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Shaping StrategyIn a World of Constant Disruption
Group 6John Hallberg 70398Pierre Jarméus 20967Carl Sundberg 40083Simone Masog 40098
The game industry is plagued by:Inefficient distribution
Piracy and cheatingCommunication problems between players
Lack of a common platform
A famous entertainment company called Valve comes along with the solution. The solution is called STEAM and is a platform for connecting people & games, make it
easier for players as well as defeating piracy issues on a broad scope.
Solution and our example:
Current attempts:Are based on each other and fail to solve the problem and often make it more
difficult for various stakeholders.
Before we go on we will briefly introduce our example company and the problems
that existed when they started their shaping strategy
Now the article:
Source: John Hagel III, John Seely Brown & Lang Davison, “Shaping Strategy in a World of Constant Disruption”, HBR 2008
The changing business
environment• Change is now exponential and equilibrium is never reached in the market.
• Business no longer goes through the typical cycle of adaptation to disruptive technologies.
• The result is that adaptation is no longer a sufficient strategy to stay relevant today.
• Change is also compounded by the changing infrastructure (for example computing, storage and bandwidth).
Intro (1)Intro (1)
Example:The STEAM infrastructure would not have worked 10 years ago
due to its requirement that people are always online.
Rethink your strategy
• Traditionally you use risk-award calculus where the focus is on the risk side instead of action.
• Enterprises today have to look further into the future and focus on the award side.
• The rationale is that it helps motivate participants, so that aggressive action can be taken.
Intro (2)Intro (2)
Example:STEAM was a big risk due to the
fact that it required changed consumer behavior as well as support from competitors. In
fact, the concept was presented to for example Amazon and
turned down. But Valve decided they needed the system and went along anyway. (source:
Wikipedia)
How to formulate a shaping How to formulate a shaping strategy (1)strategy (1)
Source: John Hagel III, John Seely Brown & Lang Davison, “Shaping Strategy in a World of Constant Disruption”, HBR 2008
Examples
How to formulate a shaping How to formulate a shaping strategy (2)strategy (2)
Example:The heart of STEAM is the STEAM PC program which
combines all the functions of the STEAM platform. This can be
seen as a part of “The Platform”.
Example:Valve’s good reputation and fan base can be seen as beneficial
when changing consumer behavior. The constant evolution
of the Steam platform can be seen as signal commitment. This can be seen as a part of “Acts
and Assets”.
Example:When Valve started STEAM they wanted for example: automatic
updates, improved anti-cheating, access to games from
anywhere, in-game communication. Each of these goals were badly solved in the
industry. During the development they also added
the ability to sell games via the platform. This can be seen as
“The View”.
(Source: Wikipedia and own experiences) Example:
You can buy the games on STEAM via PayPal or Click & Buy which makes these companies
participants.
Three kinds of participants (1)Three kinds of participants (1)
Example:Some game developers
(Disciples) are locking their games to STEAM. For example Modern Warfare 2 is locked to
STEAM.
Relic created a special version of one of their games in the early
development stages of the STEAM platform to show how
STEAM could be integrated into the game (Influencer).
Source: John Hagel III, John Seely Brown & Lang Davison, “Shaping Strategy in a World of Constant Disruption”, HBR 2008
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