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Kunc M: Strategic Analytics

Strategic Analytics

Towards AI-based Strategy Planning

Preface to Second Edition xiii Acknowledgments xv About the Companion Website xvii 1 Introduction to Strategic Analytics 1 1.1 What Is Analytics? 3 1.2 What Is Management Science? 10 1.3 What Is Information Technology: New Challenges? 20 1.4 What Is AI and How Can It Enhance Business Analytics? 23 1.4.1 Integration of GenAI with BA 26 1.4.2 Implications of AI Adoption in Business Decision- making Processes 29 1.5 What Is Strategic Management? 31 1.5.1 What Are the Characteristics of Strategic Problems? 33 1.5.2 Different Approaches to Strategic Management 36 1.6 Strategy Analytics: Integrating Management Science and AI with Strategic Management 40 References 44 2 Dynamic Managerial Capabilities for a Complex World with AI 49 2.1 Dynamic Managerial Capabilities 50 2.1.1 Task Dimension 53 2.1.2 Cognitive Dimension 54 2.1.3 Behavior Dimension 55 2.1.4 AI Dimension 57 2.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 61 2.2.1 Managers as Modelers 62 2.2.2 Behavior with and Beyond Models 65 2.2.3 Modeling Systems 66 2.2.4 Big Data Analytics Capabilities 69 2.2.5 AI Capabilities 70 2.3 End of Chapter 73 2.3.1 Revision Questions 74 2.3.2 Case Study: The Future of Strategizing with AI 74 References 77 Further Reading 82 3 External Environment: Political, Economic, Societal, Technological, and Environmental Factors 85 3.1 The PESTE Analysis 87 3.1.1 Limitations of PESTE Analysis 88 3.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 92 3.2.1 Achieving Consistency in PESTE Analysis Using the Analytic Hierarchy Process 92 3.2.2 Understanding the Evolution of PESTE Factors Using Visualization Analytics 105 3.2.3 Scanning PESTE Factors Using AI 106 3.2.4 Developing Scenarios Supported With AI 107 3.2.5 Developing Scenarios Supported With System Dynamics 108 3.3 End of Chapter 109 3.3.1 Revision Questions 110 3.3.2 Case Study: Westmill Co- op and the Rise of Renewable Energy 111 References 113 Further Reading 115 4 Industry Dynamics 117 4.1 Defining the Industry 118 4.2 Porter's Five Forces and Industry Dynamics 119 4.2.1 Bargaining Power of Suppliers 120 4.2.2 Bargaining Power of Buyers 121 4.2.3 Substitutes 122 4.2.4 Threat of New Entrants 122 4.2.5 Intensity of Rivalry 123 4.2.6 Strategic Issues Derived from Five Forces Analysis 125 4.3 Integrating Management Science, Analytics, and AI for Strategic Management Practice 130 4.3.1 Revenue Management 130 4.3.2 Evaluating Competitors' Performance in the Market Using Text Mining 133 4.3.3 Managing Five Forces Through AI- enhanced Methods 139 4.4 End of Chapter 141 4.4.1 Revision Questions 141 4.4.2 Case Study: Strategic Evaluation of Entering in a New Market as a Low- cost Airline Using System Dynamics Modeling 142 4.4.2.1 Describing the Key Strategic Aspects of a Business Using a System Dynamics Model 142 4.4.2.2 The easyJet Case 143 References 148 Further Reading 150 5 Industry Evolution 153 5.1 Dynamic Behavioral Model of Industry Evolution 157 5.1.1 Industries as Feedback Systems 158 5.1.2 A Behavioral Model of Organizations 159 5.1.3 Dynamic Behavioral Model of Industry Evolution 161 5.1.4 Types of Dynamic Behavior and Strategic Implications on the Evolution of Industries 163 5.1.5 Industry Evolution: A Regional Socioeconomic Perspective 166 5.1.6 Industries Evolution: A Power Game 168 5.