efforts to improve reslience by reducing vulnerability such as introducing component
redundancy and shielding can be deterimental to the ship’s efficiency (Ball and
Calvano 1994).
• Maintaining low prominence plays a key role in the survivability of military crafts,
including naval ships, when faced with the risk of being targeted by enemy
observers.
• Low prominence helps avoid detection and avoiding enemy attention. Strategies
observed in nature such camouflage was extensively used in WW II naval ships
(Forbes 2011).

• Other prominence-reduction strategies used in military crafts include use of decoys
and signature reduction to reduce susceptibility (Ball and Calvano 1994). However,
low prominence strategies pose a risk in the presence of friendly fire.
• The German passenger ship MV Spreewald was sunk in 1942 by U-333 since it was
in disguise and could not be identified by the German submarine. Thus military ships
benefit from being able to develop differential prominence, where they are able to
increase attention from friendly entities and avoid detection from antagonistic crafts.

Survivability Analysis: Startups
• Startups encounter threats on all three fronts – resources, forces, and rivals.
• Resource threats startups are manifested in the non-availability of capital and
absence of qualified personnel. Thus, efficiency is often paramount to the survival of
startups. Ventures that “burn cash” too quickly often die a quick death. For human-
resource-related efficiency improvements, startups often turn to multifunctionality,
where departments perform multiple roles, and employees resort to wearing “multiple
hats.”

Survivability Analysis: Startups
• Environmental forces related to public policy and difficulty navigating government
markets also impact their survival ability (Josephson et al., 2019).
• External threats include larger competitors that may seek to steal intellectual
property or engage in predatory behavior. There are benefits and risks of stealth for a
startup. Stealth can keep a company away from prying eyes. The downside of stealth
is that it can reduce the likelihood of being noticed by friendly entities such as
potential investors and customers.

Survivability Analysis: Supply Chains
• There exists an inherent tradeoff between efficiency and resilience that becomes
apparent during disruptions (Ivanov et al. 2014).
• The supply-chain challenges that merged post the Covid-19 pandemic has
demonstrated how designing supply chains for high efficiency and low waste can
result in poor resilience in turbulent times. Prior to COVID-19 there were mixed
approaches to supply chain resiliency. Some entities built up large amounts of buffer
stock while others developed lean manufacturing processes that enabled just-in-time
inventory management.

Survivability Analysis: Supply Chains
• The lesson learned from the post-COVID supply chain experiences show that you
can’t simply stock up for uncertainty, nor can you put cost ahead of the ability to
operate during a mass disruption. Firms had taken an approach to “lean” and “just-in-
time” inventory that was more about lowering carrying costs then it was about having
clear and frictionless access to materials and components necessary for operations
and production.
• Role of prominence depends on internal and external threats as well as need to
attract attention in the case of a defect or failure.

Survivability Analysis: Case Comparison
Threats/Case Squids Ships Startups Supply Chains
Significance of limited
resources as a threat to
survival
Low Low to Moderate High High
Significance of uncertain
environmental forces as a
threat to survival
Low to Moderate Moderate to High High High
Significance of antagonistic
entities as a threat to
survival
High High High Low to Moderate
Estimated importance of
ERP factors
P>>R>E P>R>E E~R~P E~R>P

Survival Capability in Supply Chains
AAA Factor Generic Definition Comparison to Lee (2004) Objectives
Agility The speed of actions/
responses
Respond to short-term changes in demand or supply
quickly; handle external disruptions
smoothly.
Adaptability The range of actions/
responses
Adjust supply chain’s design to meet structural shifts
in markets; modify supply network to strategies,
products, and technologies.
Alignment The harmony of actions/
responses
Create incentives for better performance.
Lee, Hau L. "The triple-A supply chain." Harvard Business Review, 82, no. 10 (2004): 102-113.

Exercise: Organizational Survivability
• Use the SERPAS model to analyze the survivability of your organization.

References
• Eapen, T., & Finkenstadt, D. (2022). Survivability in Hostile Environments. Zenodo.
https://doi.org/10.5281/zenodo.6917900

WEEK 2: NATURE-INSPIRED STRATEGIES

Survival in Nature
• Survival as the overarching goal of a living organism
• Survival as the main of goal in an organization

Survival Instinct
• Individual survival
• Survival of clan/herd
• Survival of species/kind

Efficiency in Response to Resource Threats
• Resources → Survival
• Forces → Resources → Survival
• Observers → Resources → Survival
• Forces → Observers → Resources → Survival
• (Observers → Forces → Resources → Survival)?

Resilience in Response to Force Threats
• Forces → Survival
• (Observers → Forces → Survival)
• (Resources → Forces → Survival)

Prominence in Response to Observer Threats
• Observers → Survival
• Forces → Observers → Survival
• Resources → Observers → Survival

Potential Secondary Responses to Threats
• Efficiency in response to observer threats.
• Efficiency in response to forces threats.
• Resilience in response to observer threats.
• Resilience in response to resource threats.
• Prominence in response to resource threats.
• Prominence in response to resource threats.

Organism & Organizational Threats
Threats Organism Organization
Forces Temperature, Weather, Current PEST Factors
Resources Food, Water, Raw Materials Financing, Employees, Raw Materials
Observers Predators, Prey, Mates Competitors, Customers

Resource Management
• (Efficiency of ) Resource Acquisition
• Acquire resources when they are abundant
• (Efficiency of ) Resource Utilization/Conversion
• Minimize leakage during conversion
• (Efficiency of ) Resource Storage
• Minimize storage-related losses

Improving Efficiency: Resource Management
• Energy and Time Resources
• Sources of Waste
• Reduction of Waste
• Remove
• Refine
• Reuse
• Recycle

Improving Efficiency: Minimizing Waste
• Plugging of Leaks
• Reducing exposure
• Reducing rework, reprocessing, repair
• Bottleneck processes
• Critical resource management
• System Shutdown

Polar Bears
• Ears are small and round
• Helps minimize heat loss

Hyrax
• They have poorly developed
internal temperature
regulation.
• They compensate by
behavioral thermoregulation,
such as huddling together and
basking in the sun.

Wombat
• Extremely slow metabolism
• This mechanism allows them
to survive in arid conditions.

California Condor
• Highly efficient flight.
• Use of waste for cooling:
Urohidrosis to reduce body
temperature.

Resilience Management
• Response to Forces (Environmental) and Observers
• Flat Structures
• Redundancy
• Reservoirs
• Reinforcement
• Replacement
• Repair

Purple Frog
• Their flattened body assists
them to cling to submerged
rocks and boulders
• It helps them fight strong
currents, allowing them to
remain near stream banks
where they typically reside.

Manatee
• Replacement
• Polyphyodant, able to
continually replace teeth
(kangaroos and elephants are
the only other mammals with
this characteristic).

Repair: Axolotl
• Repair
• Axolotls ability to regrow limbs
• Business Implications
• Application of force by
predators

Antarctic Ice Fish
• Reinforcement (Barrier)
• Notothenioidei
• Some species produce anti-
freeze glycoprotein (buffer
resilience)

Beaver
• Nictitating membrane on eyes for
underwater vision. A thick layer of fat
under the skin. Nostrils and eyes
sealed when submerged.
• Scent glands produce castoreum
used for waterproofing. Endlessly
growing incisors.

Observer Analogies and Roles
Target Observer Common Role Uncommon Role
Competitor Predator, Prey (Mate)
Customer Mate (Predator), (Prey)
Business Partners Mate (Predator), (Prey)
Investor Mate (Predator), (Prey)
Regulator Mate (Predator), (Prey)
Government Mate (Predator), (Prey)

Prominence in Nature
• Identities and Roles of Observers: Predator, Prey, Mate
Observer Decrease Prominence Increase Prominence
Predator Decreasing prominence to hide or avoid
detection. Decreasing prominence to
reduce attraction.
Increasing prominence to appear threatening.
Increasing prominence to distract through
attraction.
Prey Decrease prominence to appear non-
threatening before pouncing. Decrease
prominence to avoid fear-induced
aggressive response before attack.
Increase prominence to frighten into submission,
shock, startle, force to make movement and to
reduce effort in conflict. Increasing prominence to
attract before attack.
Mate Decrease prominence to avoid non-
desirable mate during mating season.
Decrease prominence to appear non-
threatening and attract potential mate.
Increase prominence to attract desirable mate
during mating season. Increase prominence to
appear threatening or induce fear to non-desirable
mate.

Prominence in Predator/Prey Interactions
Dimension High Low
Active
Predator
Predator appears more prominent to attract the
attention of prey or frighten it into submission.
The firm appears large to attract the interest of
investors or dissuade potential competitors.
Predator appears less prominent to avoid the
attention of prey before pouncing on it. The
firm appears small during the initial stages of
entry into an attractive market avoid the
attention of new players.
Passive Prey
Prey appears more prominent to dissuade a
predator from attacking it. The firm appears
large to dissuade interest in a potential
takeover.
Prey appears less prominent to escape the
attention of a predator. The firm appears small
to escape the attention of regulators and
larger competitors.

Anti-Predator Prominence Mechanisms
Mechanisms Summary
Camoflague Entity appears like surrounding evironment or objects to evade being spotted
Nocturnality Entity hunts or acquires resource at night when target entity is inactive
Line-of-sight modification Entity hunts or acquires resources in locations where target observer is inactive
Thanatosis or apparent
death
Entity feigns death to reduce attention or interest from target observer.
Deimatic or Startle display Entity modifies attributes to shock or scare target observer
Aposematism Entity warns predators about unprofitability through bright coloration.
Protean behavior Entity engages in unexpected patterns of movement
Distraction Entity distracts attention by increase attention towards one entity to decrease
attention towards another
Schooling Entity appears as part of a collective to avoid detection.
Refuging Entity locates itself behind another object or another entity to obscure visibility from
target entity.

