Strategic Optionality: Pathways Through Disruptive Uncertainty

Acknowledgement
Contents
List of Figures
1: Introduction
	A Note on the Theories Covered in the Book
	A Note on the Writing Style
	Reference
2: The Business Landscape: Unpacking the Idea of ‘Domain Specificity’
	Globalisation
	Digitisation
	Pure Digital
	Pure Physical
	Physi-Digi Reality
	Metamorphosis of Business Realities
	FRL Domains
	Integrating the Physi-Digi with FRL Domains
	References
3: The Conventional Wisdom in Strategy
	An Overview of Popular Strategy Frameworks
	The PEST/PESTEL/PESTLE Framework
		What Is It?
		How It Works in Strategy-Making
			The Political Domain
			The Economic Domain
			The Social Domain
			The Technological Domain
			Some Other Domains
		Strengths and Weaknesses of the PEST Framework
	Porter’s Diamond
		What Is It?
		How It Works in Strategy-Making
		Strengths and Weaknesses of Porter’s Diamond
	The Triple Helix
		What Is It?
		How It Works in Strategy-Making
		Strengths and Weaknesses of the Triple Helix Model of Innovation
	Scenario Planning
		What Is It?
		How It Works in Strategy-Making
			Step 1: Asking the ‘What’ Question
			Step 2: Identify the Factors
			Step 3: Define the Forces
			Step 4: Rank for Importance and Uncertainty
			Step 5: Understand the Logic
			Step 6: Write Down Scenarios
			Step 7: Identify the Indicators
			Step 8: Evaluate your Options
		Strengths and Weaknesses of Scenario Planning
			Some Concluding Remarks on Strategy Frameworks at the Macro-level
			Strategy on the Industry Level
	The Five Forces
		What Is It?
		How It Works in Strategy-Making
		Strengths and Weaknesses of the Five Forces
	The Industry Life Cycle
		What Is It?
		How It Works in Strategy-Making
		Strengths and Weaknesses of the Industry Life Cycle
	The Industry Architecture
		What Is It?
		How It Works in Strategy-Making
		Strengths and Weaknesses of the Industry Architecture
			Strategy on the Firm Level
	The Generic Strategies
		What Is It?
		How It Works in Strategy-Making
			Differentiation
			Cost Leadership
			Focus
		Strengths and Weaknesses of the Generic StrategyFramework
	The Balanced Scorecard Model
		What Is It?
		How It Works in Strategy-Making
		Strengths and Weaknesses of the Balanced Scorecard Model
	SWOT: Strength-Weaknesses-Opportunities-Threats
		What Is It?
		How It Works in Strategy-Making
		Strengths and Weaknesses of the SWOT Analysis
	The Resource-Based View of the Firm
		What Is It?
		How It Works in Strategy-Making
		Strengths and Weaknesses of the Resource-Based View (RBV) of the Firm
	Dynamic Capabilities
		What Is It?
		How It Works in Strategy-Making
		Strengths and Weaknesses of the Dynamic Capabilities Framework
			Strategy on the Corporate Level
	The Boston Consulting Group Growth Matrix
		What It Is?
		How It Works in Strategy-Making
		Strengths and Weaknesses of the Boston Consulting Group Growth Matrix
	Ansoff Matrix
		What Is It?
		How It Works in Strategy-Making
			Diversification: New Products for New Markets
			Product Development: New Products for Existing Markets
			Market Development: Existing Products for New Markets
			Market Penetration: Existing Products for Existing Markets
		Strengths and Weaknesses of the Ansoff Matrix
	Conclusion
	References
4: Strategic Optionality: Introducing the Idea
	The Two Faces of Uncertainty: Luck and Misfortune
	Hyper-Rationality and Strategic Management
	The Problem of Hyper-Rationality
	Bounded Rationality: A Dose of Realism
	Optionality
	Real Options and Corporate Strategy
	Strategic Optionality and FRL Domains
	References and Further Readings
5: Optionality and Innovation: Two Sides of the Same Coin?
	Macro and Micro Perspectives on Innovation
	Macro Perspectives on Innovation
		System View on Innovation
			National Innovation System and the Triple Helix Model
			Competitive Advantage of Nations
		Industry- and Firm-Level Innovation Dynamics
			Architectural Innovation
			Diffusion of Innovation (S Curve)
			The (Industry) Life Cycle
			Dominant Design
			4Ps of Innovation Space Model
		Innovation at the Individual Level
			The Genius Myth
			Errors and Accidents
			Bisociation
			Lateral Thinking
	Integrating the Macro and Micro Perspectives on Innovation
	The Early Adopters/Lead Users
	Mass Adoption
	Rejecting the Myth of the Genius Inventor
	Optionality and Innovation
	References
6: Competitive Success: Competing Across FRL Domains
	The 4Rs of Success
	Resources
	Problems with RBV
	Static Analysis
	Dynamic Capabilities
	Recombination
	Reach
	Roots
	Competing Across FRL Domains
	Strategic Imperative of the Fragile Domain
	Strategic Imperative of the Robust Domain
	Strategic Imperative of the Long-Shot Domain
	Competing Across FRL Domains
	References and Further Reading
7: Optionality: The Method
	Step 1. Domain Identification
		Know Thyself: Where Are You? What Brought You There? And Where Do You Want to Be?
	Fragile
		Key Attributes
	Robust
		Key Attributes
	Long-Shot
		Key Attributes
	Step 2: Evaluating the Strategic Imperative
		Where Do You Go Next?
	Step 3: Identifying Your Free Options
		Are There ‘Free’ Options Out There?
			Free Options Out of Roots
			Free Options Out of Resources
			Free Options Out of Reach
			Free Options Out of Recombination
	Step 4: Developing Options Through Scenarios
		How to Develop Optionality?
			Phase 1: What Future Changes Might Affect Our Firm the Most?
			Phase 2: What Elements Would These Changes Have?
			Phase 3: What Forces Might Play a Role?
			Phase 4: Determine Relevance and Unpredictability
			Phase 5: What Reasoning Do You Follow?
			Phase 6: Create Coherent Options
			Phase 7: Find Suitable Indicators
	Step 5: Evaluate Options
8: Conclusion
Index