23 Oct Is traditional business strategy dead?
“Traditional Strategy is Dead. Welcome to the #SocialEra”. This is the categorical affirmation that Nilofer Merchant, specialist in business strategy, makes in the article about strategies of large corporations in the 2.0 era, here is the link. The text was published before the launch of her book 11 Rules for Creating Value in the #Social Age. Merchant reflects on how the term “Social” is often associated exclusively with media (Social Media), when, actually, it has many other implications referring to new organizational models in business. Thus, she claims they are vital for the survival of many companies in the “Social Era”.
Moreover, the author contrasts the strategy of what she considers to be smart companies from those others she calls “800 pound gorillas”. First ones have turned social and are characterized by fluidity and speed, redistributing power, and community work. They allowe innovation to arise from everywhere. Second ones cling to older traditional strategy models.
The business model of Merchant, that advocates a radical change in companies philosophy, is based on networking. It corresponds perfectly with the needs of any company that wants to take part in open innovation processes. It offers new ideas for creating value, places innovation at the heart of business strategy in a changing world.
Traditional strategy vs collaboration
She argues that collaboration is a great way to overcome challenges and rejects hierarchical structures to involve customers and employees in business strategy, maximizing talent potential for the organization. Therefore, she compares the companies that chose this model with gazelles against 800-pound gorillas. Maybe you will find some interesting ideas in the book.