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 173 5.2.1 Exploring Industry Evolution Using System Dynamics 174 5.2.1.1 Market Development 174 5.2.2 Understanding How the Levels of Integration/Interaction Between Companies Affect the Evolution of Companies Using NKC Models 181 5.2.2.1 Insights from the Model 183 5.2.3 Uncovering the Evolution of Technology in an Industry Using Text Mining Methods 185 5.2.4 Mapping Industry Evolution Using AI 186 5.3 End of Chapter 187 5.3.1 Revision Questions 188 5.3.2 Case Study: How Smartphones and AI Have Shaped the Camera Industry 189 References 192 Further Reading 194 6 Competitive Advantage: Static Analysis 195 6.1 The Direction of a Company: Vision and Mission 196 6.2 Defining Value and Market Segmentation 196 6.3 Mapping the Activities to Deliver Value 200 6.3.1 Value Chain 200 6.3.2 Activity System Map 202 6.3.3 Business Model Canvas 203 6.4 Type of Business Strategies 205 6.4.1 Cost Advantage 205 6.4.2 Differentiation Advantage 206 6.4.2.1 The Management Response 209 6.4.2.2 The Market Response 210 6.4.3 Blue Ocean Strategy 211 6.4.4 Sustainability as a Strategy 212 6.4.5 AI as Strategy 213 6.5 Integrating Management Science, Analytics, and AI for Strategic Management Practice 213 6.5.1 Uncovering Market Segments Using Analytics Tools: Market Basket Transactions Analysis 214 6.5.2 Uncovering Market Segments Using Analytics Tools: Clustering 219 6.5.3 Defining Market Positioning Using AI 220 6.6 End of Chapter 220 6.6.1 Revision Questions 223 6.6.2 Case Study: Revisiting Porter's Generic Strategies Using System Dynamics 224 6.6.2.1 The Model 226 6.6.2.2 Expanding the Model to Consider Sustainability 231 References 233 Further Reading 235 7 Dynamic Resource Management 237 7.1 Resources and Capabilities 238 7.2 Resource Management 240 7.2.1 Resource Conceptualization 241 7.2.2 Resource Development 246 7.2.3 Business Performance 248 7.3 Sustainable Resource Management 249 7.3.1 Sustainability and Stakeholder Management 250 7.4 Integrating Management Science, Analytics, and AI for Strategic Management Practice 252 7.4.1 Boundary Definition: Using Systems Thinking to Facilitate Sustainable Systems 253 7.4.2 Resource Conceptualization Using Resource Mapping (as a Problem Structuring Method) 256 7.4.3 Resource Development Using Resource Mapping, System Dynamics, and Scenarios 259 7.4.4 Resource Development Under Uncertainty Using Decision Trees 263 7.4.5 Developing Decision Trees Using Big Data and AI 269 7.4.6 Inferring Business Performance from Management Science Methods 272 7.4.7 Using AI to Predict and Improve Business Performance 272 7.5 End of Chapter 273 7.5.1 Revision Questions 275 7.5.2 Case Study: Majestic Wines 275 References 278 Further Reading 281 8 Organizational Design 283 8.1 Organizational Components 284 8.1.1 Structure 284 8.1.2 Processes 287 8.1.3 The Soft Side of Organizations: Culture and Values 288 8.1.4 Digital Transformation 294 8.