Camouflage
Firm appears like other
companies or surrounding
environments to prevent its
actions being detected.

Distraction
Firm displays a false show of
prominence to distract
competitors from its true actions.

Nocturnality
Firm is active at times/seasons
when it is unlikely to be observed
or threatened by competition.

Thanatosis
A firm appears inactive or dead to
avoid interest from a competitor
(or regulator).

Deimatic Display
Firm engages in a show of
strength or aggressive marketing
to frighten or scare off a
competitor.

Playing Dead
• https://hbr.org/2014/06/dont-play-with-dead-snakes-and-other-management-advice
• https://www.businessinsider.in/international/news/a-ukrainian-man-says-he-was-
shot-in-the-face-and-buried-alive-by-russian-forces-but-survived-by-playing-
dead/articleshow/91627359.cms
• https://phys.org/news/2009-04-dead-survival-expense-neighbors.html
• https://www.republicworld.com/world-news/us-news/texas-school-shooting-11-year-
old-survived-by-smearing-blood-on-herself-and-playing-dead-articleshow.html

Protean Behavior
• Zig zag motion to evade
detection.
• Male budwing mantis
(Richardson et al. 2018)

Unkenreflex
• High + Low Prominence Anti-
Predator Strategy
• Yellow-bellied Toad
• Subject remaining immobile
(low prominence) with bright
displays (high prominence)

Aposematism
• Phyllidia
• Entity warns predators about
unprofitability through bright
coloration.

Schooling
• Entity appears as part of a
collective to avoid detection.
• Herding plays a similar role

Refuging
• Anemone
• Entity locates itself behind
another object or another
entity to obscure visibility from
target entity.

Volvation
• Prominence, Resilience, and
Efficiency Strategy
• Protection against dehydration
• Earthworms use volvation in
heat and drought to improve
efficiency

Organizational Prominence Strategies
Strategies Firm Actions
Camoflague Firm appears like other companies or surrounding environments to prevent its
actions being detected. Used by both predator/prey.
Nocturnality Firm is active at times/seasons when it is unlikely to be observed or threatened
by competition.
Line-of-sight evasion Firm is active at locations or markets where competitior is unable to observe it
Apparent death Firm appears inactive or dead to avoid interest from competitor (or regulator)
Deimatic or Startle display Firm engages in a show of strength or aggressive marketing to frighten or
scare off a competitor. Used by prey.
Protean behavior Firm engages in unexpected patterns of behaviour to “throw-off” competitors.
Distraction Firm displays a false show of prominence to distract competitors from its true
actions.

Oddity Effect
• The oddity effect posits that any shoal member that stands out in appearance will be
preferentially targeted by predators.
• This may explain why fish prefer to shoal with individuals that resemble themselves.
• The oddity effect thus tends to homogenize shoals.

Dynamic Prominence
• Modify Prominence based on external signals or observers.
• Differential prominence based on (1) different types of observers (2) internal body
conditions, or (3) external environmental conditions.

Tortoise Beetle
• When subjected to external
stresses, the Panamanian
golden tortoise beetle has the
rare ability to dry up the fluid
that lends its color
• This action modifies its color to
dark red.

Mandarin Duck
• Dynamic prominence
• Males (like other ducks)
undergo molting after mating
season.
• Prominence is a risk after
mating season

Okapi
• Infrasonic calls to
communicate with young
without attracting the attention
of predators
• How can this strategy be
applied in business strategy?

Exploding Ants
• Colobopsis saundersi
• Explode as a defense
mechanism for the colony by
warning others

Customer and Competitor Strategies
Target Observer(s) Customers Competitors
Camouflage Decrease prominence during beta testing.
Decrease attention from unattractive
customers
Decrease attention to strategic new product.
Nocturnality and
Line of sight
evasion
Decrease attention to some activities that will
be deemed unattractive by moving them to a
period of time or location where the customer
is inactive.
Decrease attention to some activities that will be
deemed threatening to competitor by moving them
to a period of time where the customer is inactive.
Apparent death Decrease attention to unattractive actions or
attractions from an unattractive customer by
appearing to be inoperative.
Decrease attention to competitive actions by
pretending to be inactive or dead.
Startle Display Increase attention from customers prior to a
new product launch.
Increase attention to strategic investment to
dissuade similar moves from competition

Exercise: Organizational Applications
• Choose any three anti-predator strategies.
• How might the lessons be applied to the organizational domain?
• What are the limitation of the analogy?
• Can the strategy be used in a different role (predator/mate)?
• Conduct an ERP analysis.

