Coopetition as a competitive advantage

Contrary to what many game theory experts suggest, the idea that competitors should occasionally cooperate could bring an edge to your organization. Coopetition, or collaborating with your competition, is not a new concept; it has been around for more than two decades. However, recent technological breakthroughs, blurriness in industry boundaries, and revolutionary ways of working are creating a comeback for this strategy concept.

A competitive advantage is something that positively separates your organization from its competitors. A sustainable advantage means that these traits are to be held over a considerable amount of time. However, it is not imperative for an organization to have a sustainable competitive advantage to succeed in the long term. This is actually a myth that is being debunked by modern ways of working.

Although achieving a sustainable competitive advantage is a best-case-scenario for every product or service portfolio, not having it should not keep you from competing fiercely. After all, when scenarios are constantly changing, it is undeniable that what works today may not work tomorrow. Working as a team with your adversaries can be an advantageous alternative to follow.

The benefits of creating strong business partnerships with competitors include access to valuable resources such as technologies and innovations, complementary markets, and even specialized labor. Developing these resources helps all partnership members make a teamed effort to defend their turf or explore adjacencies and new industries.

Furthermore, competing does not necessarily have to be a zero-sum game. Researchers believe that coopetition is a beneficial phenomenon that leads to the development of new opportunities and products. However, cooperative competition is challenging, given the myriad choices and decisions that need to be made, plus the overwhelming possibility of having the other parties take advantage of your goodwill. Therefore, a coopetitive strategy must be carefully analyzed before following it.

When a cooperative opportunity arises, start by imagining alternative outcomes. Is your industry being threatened by a new incumbent? What alternatives might the other side make, what would you do if you didn't agree to the deal, and what could you do to make a deal first? If you don't agree to the agreement, will someone else take your place in it? Ask the same type of questions from your competitor's point of view. It is also essential to bear in mind your current and future state against the other party; this will be especially important once the deal is no longer valid.

If you can figure out how to cooperate without losing your current advantages, you should try it. A sustainable competitive advantage is a myth from the past. It is an idea that is based on the assumption that you have something that will last forever. Unfortunately, nothing lasts forever. We invite you to start thinking in a new way.

Three key aspects of the new normal.

It is imperative to adjust to the reality that you, your team, and your organization face regarding your business. Your risk tolerance has changed. Your team members have changed, and your operations have changed. In this article, I will give three recommendations to navigate through these turbulent times.

I. Fast decision-making and adequate business process management

As the world around us continues to change rapidly, the ability to make quick decisions becomes more valuable. It is very likely are that your organization will need to make a series of crucial ongoing decisions regarding changes in customer buying patterns, workforce displacement, and supply chain disruptions.

Furthermore, due to today's events, you will need to revise your existing business processes and competencies to accommodate today's technology requirements. Additionally, it is essential to assess, define, and envision your needs before making a substantial technology investment.

II. Internal ownership, learning, and de-learning.

Our modern business landscape will only continue to evolve. We need to learn new ways of working and working through new ways of doing things.

The more effective future organizations will take control of their digital transformation initiatives. Stronger organizations will put a higher emphasis on ownership and knowledge. These companies will take ownership of their digital transformations, which means that they will build and maintain their own technology platforms. In addition, they will develop their competencies in digital technology. Those that continuously learn will thrive in the future.

On the other hand, today's workforce needs to be prepared to perform in a modern, technological workplace. Not only is it essential to maintain existing skills, but it is also necessary to learn and de-learn at will to be best prepared for a new and increasingly complex world. The old training model will not be enough, as future jobs require greater flexibility and speed. Therefore, engaging in a constant agile loop of learning and de-learning specific knowledge is paramount. Those that will best adapt to changes will not only survive but thrive and succeed against the competition.

III. Constant risk management

Since the world is becoming chaotic, risk management will be critical. The way to deal with these risks will be through the organization's and the extended ecosystem collaboration and as a whole. By building this skill into the digital transformation, you will ensure the security of your digital assets and gain a competitive advantage. In a period of volatility, the future will be unpredictable. However, you should take steps to avoid disasters and make things work for you. Your ability to control risk will help you take advantage of whatever will happen in the future.

In conclusion, It is important not to forget about the big picture, as it is critical to define a long-term digital strategy and roadmap. At Brocktons, we can help you determine an optimal digital strategy that makes sense to your organization and prepares the foundations for your future success.

On Digital Transformations

An Agile approach towards problem solving involves an incremental development strategy, meaning that each successive version of a solution builds upon the previous version by adding functionality. In a similar sense, the next Digital Transformation refers to the application of technology to enhance and create new business models by leveraging the convergence of previously separate technologies, processes, and data. It allows companies to create new products and services and transform how they operate.

The real benefit of digital transformation can't be achieved by a single project or initiative. The goal is a total business redesign that transforms how the organization creates, delivers, and captures value in the marketplace. Companies that use digital business solutions generate more revenue, gain a more significant competitive advantage, and achieve higher efficiency.

According to a recent study by Accenture, due to the transformation to digital technology, companies that lead their industries are now growing five times faster than those lagging. The most successful organizations in today's world are those that are able to quickly adapt to changing opportunities. Therefore, today, the risk of arriving late to an optimized digital transformation state is not merely getting left behind and losing a small portion of market share, but being eliminated altogether.

But is your organization truly a digital-ready organization? Is it clear what your digital strategy is? This may seem obvious, but the answer many times is "no." If your organization is not clearly pursuing a digital strategy, you may find yourself in a challenging situation, especially as competition heats up in the coming years. New digital solutions offer an opportunity to improve how your organization competes and creates a foundation for outperforming your rivals.

It's easy to get lost in all the amazing possibilities of new technologies like artificial intelligence, RPA, machine learning, cloud computing, and so much more. However, digital transformation isn't merely about innovation, it's also about achieving better business outcomes. It comprises more than simply implementing technology; it needs to reevaluate the organization's roadmap, objectives, products, and even its vision. Without this critical information, businesses could only narrowly focus on solving current problems and fail to create sustainable value for their stakeholders.

In today's world of business, being sustainable as a market leader isn't determined by who has the best products or even the best people. Today's business environment is characterized by the change that occurs at a faster pace than ever before. Organizations that can't adapt to these changes will fall behind and be unable to meet the market demands of their competitors. Companies that are slow to react will lose out to competitors that do.