How to innovate in a hyper-dynamic market in 2023 without losing your strategy?

5 minute read

What is a hyper-dynamic market?

In the late 1990s and early 2000s, when the fear of ‘Bug 2000’ prevailed everywhere and the dot-com bubble was at the heart of the public-business discourse, researchers tried to understand the effect of the rate of technological change on the competitive environment in the market; and began to study the market characterised by permanent and rapid changes in every aspect of the business environment. Technological progress alongside consumer behaviour, which exist in the context of a market affected by geopolitical and economic events, has created a significant challenge for companies that want to maintain a competitive advantage in the best case, and justify their existence in the worst case. Over the years, the understanding that adopting rapid change, assimilating innovation, as well as responding to changing needs, can lead to prosperity and a solid relative advantage.

What are the challenges of operating in a hyper-dynamic market?

The ability of companies to manage risks, navigate uncertainty and take advantage of opportunities quickly and efficiently, are all part of the secret recipe for companies to stay relevant. But the obvious questions are: how do you build a strategy for a company that, in order to be successful, needs to constantly change? What is a necessary change? And how do you maintain a correct strategy and direction of progress when you are constantly reacting to opportunities quickly?

The need to distinguish between the main thing to treat, occupies a significant place in an age like ours which is flooded with information in countless different channels. In the same way, the organisations dealing with the main and the most important things regarding technological adequacy and their adaptation to the organisation, becomes a difficult task and the delicate balance between innovation and strategy becomes very challenging, especially in a complex year like 2023.

In what context does the hyper-dynamic market exist in 2023?

In 2021, the capital market was in a positive trend especially in the technology sector. The gradual release of the world from restrictions due to coronavirus, along with peaks in its social and business activities, have led to significant growth of the economy.

In 2022, as a result of economic and geopolitical events, the capital market was in continuous volatility. Along with rising inflation and rising interest rates, the market is also benefiting from economic growth that is reflected in the profits of companies (mainly in the field of energy, health, cyber and electronic commerce) and an increase in the number of jobs. To a certain extent, the year 2022 looks like a 'negative image' of the year 2021. The year 2023, in its broad context, is expected to continue to maintain the tension between the rise in interest rates and the heating up of inflation, a tense, uncertain and volatile geopolitical environment, alongside economic growth of technology companies (with an emphasis on artificial intelligence and cyber), the health sector, renewable energy, electronic messaging and financial services (with an emphasis on wealth management, insurance and alternative investments).

How can you innovate without losing your strategy in a hyper-dynamic market in 2023?

The question that has been asked since starting to research the hyper-dynamic market is: how can I plan a long-term strategy when changes are a constant part of the equation?

Apparently, it is implied that this is an axis with two opposite ends that can never come together. In my opinion, one should not ask which x can work with y, but how z can be produced. That is, to stop asking how I can create a strategy alongside innovation, but how do I create a two-way harmonious innovative strategy. That is, how do I create a strategy that inherently contains innovation and how, in view of the innovation, do I improve the strategy? All this alongside market conditions, the organisation's capabilities and the client's needs.

The first course and module provided a proper and good response to creating a harmonious innovative strategy, including strategic flexibility alongside the fit between a customer focus strategy and the selection of business partners.

Strategic flexibility – creating a strategy as an ongoing event, which adapts, changes and updates in light of market events and customer preferences. The implementation will include frequent testing, and a redefinition of the unique value proposition alongside an investigation of relevant markets and models and the ability to implement them in the organisation in view of existing resources.

Compatibility between a customer focus strategy and collaborations – creating a strategy that has a harmonious internal logic that includes consideration of customer preferences alongside the selection of collaborations. A holistic view of the inside and outside of the organisation can help build a harmonious strategy. This section becomes even more significant as the power of social networks increases in recent years.

In 2023, when uncertainty is an integral part of our lives, the geopolitical landscape is tense, social networks are the main channel for conveying messages, the rise of technologies with an emphasis on the rapid growth of artificial intelligence requires organisations to develop the muscle of adaptation more than ever.

The Oxford Executive Diploma in Strategy and Innovation in general, and the first module in particular, becomes a sort of massive training room for developing this muscle. The diploma programme allows access to refined and relevant information for various organisations and sectors in dealing with tomorrow's challenges while returning to the basic theories. The theories, the same theories, the discussions with people from all over the world, in different sectors, and the indescribable quality of Oxford, makes the programme a must-have for people who aspire to create the change and be part of the pioneers of innovation; not just managing it but facing the strategic challenge it may bring.

Oxford Executive Diploma in Strategy and Innovation