Prominence-Linked Emotions
Emotion Low Prominence High Prominence
Attraction Curiosity Dazzle
Repulsion Dread Scare

Prominence Attributes in Organisms
Attribute Static Dynamic
Color Distinctive color as source of fear or
attraction
Distinctive color variations as source of
attraction or repulsion
Size/Shape Unusual shape as a source of fear or
attraction
Unusual changes in shape as source of
Sound Distinctive color as source of fear or
attraction
Distinctive changes in sound as source of
Motion Distinctive location as source of fear
or attraction
Distinctive motion as source of attraction or
repulsion

Cephalopod P-Adaptability Strategies
Cephalopod Feature Implication for Business P-Adaptability
Highly developed central and
distributed sensing
P-adaptability in businesses benefit from both centralized and distributed information gathering system. The first allows for longer-term global scanning, and the
other allows for short-term local planning.
Modular and adaptive attribute Businesses can improve p-adaptability from having attributes that are both modular and adaptive in nature. This includes form, structure and communication.
Flexible form adaptations such as
compression and rearrangement
Business can enhance p-adaptability by being able to modify its physical structures, and such as by breaking up larger units into smaller inter-connected units or
by moving units closer closer together.
Life-cycle modifications and
temporal variations
Businesses need to modify prominence mechanisms over its lifetime. Since the task observers are different (competitors, customers, investors), prominence
mechanism should also change over time.
Multiple-strategies for single
observers
Business needs to develop multiple prominence strategies towards the same observers. A business may be equipped with a series of different strategies to be
applied based on the degrees of success of a previous strategy, and the response of the observer.
Concurrent prominence Businesses need to able to demonstrate different levels of prominence towards different observers at the same time. The business may be able to demostrate
high levels of prominence towards observers it wants to attract such as customers. Similarly, an entity might display one level of prominence a certain group of
customer or partners for strategic advantages.
Use of Distraction in the form of
smoke screens and decoys.
Businesses can use distraction as an effective prominence mechanism when faced with highly hostile predators. The use of distraction strategy involves a
smoke screen or decoy. In the smoke screen strategy, the attention of the target observer is muddled. In the second strategy, the attention of the target observer
is misdirected.
Passive Crypsis Businesses may benefit from a passive crypsis state, where it can reduce its prominence in challenging environment even when it does not directly observe a
direct threat. This reduces the need to constantly monitor surrounding environments for threat. One limitation is that passive crypsis can reduce the possibility of
favorable attention, such as from potential customers or investors.

ERP Exchange
Squirrel Foraging for Food
• Introduce Resource Limitations,
Changing Conditions
• Introduce Predators
Business Examples

Prominence Balancing at Watering Holes

ERP Linkages

Desert Environment
• Extreme heat and cold (Fo)
directly impacts survival.
• Indirectly impacts survival by
limiting food and water
availability (Ro).
• Needs to balance both
efficiency and resilience.
Fo
Ro
S
E R
S

Camel Adaptation: Efficient Resilience
• Isolation: Long Legs
• Evacuation: Heat Dissipation
• Reinforcement: Coat for protection/Shedding of Coat
• Recapture: Reabsorption of water
• Barriers: Eyelashes, Nostrils
• Seasonal Adaptations
• Waste Minimization
• Hump as energy resource and insulation

ERP Analysis: Camels
• High levels of Efficiency and
Resilience. How is it
achieved?
• Prominence (towards
predators) is generally not a
concern.

ER-Capabilities in Camels
• Bactrian (two humps B), and Dromedary (one hump, D)
• Camels required to survive in extreme conditions
• Limited energy resources → Need for Efficiency
• Extreme conditions (heat/cold) → Need for Resilience

ER-Capabilities in Camels
• How does the Camel maintain ER balance in extreme conditions?
• Bactrian camels that can survive in extreme heat and cold
• Camels that can swim
• How does the ER Tradeoff impact the design of Camels?
• What can organizations learn from the resolution of this conflict?

Complementary ER Strategies
• Hump in camels
• Fat acts as an insulator (buffer) and source of energy
• Blubber in dolphins provide streamlining function
• Isolation (Sep), Reinforcement (Rep), Barriers (Sepcom), Recapture (Rep), Plasticity,
Differential (Dyn), Evacuation (Rem), Constrictions (Sepmax), Squeeze/Compression
(Max).

Camel Hump
• Store fat (energy)
• Energy Source
• Resource Redundancy
• Insulation against heat
• Barrier (not consumed)
• Business Implication: Can resource
redundancy act as a protective
barrier in a business when not
utilized?

Dolphin
• Blubber plays a streamlining
function (efficiency)
• It also acts as a reservoir of
energy (resilience).

Tardigrade
• Most resilient animals known.
• Enters a deathlike state of
cryptobiosis in extreme
conditions.

Cockroach
• Among the hardiest of insects.
• They are able to survive on
limited resources.
• Able to go without food and
water for long periods. And
severed head can survive
decapitation

Parrot Fish
• Scarus zelindae
• Barriers: Prominence +
Resilience
• Prior to sleeping some
species produce mucous to
form cocoon that protects
them from predators.

Bats
• Bats avoid flying during the
day to reduce the likelihood of
overheating.
• This is both an efficiency and
prominence strategy.

Sloth
• Low energy diet.
• Slowness helps avoid
detection.

Shark
• Antagonistic displays such as
gaping be used as an
intimidation tactic.
• These displays come at a cost
of increased energy
consumption and lower
efficiency.

Wood Frog
• These frogs have adapted to cold climates by
freezing over the winter.
• During this time, they stop breathing and their
hearts stop beating (E).
• Their bodies produce a special antifreeze
substance that prevents ice from freezing
within their cells, which would be deadly (R).
• Lack of movement prevents them from being
detected (P)

Exercise: Nature-Inspired ERP Strategies
• Identify applications of one nature-inspired ERP strategy for your organization.
• What might be the trade-offs involved in using the identified strategy.
• Can the same outcome be achieved by using a strategy involving a different
survivability factor?

Bears: Hibernation
• Hibernation
• Hyperphagia

Lungfish: Estavation
• Estivation (“dry sleep”)
• Largest genome of
vertebrates.
• Can breathe atmospheric air.

Reptiles: Brumation
• Instead of experiencing long,
sustained periods of inactivity,
Brumating reptiles stir
occasionally to drink water;
however, they may go without
food for several months.

Exercise: Organizational Hibernation
• Hibernation is a response to extreme environmental stress, typically extreme cold.
However, both efficiency capability, and prominence capability plays a role in the
success of this strategy. An animal that hibernates is required to make efficient use of
energy resource, and is required to hide from predators and competitors.
• Does it make sense for businesses to hibernate during extreme environmental
stress, such as during a recession. Here the overwhelming goal is to weather the
cold, and avoid death.
• While there are similarities between hibernation strategy of animals, and a potentially
analogical action on the part of the firm, there are also crucial differences.

Resource Competencies
• Even though efficiency is the key capability that relates to resource management, we
also observe that resilience, and prominence capability can impact resource
management.
• The reason is that environmental factors can create limitations, and other observers
can influence the level of resources, either supporting the focal entity to collect
resources or as potential competitors to resources.

• Resources in the business world include physical, intellectual, human and financial.
• Role of ERP factors in foraging (resource acquisition), food consumption (resource
use), and hoarding (resource storage).
• Each of these key considerations lead to important analogical principles for resource
management.

Acquisition (Foraging) Consumption (Feeding) Storage (Hoarding)
Efficiency
(Direct)
Maximum resources identified
and acquired in minimum time
Maximum energy in minimum
time
Cost-effective in terms of effort
and storage capacity
Resilience
(Indirect)
Should be sufficient for
immediate and future needs
considering current
environmental factors.
Resilience→Efficiency
Should be able to provide for
unexpected demands and
unavailability due to
environmental factors
Should be able to withstand
changes in conditions that
impact storage of resources
due to change in
environmental factor
Prominence
(Indirect)
Should be such a way that it
does not increase likelihood of
predation
Prominence→Efficiency
Should be such a way that it
does not increase likelihood of
predation
The location should not be
located by competitors or
rivals.

Bears
• Hyperphagia as a resource
management strategy is used
alongside hibernation
• What are the organizational
implications?

• Take the case of prominence. Acquisition of business resources should be performed
in a way that competitors (predators, resource rivals) are aware of the sources.
• Similarly, resource consumption (conversion of resource to energy such as employee
training) should not increase predation, and finally information about resource should
not be available to competitors (e.g., to prevent poaching by employees).
• Hence there are 3 (ERP factors: efficiency, resilience, storage) X 3 (Resource
Management Stage: acquisition, consumption, storage) x 4 (Forms of Resource:
physical, intellectual, human, financial) = 36 sources of resource-related
competencies.

Exercise: Ants
• ERP Analysis
• Storage of food for uncertain
times where resources may
be low
• Low Prominence Strategy.

Okapi
• Prominence Strategy
• Infrasonic calls to
communicate with young
without attracting the
attention of predators
• How can this strategy be
applied in business strategy?

Bee Orchids
• Bee orchids pretend to be
mates to lure male bees.

Dorcas Gazelle
• Efficiency & Prominence Strategy
• Can go an entire life without
drinking water and obtain
moisture from plants
• In areas where they face human
predation, they tend to be active
only at night to minimize the risk
of falling prey to hunters.
• Stotting to announce the
presence of a predator.

Parrot Fish
• Scarus zelindae
• Barriers: Prominence +
Resilience
• Prior to sleeping some species
produce mucous to form cocoon
that protects them from
predators.

Frilled Lizard
• Chlamydosaurus
• Deimatic display as anti-
predator and mating strategy.
• Can businesses use the same
strategy to attract customers
(mates) while repelling
competitors (predators)?

Antarctic Ice Fish
• Notothenioidei
• Resilience Strategies
• Some species produce anti-
freeze glycoprotein (buffer
resilience)

Glasswing
Butterfly
• Transparent wings reduce the
need for camouflage.

Moray Eels
• Moray eels hunt by slithering
through the reef at night.
• Groupers are bulky fish that hunt
in daytime in the open water off
coral reefs.
• When both hunt together, prey
barely stands a chance: hide in the
reef, the eel eats you; dash for
open water, the grouper grabs
you.

