Strategy: rethinking the paradigm

Citation

McManus, J. (2009), "Strategy: rethinking the paradigm", Strategic Direction, Vol. 25 No. 9. https://doi.org/10.1108/sd.2009.05625iad.007

Strategy: rethinking the paradigm

Article Type: Abstracts From: Strategic Direction, Volume 25, Issue 9

McManus J., White D., Botten N. Management Services (UK), Spring 2009, Vol. 53 No. 1, Start page: 38, No. of pages: 5

Purpose – Addresses the challenges facing the traditional concept of strategy and strategic thinking. Design/methodology/approach – Considers the fact that business model innovation is becoming the new strategic differentiator, and that the business model organizations choose will determine and influence the success or failure of their strategy. Suggests that one development which supports the emerging strategy paradigm is the growing division of innovation labour – a system where one party develops an idea but does not market it, but partners with or sells the idea to another party who carries the idea to market. Draws a distinction between complementarity and disruptive strategic innovation. Illustrates the discussion with the case of Proctor and Gamble, and its need to move from a closed model of business to one that was more open and flexible, centred on searching for new products, technology, packaging, design, processes and business models. Expands on the creation and maintenance of innovative business models, the importance of the consumer interface, the business opportunities that are available through the medium of electronic commerce. Makes the point that commercial success in e-business, firms must search for useful technologies that can advance their business model, and that social network sites, such as Facebook, bring consumers together in ways that the traditional models do not. Originality/value – Extends the literature on strategy and strategic thinking with an exploration of the new paradigm of the innovative business model.Article type: Viewpoint ISSN: 0307-6768 Reference: 38AJ373

Keywords: Corporate strategy, Innovation, Market forces, Strategic change, Strategic management