In the Summer 2009 edition of Business Strategy Review, The London Business School journal has highlighted our seminal white paper on strategy formulation in a converging telecommunications sector. Written by Didier Bonnet, Capgemini’s Global Head of TME Sector Consulting and George Yip, Professor of Global Strategy and Management at Erasmus University in the Netherlands, the article explains why, in fast-moving technology-based industries, business models and strategic planning must converge into strategic formulation if companies are to succeed.
The authors believe the terms âstrategy’ and âbusiness model’ are separate but complementary business concepts. Furthermore, they write that strategy can be formulated both within an existing business model and when a company needs to switch from one business model to another. However, two main disruptive factors make setting a strategy even more challenging; the constant flow of technological innovation and the ever-increasing convergence of traditionally distinct industries. Together, these factors also change the competitive landscape, with businesses from previously different markets now competing in the same space.
As a result, it is more difficult than ever for companies to determine a clear strategy. To overcome this challenge, the paper recommends dynamic strategic screening to assess technological change on existing business models and to predict the implications of convergence at both industry and product/service levels. In conclusion, strategic agility – the ability to constantly sense, assess and react to market conditions – is far more relevant than sustainability today.
In the fast moving telco world, having the right strategy is critical to success