Wood Frog
• Efficiency-Resilence
• These frogs have adapted to cold
climates by freezing over the
winter. During this time, they stop
breathing and their hearts stop
beating.
• Their bodies produce a special
antifreeze substance that
prevents ice from freezing within
their cells, which would be deadly.

Snipe
• Scolopacidae
• Prominence Mechanisms
• Drumming sound as part of
courtship rituals also used as a
distraction mechanism.
• Use zig-zag (protean) paths to
avoid raptors.

Bats
• Prominence and Efficiency Strategies
• Nocturnality (Speakman 1995). Use of
echolocation. Certain prey such as
moths can jam the echolocation of
bats.
• Displays magnetoreception, i.e.,
sensitivity to Earth’s magnetic field.
High thermal conductivity.
• They avoid flying during the day to
reduce the likelihood of overheating.

California Condor
• Efficiency Strategies
• One of the largest wingspans
among birds. Among the
longest living of birds with
lifespan up to 60 years.
• Highly efficient flight.
• Use ofWaste: Urohidrosis to
reduce body temperature.

Dolphin
• Efficiency and Prominence
• Large number of vocalizations
such as high frequency clicks
generated from the organ called
melon.
• Blubber plays a streamlining
function.
• Produce bisonar for orientation.
Killer whales are apex predators.

GiantTube
Worms
• Found in hydrothermal vents
and possess several attributes
to optimize for efficiency in such
environments

Tortoise Beetle
• The Panamanian golden tortoise
beetle looks gold because of the
way light reflects off pockets of
fluid in the layers of its outer
shell, or exoskeleton.
• But when subjected to external
stresses, the beetle has the rare
ability to dry up that fluid —
changing its color to dark red!

Jellyfish
• Bioluminescence.
• Box jellyfish has 24 eyes with two
that can see color. Supposed to
have 360-degreeee vision.
• Parallel (redundant) information
processing that competes with
each other.
• Highly energy efficient.

Mandarin Duck
• Dynamic prominence
• Males (like other ducks) undergo
molting after mating season.
• Prominence is a risk after mating
season

Moles
• Can survive in low oxygen
environments. High tolerance to
carbondioxide due to presence of
hemoglobin with high affinity to
oxygen.
• The star nosed mole Condylura
cristata has touch organ with large
number of receptors called Eimer’s
organs that can detect seismic
vibrations.
• The star-nosed mole is functionally
blind and is the fastest eating animal.

Mata Mata
• Fresh water turtle.
• Shell resembles barks and head
resembles fallen leaves.

Sloth
• Low energy diet.
• Slowness helps avoid detection.

Poison Dart Frog
• Contains 16 genera with more
than 200 species. Display
aposematic coloration.
• A surprising tradeoff between
conspicuousness and toxicity,
where more toxic frogs are less
conspicuous (prominent).

Tardigrade
• Most resilient animals known.
• Enters a deathlike state
cryptobiosis in extreme
conditions.

Wombat
• Extremely slow metabolism
allowing them to survive in arid
conditions

White-tailed Deer
• Responds to presence of
predators by breathing heavily
(blowing) to alert others.
• Displays bradycardia as a
defense mechanism.

Shark
• Antagonistic displays such as
gaping can reduce the potential of
conflict with another creature.
• Can be used as an intimidation
tactic to make potential prey
surrender. However such displays
can lead to prey escaping.
However these displays come at a
cost of increased energy
consumption and lower efficiency.

Sea Hares
• Inking display and opaline
glands used for multiple
purposes.
• Phagomimicry, where expelled
chemical resembles food.

Sea Pen
• May force water out of their
body for defence.
• Displays bright greenish light
(biolumiescence) when touched.
• Display glide reflection
symmetry.

Saiga Antelope
• Known for bloated nostrils
directed downwards that helps
in filtering and cooling in
summer.
• Seasonal changes in coat color.

Beaver
• Dam and canal builders.
Nictitating membrane on eyes
allows them to see underwater.
• Thick layer of fat under skin.
Nostrils and eyes sealed when
submerged.
• Scent glands produce castoreum
used for water proofing. Endlessly
growing incisors.Tail slapping for
communication.

Leaf-tailed Gecko
• Phantastic leaf-tailed gecko

Purple Frog
• Their flattened body assists
them to cling to submerged
rocks and boulders which
essentially helps them fight
strong currents, allowing them
to remain near stream banks
where they typically reside.

Riverine Rabbit
• Bunolagus monticularis
• Unique traits.
• Only one offspring per year.
• Nocturnal.
• Two type of droppings hard
during night and soft during day
that is swallowed for vitamins
and minerals.

Water Flea
• Daphnia spp. are known to show
behavioral changes or
modifications to their
morphology in the presence of
predator kairomones (chemical
signals), including larger size at
hatching, increased bulkiness,
and the development of “neck-
teeth".

Yeti Crab
• Found on hydrothermal vents
nearAntarctica.Thought to be
blind and feeds on bacteria

Manatee
• Polyphyodant, able to
continually replace teeth
(kangaroos and elephants are
the only other mammals with
this characteristic).

