3. Lost in Transformation: Strategy Formulation in a Digitized World

Assessing traditional industry analysis in the light of today’s business reality, we provide insights into an alternative framework for strategy formulation and implementation in a digitalized world. The main purpose of this literature review and conceptual chapter is to discuss current challenges for strategic management and to illustrate a novel approach of strategic renewal and their practical implementation in a world lost in transformation. This chapter highlights the relevance of a new approach toward strategy formulation in the face of a changing competitive landscape and provides guidelines for its practical implication. Our findings offer the grounds for practical implications such as that companies ought to strive to manage the challenges of changing business environments via new approaches toward innovation processes. To promote strategic renewal, managers should think in terms of competitive arenas and pipelines of transient advantage. Instead of trying to procure stability in shifting environments by all means, firms should aim to grow with the flow of digital transformation.