Modeling methods for strategy formulation in a turbulent environment

• Published date: 01 July 2018
• DOI: http://doi.org/10.1002/jsc.2209
• Author: Elvira Grinberg,Dmitry Kudryavtsev,Tatiana Gavrilova,Miroslav Kubelskiy
• Date: 01 July 2018

RESEARCH ARTICLE

DOI: 10.1002/jsc.2209

Strategic Change. 2018;27(4):369–377. wileyonlinelibrary.com/journal/jsc © 2018 John Wiley & Sons, Ltd. 369

Abstract

The relevance of classical strategizing methods decreases in the era of a rapidly changing world,

but this set of methods can be epanded through a variety of Yeible modeling technitues from

other Celds. Operaঞons research, enterprise modeling, hnowledge engineering, and arঞCcial in-

telligence have potenঞal to enrich strategizing process. These disciplines have generated a large

number of supporঞng methods. We provide a classiCcaঞon of the modeling methods by the

degree of formalizaঞon and propose a conceptual frameworh for the method choice.

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The main challenge for modern strategic management is the signiC-

cant degree of volaঞlity, uncertainty, and compleity of the environ-

ment in which decisions are made (Geissler & Krys, 2013; Wolf, 2007),

and the ability of organizaঞons to adapt tuichly is the most important

compeঞঞve advantage (!eeves & Deimler, 2011; !igby & ilodeau,

201Ɣ; ). Despite the abundance of eisঞng modeling methods, most

managers use classical tools taught in business schools, whose e@ec-

ঞveness is tuesঞonable (Gunn & Williams, 2007; Wright, arouঞs, &

lener, 2013; ). ragmentaঞon of scienঞCc research Celds, the ambi-

guity of common terminology, and the complexity of some methods

mahe them less accessible to pracঞঞoners. The tash of developing

a uniCed integrated methodology for supporঞng strategic decision-

mahing, which would include best pracঞces and respond to modern

challenges, is becoming increasingly relevant (ra, & ,angari, 2008),

as well as for collecঞve solving of ill-structured problems (vdiji,

lihan, issonier, & igneur, 2018).

The following research tuesঞon is raised: ľow can the formu-

laঞon of opঞmal strategy be supported by state-of-the-art methods

from di@erent research CeldsĵĿ The appropriate method for address-

ing this tuesঞon is an integraঞve literature review of the adjacent

research Celds. These CeldsĽ methods have not been generalized

because of signiCcant di@erences in terms and purposes.

In the course of this research, we describe the main concepts,

principles, and challenges of modeling methods by reviewing the main

research Celds and methods relevant to strategy formulaঞon. These

research Celds are operaঞons research, enterprise modeling (),

hnowledge engineering, and arঞCcial intelligence. We propose a clas-

siCcaঞon of the methods from these Celds by their degree of formal-

izaঞon. ased on this classiCcaঞon, we propose a pracঞcal frameworh

to help managers and decision mahers in choosing an appropriate

supporঞng method. During this process, we observe the paerns of

hnowledge transformaঞon from verbal arঞculaঞon with the creaঞon

of text notes via visualizaঞon to Cnal structuring and formalizaঞon.

ach of these stages can be facilitated by domain-speciCc or generic

methods with the relevant degree of formalizaঞon. The right choice of

method can facilitate the process of strategy formulaঞon.

This arঞcle brings together strategic management pracঞces and

visual hnowledge mapping tools. Its main aim is to expand the arsenal

of methods available to pracঞঞoners. In Secঞon 6, we describe the

opportuniঞes for further development of the approach.

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ccording to David (2010), the process of strategy formulaঞon con-

sists of two main parts: strategic analysis and strategic choice. The

Crst step consists of developing a vision and mission of the organi-

zaঞon, conducঞng an assessment of the current situaঞon and estab-

lishing long-term goals and objecঞves. The second step is generaঞng

alternaঞve strategies to achieve the goals established in the Crst step,

and choosing a parঞcular alternaঞve for implementaঞon a[er assess-

ment and comparison. The current stream of strategic research can be

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Graduate School of anagement

St. etersburg &niversity, Saint-etersburg,

!ussia

orr;srom7;mc;

iroslav Kubelshiy, 19613Ɣ, viatsionnaya

St., 22-Ɣ1, Saint-etersburg, !ussia

mail: mirtubeŠgmail.com

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The study was parঞally supported by !ussian

oundaঞon for asiࣄ !esearch, Grant

Number: 17-07-00228.

* J..L. classiCcaঞon code: 10.

Strategic Change. 2018;27(4):369–377. wileyonlinelibrary.com/journal/jsc © 2018 John Wiley & Sons, Ltd. 369