Tenrec
• Diverse resembling multiple
animals and occupy multiple
environments. Showcase
convergent evolution. Lowland
StreakedTenrec.

Mantis Shrimp
• The eyes of the mantis shrimp are
mounted on mobile stalks and can
move independently of each other.
• They are thought to have the most
complex eyes in the animal kingdom
and have the most complex visual
system ever discovered.
• Some of these shrimp can tune the
sensitivity of their long-wavelength
colour vision to adapt to their
environment.

Thorny Devil
• False head (Dynrep)
• Sucks water from sand
• Convergent design with North
American Horned Lizard

Transmutational Strategies

Transmutational Relationships
• Relational roles in nature for observer entities: mate, prey, predator, resource
competitor, symbiotic partner, parasite
• Relational observer roles in business environments: customer, competitor, partner,
regulator…
• Natural analogies between roles: e.g. customer~mate, competitor~predator
• Such relationships are subjects of study: predatory pricing, business partnerships.

Entity Roles
Business Natural
(Firm) B0
(Target Firm) B1
Competitor B2
Customer B3
Regulator B4
Government B5
Resource
Neighbor B6
Partner B7
Supplier B8
Vendor B9
Media B10
Employees B11
Subsidiary B12
(Organism) N0
(Target Organism) N1
Predator N2
Prey N3
Mate N4
Parent N5
Offspring N6
Resource Rival N7
Symbiotic Partner N8
Parasite N9
Host N10
Group Member N11
Resource/Food N12
Non-Living Object N13
Conspecific N14
Mating Rival N15

• A business role may map to multiple natural roles. For example, customer maybe
best associated with prey, mate, parasite depending on the exact nature of the
relationship.
• A role business role may undergo change over time. A customer might become a
partner.
• Such changes are referred to as transmutational relationships.
• Potential transmutations require businesses to manage strategy by considering the
potential for such changes in roles.

• The natural role is referred to as the identity of the entity.
• Transmutations
• Morphing (Role & Identity)
• Customer/Mate → Competitor/Predator
• Mimicking (Identity)
• Competitor/Predator → Customer/Mate
• Mirroring (Role)
• Competitor/Predator → Competitor/Partner

Transmutational Strategies
TM Example from Nature Business Domain
N3→N2 Prey turns predator. Ground beetle Epomis larvae feed on amphibians that attack them.
Predator-Prey role reversal (Wizen and Gasith 2011)
A predatory action of the part of a firm is responded with a predatory action. Pac-man defense to
stave off a hostile takeover.
N4→N2 A mate transforms into a predator. Observed in spiders and praying mantises. Predatory actions by a customer against a business, a business against its supplier, or a predatory
action by a business against its customer.
N8→N9 Symbiotic partner turns into parasite. The drongo and the meerkat (Flower 2011) A business may set up a joint venture with another company, and use its position to siphon off
resources from the first company.
N5→N2 Some animals often act as a predator towards their own offspring. Examples include the
wattled jacana. Reasons include fitness of offspring or potential threat.
Business organizations may kill off their subsidiary if it does not perform well or possess threat to
their future actions such as direct entry into a market
N7~N4 Resource competitor pretends to be a mate to prevent being attacked A company may pretend to be a (potential) customer to prevent adversarial action from a stronger
competitor.
N2~N3 Predator pretends to be prey. The South African puff adder uses its tail to attract birds
which mistakes the tail for a bug.
A potential strategy where a firm might act as an easy target for predatorial action. The goal is to
force a competitor to act in a way that provides an advantage for the first company.
N2~N4 Predator pretends to be a mate. Katydid and cicadas (Marshall and Hill 2009) A company pretends to be a competitor to obtain information about another company.
N2~N6 Predator pretends to be an offspring. The ocelot imitates the call of baby monkeys. A potential predatorial strategy where a competitor displays characteristics of a subsidiary of a
company to act in a predatory manner.
N2~N8 Predator pretends to be symbiotic partner. The false cleanerfish combtooth blenny mimics
the cleaner wrasse and bites its victim. This is a case of aggressive mimicry. (Fujisawa et
al. 2018)
A company appears like a symbiotic partner or pretends to help or support another business with
goal of gaining its trust for predatorial actions.
N7~N4 A resource competitor pretends to be a mate when faced with a strong competitor for
shared resources (such as mates). Cuttlefish strategy of female impersonation (Norman et
al. 1999)
A business that is a competitor for resource can mimic the actions of a customer.
N9~N2 European cuckoo mimics a predator the European sparrowhawk to lay eggs in nest of
hosts such as dunnocks, meadow pipits, and reed warblers.
A parasitic competitor can pretend to be a larger predator frighten a company to sufficiently distract
it to gain access to its resources or disclose information.
N8xN4 Bee orchid pretends to be a mate to attract male bees A city may show interest in a business offering to attract it to its location

Prey→Predator
• Prey turns predator. Ground beetle
Epomis larvae feed on amphibians
that attack them. Predator-Prey role
reversal (Wizen and Gasith 2011)
• Organizational Strategy: A predatory
action on the part of a firm is
responded with retaliatory predatory
action.

