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Revolutionary change Strategy as a Competitiveness Challenge Published: Sunday, February 24, 2008 By: Dr. Manuel Ángel (Coco) Morales

To some people to word revolutionary is too much of a strong management concept.  From a competitiveness strategy perspective it is always a very important description.  The empirical logic is that mayor increases in wealth, for companies and for the society, flow from innovation, not from only optimizing present strategies. Indeed, some wealth is gained by perfecting the known, but venturing into and seizing the unknown and exploring the new, WHEN SUCCESSFUL, produce large increases in wealth.  As we have shared for a long time if we do not produce wealth there is nothing to distribute and progress and prosperity are stopped. The competitiveness and entrepreneurial challenge is to develop a deep understanding of the fast-changing world and to imagine (research) the innovation that will create significant value.  This requires leaders, executives, managers and employees to have foresight and creativity.  It requires flexible and adaptive thinking as well as the capacity to learn quickly, since the future is increasingly unpredictable. Innovation is about agility, experimentation, imagination, diversity, while optimization is about scale, efficiency and reducing hierarchies.  Radical innovation requires leaders who are radical (who dare to go to the roots and do something quite different), who go beyond the established orthodoxy of the company and the industry. In a highly competitive world, organizations must innovate as well as improve productivity.  This combination of fundamentally different types of change (revolutionary and incremental) is a very huge challenge because these processes require different skills and capabilities, contributing to the difficulty of balancing short and long term considerations regarding financial market requirements and that of continue to create value throughout the change ongoing change process.   A revolutionary change strategy is high-stakes game, starting when leaders develop a vision of the company’s future, and make major hard-to-reverse decisions about where the company will focus its energy is correct.  Revolutionary strategies are proactive, becoming an important force creating turbulence in the industry. In environments that are characterized by discontinuous change, organizations have to respond in a revolutionary way, such as a radical definition of the company in order to survive and effectively compete.  Such a strategy challenges the existing industry boundaries and norms and if successful, reinvent the organization-industry itself.  In a ferocious competitive world, strategy reinvention is the key to wealth creation and competitiveness.   Revolutionary change strategies are about leveraging resources, about stretching the company, as well about the fit between the environment and the current resources.  They often involve innovation that affect the entire business system value change, the target customer focus, and the economic model can be all transformed. Revolutionary change strategies are sometimes referred to a breakout or frame-braking strategies that deliver a mayor improvement to customers as their core.  Is the improvement is large enough, some of the value can be retained to provide better or superior retain to shareholders. These strategies rarely emerge full-fledged.  Learning and subsequent adaptation occurs after deployment.  When successful these innovation produce mayor impacts in industry structure, and the change in rules activates imitators, forcing incumbents to respond.    


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