OWP liVe REPORT

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What you can learn fromAdobe’s transformation from software provider to tech giant

S T R AT E G Y

Think big, double down and don’t fear the unknown, says IMD Professor of Strategy and Marketing Goutam Challagalla. The total transformation of Adobe sets the gold standard for business transformation, said Professor Challagalla. Named the second-best business transformation of the past decade in Harvard Business Review, the company’s journey from approximately $3 billion to $11 billion in annual revenues is enviable.

the main types include the “Dreamer”, “Waterloo”, “Operator” and “Blue sky”. If your company is a dreamer, it has high aspirations but may have trouble translating them into concrete choices. “Waterloo” references the legendary last battle of the Napoleonic War, and implies a scattered strategy with too many ongoing conflicts. Companies that use an “Operator” strategy define their actions with a set of tactical plans, while “Blue sky” strategy is the opposite – it is comprised mostly of buzz words and fluff. Though it is true that some companies do this well! How can my organization determine whether it has created the right strategy? There are seven tests of a good strategy, evolving from a military concept brought to the business world in the 1950s, straight through to the 2010s, when we saw more of a focus on flexibility.

• Do we have a vision or purpose that provides clear direction?

• Do we have the right portfolio of

businesses to meet the current and future needs?

• Do we have a strong differentiator and competitive advantage?

• Do we have the core capabilities to win today and the right investment in future capabilities?

GOUTAM CHALLAGALLA IMD Professor of Strategy and Marketing

• Do we have new business models to drive sufficient growth?

$3BILLIONTO$11BILLION in annual revenues

• Are we leveraging the entire ecosystem to drive growth?

• Does our strategy have enough flexibility?

But how can you apply the lessons learned from the Adobe business case to your own organization? Professor Challagalla set out a strategic roadmap in his OWP liVe session.

If you have a definitive answer for each question, then your strategy is likely solid.

Which strategy types work?

There are as many different strategies as there are organizations, but some of

You must ask yourself these questions: