Strategic Management Unit 4

Digital/ Disruptive
Technology
and
Strategic
Management
zoherg@gmail.com https://digital-matrix.org 1
Strategic Management
Challenges and Trends
Strategy
Strategy is about ideas for action, not action itself.
C Concept: What is Strategy. Why we need it
C Content: What are the key inputs of Strategy
C Conduct: What is the best process of producing winning Strategies.

Your role?
1. Business Strategy: Customer Experience

2. Operational Strategy: People & Process
3. Transformational Strategy: Platform Technology
What could be
his strategy?
Elon Musk’s Strategy ?
Concept: What is strategy. Why we need it.
• Be highly innovative.
C
• Be the only one and first.
• Vast differentiation from competitors
Content: What are the key inputs of Strategy

• Shock the space and automobile market and its customers.
C • Get the best brains.

• Score heavily on digital technology
• SpaceX hired by NASA. Falcon 9, relaunchable booster 13 times
C Conduct: What is the best process of producing winning Strategies.

Your role
• Blue Ocean strategy. Get into unthinkable, non-existent markets, away
from the ‘noise’ of many competitors
• Be the only onezoherg@gmail.com
. Own the virgin market
https://digital-matrix.org 6
Re-defining Strategies
• Best of analogue strategies will falter without digital speed. Journey
towards digital transformation. (Data transfer, payment, deliveries,
info). eg. Bata Vs. Nike Vs. Reebok
(slow and steady wins the race cannot keep the pace)
• Humungous real-time data collection and analysis beyond capacity to
serve strategies. Pandemic has shaken the foundation of strategies.
(AI, ML, IoT, 5G, Big Data, Cloud Computing,
Edge).eg. Fraud detection at point of sale, Real time credit scoring
• Lethargic organisational response to laser-focused competitors harms
strategy implementation
(dine-in up-market restaurants switching to low cost kitchens with
home delivery and loyaltyzoherg@gmail.com
offers) https://digital-matrix.org 8
Re-Imagining Strategies
• Customer centricity and lightning reflex responses not built in, in conventional
static strategies. Starbucks.
(Reduced MTTD and faster MTTR, reducing safety margins). Eg. Amazon
• The pace of change has never been faster
(EVs versus conventional automobiles)eg. BYJUS, Unacdemy, UpGrad
• HR policies substantially changed to permit WFH, Perf. Appr., recruitment,
training
• Electronic payments and banking has revolutionised transactions.
(GoPay, PayTM, UPI, QR)
• Forrester Consulting to evaluate the state of enterprise responsiveness and
adaptability. Forrester conducted an online survey with 418 respondents and
eight interviews with digital strategy decision-makers at large North American
enterprises zoherg@gmail.com https://digital-matrix.org 9
Digital Factors affecting Strategy
Formulation
• Digital Speed: payments, deliveries, data transfer. Big
Data,IoT,5G,etc.
• Real time data collection: navigation, tracking, wearable
devices
• Response time : MTTD Vs. MTTR. Home deliveries
• Digital payments: No outstandings
• Customer centricity: Starbucks - “We don’t serve coffee. We
serve customers who drink coffee”. Howard Schultz
Uber/Ola – family dedicated vehicle
When disruption reigns, let customers
show the way
Enterprises thrive in uncertain times with:
• Customer centricity / eccentricity:
how effectively an organization orients its business strategies to understand and deliver against
customer needs.
Ola and Uber compulsory mask wearing by drivers
• Operational effectiveness:
how effectively an organization aligns its people and processes to deliver customer value.
Zomato and Swiggy instantaneous home delivery during pandemic
• Agility:
insights to become more effective, adaptive, and resilient.
Zomato board approves Blinkit (Grofer) buy for Rs 4,447 crore
Zomato will compete with well-funded players, including Swiggy’s Instamart, Zepto, Reliance
Retail-backed Dunzo, and Tata-owned BigBasket.
Digital Shock!
• “We thought we had a handle on how quickly things can
change — but that was completely invalidated by the
pandemic. During the onset, long-standing policies were
getting changed on a whim”.
• IT leader, financial services company
Strategies are not cast in stone

