Cover 1
Strategic Management in the Knowledge Economy 2
Preface to the Second Edition 6
Contents 11
I Introduction 14
Fundamental Impacts of the Global Knowledge Economy on Strategic Management 15
An Emerging New Era 15
Dramatic Shifts Due to the Global Knowledge Economy 16
Implications for Strategic Management 21
Implications for Strategy Dimensions: Context, Content and Process 23
Conclusion 26
Innovating Our Way to the Next lndustrial Revolution 27
Corporate Heretics 28
The Dimensions of Sustainability 29
Between Two Stories 30
Naturalism: Biomimicry and the Logic of Natural Systems 32
Humanism: The Logic of Learning 34
A New Business Logic 36
The Logic of Revolutions 46
Resource and Knowledge Transfer at the Ch芒teau Lafite-Rothschild Wine Estate 48
The Estate and its Wines 48
The Secret of the Success 48
The Los Vascos Wine Estate 48
Resource Transfer as a Business Strategy 49
Product Differentiation as a Business Strategy 49
The Effect of the Resource Transfer Business Strategy 49
ShareNet - the Next Generation Knowledge Management 50
Background 50
The shifting context in telecommunications 51
Orchestrating a global network of knowledge sharing 54
ShareNet \u2013 leveraging local innovations globally 56
The initial development of ShareNet 56
ShareNet \u2013 a business application system 58
Mobilizing global knowledge sharing 60
Critical success factors for global knowledge sharing 61
Perspectives 65
Conclusive remark 66
Questions 67
References 68
II Traditional Strategic Management Approaches and Tools, and their Deficiencies 70
Traditional Strategic Management Approaches, and their Deficiencies 71
What is Wrong with Traditional Approaches to Strategic Management? 71
The Evolution of Traditional Approaches to Strategic Management 71
Challenges faced by Conventional Strategic Management Wisdom 77
Are Traditional Strategic Management Approaches Irrelevant? 80
Strategy and the Internet 82
Distorted Market Signals 83
A Return to Fundamentals 85
The Internet and Industry Structure 86
The Myth of the First Mover 89
The Future of Internet Competition 91
The Internet and Competitive Advantage 93
The Absence of Strategy 96
The Internet as Complement 97
The End of the New Economy 104
What Makes a Strategy Brilliant? 107
What\u2019s Wrong with Strategy? 108
Can Strategy Be Made by a Method? 111
Recognizing Brilliant Strategy 114
The Strategy Classroom 117
Who\u2019s Who: Changing the Traditional Strategic Management Mindset 119
The Electronic Revolution in Publishing 119
Issues for Reference Publishers 120
Who\u2019s Who 121
What Librios Does 122
Managing Change 124
Solutions in Practice 125
Commercial Benefits and Opportunities Delivered 126
Looking Ahead 128
Questions 130
References 131
III A Systemic Approach to Business Models and Strategic Management 134
A New Mindset: Systemic Strategic Management 135
Another New Evolutionary Era in Strategic Management? 135
Business Ecosystems Thinking 135
New Organizing Structures to Enable Co-Shaping of Organizational Capabilities and Behavior 140
Shifting the Conceptual Base of Strategic Management from an Ecosystems Model to a Socio-Cultural Model 143
Conclusion 147
Predators and Prey: A New Ecology of Competition 148
The Birth of Business Ecosystems 149
Expansion: Capturing Territory 152
Leadership: The Fight for Control in an Ecosystem 154
Self-Renewal \u2013 or Death 156
Strategy at the edge of chaos 160
The roots of management thinking 160
Complex adaptive systems 162
The new economics 163
Early thinking on management 164
Becoming competitors and evolvers 168
Holcim \u2013 A Faster Learning Group through Knowledge Management Tools 169
Web sales and multiplication of best practices \u2013 a recent example 174
Questions 176
References 177
IV New Strategic Management Approaches and Processes 180
Frameworks for Systemic Strategic Management 181
Understanding Systemic Strategic Management and its Role in Co-shaping an Organization\u2019s Business Model 181
Socio-Cultural Business System Dynamics 183
