Enabling industry inflection and corporate innovation : utilising complexity thinking for innovative strategic management

Thesis (MComm)--Stellenbosch University, 2003. === ENGLISH ABSTRACT: In the new economy, many industries - more specifically those that can be replaced electronically - are generally believed to be in peril of strategic inflection points. Scrutiny of available researches on the drivers of discont...

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Bibliographic Details
Main Author: Habtay, Solomon Russom
Other Authors: Leibold, M.
Format: Others
Language:en_ZA
Published: Stellenbosch : Stellenbosch University 2012
Subjects:
Online Access:http://hdl.handle.net/10019.1/53407
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Summary:Thesis (MComm)--Stellenbosch University, 2003. === ENGLISH ABSTRACT: In the new economy, many industries - more specifically those that can be replaced electronically - are generally believed to be in peril of strategic inflection points. Scrutiny of available researches on the drivers of discontinuity indicates that some strategic inflection points can be foreseen, but many cannot be anticipated, because initially inflection points emerge very small, and can often be missed, but then they suddenly strike hard without warning. A strategic point of inflection occurs when existing ways of doing business and industry structure subtly but profoundly change. This study proposed to review the application of the complexity theory to strategic management for enabling industry inflection and corporate innovation. The study describes a couple-phased complexity approach for enabling industry inflection. The first phase starts by building organisational fitness through designing complex adaptive systems, internal to the organisation, and nurturing healthy co-evolution with external key players. The application of "communities of practice" into complex adaptive systems of organisational design is demonstrated as an essential means to drive the organization to the edge of chaos through which new businesses may evolve that can potentially trigger an inflection point. The co-evolutionary approach is explained as a process to develop patterns of co-adaptation with key players, whereby co-adapters collaborate to adapt effectively, although they still remain free to compete for a prime-movers hip position. This is hypothetically postulated to be space transition at the edge of chaos at the socio-cultural business system level, where active members, driven by the moving self-organization, engage in exploratory dialogue to explore space possibilities for systemic innovations. The second phase is described in four strategic stages for enabling industry inflection and corporate innovation. The strategic inflection point begins with a definition of a customer value proposition. This leads to the co-experimentation stage where co-creators jointly experiment with diverse new business models comprising a variety of customer value propositions that appeal to different segments. The success of new business model may cause industry inflection, subsequently leading to the third stage where the inflection point creates uncertainty to both the co-creators and their competitors, because the final success of a proactive strategic inflection point depends on the market dynamics. The salient conclusion of this study is that the complexity theory does not guarantee the complete success of a proactive strategy for enabling industry inflection. An inflection point can barely result from a deliberate strategic process only. Neither is a strategic inflection point a function of perfectly unexplainable market factors. Recommendations have been provided for further research to address, among others, the conceptual gap between the scientific analysis and the non-linear assumption of the complexity theory. === AFRIKAANSE OPSOMMING: Daar word in die hedendaagse ekonomie algemeen aanvaar dat baie nywerhede - in die besonder dié wat elektronies vervang kan word - gevaar loop van strategiese invalspunte. Noukeurige ondersoek van beskikbare navorsing oor die aanvoorders van diskontinuïteit dui daarop dat sommige strategiese invalspunte verwag kan word, maar baie kan nie geantisipeer word nie, aangesien invalspunte aanvanklik baie klein voorkom, en dan dikwels misgekyk kan word, maar dan slaan hulle vinnig toe, sonder waarskuwing. 'n Strategiese invalspunt kom voor wanneer bestaande maniere van sake doen en die struktuur van die industrie subtiel, maar wesenlik verander. Met hierdie navorsing is beoog om 'n oorsig te kry van die toepassing van die kompleksiteitsteorie op strategiese bestuur ten einde geleentheid te verskaf vir industrieinfleksie en korporatiewe innovering. Die navorsing beskryf 'n aantal gefaseerde kompleksiteitsbenaderings om industrie-infleksie aan te help. Die eerste fase begin met die opbou van organisatoriese geskiktheid deur die ontwerp van komplekse aanpasbaarheidstelsels wat intern aan die organisasie is en deur die kweek van gesonde koevolusie met eksterne sleutelrolspelers. Die toepassing van "algemeen aanvaarde praktyk" in komplekse aanpasbaarheidstelsels van organisatoriese ontwerp word gedemonstreer as 'n essensiële middelom die organisasie tot op die rand van chaos te dryf waardeur nuwe ondernemings kan ontwikkel wat moontlik 'n invalspunt kan veroorsaak. Die ko-evolusionêre benadering word verduidelik as 'n proses om patrone vir ko-adaptasie met sleutelrolspelers te ontwikkel, waardeur medebewerkers saamwerk om doeltreffend aan te pas, alhoewel hulle steeds vry is om vir 'n posisie as hoofkragbron mee te ding. Daar word hipoteties gepostuleer dat dit paradigmatiese oorgang op die rand van chaos op die sosiokulturele sakevlak is, waar aktiewe lede, gedryf deur die vinnig bewegende self-organisasie, betrokke raak by verkennende dialoog om die paradigmatiese moontlikhede vir sistemiese innovering te verken. Die tweede fase word in vier strategiese stadia beskryf om industrie-infleksie en korporatiewe innovering moontlik te maak. Die strategiese invalspunt begin met 'n definisie van 'n aanbieding van kliëntwaarde. Dit lei tot die ko-eksperimentele stadium waar medeskeppers gesamentlik eksperimenteer met diverse nuwe sakemodelle wat bestaan uit variasies op aanbiedings van kliëntwaarde wat vir verskillende segmente aanloklik is. Die sukses van 'n nuwe sakemodel kan moontlik industrie-infleksie veroorsaak, wat dan lei tot die derde stadium waar die invalspunt onsekerheid skep vir die medeskeppers en hulle mededingers, aangesien die finale sukses van 'n proaktiewe strategiese invalspunt van die markdinamiek afhanklik is. Die belangrikste gevolgtrekking na aanleiding van hierdie navorsmg IS dat die kompleksiteitsteorie nie die algehele sukses van 'n proaktiewe strategie verseker om industrie-infleksie te bemagtig nie. 'n Invalspunt kan beswaarlik slegs uit 'n doelbewuste industrie-infleksie voortspruit. Die strategiese invalspunt is ook nie 'n funksie van volkome onverklaarbare markfaktore nie. Aanbevelings word gemaak vir verdere navorsing wat aandag kan gee aan, onder andere, die konseptueie gaping tussen die wetenskaplike analise en die nie-lineêre aanname van die kompleksiteitsteorie.