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 296 8.2.1 Network Analysis for Organizational Structure Design 296 8.2.2 Business Process Modeling 301 8.2.3 Improving Manufacturing Productivity Using Analytics 306 8.2.4 How AI Can Address the Soft Side of Organizations 307 8.3 End of Chapter 308 8.3.1 Revision Questions 309 8.3.2 Case Study: Improving Processes in Health Services Using Simulation and Digital Twin 310 References 315 Further Reading 317 9 Performance Measurement System 319 9.1 Measuring Financial Performance 323 9.2 Strategic Controls 327 9.3 Integrated Reporting 328 9.4 Sustainability Reporting 329 9.5 Integrating Management Science, Analytics, and AI for Strategic Management Practice 331 9.5.1 Causal Models to Design Performance Management Systems 331 9.5.2 Implementing the Performance Management System: Analyzing, Reviewing, and Reporting Performance Data - the Role of Analytics 343 9.5.3 Automating Performance Management Systems Using AI 347 9.6 End of Chapter 347 9.6.1 Revision Questions 348 9.6.2 Case Study: The Impact of Performance Measurement Systems Adoption in Business Performance - the Shipping Industry Case 349 References 354 Further Reading 356 10 Start- ups 359 10.1 The Components of a Business Plan for a Start- up 362 10.1.1 Management 362 10.1.1.1 Entrepreneur 362 10.1.1.2 Team 363 10.1.1.3 Risk Management 363 10.1.1.4 Growth Strategy and Business Idea as a Competitive Advantage of the Business 364 10.1.2 Market 366 10.1.3 Product/Service and Business Processes 368 10.1.4 Organization Design and Resources 370 10.2 Financial Management 373 10.2.1 Critical Assumptions and Scenarios/Cases for Cash Flow Calculations 373 10.2.2 Breakeven Analysis 374 10.2.3 Projected Profit and Loss (Income) Statement 376 10.2.4 Key Performance Indicators 379 10.2.5 Sources and Amount of Funding 380 10.3 Sustainable Entrepreneurship 382 10.4 AI- based Start- ups 384 10.5 Integrating Management Science, Analytics, and AI for Strategic Management Practice 386 10.5.1 Monte Carlo Simulation 386 10.5.2 Using AI to Create a Business Plan 391 10.6 End of Chapter 394 10.6.1 Revision Questions 395 10.6.2 Case Study: Designing the Next Boutique Winery 396 References 400 Further Reading 402 11 Maturity 405 11.1 Strategies for Mature Organizations 408 11.1.1 Concentrated Growth, and Market and Product Development 408 11.1.2 Integration 414 11.1.3 Diversification 416 11.1.4 Associations With Other Companies: Joint Venture, Strategic Alliances, and Consortia 421 11.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 424 11.2.1 Linear Optimization 426 11.2.2 Extensions in Linear Programming 428 11.2.2.1 Integer Programming 428 11.2.2.2 Nonlinear Programming 429 11.2.2.3 Programming Under Uncertainty 429 11.2.3 Making the Integration of Organizations Reality Through Internet of Things and Analytics 430 11.2.4 Linear Programming Using AI 431 11.2.5 Digitalization, AI, and New Product Development 431 11.3 End of Chapter 433 11.3.1 Revision Questions 434 11.3.2 Case Study: Choosing the Right Set of Capabilities- Development Projects to Achieve Multiple Organization Goals 435 References 443 Further Reading 445 12 Regeneration 447 12.1 Strategies for Regenerating Organizations 450 12.1.1 Innovation 450 12.1.2 Turnaround 455 12.1.3 Ambidextrous Strategies 460 12.1.4 Toward a Fully AI- enabled Organization 462 12.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 467 12.2.1 New Product Development: The Use of Text Analytics 467 12.2.2 Implementing Turnaround Strategies Using Data Envelopment Analysis: Identifying Operational Units for Either Improving or Pruning 470 12.2.3 Sourcing Change Through AI 474 12.3 End of Chapter 474 12.3.1 Revision Questions 475 12.3.2 Case Study: Managing Strategic Change Successfully: the Role of Benefits Realization Management 476 12.3.3 Case Study: A Success Story of Transformation Using AI 480 References 483 Further Reading 486 Index 489

