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05 25th, 2009
A strategy is a plan of action designed to achieve a particular goal. Strategy is different from tactics.
Every business, whether planned or not, has and acts on a strategy to both engage in market opportunities and to provide offerings. The process and thinking about strategy has changed overtime as the market conditions change.
When market conditions change such changes can turn old strategies on their head and subsequently a business finds that what they were doing in the past is no longer valid and they begin to lose market share.
Are The Market Conditions Changing?
Have you watched the headlines? Everywhere we turn we can see market disruption. This is especially true within the field of media, the advertising field, our entire economic market has changed and in case you haven’t noticed the market of conversations is fueling disruption in every market. For companies to adapt to these changes they must pursue alternative strategies. However the pursuit of alternative strategies means that everything changes including how your new strategy is formed.
Strategy 2.0 is a new process that is required to create new plans of action in order to stay in the game and thrive. The marketplace is at war for consumer attention and spending. The war is not fought with traditional tactics rather it is fought using methods of engaging markets, the conversation.
In his book, The Cluetrain Manifesto, (1999) Doc Searls speaks to the point that “markets are conversations.” He supports this thesis with a thorough discussion on how the growth and widespread use of the Internet is facilitating conversations that defy the traditional boundaries of corporations and countries. What was once a prophecy has now become a fact – and at an unprecedented rate of speed. This movement has not only influenced existing markets and how consumers engage in transactions, it has created new markets and new methods of exchange.
Searls notes that three things happen in all “natural” markets: transaction, conversation and relationship. The conventional thinking of almost all corporate cultures is that they understand transaction excessively – focusing intensely on the ultimate result: The “bottom line.” Thus, their understanding of the value of genuine conversations and healthy relationships is woefully deficient. Corporate America rationalizes almost all her decisions in terms of transactional value alone. This mindset will not continue to be successful in the new economy.
Cycles of Strategic Transformation
According to Doc Searls, the acceleration of conversations creates cycles of transformation. These cycles have blazed the trail to a new frontier for commerce: Relationship. The networked marketplace can only be improved upon and enlarged through relationships. Those who are grasping this recognize the opportunity to expand a current market and/or lead to the creation of a new one. How does this happen? It begins with a conversation.
Strategy 2.0 is about applying knowledge of this dynamic marketplace and implementing a plan to maximize your competitiveness in the marketplace of conversations. Strategy 2.0 is about anticipating the evolution of your intended strategy into an emerging strategy whose cycle of transformation doesn’t occur at a tidy annual corporate planning retreat; rather, it is an ongoing, everyday occurrence.
Strategy 2.0 doesn’t wait for quarterly and annual reports to be compiled; it is being discussed and formed among the daily conversations between employees and customers. But Strategy 2.0 is not only about the use of an advancing technology. Actually, it’s more basic than that. Strategy 2.0 begins and ends as a conversation. Get it?
What say you?
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May 25th, 2009 at 8:19 am
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May 26th, 2009 at 1:42 am
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May 26th, 2009 at 10:40 pm
Interesting read Jay. Strategy 2.0 is also about cyclic adaptation and execution of outcome of conversation – much like a self growing, yet sustainable engine of input and output.
Though I have to say on your comment “Strategy 2.0 begins and ends as a conversation.” Strategy 2.0 doesn’t really end. That’s the whole point of a cyclical conversation and adaptation of this conversation in corporate fabric on a permanent basis.
May 31st, 2009 at 3:53 pm
[...] What Is Strategy 2.0? [...]
June 15th, 2009 at 11:58 pm
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December 20th, 2009 at 6:13 am
The Athenian Arts…
…an interesting post over at . …..