Digital era demands reflex actions
Long standing proven practices to give way to experimental means
Emerging Digital
Technologies
A Multiplier Effect
www.https://digital-matrix.org
A 14x14= 196 cell Digital Matrix
most cutting-edge technologies
of 14
Includes more than 250 ready references. Algorithm
ML
Digital
Edge
Cloud Blockchain Payment
IoT AI Robotics
AR, VR
Big Data 5G 3D
Data
Science
Strategic Learning Process
ELON MUSK
• Transportation surface,sea,air
archaic, expensive
• Get rid of fuel
• Close monitoring of
progress
• Unrelenting pressure
to achieve • Develop entirely new
technology
• Adopt ‘Blue Ocean’
strategy
• Hire the best tech experts

• Frame up strict timelines
• Infuse a winning culture
• Establish lucrative
compensation
5 Areas of Inquiry • Generate and retain customers
• Customer centricity / segmentation
• 5 year trend on • Hierarchy of needs
performance • Differentiating from compets
• Where making money / Customers & • Loyal shareholders / mobility
losing Shareholders
• SWOT analysis • Distinctiveness of
• Identify ‘brutal truths’ Own compets (Uber/Ola)
Realities Competitors • Comparison of profit
performance
• Economic trends (WFH)
• Social habits and 5 • Non traditional
compets (pvt. Taxis)
attitudes
• Globalisation
• Technology The Broader Industry • Trends shaping
• Demographics (Stat data Environment Dynamics
structure of industry
of popn.) (share taxi, growth)
• Govt. intervention(drivers • Opportunities /threats
to be given employee they pose
bebfits)
Strategy + Planning = Toxic Mixture. Planning should not overtake strategy
How has the Digital Technology influenced
Strategic Mgt.?
Within Organisation:
• Response time Constant change Competitive advantage
• Organisational alertness
• Nimble evolution
• Re imagine business / change mgt. / disintermediation
• Data management. Fostering digital talent in employees
Outside Organisation:
• Customer centricity Strategies to be aligned
• Strategic partnerships. Competition. Startups and upstarts
• Market navigation, Govt. regulations
zoherg@gmail.com (tokenisation of cr cd)
https://digital-matrix.org 17
Top Dx (Digital Transformation) Goals
Improve customer experience & engagement
Improve customer experience & engagement
Reduce operational inefficiency
Replace/ upgrade legacy IT systems
Increase / achieve innovation
Increase speed to market
Introduce new business models
Bolster cybersecurity
https://www.teksystems.com/en/insights/state-of-digital-transformation-2022
“How has your company’s ability in each of the following changed over the
past five years?” (Showing “Significant improvement”)
Base: 418 North American digital strategy decision-makers
https://fs.hubspotusercontent00.net/hubfs/437355/Q122%20-%20Forrester%20Responsive
%20Enterprise%20Study/Celerity-Responsive%20Enterprise%20TLP.pdf
AI and ML in
Strategy • Email categorisation
Formulation Business • Sales & business
Mgt. forecasting
• Process automation
Artificial Intelligence entails
that the machines can carry
out so called “smart tasks”
and to make independent AI E-Com
• Personalisation
• Purchase
decisions, predict behaviour predictions
ML • Fraud detection
Machine • Customer
Learning enables machines to segmentation
improve themselves as time • Predictive customer
Marketing service
goes by and as algorithms
become more and more • Predictive inventory
sophisticated. planning
IoT in Strategy • Can instruct
systems to
Formulation Business autonomously
Mgt. execute
IoT is many types of devices transactions in
supply chains
connected to the internet –
smart sensors, mobile phones,
security systems, industrial
machinery, etc. with unique IP
address, and can interact.
IoT Data
Analytics
• Tool that assesses
the wide range of
data collected
from IoT devices.
Supply
Chain • Predictive
maintenance
Digital Payments in
Strategy
Formulation Transaction
• Improve speed
and reduce cost
of payment
Use of electronic media for
payments.
Big Data is collected, analysed • Reduce
and used at various points during Digital Costs operating
a payment transaction costs
Technological change is leading
Payments
to payments data being collected,
processed, shared, and used in
digital form at lower cost and on Supply • Optimise
a larger scale than ever before. Chain inventory
management
https://wol.iza.org/articles/how-digital-payments-can-benefit-entrepreneurs/long
AIOps:
Algorithmic IT
Operations th e ir
d u c e ce ,
(multi-layered tech platform)
ie s r e p lia n
p a n c o m
p co m u r it y
h e l d s e c in g ,
• solution that uses smart algorithms
a y to clo u b r in g I O ps
(powered by AI and ML), where
ly w
ITnissues and r ov e is b y g h A
machines solve knowno
h e , im p g u e t h r o u
T repetitive
intelligently automate
c o s ts
and
s fa ti o n s
mundane jobs
lo u d a le rt p er a ti
c
• AIOps uses analytics and redu
ce in e o
n d m a c h
machine learning in a order to
n
analyze
e t • continuous integration and continuous deployment for core IT
te ll ig
big data from various IT operation functions. The resulting outcomes are intelligent insights
tools and devices. Asina result, it is • Through digital transformation, you can add more business value
able to automatically spot and more
importantly react to issues in real
by saving tons of time and effort and spend more time in
time. innovation. AIOps adoption can help your organization to get
end-to-end visibility into infrastructure and applications.
https://www.techtarget.com/searchitoperations/definition/AIOps
https://www.botmetric.com/blog/what-is-aiops/
Action Centred Leadership
• Direct the job/ task to be done
• Coordinate and foster the team
as a whole
• Support and develop the
individual people doing it
The size of each circle may vary as
per the situation which calls for
different responses by the leader
Ghadially Zoher H 24
Democratic.
Authoritarian Dictatorial Consultative Employees Laissez-faire.
Decision Decisions Decision allowed to Leader does
making consider subs making by take own not lead,
powers interests group. decisions . leaves it to
centralised in Leader Complex Responsibility the group.
leader explains decisions with leader. For highly
Dictators decisions which require Full professional &
Armed Forces Takes care of a range of confidence & creative
subs needs specialist skillsH trust in emplo groups
Ghadially Zoher 25
AIOp
• AIOps provides you with data-driven recommendations. These
recommendations are based on both real-time as well as historical
data to help you to carry out an informed decision-making process.
• AIOps as a continuous integration and continuous deployment for
core IT functions
• empower you to anticipate scenarios, plan dynamically, execute fast,
and pivot midcourse should things change.
• A growing proportion of human activities such as social interactions,
entertainment, shopping, and gathering information are now
mediated by digital devices and services. Such digitally mediated
activities can be easily recorded, offering an unprecedented
opportunity to study and measure intimate psycho-demographic
traits zoherg@gmail.com https://digital-matrix.org 26
Impact of Cloud
• Organisations updating and upgrading their database management
• adopt hybrid cloud solutions to achieve more mobility, scalability, and
cost efficiency with their data management applications.
Impact of 5G
• 5G adoption will require reviewing current database capabilities
• 5G promises to take things to the next level with network speeds that
will ramp up IoT connectivity, allow for a wider range of services, and
provide opportunities for new, disruptive business models
• 5G technology will power massive-scale IoT connectivity between
things such as wearables and smart devices. Drones will now have
increased connectivity and the smart car will become even smarter.
https://www.datastax.com/blog/how-5g-will-impact-your-data-management-strategy
5G
• Increase in use of other wireless devices, including robots, security
cameras, and cars that send traffic data
• 5G will demand more comprehensive data management and 100%
reliability. Organizations must now implement and maintain a data
management strategy that can accommodate not only larger volumes
of data, but also maintain high speeds and eliminate the risk of
downtime. Using a distributed, cloud-based data layer
Global Business Strategies for Responding to Cultural
Differences
The degree to
which the
company is
able to use the
same products
and methods in
other countries
https://courses.lumenlearning.com/wm-
principlesofmanagement/chapter/
responding-to-cultural-differences/
the degree to which the company must customize