Mastering Business Analytics

Data Analytics for Strategic Decisions explores how businesses can harness the power of data, technology, and analytics to make strategic decisions that drive growth and innovation. It provides a comprehensive guide to integrating business strategy with data-driven methodologies, offering practical tools and insights for modern organizations.Readers will gain a deep understanding of how to transform data into actionable insights, improving decision-making across marketing, finance, operations, and strategy. The book combines theoretical foundations with real-world applications, including case studies, datasets, and practical exercises. It also addresses emerging topics like AI, predictive analytics, and data governance, ensuring readers are equipped with cutting-edge knowledge and skills.This book is designed for undergraduate and master's students in Business Administration, Business Analytics, and Digital Transformation, as well as professionals seeking to enhance their data-driven decision-making capabilities. It is ideal for courses in Business Analytics, Data Analytics for Business, Business Intelligence, and Digital Transformation.The book includes supplementary materials such as datasets for practical exercises, case studies, and discussion questions, making it suitable for both classroom and online learning environments.

Fundamentals of Business Technology and AI Integration

Data Analytics for Strategic Decisions

In a world where strategy can be copied and technology is increasingly accessible; culture has become one of the few remaining sources of competitive advantage. This means that senior HR and business professionals can no longer afford to leave culture to chance so need a credible, practical way to design it on purpose and refine it at speed. This book shows them how. Written specifically for these senior practitioners, this book shows how to do a cultural diagnosis so that HR and OD professionals can assess existing systems and processes as well as company values and employee behaviours. They are then equipped to identify cultural priorities and assess where efforts are best focused. This includes examining the organization's operating model, work design and recognition systems. With expert discussion of the importance of employee communication, employee engagement and belonging as well as the difference that purpose and trust at work make to company performance, this is essential reading for all those needing to design a company culture that will support performance improvement for individual employees and the business as a whole. Most importantly, this book shows how to constantly refine company culture at speed so that it can be a key driver of sustainable performance improvement. Packed with tools, templates and frameworks, this guide is an essential playbook for all senior HR and OD practitioners as well as business leaders responsible for company culture.

A Practical Guide for High-Performing Organizations

Culture by Design

HBR Handbooks

The one primer you need to create, capture, and realize value in today's volatile and uncertain environment.No matter what business you are in, strategy plays a critical purpose and role in your company's success. But most leaders struggle to effectively define, let alone implement, a great "strategy." By ignoring essential elements in the process, they lead their companies toward confusion, misalignment, and underperformance.The HBR Strategy Handbook presents a new way to think about strategy that goes beyond simply identifying competitive advantage. Harvard Business School professor and strategy expert David J. Collis introduces the complete strategy landscape, a framework and process for making carefully coordinated choices that together ensure strategy is clear and actionable. He describes how to identify the most promising opportunities to pursue, forge a business model that maximizes value creation, craft a sustainable competitive position, and design an operating model to realize value over the long term. Building on decades' worth of work in the area, Collis offers detailed examples, tools, and reflection questions to help executives establish the best approach for their companies.Whether you're a CEO or a senior leader, or aspire to be one, the advice in this book will help you set your objective, define your scope, and execute for greatest impact.HBR Handbooks provide ambitious professionals with the frameworks, advice, and tools they need to excel in their careers. With step-by-step guidance, time-honed best practices, and real-life stories, each comprehensive volume helps you to stand out from the pack--whatever your role.

Everything You Need to Create and Execute a Winning Strategy

The Harvard Business Review Strategy Handbook

China is the world's biggest carbon emitter as well as the leading producer of green energy. What lies behind this fascinating contradiction? In recent years, China has built more renewable energy infrastructure than the rest of the world combined and is leading the global shift towards electrification. The Green Superpower: How China Shapes Our Future outlines China's role as a green leader in the upcoming Fourth Industrial Revolution and illustrates how European companies can become more competitive by learning from their Chinese counterparts. Experienced journalist and regional expert Christina Boutrup explores how China is leading the move away from fossil fuels, from how affordable Chinese solar panels are revolutionising the global energy landscape to the electrification of the world's largest car market and the revolutionary implications of autonomous AI technologies. Cautiously optimistic, the author covers key geopolitical trends affecting green economic progress across the world, and ultimately serves a wake-up call: to compete with China's success, Western business leaders need to learn from their Chinese counterparts and treat the green transition as a business case. The balance of global power is poised to shift. No longer copycat manufacturers of inferior products, Chinese firms are at the forefront of the world's potential first "electrostate". Now more than ever it is vital to acknowledge the central role that China plays in the transition to green energy and to learn from their strategies. The Green Superpower is essential reading for policymakers, business leaders, and practitioners who operate at the intersection of environmental policy, security, sustainability and innovation.

