Co-evolution Strategy Canvas

231 Pages·2020·13.797 MB·English

by  Jiang Yong Lu

Jiang Yong Lu
Co-evolution
Strategy Canvas
Co-evolution Strategy Canvas
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—WeigangWan,AuthorofEliteDailyClassinIget
Jiang Yong Lu
Co-evolution Strategy
Canvas
123
Jiang YongLu
Department ofOrganization
andStrategic Management
PekingUniversity
Beijing,China
ISBN978-981-15-5987-7 ISBN978-981-15-5988-4 (eBook)
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Preface
Since the reform and opening up, China’s economy has experienced remarkable
development.Nevertheless,therestillexistsabiggapbetweenChinese companies
and their leading counterparts in the world regarding the R&D capability.
Take the mobile phone industry as an example. Chinese companies have
advancedalotinproducingmobileterminals,butarestillweakatproducingchips.
As for the software of mobile phones, while many app developers are Chinese
companies,theglobal operating systems arestillcontrolled bytwoUScompanies,
Apple and Google.
Therefore,althoughthenumberofChinesecompanieslistedamongtheFortune
Global500maycatchupwiththatoftheUSAwithinafewyears,thefundamental
“operating systems” of major industries are still in the hand of European and US
companies, with Chinese companies focusing mostly on developing “apps.”
The situation is neither optimistic in the field of business management. Among
the 2017 Global “Management Thinkers 50,” the top 25 are all Western. Ruimin
Zhang,CEOofHaier,istheonlyonefromChinawhoisshort-listed,ranked26th.
IfyoutakealookatbooksrelatedtocorporatemanagementinChina’sdomestic
market, you will find that most of the best-selling books are “imported goods.”
A few books written by Chinese that enter the best-selling list are mostly cases or
entrepreneurs’ personal biographies, whereas books introduced of Western coun-
tries are associated with rules or principles of management.
If we regard companies as “apps” developed based on entrepreneurs’ manage-
ment insights, the “operating systems” of Chinese companies are almost all
imported. Despite the fact that “knowledge has no borders,” it is hard to imagine
that Chinese companies developed based on the “management operating systems”
of Europe and USA can outperform European and US companies.
To this end, it is a need of developing Chinese companies’ own “management
operating system,” based on their external environment, values, and management
experiences.
v
vi Preface
A complete “management operating system” should cover four levels of phi-
losophy, theory, tools, and experience. Philosophy is the value of management,
theory is the mind-set of management, tools are the methodology of management,
and experience is the accumulation of management practices.
Co-evolution Strategy Canvas is a “management operating system.”
Philosophy: Understanding the “people,” “issue,” and “time” of companies from
the perspective of “human, earth, sky”; understanding the “thesis–antithesis–syn-
thesis” of decision-making from the perspective of systematicness and dynamics.
Theory: Developing a theoretical framework that addresses 5W1H, that is Why,
Who, What, Where, When, and How, fundamental strategic issues of companies
from the perspective of the four elements, four stages, and four paths of strategy.
Tools: Providing more than 50 practical tools that help to analyze the elements of
people and issues, internal and external aspects of business strategy, and to
understand the strategic points of different stages in firms’ life cycle.
Experience: Summarizing a set of strategic mind-sets from more than 200 com-
panies’ cases, which has been verified by many outstanding entrepreneurs and
managers.
No matter you are an entrepreneur, a manager, or a talent in companies,
Co-evolution Strategy Canvas can help you to understand the current position,
undertake the whole picture, predict the ending, and cope with changes.
At last, I appreciate the financial support provided by National Science
Foundation of China (# 71525004, # 72072003).
