Playing an infinite game - the playing ground of challengers

In today's rapidly changing world, the idea of playing an infinite game is a compelling one. It has taken on a new meaning and holds a great promise, for those willing to challenge.

Many of us have grown in a world that is the playing ground of finite games. From the game of monopoly we played as kids (and, I admit, as parents), to the sports we play, and to scaling up in one's profession. We learned from a young age to excel within the boundaries of a finite game. Yet such games, won with skills honed over many years, and the urge to compete, have not prepared us for the world we now face.

Finite games are characterised by three easily distinguishable traits. They contain 1) known players (call them industry incumbents); 2) fixed rules (each role player keeping to 'their lane'); and 3) a clear endpoint (that leaders set forth as the goal for their organisations, and increasingly supply chains and channel partners to follow). We form teams, execute with efficiency, and always keep our eye on that coveted prize. As Simon Sinek so nicely put it, 'A series of repeated finite games doesn't make an infinite game—it just makes you exhausted'

Make no mistake, finite games are still very much around, and at times are very much needed. Think of heavily regulated industries, where barriers to entry are high, business and commercial models are often pre-determined and where success can be defined far away from where customers reside. Yet even in the strongest bastions of regulated industries, these conditions are dissipating, at times with alarming speed.

You may choose to play a finite game, for example, by acquiring a direct competitor for greater market share, yet think about how much M&A activity has steered away from such deals, towards tie-ups between distinctly different players, crossing industry boundaries and bringing new capability sets to bear. To put numbers to this, of the 11 969 M&A transactions recorded by Crunchbase over the past year, only 695 were mergers between direct competitors, a mere 5.8%. The share of M&A activity involving non-symmetrical moves is growing.

We see finite games still play a necessary role, as short-term maneuvers, aimed at responding to near-term market conditions. These might include targeted pricing tactics and promotional campaigns. Yet none of these can replace the role of a well-crafted business strategy. Put differently, being agile is important, even powerful, but not enough.

Infinite games, in contrast, are found where new players, disruptive technologies, shifting market dynamics, and changing societal expectations are re-shaping the playing field - does that sound familiar? Not surprisingly, we find infinite games closely tied to the concept of business ecosystems, as ecosystems are the playing field where infinite games can be practiced and scaled. This is where a dynamic network of organisations, individuals, and resources can work together to create and capture value in a mutually beneficial manner - and infinite games are on offer, for those willing to innovate.

One of the earliest examples of this we find in the realm of open-source software. Linux, the open-source operating system, has thrived for years, through the collaborative efforts of a global community of developers. Linux operates on the principles of transparency, inclusivity, and shared ownership. Developers from different backgrounds contribute their expertise and collaborate in improving the system, guided by a common purpose rather than short-term gains. This culture of collaboration and knowledge-sharing fosters a sense of community and collective responsibility, leading to the evolution and enhancement of the Linux ecosystem over time.

As technology advances and new hardware and software environments emerge, the Linux community has adapted the operating system to support these changes. This makes Linux relevant, time and again, in a fast-paced and ever-changing technological landscape - just think of cloud-based solutions, virtual machines and platforms which enable 3rd party solutions to be hosted, as part of one's ecosystem - open banking being such a rich playground, for one.

Infinite games are found not only in technology-laden industries, but beyond. Think of the sustainable fashion ecosystem, for example, exemplified by companies like Patagonia, that seem to operate with an infinite game mindset, focused on environmental stewardship and social responsibility. Patagonia has built a network of suppliers, business as well as social partners, and customers who share in its commitment to sustainability and ethical practices. Within this ecosystem, Patagonia emphasizes collaboration and knowledge-sharing, to drive sustainable practices across the fashion industry. It openly shares its supply chain information, engages in advocacy efforts, and supports initiatives that promote environmental and social causes, and in working partnerships with suppliers, NGOs, and customers, Patagonia seeks to transform the fashion industry, rather than pursuing isolated short-term gains. It could have played a finite game, but chose instead an infinite game to play, again and again.

So where do challengers come into the picture? Their role cannot be under-played here. Infinite games require not only entrepreneurial efforts but the mindset of a challenger, the willingness to build outside well-travelled industry lanes, to challenge and encourage organisations to seek mutually beneficial partnerships and alliances, at times across the ecosystem.

Challengers often play the infinite game, to inspire ecosystem participants towards goals that are bigger than themselves, more ambitious that their immediate stakeholders (however demanding) and more impactful than a single firm can achieve on its own.

Infinite games are the natural playing ground for such challengers. This is where challenger moves are called upon, and where they make their greatest mark.

Have a good week ahead.

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