How China Shapes Our Future

The Green Superpower

Advising CEOs for decades and having served as BCG's CEO for nine years, Rich Lesser spent a career in the rooms where high-stakes business decisions get made. In The Six-in-One CEO, he invites you into those rooms as he defines the six roles a modern CEO must play, and what it takes to play them well.The CEO's job has changed more in this decade than at any point in modern business history. Shocks arrive faster and overlap. AI is permeating every corner of the enterprise. Trust is harder to build and easier to lose. Geopolitics are upending business as usual. Employees are facing a new host of stressors. Today's leaders must navigate all this while delivering growth and building organizations for the long term.To explore these challenges, Lesser, now BCG's Global Chair, had candid conversations with more than two dozen leading CEOs, including Arvind Krishna of IBM, Carol Tomé of UPS, Christophe Fouquet of ASML, Doug McMillon of Walmart, Maria Black of ADP, Nicolas Hieronimus of L'Oréal, and Young Liu of Foxconn.Their stories, BCG's insights, and Lesser's own experience converge on six roles CEOs must now embrace: chief vitality officer, chief learning officer, chief statesman, chief resilience officer, chief trust officer, and chief well-being officer.Avoiding the checklists and playbooks often found in traditional business books, Lesser closes each chapter with personal memos to CEOs offering practical advice on navigating the six roles based on real-world examples. He also offers his take on the critical leadership traits that CEOs often underestimate, along with his holistic view on legacy.Reflective about what leadership has always required and exacting about what this era now demands, The Six-in-One CEO is grounded in real decisions rather than theory, written by a leader who has done the job, and leveraging BCG's vast experience. It's essential reading for CEOs, senior executives, rising leaders, and anyone responsible for guiding organizations in this extraordinary period of change.

Redefining Leadership for a High-Speed, High-Stakes World

The Six-in-One CEO

The Life-Changing Power of Making Do

The Jugaad Mindset

Turn your difference into a repeatable advantage for leading change The Room Needs You: Let Your Difference Drive Change-The Connect, Trust, Grow Method presents a field-tested method for driving transformation when you are not the expert in the room. Jennifer Langton, the NFL's former Senior Vice President of Player Health and Innovation, came to player safety out of finance-no medical, scientific, or engineering training-and led a decade of work that took the league from the era of League of Denial to record-low injuries. She distills that experience into the Connect, Trust, Grow (CTG) Method: a three-move sequence for connecting the experts, earning trust with evidence no one can dispute, and growing a win into a standard that holds after you leave. The Room Needs You follows the work in the order it happened-learning first to react to injury, then to prevent it, then to predict it-from a partnership with GE and the Department of Defense to the AI-powered Digital Athlete built with AWS, which now predicts injury risk for every player in the league. Underneath it runs the story of the girl on the boys' lacrosse team, the athlete who lost her mother and her knee in the same year and turned both into fuel, and the finance executive who asked her way into a role that did not exist-because the method works on you before it works on the room. Readers will also find: <ul> <li>A three-move sequence-Connect, Trust, Grow-run first on yourself, starting with what you are good at and what fuels you, then on the room, with the questions to answer at each move</li> <li>The Langton Roadmap: a one-page method for making the case for the role that should exist, inside the organization you are already in</li> <li>A clear distinction between the Expert Path, which delivers the science, and the Human Path, which delivers adoption-and why the human path matters more as technology gets more capable</li> <li>Practical guidance on reaching the people who have to adopt your work, setting an evidence standard, and turning a success into a standard that runs without you</li> <li>Real-world lessons from one of sports' most visible transformations, including the NFL-AWS partnership and the day Langton stopped the room The Room Needs You serves leaders, change agents, and anyone building with data or AI who has to move experts, skeptics, and institutions they do not control. It speaks just as directly to anyone at a turning point-a career pivot, a step into leadership, the chance to grow into something larger-and to the athlete leaving the game, the person coming back from an injury or a loss, the student choosing a path: anyone asking what am I good at now, because the method begins with that question. Langton's method equips anyone who has felt out of place in a room to make their difference the reason they belong there.</li> </ul>