Frameworks to Understand Systemic Strategy-Knowledge Links 191
A Systemic Framework for the Development of New Business Models 195
Guidelines to Deal with Organizational Inertia in Business Networks 196
Cautions in Shifting to Systemic Strategic Management 197
Conclusion 198
The Challenge Today: Changing the Rules of the Game 199
Newcomers in the Driver\u2019s Seat 200
Innovation by Incumbents 202
Incrementalism is No Longer Enough 203
Innovation of the Business Model 204
Activists not Visionaries 205
Structured Anarchy 207
New Lenses Reveal New Possibilities 208
Getting Lucky Twice 209
Strategic Innovation: A Conceptual Road Map 211
Redesigning the End-To-End Value Chain 213
Reinventing the Concept of Customer Value 217
Redefining the Customer Base 221
Developing and Implementing a New Business Model in the Global Wine Industry \u2013 the BRL Hardy Experience 227
Industry Production Fragmentation and Strategic Gap Identification 227
Industry Demand Situation and Customer Value Propositions 228
Reconfiguring the Hardy Value System and Value Chain 228
Internal Consolidation and Cultural Change 229
Cautions and Lessons 229
Strategic Elements for Kuoni Business Travel International 231
The Company and its Structure 231
BTI and Kuoni 231
Business Travel 232
The Role of Knowledge in Business Travel 234
Buying Knowledge 234
Merging Companies and Knowledge 235
Looking ahead 236
Questions 238
References 239
V A New Strategic Management Toolbox 242
Strategic Management Tools for the Knowledge Economy 243
Introduction 243
Strategic Management Tools to Develop New Business Models 244
Strategic Tools to Guide Knowledge Management and Innovation in Business Networks 246
Tools to Enhance and Measure the Fitness of a Socio-Cultural Business System 253
Conclusion 256
Creating New Market Space 258
Looking Across Substitute Industries 259
Looking Across Strategic Groups Within Industries 262
Looking Across the Chain of Buyers 264
Looking Across Complementary Product and Service Offerings 266
Looking Across Functional or Emotional Appeal to Buyers 268
Looking Across Time 271
Regenerating Large Companies 273
Five styles of Customer Knowledge Management, and how smart companies use them to create value 274
Introduction 274
Expanding on Customer Relationship Management and Knowledge Management 275
CKM in Theory and Practice 281
Five Styles of CKM and their Application 282
Discussion and Implications: Common Stumbling Blocks for CKM 286
Conclusion 287
Knowledge as a Strategic Resource at Novartis 289
The Background 289
Facilitating the Sharing of Knowledge 290
The Knowledge MarketPlace 290
People! \u2013 A strategic Risk Management Approach at Deutsche Bank 293
Questions 299
References 300
VI Strategic Management - The Challenging Road Ahead 304
Managing the New Strategic Leadership Challenges 305
Introduction 305
Major Strategic Leadership Qualities in Socio-Cultural Business Networks 306
Requirements to Facilitate Self-organization, Self-discipline and Resilience 310
Developing robust adaptive strategies 313
Conclusion 316
Understanding Organizational Sense Making: A Diagnostic Tool for Strategic Leadership in Conditions of Complexity 318
Complex Adaptive Systems \u2013 The Emergence of a New World View 318
Sense and Sense making 320
Sense making in organizations 322
Applications and implications 325
Leadership at the Edge of Chaos: From Control to Creativity 328
Quantum Organizations 328
The New Leader 330
Personal Leadership 334
The Evolution of Leadership 335
Unisys Switzerland \u2013 A Change for a Knowledge-based Culture 336
About Unisys 336
Unisys: A History of Excellence 337
How Unisys Had to Change 338
The Swiss Structure and Products after Momentum 2000 338
Implementing the Change in Unisys Switzerland 339
\u201cTaking the future into our hands\u201d 341
Communication of the New Objectives 342
Strengthening a Culture Based on Communication 342
Questions 344
References 345
Written by 348
Authors and Contributors 349
Glossary of Major Terms 352