Mate→Predator
• A mate transforms into a predator.
Observed in spiders and praying
mantises.
• Predatory actions by a customer
against a business, a business
against its supplier, or a predatory
action by a business against its
customer.
• How to prepare for this strategy?

Partner→Parasite
• Symbiotic partner turns into parasite.
• The drongo and the meerkat (Flower
2011)
• A business may set up a joint
venture with another company, and
use its position to siphon off
resources from the first company.

Parent→Predator
• Some animals often act as a predator
toward their own offspring. Examples
include the wattled jacana.
• Reasons include fitness of offspring or
potential threat.
• Business organizations may kill off
their subsidiary if it does not perform
well or possess a threat to their future
actions such as direct entry into a
market

Sibling→Predator
• Siblicide in animal kingdom.
• In Nazca boobies, the chick born
first is aggressive towards later born
chickens and starves it to death.
• A subsidiary or a distributor might
attempt to kill of another subsidiary
to get additional attention from the
parent company.

Predator~Prey
• Predator pretends to be a mate.
• Katydid and cicadas (Marshall and
Hill 2009)
• A company pretends to be a
customer to obtain information about
another company.

Predator~Offspring
• Predator pretends to be an offspring.
• The ocelot imitates the call of baby
monkeys.
• A potential predatorial strategy
where a competitor displays
characteristics of a subsidiary of a
company to act in a predatory
manner.

Predator~Offspring
• Predator pretends to be symbiotic
partner.
• The false cleanerfish combtooth blenny
mimics the cleaner wrasse and bites its
victim. This is a case of aggressive
mimicry. (Fujisawa et al. 2018)
• A company appears like a symbiotic
partner or pretends to help or support
another business with goal of gaining its
trust for predatorial actions.

Competitor~Mate
• A resource competitor pretends to
be a mate when faced with a strong
competitor for shared resources
(such as mates).
• Cuttlefish strategy of female
impersonation (Norman et al. 1999)
• A business that is a competitor for
resources can mimic the actions of a
customer.

Parasite~Predator
• European cuckoo mimics a predator
the European sparrowhawk to lay
eggs in nest of hosts such as
dunnocks, meadow pipits, and reed
warblers.
• A parasitic competitor can pretend to
be a larger predator frighten a
company to sufficiently distract it to
gain access to its resources or
disclose information.

Responding to Transmutational Strategies
• Sensing Systems
• ERP Adaptibility
• Develop Transmutational Capabilities
• Defensive Business Strategies

Defensive Business Strategies
• Examples of strategy implementation by third parties are poison pills, people pills,
white knights, white squires, Pac-Man defense, lobster traps, sandbagging,
whitemail, and greenmail.

Killer Bees
• Killer bees are firms or individuals that are employed by a target company to fend off
a takeover bid. These include investment bankers (primary), accountants, attorneys,
tax specialists, etc. They aid by utilizing various anti-takeover strategies, thereby
making the target company economically unattractive and acquisition more costly.
• Corporations defend against these strategies using so-called 'shark repellents.'

Animal Spirits
• Animal spirits is the term John Maynard Keynes used in his 1936 book The General Theory
of Employment, Interest and Money to describe the instincts, proclivities and emotions that
ostensibly influence and guide human behavior, and which can be measured in terms of, for
example, consumer confidence.

Pac-Man Defense
• In Pac-Man defense, a target firm
tries to take over the company that is
making the hostile takeover attempt.
• Martin Marietta-Bendix

Crown-Jewel Defense
• In business, when a company is
threatened with takeover, the crown
jewel defense is a strategy in which
the target company sells off its most
attractive assets to a friendly third
party or spins off the valuable assets
in a separate entity. (Separate)

DESIGN HEURISTICS

Elementary Design Heuristics
1. Com: Combination
2. Rem: Removal
3. Sep: Separation
4. Seg: Segmentation
5. Rep: Replication
6. Dyn: Dynamics
7. Max: Maximization

Design Heuristics and ERP Factors
Efficiency Resilience Prominence
Combination α β α
Removal α β α
Separation β α β
Segmentation β α β
Replication β α β
Dynamics β β α
Maximization β β α

Combinatorial Heuristics
Dyncom Dynrem Dynsep Dynseg Dynrep Dynmax Dyn
Maxcom Maxrem Maxsep Maxseg Maxrep Max Maxdyn
Repcom Reprem Repsep Repseg Rep Repmax Repdyn
Segcom Segrem Segsep Seg Segrep Segmax Segdyn
Sepcom Seprem Sep Sepseg Seprep Sepmax Sepdyn
Remcom Rem Remsep Remseg Remrep Remmax Remdyn
Com Comrem Comsep Comseg Comrep Commax Comdyn

WEEK 3: FINAL PROJECT

Bioinspired Strategic Design (2024) | Sample Course Notes | September 2023

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