Strategy 3.0 in the 3.0 World

The Technological Revolution

The technological revolution has transformed our world over the past few decades. Nearly every aspect of our lives has been radically altered by disruptive forces such as the Internet, mobile technology, social media, and digital advancements. While we continue to adapt to these changes, many thought leaders assert that we are on the brink of yet another era defined by technology.

Exploring Web 3.0

As a strategy practitioner and lifelong learner, I am deeply curious about technological disruption and its implications for businesses, professionals, and society. This article aims not to predict the future but to recognize the technologies that hold disruptive potential and could bring lasting change that leaders, strategists, and professionals must understand to navigate successfully into the future.

A few years ago, I encountered the concept of Web 3.0, hailed as the future of the internet. Let’s take a brief journey back to the internet's inception. In the 1990s, the internet was primarily a collection of static web pages, known as Web 1.0. The subsequent iteration, Web 2.0, emerged with the rise of social media, allowing users to read and share content. Now, we are stepping into Web 3.0, where users can read, write, and own their data. Web 3.0, though still in its infancy, promises to profoundly impact our personal and professional lives.

Technologies Driving Web 3.0

Web 3.0 encompasses transformative technologies such as blockchain, fungible tokens, non-fungible tokens (NFTs), Decentralized Autonomous Organizations (DAOs), decentralized apps (Dapps), and the Metaverse. While its full potential remains unclear, experts believe these technologies could attract billions of users, create trillions of dollars in value, and have a significant economic impact.

The Evolution of Software

Next, let’s consider software. The phrase "software is eating the world" refers not to the software we’ve known for years but to its evolutionary journey. Software 1.0 involved crafting task-specific codes. Software 2.0 utilized big data to train AI models for tasks traditionally performed by humans. The groundbreaking strides in Artificial Intelligence have led us to Software 3.0, characterized by open-source initiatives and large language models. Since the release of ChatGPT in November 2022, millions have adopted generative AI tools, showcasing the rapid adoption and potential of this new software paradigm.

The Evolution of Strategy

Now, let’s turn to strategy. Modern-day strategy concepts date back to the 1960s, focusing on competitive advantage through scale, efficiency, productivity, and unique capabilities. This era, which I call Strategy 1.0, lasted for about 50 years. The last decade or so has seen digital technologies disrupt traditional strategy tools, leading to what I term Strategy 2.0—where agility, adaptability, and transient competitive advantage became paramount.

The rapid technological advancements have caused traditional strategy tools to become somewhat outdated. Organizational capabilities that once ensured sustained performance no longer guarantee success. The industry barriers have become fluid, causing several once-indispensable companies to collapse. Some analysts have even spoken about the death of strategy. However, I argue that the discipline of strategy has evolved and is now more important than ever. In the digital and fast-paced environment, concepts like agility, adaptability, and transient competitive advantage have emerged as key strategic imperatives. In today's VUCA (Volatile, Uncertain, Complex, Ambiguous) world, there is no one-size-fits-all approach to strategy.

Strategy in the 3.0 World

What will strategy look like in the 3.0 world? If Web 3.0 and Software 3.0 deliver on their promises, traditional strategy concepts may become obsolete. Leaders and strategists need to rethink their approaches to ensure their strategies can withstand the demands of the 3.0 age. Questions to consider include whether digital or phygital strategies will work when customers transition to Web 3.0, and if operating models are designed for agility to capture emerging opportunities. Can companies afford to miss a trillion-dollar marketplace by not adapting to these changes?

A Composite Approach to Strategy

In the 3.0 world, strategy might evolve into a highly composite approach where agility and adaptability are crucial, alongside a purpose-driven, non-linear, opportunity-driven, open innovation, and co-creation-based approach. As 3.0 technologies enhance human cognition, it is possible that software 3.0 may even take the lead in strategic thinking, while strategists assume a secondary role. Additionally, if society transitions from an era of scarcity to one of abundance, as conceptualized by some scholars, how will strategy concepts evolve in such a world?

Conclusion

Predicting the future is challenging, and I have likely raised more questions than provided answers. As I continue to learn, I eagerly seek insights and welcome your thoughts.

Author’s Profile

Danish is a strategy professional with 18 years of experience in the financial services industry across various geographies. He is pursuing a Doctorate in Business Administration from ISM, Paris. Passionate about strategy, transformation, and emerging technologies, Danish’s relentless curiosity drives him to delve deep into these subjects, constantly seeking to unearth insights and unlock their potential. Connect with Danish on LinkedIn here, where he regularly shares knowledge on management sciences.