Creating Tomorrow’s Advantages • Learn strategy on a continuous basis: • First because we don’t know all there is to know. • Second because as we all learn we create the need for further knowledge. • Pitfalls in strategic thinking: • The need for the largest market share. • All companies should reduce their cycle times.

Creating Tomorrow’s Advantages • Principles that define a good strategy: • Shape the nature of the competition. • Risk - Make choices. • Be different in ways that involve trade-offs with other ways of being different. • Trade-offs should differentiate a company thereby reducing the risk of imitation. • Adapting to change: • Continuity of strategy and rapid change are not inconsistent. • Adapt operations to market changes while retaining core strategy goals.

Creating Tomorrow’s Advantages • Importance of innovation and the role of technology: • Innovation is about finding new ways of combining things. • Apply the technology the company has mastered to improve the way it delivers value to its customers.

Creating Tomorrow’s Advantages • Whom should the company involve in the process of developing and implementing a strategy? • The essence of strategy is cross-functional, cross-activity integration. • Strategy should be developed in a multifunctional team. • Rethinking globalization: • The paradigm of globalization is that it is putting a greater premium on specialization, on doing particular things in particular locations. • We are entering a new phase where globalization is putting an emphasis on the home-base.

Creating Tomorrow’s Advantages • What should we do right now to plot a successful course into the twenty-first century? • Create an environment where people don’t resist change but really expect it. • Cannibalizeour own products instead of waiting for a competitor to do it. • Render our processes obsolete instead of letting someone else do it. Article’s end

Strategies for Growth • Continuity of the corporation: • Focusing on the botton line is not enough. • Envisioning the future is what is important. • Having the ability to “influence the evolution of industries.” • Having the right resources are a key ingredient in the company’s growth strategy.

Strategies for Growth • Strategic Architecture: • Provides a blueprint to turn what is envisioned into reality. • Links between the present and the future. • Big picture: • New competencies • New customer groups • Opportunity share: • Financial services • Genetically engineered drugs

Strategies for Growth • Questions to be answered: • What share of future opportunities can we capture with our current portfolio of core competencies? • Which new competencies will we have to build in order to maximize our share of those future opportunities?

Strategies for Growth • Bottom line – successful companies attributes: • Manage to stretch and enlarge their resource base. • View the future through a process of synthesis. • Have a strategic intent to have an aspiration that is widely shared • Have a goal, which is clear, and an obsession with winning. Articles’s end

Reinventing the Basis for Competition • The author states that “Benchmarking” is the old basis for competition. • “Path-breaking” is the new basis that will lead to new wealth. • The company’s focus should not be in restructuring and reengineering.

Reinventing the Basis for Competition • Reinventing the basis of competition means becoming different as a company. • Reinventing the existing competitive space. • Creating a fundamentally new space.

Reinventing the Basis for Competition • Rethinking competition: • Past: • Before there was clarity of industry. • Competition was between players in a well-structured industry. • Present: • Competition is fluid. • Competition should influence the shape of emerging opportunity areas.

Reinventing the Basis for Competition • Understanding the future: • The goal is to try to imagine a future that one can create. • There is no proprietary data about the future. • Must learn from outside the industry. • It is better to study an industry that has already been transformed.

Reinventing the Basis for Competition • Innovation in an organization: • It is not up to the leader alone, it is a mix of creative people. • Balanced market approach and management style (conservative vs risking-taking). • Maximizing the ratio of learning over investment.

Reinventing the Basis for Competition • Creating the incentive: • Create a deep sense of restlessness with the status quo. • Think in terms of competition as a process of shaping the evolution of space, rather than competing within existing space. • Find and encourage people interested in change as a solution.

Reinventing the Basis for Competition • Global competition: • It is notonly foreign competition but untraditional competition. • It is not product versus product but business model versus business model. • Imagination is central to future success of creating a better business model. • Replace a company's hierarchy of experience with a hierarchy of imagination. Article’s end

Integration Between Articles • Companies must transform strategy, competitive advantage and competition from a process of defining past performance as the basis for competition to redefining industry opportunity. • Companies’ competitive advantages depend on embracing change to identify new products, customers, markets and industries before the market reshapes competition.

Integration Between Articles Key Concepts of Rethinking Competition • Envisioning the future is what is important. • Strategy • Reshaping competitive space. • Growth • Defining new products and markets. • Competition • Anticipating industry evolution. • If well implemented these tools can lead a company to a “visionary” future.

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