Wednesday, July 3, 2024

g-f(2)2577: How Modular Capabilities Drive Business Agility and Success




genioux Fact post by Fernando Machuca and ChatGPT



Introduction


The article "Engineer Your Own Luck" from MIT Sloan Management Review emphasizes the importance of companies modularizing and externalizing their core capabilities to seize unexpected opportunities. In an era marked by extreme uncertainties and rapid changes, the ability to adapt quickly and effectively is crucial for sustained success. This article highlights how organizations like L'Oréal, Mastercard, and Xiaomi have leveraged modular capabilities to thrive amidst unpredictability. The insights from this article are invaluable for winning the g-f Transformation Game (g-f TG) in the g-f New World, where agility and preparedness are key to navigating and capitalizing on unforeseen market shifts.



genioux GK Nugget


"Modularizing and externalizing core capabilities enable companies to engineer their own luck by quickly adapting to and capitalizing on unexpected opportunities." — Fernando Machuca and ChatGPT, July 3, 2024



genioux Foundational Fact


Increased unpredictability and rapidly changing conditions demand that executives strategize at a higher level, focusing on developing and scaling modular capabilities. This approach allows companies to quickly adjust to unforeseen market shifts, engage with multiple ecosystems, and harness new growth opportunities.



The 10 Most Relevant genioux Facts





  1. Modular Capabilities: Companies that modularize their core capabilities can quickly adapt to market shifts and seize new opportunities.
  2. L'Oréal's Agility: L'Oréal swiftly responded to the COVID-19 pandemic by ramping up its digital efforts, showcasing the power of modular capabilities.
  3. Mastercard's Transformation: Mastercard's shift to an API-first approach allowed it to scale new offerings and enhance flexibility.
  4. Xiaomi's Ecosystem: Xiaomi's digital exchange platform and open API suite facilitated partnerships and expanded its product range.
  5. Identifying Core Capabilities: Companies must clearly identify their most important strategic capabilities based on relevance, frequency, and uniqueness.
  6. Codifying Process Knowledge: Documenting and codifying process knowledge is crucial for breaking down complex systems into modular components.
  7. Breaking Down Monoliths: Transitioning from monolithic systems to modular capabilities requires patience and commitment.
  8. Opening Systems: Extending open architecture beyond company boundaries enables participation in multiple ecosystems at speed and scale.
  9. Iterative Approach: Implementing modular capabilities involves regular assessments and adjustments to ensure quality and effectiveness.
  10. Future Readiness: Companies prepared for unpredictability by modularizing capabilities can maximize optionality and scale rapidly, effectively engineering their own luck.



Conclusion


To thrive in today's ambiguous and rapidly changing environment, companies must move away from rigid structures to flexible, modular setups. By modularizing core capabilities and leveraging open architectures, organizations can maximize their options for growth and scale quickly. This approach not only enhances internal innovation but also allows for seamless integration with external partners, enabling companies to engineer their own luck and capture unexpected opportunities. As demonstrated by leaders like L'Oréal, Mastercard, and Xiaomi, treating capabilities as services is the key to achieving resilience and sustained success in the g-f New World.





REFERENCES

The g-f GK Context


Mark J. Greeven, Howard Yu, and Jialu ShanEngineer Your Own LuckMIT Sloan Management ReviewMAGAZINE SUMMER 2024 ISSUE, June 05, 2024.



ABOUT THE AUTHORS

Mark J. Greeven is a professor of innovation and strategy at IMD Business School. Howard Yu is the Lego Professor of Management and Innovation at IMD Business School and leads IMD’s Center for Future Readiness. Jialu Shan is an associate research director at the Center for Future Readiness at IMD Business School.



Classical Summary of the Article


The article "Engineer Your Own Luck" from MIT Sloan Management Review explores how companies can thrive in an unpredictable and rapidly changing environment by modularizing and externalizing their core capabilities. The authors highlight how organizations like L'Oréal, Mastercard, and Xiaomi have successfully navigated uncertainties by adopting modular strategies that enable flexibility and rapid adaptation to new opportunities. The article introduces the concept of optionality, emphasizing the importance of developing internal capabilities into modular, digital services that can be shared with partners and clients to foster innovation and growth. It outlines four key steps to achieving this modular setup: identifying core strategic capabilities, codifying process knowledge, breaking down complex systems into modular components, and opening these systems to external ecosystems. The authors argue that this approach allows companies to maximize their options for growth, scale quickly, and engineer their own luck by being prepared for unexpected opportunities and challenges.





Mark J. Greeven


Mark J. Greeven is a renowned academic and entrepreneur, currently serving as a Professor of Innovation and Strategy at IMD Business School¹. He is also the CEO of IMD China¹. Greeven draws on over a decade of experience in research, teaching, and consulting in China to explore how to organize innovation in a turbulent world¹.


Greeven holds an MSc in Business Administration - International Strategic Management from Erasmus University Rotterdam and a Ph.D. in Innovation Management from the Rotterdam School of Management, Erasmus University¹. Before joining IMD, he was a Professor of Innovation and Entrepreneurship at Zhejiang University School of Management in China³.


Greeven's research interests span a wide range of topics, including how to accelerate corporate innovation, enable digital business transformation, and design business ecosystems to thrive on uncertainty¹. He has collaborated with innovative Chinese companies and entrepreneurial multinationals to explore novel ways of organizing¹.