their products and methods to meet conditions in
other countries.
How digital natives and start-ups innovate
quickly.
Action Centred Leadership
• Direct the job/ task to be done
• Coordinate and foster the team
as a whole
• Support and develop the
individual people doing it
The size of each circle may vary as
per the situation which calls for
different responses by the leader
Leadership in a Digital World
• We live in a time when all leadership rules are being rewritten
• Leadership is a rather abstract concept, dealing with attitudes,
relationships and values
• Leaders face shifts in global markets and circumstance that can come
from nowhere and impact
• the destinies of even the largest companies (Arthur Anderson, Lehman Bros.)
• undermine even the most powerful governments (USA, Russia)
• and global institutions ( WHO, UN)
• Leadership is context specific. There is no one approach to leadership.
It must be adapted to the needs of the day and shaped
• Leaders need to be ready to embrace the changes that are coming
Leadership in a Digital Worldhttps://uwe-repository.worktribe.com/output/917133
Geographical spread of Digital Leadership
• Remote leadership without face-to-face interaction (WFH)
• Digital leadership involves multi locational, multi cultural, multi
linguistic team members
• “One size fits all” does not apply
• Leaders need to create new ways of working in a global operating
model
• Leaders need to respect time zone differences
• Need to be aware and respect national govt. rules and regulations
Leadership in a Digital World
• In the digital age, leaders need to be well-equipped with both digital
and emotional agility in operating in an uncertain and complex
environment.
• Today, in decision-making process and innovation, efficient leaders
work in rapid learning cycles.
• Solo leadership tending towards shared power and authority
• Leadership is now considered to be more an activity rather than a
role that belongs to a single person
• Team members equally qualified and capable. Nonhierarchical
organization
• Leader is the best among equals https://digital-matrix.org
zoherg@gmail.com https://www.teksystems.com/en/insights/state-of-digital-transformation-
35
Leadership Scenario in the Digital Era
• Integrating continuously upgraded technologies. Reskill / upskill workforce
• Deal with high attrition rates
• Leadership in conflict, critical and failed situations
• The future can no longer be looked upon as an extension of the past and
experience can become a burden not a benefit
• Today’s startups are an example of relevant leadership
• Leaders should accept that possible futures, and not the past will inform the
present
• Leaders to have a high appetite for risk, accept failure with grace and opportunity
to learn
• Managing change and transition
Leadership Scenario in the Digital Era….
• The days of the charismatic, omniscient and omnipotent leader are
long gone.
• Top leadership today requires the exercise of influence rather than
power
• The setting of tone and context that ensures that leaders through
organisations act with confidence, purpose and a strong ethical
compass.
• A leader must know when to lead, when to coach, when to facilitate
and when simply to support.
Innovative Leadership - Future
• Envision the future by imagining exciting and ennobling possibilities
• Manage unforeseen situations.
• Make the future work
• Develop sixth sense of predictability. Notice critical info
• Be a first class ‘noticer’ – the power of noticing: recognise talent, identify opportunities, avoid
pitfalls
• True L are Ls for lifetime (beyond work)
• Be a ‘last resort’ guy
• For an evolving L, failure is a feedback
• Self worth >>> net worth
• Shake yourself out of your comfort zone
• Leaders must move from intention to impact (Mandela)
• True leadership is not acting a certain way; it is a reflection of who we are within. That inner
spiritual power is the source of morals, virtues, power and life.
Succeeding with Hybrid Work – Focus on 5 Cs
Challenges of full-time work split between home and office
Challenges Obstacles Acton Steps
Communication Remote, conversations monopolised, Evaluate:

