Our strategy professors always taught us that you have to position yourself in the right industry, analyze the market or have the right core competencies. And innovation will happen in products and processes. Really?
With the classical units of analysis for strategy like industry, markets we do not understand what is happening out there in the digital area.
We need a new unit of analysis. The only constant in the digital tsunami is the job we solve for our customer. And only the business model is in the end decisive for value creation aka solving the job of the customers.
The locus of innovation in the digital age is the business model and all its elements. The business model gives us new boxes to think in an thereby breaking the barriers of our conventional thinking about products, markets or industries.
Besides the business model, we need a new process to plan in. Strategic planning does not work since it wants to predict the future. With entrepreneurial design, we do not plan the result of the process but the process itself to discover the future.