‘Navigating Strategic Possibilities’ & ‘Crystallising the Strategic Business Landscape’

By Marius Ungerer, Gerard Ungerer and Johan Herholdt

Presented by Prof Marius Ungerer

Cape Town: 3 February 2017

Crystallising the Strategic Business Landscape &

Navigating Strategic Possibilities 3

WRFY: Crystallising the Strategic Business Landscape &

Navigating Strategic Possibilities 4

The two books compliment each other:

One focus on Strategy analysis

The other on Strategy development

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Who can benefit from these two inter-related books? The books are for strategy practitioners and leaders taking up their strategy role in analysing Contexts,

Formulating and Executing strategies. The focus is on practice-based applications informed by theoretical perspectives. If you want to

understand how to do a thorough strategic analysis and how to develop a comprehensive strategy, these 2 books are for you

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Crystallising the strategic business landscape

Key features and departure pointAnalysis is the critical starting point for strategic thinking

Book provides 70+ tools/frameworks for external environmental and internal organisational strategic analysis to guide the development and emerging of a fact-based synthesis

Author diversity:

Youngification to present digital/e-business perspective and generation Y views.

Complimented with a systemic/complexity viewpoint.

“Best of class” USB student application 2008-2015

Case studies as examples of application: SA companies en digital businesses

Theory-led and practice-based applications inform content:

“Nothing as practical as a good theory”

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7 Chapters

Foresight development

Insight development

Cross-sight development

Case study of Foresight of Apple

Steve Jobs from Apple recognized that computers would become a consumer good, like

the Sony Walkman. He believed that consumers would appreciate aesthetics and aspired to

create a device with the elegance of a Porsche or a well-designed kitchen appliance .

Case study: Insight of Apple

Steve Jobs insight was that the internal capability most critical to value creation in this

competitive terrain was design. He used design as a distinctive capability of Apple to create

products for consumers that are elegant and aesthetically attractive.

Case study of cross-sight of Apple

Steve Jobs from Apple had the strategic cross-sight during the early development of the Apple Macintosh

that the graphical user interface (GUI) technology of Xerox fits and support the Apple design vision of making

computers easy to use and attractive to engage with. This acquisition of this external asset thereby

contributed to Apple’s early lead in the PC market.

Jobs’ key departure point for Apple’s products was that customers are willing to “pay a premium for

ease of use, reliability, and elegance in computing and other digital devices, and that the best means for

delivering these was relatively closed systems, significant vertical integration, and tight control over

design”

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Foresight development

Insight development

Cross-sight development

Content Chapter 1: Strategy

and Thinking:

Introduction to

strategic analysis and

synthesis

Systems Thinking:

Development of R and

B loops perspectives

on a system

The Iceberg analysis System 1 and System 2

thinking of Kahneman

Analysis of Mental

models / Individual-

based assumptions

Strategy schools of

thinking

THEME 1: Foresight

Development

Chapter 2: Analysis of

the global and macro

context of an

organisation

Global standards to

consider in a macro

external context

analysis:

- Sustainable

Development Goals

(SDGs) and the

- UN Global Compact

Global Risk analysis Analysing national

priorities of a country to

identify national

development priorities:

- National Development

Plan 2030

Analysing the macro

environment forces:

- STEEP analysis

Stakeholder analysis Creating multiple

value: a Sustainable

Value analysis

Chapter 3

Analysis of the

competitive context of

an organisation

Industry analysis tools:

- General industry

analysis

- Industry Dominant

Economic Features

analysis

- Industry Profit Pool

and Market Share

analysis

- Industry Competitive

Forces – Porter’s Five

Forces analysis

- Industry Driving

Forces

- Industry Key Success

Factors

- Industry Value chain

analysis

- Industry Issues

Competitor analysis tools:

- General competitor

analysis

- Strategic Groups Map

Analysis / Competitor

Group Map analysis

- Competitor strategic

profiling and competitive

strengths and weaknesses

analysis

- Competitor relative

evaluation

Cooperation with

competitors analysis

tools:

- Coopetition analysis

-Complementors analysis

Chapter 4: Analysis of

Customers of an

Organisation

Customer demand

analysis and the

evolution of Customer

demands through a

Customer Segment Need

Gap analysis

Customer Empathy Map

analysis

Customer need

saturation analysis

Customer Channel

Phase analysis

Customer

Relationship analysis

THEME 2: Insight

Development

Chapter 5

Internal analysis

practices for an

organisation

Resource based view

of strategy:

- Core and distinctive

competence analysis

- Internal Value Chain

analysis

- Organisation culture

as source for

competitive advantage

Financial analysis:

- Trend in sales and

market share;

-Trend in customer

numbers based on

acquisition and defection

patterns;

-Trend in profit margins;

-Trend in net profits, ROI,

and EVA;

-Overall financial

strength and credit

ranking;

-Trend in share price and

market capitalisation;

and

-Benchmark trends based

on financial performance

against key competitors.