He is the author of several books in the field of innovation and strategy, including "Business Ecosystems in China: Alibaba and Competing Baidu, Tencent, Xiaomi and LeEco", "Pioneers, Hidden Champions, Change Makers and Underdogs: Lessons from China’s Innovators", and "The Future of Global Retail"¹.


Greeven was named on the prestigious Thinkers50 Radar list of 30 Next Generation Business Thinkers in 2017¹. His work has been recognized by multiple awards, and his insights have been featured in international academic journals and global media².


In addition to his academic contributions, Greeven runs a boutique consulting firm specializing in value creation with Advanced Analytics and AI². His unique combination of technical background and practical business experience allows him to offer rigorous solutions to practical problems².


Source: Conversation with Copilot, 7/4/2024

(1) Mark Greeven - IMD Business School. https://www.imd.org/faculty/professors/mark-greeven/.

(2) Mark Greeven - Routledge & CRC Press Author Profile. https://www.routledge.com/authors/i16699-mark-greeven.

(3) Management Innovation Top Voice - Mark Greeven. https://markgreeven.com/about/.

(4) Mark J. Greeven - I by IMD - IMD Business School. https://www.imd.org/ibyimd/iauthors/mark-greeven/.



Howard Yu


Howard Yu is a distinguished academic and author, currently serving as the LEGO Professor of Management and Innovation at IMD Business School¹. He leads IMD’s Center for Future Readiness, which was founded in 2020 with support from the LEGO Brand Group¹².


Born in Hong Kong, Yu holds a BBA from the University of Hong Kong and a DBA in general management from Harvard Business School, which he completed under the supervision of Clayton Christensen and Joseph Bower¹. Before starting his academic career, he worked in Hong Kong as a banker¹³.


In 2018, his book, "Leap: How to Thrive in a World Where Everything Can be Copied", was published¹. It was awarded a gold medal of the Axiom business book awards in 2019¹. The book was also included in Inc.'s Best Strategy Books of 2018 and Strategy+Business list¹.


Yu's research focuses on what generates sustainable growth and what holds back firms and companies¹. He studies innovation across sectors to find trends and enabling technology¹. His recent work includes Future Readiness Indicators for several industries to gauge industry incumbents' preparedness¹.


His work has been recognized by multiple awards, including the Thinkers50 Strategy Award in 2023, recognizing his substantial contributions to management strategy and future readiness². His additional inclusion into the Thinkers50 list places him among the top global management thinkers².


Yu's insights have been featured in journals such as Harvard Business Review and MIT Sloan Management Review¹. He regularly appears on media outlets including Bloomberg, CNBC, and the BBC². His ongoing work has been published in journals such as Harvard Business Review and MIT Sloan Management Review¹. His case studies have won several awards from the European Foundation for Management Development and The Case Centre².


In addition to his academic contributions, Yu co-directs the Strategy for Future Readiness program and has delivered tailored training to global companies including ABB, Bosch, the LEGO Group, Novo Nordisk, Electrolux, Heineken, Maersk, and many others².


Source: Conversation with Copilot, 7/4/2024

(1) Howard Yu - Wikipedia. https://en.wikipedia.org/wiki/Howard_Yu.

(2) Howard Yu - IMD Business School. https://www.imd.org/faculty/professors/howard-yu/.

(3) Howard Yu - Thinkers50. https://thinkers50.com/biographies/howard-yu/.

(4) en.wikipedia.org. https://en.wikipedia.org/wiki/Howard_Yu.



Jialu Shan


Jialu Shan is an accomplished academic and researcher, currently serving as an Associate Research Director at the Center for Future Readiness at IMD Business School¹². She is also a Research Fellow at the Global Center for Digital Business Transformation at IMD Business School¹.


Born in China, Shan holds a Ph.D. in Economics (Management) from the Faculty of Business and Economics at the University of Lausanne¹³. Before joining IMD, she worked as a lecturer at the International Hotel School of César Ritz Colleges in Brig, Switzerland¹.


Shan's research areas include digital business transformation, business model innovation and new practices, and corporate governance practices¹³. She is particularly interested in the Asian market¹³. Her work has been published in various academic journals and she has contributed to several books in the field of innovation and strategy¹.


In addition to her academic contributions, Shan has made significant strides in the realm of digital business transformation. Her research provides valuable insights and guidance for those seeking to thrive in the digital age¹. Her unique combination of technical background and practical business experience allows her to offer rigorous solutions to practical problems¹.


Source: Conversation with Copilot, 7/4/2024

(1) Jialu Shan - I by IMD - IMD Business School. https://www.imd.org/ibyimd/iauthors/jialu-shan/.

(2) Engineer Your Own Luck - MIT Sloan Management Review. https://sloanreview.mit.edu/article/engineer-your-own-luck/.

(3) Jialu Shan – The Conversation. https://theconversation.com/profiles/jialu-shan-452674.





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Categorization


This genioux Fact post is classified as Breaking Knowledge which means: Insights for comprehending the forces molding our world and making sense of news and trends.



Type: Breaking Knowledge, Free Speech



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REFERENCES



genioux facts”: The online program on "MASTERING THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)2577, Fernando Machuca and ChatGPTJuly 3, 2024, Genioux.com Corporation.



The genioux facts program has established a robust foundation of over 2576 Big Picture of the Digital Age posts [g-f(2)1 - g-f(2)2576].



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