Emergent vs divergent is one of the most important concepts for corporate innovation. Research shows that with new ventures, the initial strategy is not what ultimately led to businesses success for over 90% of new businesses. In other words, no business plan ever survives contact with the customers. Things change and you need an emergent strategy to be agile and react to changes in the market.
Deliberate strategy is the consequence of thoughtful planning. Emergent bubbles up organically and can affect the results in a big way. Emergent strategy “emerges” as assumptions are proved wrong or new data/info emerges. Entrepreneurship is all about emergent strategy, so corporate innovators need to be able and embrace emergent strategy.
Strategy formation—deliberate vs. emergent—should be a honed skill. Needs to be managed differently for different businesses. Range of businesses needs range of strategies.
In new markets and with new innovation, the strategy needs to be emergent. You can’t implement a deliberate strategy before the viability of an idea is known. This is what leads to failure. Your strategy is wrong.
Running many experiments in emergent mode. Imagine teams running in parallel competing with each other. Quick plan, testing assumptions, providing viability.
Only when competitive dynamics and market needs are very clearly defined and understood can a deliberate strategy be implemented.
As an idea emerge as a viable business, company needs to switch from emergent mode to deliberate strategy. And company focuses its resources and energy in this new direction.
In new markets, strategy needs to be emergent.
Only when competitive dynamics and market needs are very clearly defined and understood can a deliberate strategy be implemented.
A key point is that later you need to pivot back to emergent strategy with new opportunities.
