Open strategy is the decentralisation of strategy formulation across, previously excluded, internal and external stakeholders. Traditionally, companies focused on control and ownership of an organisation’s assets to ensure competitive advantage. However, this focus on control of resources is no longer the key to success. In today’s data-driven societies, knowledge, i.e. data, is widespread and easily accessible and organisations are increasingly turning into data companies. Access to this knowledge can fuel innovation, especially when it is used to embrace external ideas and data and when these insights are combined with internal R&D. This enables organisations to find new opportunities, develop a new business model and remain competitive in this digital age.
The process of open strategizing is possible thanks to the plummeting costs of communication and the availability of new technologies such as big data, blockchain and artificial intelligence. These technologies allow organisations to understand better and apply the intelligence of the crowd, resulting in better solutions, improved innovations and more-informed decision-making. Open strategizing is increasingly being adopted by organisations.
IBM’s Innovation Jam
Open strategy has been around for almost 20 years since it was first used by IBM in their Innovation Jam. It can be seen as an extension of open innovation, which …