A seismic shift in business strategy is underway, driven by mounting performance pressure and the rapid pace of change in the digital era. Traditional approaches to strategy, centred on predictability and efficiency, are becoming obsolete. The current era demands a shift from a firm-centric view to an ecosystem view, recognising the increasing importance of networks in driving value creation.
The ‘Big Shift’ in strategy is about creating and capturing value in new ways. It involves moving from a focus on knowledge stocks to knowledge flows, and from scalable efficiency to scalable learning. This shift requires businesses to develop new capabilities, such as dynamic resource allocation and rapid experimentation.
In the context of the Big Shift, the role of the customer is also changing. Customers are no longer passive recipients of products and services; they are active participants in the value creation process. Businesses that can effectively engage customers in this process are more likely to succeed in the digital era.
The Big Shift also requires a rethinking of leadership. Leaders need to cultivate a culture of learning, encourage risk-taking, and promote a sense of purpose that goes beyond short-term financial performance. This new approach to leadership is critical to navigating the challenges and opportunities presented by the Big Shift.
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