Why corporate strategy needs to change with the cloud


Gigaom

Cloud computing changes everything, including corporate strategy as a practice. I have listed five reasons why, although I’m sure there are many more. Long story short: Corporate strategists need to get out of their 20th century mindset and into the 21st century.

1. Emergent strategy rules

For years, the practice of strategy has been about analyzing value chains, applying frameworks like Porter’s five forces or newer strategic-intent-driven ideas like Blue Ocean Strategy. The problem with those framework-driven ideas is they assume a very static, deterministic model of the world. They work when the variables required to solve a problem are already well known, few in number and change at a slow pace.

Cloud computing doesn’t operate in the intentional strategy space. There are a lot of unknowns, many of which can change rapidly. A small firm could develop something valuable very quickly, scale it to millions of users in a…

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