Question

You are a consultant with deep expertise in how strategies based on new technological paradigms can...

You are a consultant with deep expertise in how strategies based on new technological paradigms can have an impact on organizations. You are called to give a talk to one of the largest car makers in the world. The company currently does not have capabilities in making self-driving cars powered by Artificial Intelligence. They have decided to make big investments in the area. They have acquired four technology companies to provide the underlying technologies and are making very large investments in manufacturing capabilities to meet this market. Their CEO has asked you for your advice. The CEO wants to know how a rapid change in their strategy based on emergent platforms will affect the company and its people (human behavior). Based on your understanding of the book chapter “Catastrophic failure, The French army and air force, May–June 1940,” which of the following statements will you make to the CEO’s direct reports? Choose all that you think are correct from the statements below (SELECT ALL).

a.

Radically disruptive technologies may call for capabilities very different from the ones that we have. We should do a thorough capability assessment at the level of the corporation.

b.

If the new strategy calls for a very different set of capabilities than the ones that some senior managers have, then it may result in some managers not fully committing themselves to the success of the strategy.

c.

You will need to put in place mechanisms to make sure that you are getting accurate and timely information about the success of the strategy. If managers become inward looking and resort to finger pointing (blame shifting), it could well result in information from the markets and from inside the corporation getting warped as it reaches the senior management.

d.

Give senior managers the capital budgeting flexibility as well as clear and timely feedback on how the investments in technology are faring. This will help them acquire the new capabilities needed to deploy these emerging technologies more effectively.

e.

A second mover can succeed in adopting a strategy (based on powerful emerging technologies) very different from the strategies of the incumbent companies, if it can hire away the talent of the incumbents. Capability acquisition (from outside the company) rather than development in-house, is the key driver of success in such situations.

Homework Answers

Answer #1

d.Give senior managers the capital budgeting flexibility as well as clear and timely feedback on how the investments in technology are faring. This will help them acquire the new capabilities needed to deploy these emerging technologies more effectively.

it will make the management more flexible and efficient also the timely feedback will make managers more committed for their work

e. A second mover can succeed in adopting a strategy (based on powerful emerging technologies) very different from the strategies of the incumbent companies, if it can hire away the talent of the incumbents. Capability acquisition (from outside the company) rather than development in-house, is the key driver of success in such situations.

it will help in decreasing the cost of production which was going to increase due to expanding on the training of in- house works about new techniques. it will also make workers more attentive about their work as they will be motivated to work harder so that they don't get replaced  

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