Group 1 !!

FT172010 Ameya Ajit Puranda

Dynamic Capabilities FT172025
FT172029
Bharath Venkatesh
Gurpreet Singh Kalr
at IBM: FT172034
FT172037
Ishita Malhi
Jyoti Kumari
Driving Strategy into FT172040
FT172107 Kishore Kumar V
FT172062 Pratik Sarangi
Action FT172063 Pravek Singh Chara
Preeti Irny
The Evolution of Strategic Thinking

Dynamic
Capabiliti
Game es
theory
Resource
based-
competitiv
e
Porters 5 advantage
forces
 Theoretical concepts:
Dynamic capabilities

Leverage and recongure existing competencies and assets

in ways that are valuable to the customer but difcult for
competitors to imitate
Adapt these competencies to address rapidly changing
environments
Reallocate resources-by adjusting existing competencies or
developing new one
As markets and technologies evolve, rms need to adjust
by reallocating assets and learning new skills
Adapt and extend existing competencies that differentiates
dynamic capabilities from other strategic frameworks
First- accurately sense changes in their competitive
environment
Second- act on these opportunities and threats
 Strategic Insight

Strategic Intent: Sets the direction and goal for the organization,
and sets the priorities for achieving the advantages
Market Insight: Focus on customer needs and demands,
competitors moves, emerging new technologies and market
economies
Innovation focus: Challenges the mangers to think out of the box
Business design: Customer selection, Value proposition, Value
Capture, Scope of Activities, Sustainability
 Strategy Execution

Strategy Execution: elements required for

the execution of the plans,

Critical tasks and processes

Formal Organization
People and Skills
Culture
 The IBMs Approach

IBM did not lack smart, talented people. Its problems

were more technical in nature.
What IBM lacked was not the ability to foresee threats
and opportunities but the capability to reallocate assets
and recongure the organization to address them
In the old IBM, their capabilities were of a business
model that had fallen wildly out of step with
marketplace realities. They had to walk away from IBM
history
 The IBMs Approach

IBM transformed into an on-demand business using

advanced computer and software technologies to
quicken the flow of knowledge within companies and
help executives respond instantly to changes
IBM believed that the process must help line managers
to be engaged and competent in the strategy-making
process. A central part of this process was to keep
strategy making at the business unit level with the
people who best understand the local marketplace
 IBMs Dynamic Capabilities
Sensing New Opportunities: Strategic
Insight
Tech Team: Meets monthly and assesses the market
readiness and the potential of emerging technologies
Strategy Team: Meets monthly to examine the market results
of existing unit strategies as well as to explore new growth
areas
The Integration, Values team: Group of 300 key leaders
considered responsible for integrating IBM through company-
wide initiatives known as Winning Plays, are corporate-wide
strategic efforts
Deep Dive: This is an intensive, focused process where a
topic is scrutinized in great detail
 IBMs Dynamic Capabilities
Seizing New Opportunities: Strategy
execution
Emerging Business Opportunities: Integrated set of
processes, incentives, and structures designed explicitly to
enable IBM to address new business opportunities and drive
revenue growth

Strategic Leadership Forums: 3-5 day team-based workshops

built around specic performance or opportunity gaps that
bring extended teams together for intensive work on
problems or opportunities

Corporate Investment Fund: Developed as a way of providing

funding for new initiatives identied by the Integration &
Values Team or EBOs
 IBMs Dynamic Capabilities
CONCLUSION
The IBM process is one driven by line management based on
the realities of the marketplace as seen in performance and
opportunity gaps, not a staff exercise or slide deck
Strategy is ongoing disciplined routine between Managers
and Senior Executives

The Leadership Model made 3 points

General managers requires both strategic insights and
execution
Strategy is anchored on either performance or
opportunity gap
Importance of alignment of relationship among the
components

Effective strategy is not the articulation of the insights, but the