Let Your Difference Drive Change -- the Connect, Trust, Grow Method

The Room Needs You

Competitive advantage is found in operations, and in the operations leaders who build resilient, adaptive, and intelligent businesses.The relentless waves of disruption in the turbulent 2020s--from the Covid-19 pandemic to AI breakthroughs and so much more--have made operations the nerve center of business survival. The companies thriving in today's volatile world are those that have transformed operations from a "silent function" into a strategic engine of resilience, innovation, growth, and competitive advantage. In this practical book, you learn how it's done.Professor of Strategy and Supply Chain Management Carlos Cordon joins the former head of operations at Nestlé, Magdi Batato, to show leaders why operations is the CEO's secret weapon and how the COO has emerged as one of the most strategically important roles in modern business.Drawing on interviews, case studies, and real-world lessons from global leaders at companies including Nestlé, Apple, Carlsberg, Danaher, and Novo Nordisk, the authors reveal how modern executives are rethinking the supply chain to be something more flexible and nonlinear; how they're reimagining manufacturing, sustainability, technology, talent, and customer responsiveness in an era when disruption is constant and adaptability is everything.From nearshoring and AI-powered decision-making to sustainable sourcing, consumer-driven operations, and resilient ecosystems, the book provides a practical framework for building operations that can withstand shocks while continuing to innovate and grow. It will guide CEOs, COOs, supply chain leaders, strategists, and anyone responsible for steering organizations through an increasingly unpredictable world.Operational resilience is now inseparable from long-term success. Operations is strategy.

Redefining Competitive Advantage for the Next Era of Business

Operations Is Strategy

Is your company moving as fast as you think it is? Most organizations aren't--and it's costing them.Many executives would argue that their companies are moving with speed. But new research reveals the opposite. As speed becomes more critical to survival in today's unpredictable world, most companies are actually getting slower, held back by processes, technologies, and structures that once made them successful.This perception-execution gap around speed can make or break companies--yet most leaders don't know how to set their organizations up for success. In The High-Velocity Organization, Suketu Gandhi, chair of the global strategic operations practice at Kearney, offers a practical solution. By combining speed of insights, decisions, and actions, leaders can increase their velocity exponentially across the organization. Gandhi introduces a five-part framework for operationalizing intelligent speed at scale: <ul><li>Build enterprise sensing capabilities that enable a company to perceive opportunities and threats.</li><li>Break down silos to enable organizational adaptability.</li><li>Empower agile teams by encouraging decision-making and fostering collaboration.</li><li>Scale with intelligent automation to distribute insights, increase efficiency, expand capacity, and support decentralized execution at scale.</li><li>Measure what matters using new metrics that determine true competitive speed in an accelerated marketplace.</li></ul>Based on proprietary research and filled with detailed examples, The High-Velocity Organization explores the architecture, technology, and leadership needed to put speed at the heart of strategy and execution so that your company can stay adaptable while moving forward--fast.

Sensing, Deciding, and Acting at Speed

The High Velocity Organization

Innovations in Food Science and Technology

Handbook of Food Preservation Methods

Levi's former CEO--who joined the company after a 28-year career at Procter &amp; Gamble, where dozens of his direct reports became CEOs of other companies--shares how to build great brands and ignite growth.Levi's was lost. For more than a decade, the company that changed how the world dressed had been stagnating--at one point near bankruptcy--as its iconic product, 501 jeans, faded into a nostalgic relic amid more-fashionable competitors.Fast-forward to today. Levi's are back and just about everywhere, from college campuses and concerts to workplaces and red carpets. Influencers style them. Taylor Swift sings about them, and Beyoncé and Post Malone's hit "Levii's Jeans" compares them to a lover's hug. To paraphrase British Vogue, the jeans beloved by James Dean, Marilyn Monroe, Bruce Springsteen, and Kurt Cobain, as well as presidents and protestors, are once again part of the culture, worn by style icons like Hailey Bieber and Kendall Jenner, as well as moms and dads.This is the inspiring, instructive story of Levi's resurgence, from the CEO who led it.Chip Bergh was a die-hard Levi's fan when he was tapped to be CEO thanks to his track record leading successful brands at P&amp;G. In this brisk narrative, he reveals the most consequential decisions and the six timeless tenets of what he coins "brand-driven leadership" that fueled Levi's revival: origin stories matter; the brand is the business; marketing is an investment, not an expense; be customer obsessed; control how the brand shows up; and play the long game.With rich storytelling and actionable insights, Bergh shows how universal leadership principles returned Levi's to relevance, as he surprises readers with fun facts about the history of the company that introduced denim jeans to the world.For any leader facing crucial strategic choices, and anyone who loves jeans, A Levi's Story is a compelling narrative and a vital resource to start, build, or revive brands and unlock growth.

Leading the Revival of an Iconic Brand

A Levi's Story

Strategic Analytics

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