PPT Week 5 - Understanding Strategy Development Challenge

Course Name: Design Thinking in Business
Effective date: 1 May 2023
Week 5
Understanding Strategy
Development Challenge
Learning Outcome
LO3: Construct Design Thinking Strategies in Business

Upon completion, the students are able to:
1. Understand the role of the stakeholders in the strategy design process
2. Identify the challenges facing
3. Explain the difference between incumbent and mature-firm
Course Outline
5.1. Strategy Project Set-Up
5.2. Target Industry
5.3. Guiding Principles of

Strategy Design Process
Your Text Here

You can simply impress your audience and add a
unique zing and appeal to your Presentations.
5.1. Strategy Project Set-
Up
Process Strategy Brief
Defining the strategy project set-up
Identifying the target industry in which the firm aims at competing
Documenting the guiding principles to adhere to

Defining the strategy project set-up
Identifying key stakeholders and their roles, including strategy project team
1 members
2 Fostering an innovation culture
3 Defining an initial high-level budget and an expected timeline
Assessing the firm’s capacity for change as well as determining potential

4 risks arising from strategic decisions
Identifying Key Stakeholders
and Their Roles
Add Contents Title
Decision takers are responsible for approving the outcome of the

01 different layers of the strategy design process, the milestones.
Strategy designers are responsible for designing the target

02 strategy, focusing on content and its validation.
Experts or interpreters, come from diverse backgrounds and

03 provide fresh ideas from different industries.
Process supporters, managing and supporting the strategy

04 design process
Typical Structure of
a Stakeholder Map
Closest to the center are those
stakeholders that are key to the
success of the strategy design
process, surrounded by the most
relevant input providers. The
outer circle is made-up of
stakeholders that are involved at
one point or another during the
strategy design process, rather
than on a continuous base.
Fostering an Innovation Culture
Creativity in strategy design requires an innovative culture. In fostering an innovation culture,

strategy team members to bring six key qualities, as below:
Intelligence
Broad Knowledge
An Open-Minded Thinking Style
A team player personality
Motivation
6 Comfort in a changing environment

Key Challenges of Successful Innovation
02 03
01 Learning Borrowing
Forgetting Challenge
Challenge
Challenge
Relevance of change
Emergency of change
Five dimensions when

Assessment Speed of change implementation
of the Change Capacity
Experience with change
Expertise with change

Spider Diagram
Spider diagram representing the

firm’s average or median
capacity to change along five
key dimensions
5.2. Target Industry
Incumbents
Four components provide four different directions along with to
search in the incumbents approach, such as:
Incumbents may select a group of customers and associated needs to be
satisfied. 1
Focusing on a specific technology, or more broadly speaking, an invention,

can serve for defining a target industry 2
Incumbents may select the target industry based on specific, hard to imitate
capabilities they possess 3
Incumbents could focus on cost-sensitive industries, or industries that would 4

profit from increased cost consciousness
Mature-Firms
To define the target industry underlying the strategy design
process, mature firms have three options to choose from, as below:
1 Continuing to compete within their core industry
Extending their core industry by defining the target industry as a related or

2 adjacent industry
Choosing a new core industry to compete in, following an incumbent-like

3 approach
5.3. Guiding Principles
of Strategy Design
Process
Guiding Principles
Guiding principles can be classified into four different categories, as following:
Things that must be satisfied 1
Things that should be satisfied 2
Things that should be avoided 3
Things that must be avoided at 4

all cost
REFERENCES
1. Diderich, Claude. (2020). Design thinking for strategy. Cham,

Switzerland: Springer International Publishing (Chapter 4)

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Course Name: Design Thinking in Business

Effective date: 1 May 2023

LO3: Construct Design Thinking Strategies in Business

5.2. Target Industry

5.3. Guiding Principles of

Your Text Here

Defining the strategy project set-up

Identifying the target industry in which the firm aims at competing

Documenting the guiding principles to adhere to

2 Fostering an innovation culture

3 Defining an initial high-level budget and an expected timeline

Assessing the firm’s capacity for change as well as determining potential

Decision takers are responsible for approving the outcome of the

Strategy designers are responsible for designing the target

Experts or interpreters, come from diverse backgrounds and

Process supporters, managing and supporting the strategy

Creativity in strategy design requires an innovative culture. In fostering an innovation culture,

A team player personality

6 Comfort in a changing environment

Five dimensions when

Expertise with change

Spider diagram representing the

Focusing on a specific technology, or more broadly speaking, an invention,

Incumbents could focus on cost-sensitive industries, or industries that would 4

1 Continuing to compete within their core industry

Extending their core industry by defining the target industry as a related or

Choosing a new core industry to compete in, following an incumbent-like

Things that must be satisfied 1

Things that should be satisfied 2

Things that should be avoided 3

Things that must be avoided at 4

1. Diderich, Claude. (2020). Design thinking for strategy. Cham,

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