- Analysis of profitability

drivers

Risk analysis:

- Analysis of core

strategic assumptions

- Analysis of core

internal risks

General internal

analysis:

- Ethical practices

analysis

- Governance

practices analysis

(e.g. King

compliance)

- Customer service

status/trends

analysis and -

Employee

engagement trends

- Product positioning

analysis

- Product-Market

opportunity spaces

analysis

- Organisation life

cycle analysis

Chapter 6: Generic

Business Analysis

Approaches and Tools

Analysing a business

case study

The Minto Pyramid©:

SCQA analysis

The Cynefin Framework Dealing with bias in

decision-making

The premortem

Practical problem-

solving tools:

- The 5 “Why’s”

- Pareto Analysis

- McKinsey 7-S

Model

Biomatrix systems

framework seven

forces: Environment,

substance, ethos,

aims, process,

governance and

structure

THEME 3: Cross-Sight

Development

Chapter 7: Synthesis of

External and Internal

Information

Theory of the Business

Assumption Analysis

Theory of the Business

Hypothesis Validation

Business Model Canvas

development

Integrated fact-based

SWOT analysis

Identification and

development of

strategic issues and

questions

Theory of the

Business Sights

Analysis

Tools and frameworks 10

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Various case studies to illustrate applications: Local and global; Traditional and digital

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

The SA lubricantoil industry6

The South African poultry market12

South African retail industry

Food service industry in South Africa

CampusBike

Build Your Dreams

Strategy and Thinking

Macro analysis

Competitiveanalysis

Customer analysis

Internal analysis

System analysis

Synthesis / Integration

“Analysis is the critical starting point of strategic thinking.” –Kenichi Ohmae, Japanese organisational theorist and management

consultant

The external environment analysis focuses broadly on the general, industry and competitive environments. This analysis should reveal

pressures, constraints and opportunities for the future strategies of the organisation.

Environmental scanning stimulates foresight

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Scanning the implications of Exponential Technology

There is a critical need for new executive thinking to leverage rapidly advancing technologies in enabling

breakthrough innovation and growth.

The Exponential Africa Institute (xA) is an initiative of the University of Stellenbosch and its innovation partners,

founded with the purpose of exposing decision makers to exponential technologies and cultivate a nonlinear mind-set

in order to harness the power of exponential trends.

The first 4-day Disruption Partnership Program will be held from 8 - 11 May 2017 in Stellenbosch,

Western Cape. Enrolments close on 31 March 2017. See

https://www.exponentialafrica.co.za/admissions-exponential-africa/

From blockchain, artificial intelligence, machine learning, drones, energy, 3D printing, space commercialisation and robotics, to generative design, corporate venturing, disruption tech funds, future proofing labs, incubators and tech accelerators, our internationally acclaimed Exponential Africa Faculty will guide you through the rapidly changing innovation landscape in Africa.

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What is it?

How do we develop it?

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Strategy is the collective, emerging pattern –based on strategic choices – an organisation consciously exhibits and executes over time to ensure its sustainable endurance by differentiating itself in unique ways to create and add value for stakeholders.

Strategy is about explaining how an organisation wants to move forward and how it wants to advance the interests of stakeholders.

Organisations become what they get executed.

“Strategy always involves risk because we don’t know for sure how our choices will

turn out. Risks are related to uncertain customer demands, unpredictable competition

and changing technology. This makes the talk about blueprints, guarantees and

immutable laws a delusion…” - Rozenzweig, 2007.

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Breaking the mind-set: Strategy is only for a few, mainly inside the firm

Traditional view

on Strategy

New view on

strategyElitist strategy Open strategy

Strategy as exclusion Strategy as inclusion

Strategy as telling Strategy as asking

Hiding Strategy Transparent Strategy

“Unity without diversity leads to dogma and diversity without unity results in competing strategy agendas and fragmentation of resources. Only a strategy-making process, which

is both deep and wide, can achieve both diversity and unity” . – Gary Hamel

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We promote an integrated view on strategy

Align to: Campbell, A. & Alexander, M. 1997. What’s wrong with strategy? Harvard Business Review, Nov-Dec, 44-51.

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STRATEGIC ARCHITECTURE A strategic architecture is an organisation’s core logic for creating value on a

sustainable basis, and therefore forms the foundation of an organisation’s

competitive potential.

It describes the context and the terrain that an organisation intentionally

define or construct as a means to achieving a desired end. It also influences

the current competitive behaviour of the enterprise and may, therefore,

explain why an organisation seems not to be competitive in current terms.

The departure point we take is that competitive behaviour and potential can

be altered and influenced when an organisation redefines its strategic

architecture.

A strategic architecture view on an organisation creates a platform and

enabler of strategic choices, hardwired into the organisation. It is the

undertone to the success or failure of any strategy, which as a result should

be richly and concisely constructed and designed.

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STRATEGIC LEADERSHIP

Strategic leadership is the capacity to anticipate change, envision strategies, whilst

maintaining flexibility and empowering others to create and sustain strategic momentum to

ensure a flourishing organisation benefiting a variety of stakeholders.

This description is partly based on a description in: Ireland, R.D., Hoskiisson, R.E. & Hitt, M.A. 2011. The management of strategy concepts.9th edition, London: Cengage, p.308.

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Strategic choices is at the centre of strategy development

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HIGH LEVEL GENERIC STRATEGIC CHOICES

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EXPANDED BUSINESS MODEL CANVAS VIEW WITH CORE STRATEGIC MANAGEMENT ELEMENTS

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Expanded Business Model view with core Strategic Management elements: CASE STUDY OF UBER (South Africa)

In this figure, drive-seekers (customers)are depicted ingreen; Uber driver-partners aredepicted in purple;and Uber’s internaloperation aredepicted in blue.

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Business Model Growth Engine based on 12 aspects in expanded business model view

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Navigating Strategic Possibilities assist you to meet the following requirements for a great strategy

The compelling reason for the existence of the organisation is clear and is reflected in an idea and identity. The question about the difference the organisation make in the world and why that matters is answered.

The core strategic choices of the organisation are well understood to do what is required today to matter tomorrow.

The differentiating features of the strategy is well described and is difficult to imitate.

A tailored and interwoven set of activities as part of an activity system(s) for value creation is clear.

Progress is monitored through meaningful metrics. A passion and a deep care for the strategy exist in stakeholders to make it a lived

reality.

Based on : Montgomery, C.A. 2012. The Strategist. London: HarperCollins

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Post Capitalism: A guide to our future

By Paul Mason

Presented by Prof Andre Roux

7 April 2017: Cape Town

Live streaming also available