barriers due to power and status, language For each C, rate 1 (highest)
diff. to 10 (lowest)
Coordination On-site Vs. remote workers, remote team Analyse:
mates ignored Focus attention on lowest C
Connection Lack of personal / social contact, remote Plan:
“underclass” Vs. on-site “dominant class” Consider actions to improve
Creativity Creativity threatened, spontaneity of ideas
lost, impromptu tea time ideas absent Implement:
Make a schedule for
implementing changes
Culture Imbibing co.’s culture difficult without being https://knowledge.wharton.upenn.edu/article/
together
Power vs. Authority
Power Authority
• Potential & ability to influence others’ • Right to take decisions (Mgr.)
actions (L)
• Possession of K, personality • Formal right to give orders
• To get obedience (L) • Authority flows downwards only
• Power can flow any direction
• Power may not be official and may not • ‘A’ is official and legitimate
be legitimate
• Cannot be shown in orgn. Charts
• ‘P’ not proportional to level of mgt. • Hierarchy shown in orgn. charts
(person) • ‘A’ proportional to level of mgt. (position)
Sometimes challenges find Leaders
( Gandhi, E Sreedharan, Delhi Metro )
Sometimes Leaders find challenges
(Elon Musk)

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Digital/ Disruptive

C Concept: What is Strategy. Why we need it

C Content: What are the key inputs of Strategy

C Conduct: What is the best process of producing winning Strategies.

1. Business Strategy: Customer Experience

Content: What are the key inputs of Strategy

C • Get the best brains.

C Conduct: What is the best process of producing winning Strategies.

Strategies are not cast in stone

Includes more than 250 ready references. Algorithm

• Hire the best tech experts

Reduce operational inefficiency

Replace/ upgrade legacy IT systems

Increase / achieve innovation

Increase speed to market

Introduce new business models

the degree to which the company must customize

Communication Remote, conversations monopolised, Evaluate:

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