Mindsets and Business Model Value Creation: Successful Competitive Strategies in the AI Age

In the 47th edition of?this newsletter, entitled “Your GenAI Partner, Competitor, or Replacement: The Business Competition Game Changer,” it was concluded that every business, especially startups, should apply the?“Pareto Concept” to their?value-added services?and understand the different?“Types of Competitive Advantages” to recognize where their?value-added services?fall on the?“Spectrum of Know-How, Know-Why, and Know-When Competitive Advantages.” This?helps them better assess the level of risk they face and develop their “Winning Adaptable Strategies,” capitalizing on opportunities to gain a competitive advantage over their “Generative AI Rivals” in this?“Involuntary Competitive Strategic Game” induced by the?“Generative AI as a Competition Game Changer.”They can deliberately?“Opt-out from Competition” in the?“Red Ocean” to their AI Competitor, which contains?the 80% of the value-added services that depend only on the “Know-How Competitive Advantage.”?A higher-order strategy is to start considering it as their?“AI Partner,” which?means that they deliberately?“Opt-in into Competition” in the?“Strategic?Blue Ocean” with their AI Partner to help them in?the 80% of the value-added services that require the higher?“Know-Why and Know-When Competitive Advantages”?and boost their competitiveness in ways they never thought possible to outsmart and outmaneuver in the age of the?“Genrative AI as the New Business Competition Game Changer.”

In addition to the above-mentioned strategies that seem both intuitive and logical, each business needs to focus on the actual?“Differentiation Strategies” that set them apart from their competitors and provide unique value to their customers. These true differentiation strategies not only determine where to play (i.e., in the?“Red Ocean” or the?“Blue Ocean”) and how to utilize the power of the?“Generative Artificial Intelligence,” but more importantly, how to design and establish?“Inimitable Core Competencies” that can’t be beaten or imitated by the competitors.?

This brief article in the LinkedIn newsletter will briefly highlight these true?“Differentiation Strategies” that design and establish these?“Inimitable Core Competencies” based on a recently published article, which was published by Forbes and written by Steve Denning and titled “Depicting The Revolutionary Changes In 21st Century Management.”?

Denning’s article explained how the management styles had changed between the 20th century and the 21st century. Despite the wealth of information in that article and the detailed comparison between the two opposite schools of thought, the most important differentiator elements between the 20th-century and 21st-century management styles were the?“Mindsets” and the?“Value Creation Through Innovative Business Models.”?

The mindsets of 20th-century managers were focused on hierarchical structures and maintaining control, while 21st-century managers embrace more flexible, collaborative approaches. Additionally, the value creation in the 21st century is driven by innovative business models prioritizing adaptability and agility over rigid control systems. These shifts in mindsets and business models have forced companies to adapt to the new demands of the modern business environment.?

Hence, and to conclude this brief article of the newsletter,?each business should develop “Winning Adaptable Strategies,” capitalizing on opportunities to gain a competitive advantage over their “Generative AI Rivals” in this?“Involuntary Competitive Strategic Game” induced by the?“Generative AI as a Competition Game Changer.”They can deliberately?“Opt-out?from Competition” in the?“Red Ocean” to their AI Competitor or?use?a higher-order strategy that considers AI as their?“AI Partner,” which?means that they deliberately?“Opt-in into Competition” in the?“Strategic?Blue Ocean.” In addition to these winning adaptable strategies that seem both intuitive and logical, each business should focus on the actual?“Differentiation Strategies” that set them apart from their competitors. These actual differentiation strategies not only determine where to play (i.e., in the?“Red Ocean” or the?“Blue Ocean”) and how to utilize the power of the?“Generative Artificial Intelligence,” but more importantly, how to design and establish?“Inimitable Core Competencies” that can’t be beaten or imitated by the competitors.