Beijing, China Jiang Yong Lu
Contents
1 Co-evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 The Meaning of “Co-evolution” (共演) . . . . . . . . . . . . . . . . . . . . 1
1.1.1 Formula: Co-evolution = Systematicness (cid:1)
Dynamism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 The Definition of “Strategy” (战略). . . . . . . . . . . . . . . . . . . . . . . 6
1.2.1 Formula: Strategy = Insight (cid:1) Vision. . . . . . . . . . . . . . . . 7
1.3 The World of “Complexity”(复杂) . . . . . . . . . . . . . . . . . . . . . . . 12
1.3.1 Complexity = Uncertainty (cid:1) Discontinuity . . . . . . . . . . . . 13
1.3.2 Complexity and Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
1.3.3 Tools for Four Life Stage Analysis. . . . . . . . . . . . . . . . . . 21
1.3.4 Types of Corporate Strategy. . . . . . . . . . . . . . . . . . . . . . . 22
1.3.5 Tools for Four Basis Strategy Analysis. . . . . . . . . . . . . . . 24
1.4 Knowledge System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
1.4.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
1.4.2 Two Examples of Knowledge System. . . . . . . . . . . . . . . . 28
1.4.3 Tools for Knowledge System Analysis . . . . . . . . . . . . . . . 31
2 Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
2.1 The First Principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
2.1.1 The First Principle of Firms . . . . . . . . . . . . . . . . . . . . . . . 35
2.2 Six Key Strategic Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
2.2.1 Tools for Six Key Strategic Questions . . . . . . . . . . . . . . . 40
2.2.2 Golden Circle Principles . . . . . . . . . . . . . . . . . . . . . . . . . 42
2.3 Users: Reason for Being . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
2.3.1 Case Analysis: The Application of AARRR . . . . . . . . . . . 45
2.4 Organization: Source of Capability . . . . . . . . . . . . . . . . . . . . . . . 47
2.4.1 Case Analysis: The Organization of Alibaba . . . . . . . . . . . 48
2.5 Product: Basis of Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
2.5.1 Case Analysis: Product Development . . . . . . . . . . . . . . . . 51
vii
viii Contents
2.6 Market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
2.6.1 Case Analysis: Value Network in the Market . . . . . . . . . . 55
2.7 Co-Evolution Strategy Canvas. . . . . . . . . . . . . . . . . . . . . . . . . . . 56
2.7.1 Co-Evolution Strategy Canvas (12 Strategic Points). . . . . . 58
2.7.2 Co-Evolution Strategy Canvas (36 Strategic Items) . . . . . . 59
3 Phases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3.1 Lifecycle of User Elements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3.1.1 Lifecycle for User Elements. . . . . . . . . . . . . . . . . . . . . . . 61
3.1.2 Lifecycle of Organization Elements . . . . . . . . . . . . . . . . . 65
3.1.3 Double-S Curves of Organization Value . . . . . . . . . . . . . . 67
3.1.4 Lifecycle of Product Elements . . . . . . . . . . . . . . . . . . . . . 70
3.1.5 Double-S Curves of Product Value. . . . . . . . . . . . . . . . . . 72
3.1.6 Lifecycle of Market Elements. . . . . . . . . . . . . . . . . . . . . . 74
3.1.7 Double-S Curves of Market Value . . . . . . . . . . . . . . . . . . 76
3.2 Double-S Curves of Market Value. . . . . . . . . . . . . . . . . . . . . . . . 79
3.2.1 From Start-up to Excellence. . . . . . . . . . . . . . . . . . . . . . . 80
3.2.2 Start-up from Failure . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
3.3 Core Algorithm of Life Code . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
3.3.1 4 Phases and 4 Arithmetic Operations. . . . . . . . . . . . . . . . 84
3.4 4 Elements and 4 Criteria of Benefits . . . . . . . . . . . . . . . . . . . . . 85
3.4.1 Start-up Stage: User-Centric Capability. . . . . . . . . . . . . . . 86
3.4.2 Growing-up Stage: Product-Iteration Capability. . . . . . . . . 88
3.4.3 Expansion Stage: Market- Entry Capability. . . . . . . . . . . . 91
3.4.4 Transformation Stage: Organization-Upgrading
Capability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
3.5 4 Dimensions of Space and 4 Patterns. . . . . . . . . . . . . . . . . . . . . 98
3.5.1 4 Dimensions of Space + 4 Patterns . . . . . . . . . . . . . . . . . 98
3.5.2 Enterprise Value Model Tool . . . . . . . . . . . . . . . . . . . . . . 99
3.5.3 Championship in the 4 Strategic Phases and 4 Major
Martial Arts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
4 Start-Up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
4.1 4 Questions for Start-Up. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
4.1.1 4 Questions for Start-Up Tools. . . . . . . . . . . . . . . . . . . . . 105
4.2 12 Key Points for Start-Up Stage . . . . . . . . . . . . . . . . . . . . . . . . 113
4.2.1 Co-evolution Strategy Canvas for Start-Up Stage. . . . . . . . 114
4.2.2 Case Analysis: Alibaba . . . . . . . . . . . . . . . . . . . . . . . . . . 115
5 Growing-Up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
5.1 4 Questions for Growing-Up. . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
5.1.1 4 Questions for Growing-Up Tools. . . . . . . . . . . . . . . . . . 119
Contents ix
5.2 12 Key Points of the Focused Growing-Up Stage. . . . . . . . . . . . . 125
5.2.1 Co-evolution Strategy Canvas for the Focused
Growing-Up Stage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
5.2.2 Case Analysis: Alibaba . . . . . . . . . . . . . . . . . . . . . . . . . . 127
6 Expansion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
6.1 4 Questions for Expansion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
6.1.1 4 Questions for Expansion Tools . . . . . . . . . . . . . . . . . . . 131
6.2 12 Key Points of the Amplifying Expansion Stage. . . . . . . . . . . . 138
6.2.1 Co-evolution Strategy Canvas for the Amplifying
Expansion Stage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
6.2.2 Case Analysis: Alibaba . . . . . . . . . . . . . . . . . . . . . . . . . . 139
7 Transformation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
7.1 4 Questions for Transformation. . . . . . . . . . . . . . . . . . . . . . . . . . 142
7.1.1 4 Questions for Transformation Tools. . . . . . . . . . . . . . . . 143
7.2 12 Key Points of the Upgrading Transformation Stage . . . . . . . . . 150
7.2.1 Co-evolution Strategy Canvas for the Upgrading
Transformation Stage. . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
7.2.2 Case Analysis: Alibaba . . . . . . . . . . . . . . . . . . . . . . . . . . 152
8 Systematicness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
8.1 Systematicness of Co-evolution Strategy . . . . . . . . . . . . . . . . . . . 153
8.1.1 Feedback: The Operating Mechanism of the System . . . . . 155
8.1.2 Enhanced Loop and Regulative Loops . . . . . . . . . . . . . . . 156
8.1.3 Synergies Among Four Elements . . . . . . . . . . . . . . . . . . . 158
8.1.4 Basic Principles of Synergy Between Elements . . . . . . . . . 173
8.2 Equation of Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
9 Dynamics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
9.1 Dynamics of Co-evolution Strategy . . . . . . . . . . . . . . . . . . . . . . . 187
9.1.1 Enhanced Feedback Loop for Changes in Strategic
Elements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
9.1.2 Mechanisms of Enhanced Feedback Loop for User
and Organization Elements. . . . . . . . . . . . . . . . . . . . . . . . 192
9.1.3 Mechanisms of Enhanced Feedback Loop for Product
and Market Elements. . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
9.1.4 Feedback Loop System for User Elements in Different
Stages of Development . . . . . . . . . . . . . . . . . . . . . . . . . . 196
9.1.5 Feedback Loop System for Organization Elements
in Different Stages of Development . . . . . . . . . . . . . . . . . 197
9.1.6 Feedback Loop System for Product Elements
in Different Stages of Development . . . . . . . . . . . . . . . . . 198