MARTIN KUNC received his PhD from London Business School in Decision Science. He has built a distinguished career in business education and strategic consultancy. Currently, he serves as professor of Management Science at Southampton Business School, University of Southampton and holds visiting professorships at several other leading institutions. He is Editor-in-Chief of the Journal of the Operational Research Society and serves as an associate editor for several other academic journals. He is a member of the Operational Research Society and Arthur Andersen Alumni. Throughout his career, he has led consultancy projects addressing strategic challenges across a wide range of industries, contributing valuable insights and solutions to complex business problems.

• Preface to Second Edition xiiiAcknowledgments xvAbout the Companion Website xvii1 Introduction to Strategic Analytics 11.1 What Is Analytics? 31.2 What Is Management Science? 101.3 What Is Information Technology: New Challenges? 201.4 What Is AI and How Can It Enhance Business Analytics? 231.4.1 Integration of GenAI with BA 261.4.2 Implications of AI Adoption in Business Decision- making Processes 291.5 What Is Strategic Management? 311.5.1 What Are the Characteristics of Strategic Problems? 331.5.2 Different Approaches to Strategic Management 361.6 Strategy Analytics: Integrating Management Science and AI with Strategic Management 40References 442 Dynamic Managerial Capabilities for a Complex World with AI 492.1 Dynamic Managerial Capabilities 502.1.1 Task Dimension 532.1.2 Cognitive Dimension 542.1.3 Behavior Dimension 552.1.4 AI Dimension 572.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 612.2.1 Managers as Modelers 622.2.2 Behavior with and Beyond Models 652.2.3 Modeling Systems 662.2.4 Big Data Analytics Capabilities 692.2.5 AI Capabilities 702.3 End of Chapter 732.3.1 Revision Questions 742.3.2 Case Study: The Future of Strategizing with AI 74References 77Further Reading 823 External Environment: Political, Economic, Societal, Technological, and Environmental Factors 853.1 The PESTE Analysis 873.1.1 Limitations of PESTE Analysis 883.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 923.2.1 Achieving Consistency in PESTE Analysis Using the Analytic Hierarchy Process 923.2.2 Understanding the Evolution of PESTE Factors Using Visualization Analytics 1053.2.3 Scanning PESTE Factors Using AI 1063.2.4 Developing Scenarios Supported With AI 1073.2.5 Developing Scenarios Supported With System Dynamics 1083.3 End of Chapter 1093.3.1 Revision Questions 1103.3.2 Case Study: Westmill Co- op and the Rise of Renewable Energy 111References 113Further Reading 1154 Industry Dynamics 1174.1 Defining the Industry 1184.2 Porter’s Five Forces and Industry Dynamics 1194.2.1 Bargaining Power of Suppliers 1204.2.2 Bargaining Power of Buyers 1214.2.3 Substitutes 1224.2.4 Threat of New Entrants 1224.2.5 Intensity of Rivalry 1234.2.6 Strategic Issues Derived from Five Forces Analysis 1254.3 Integrating Management Science, Analytics, and AI for Strategic Management Practice 1304.3.1 Revenue Management 1304.3.2 Evaluating Competitors’ Performance in the Market Using Text Mining 1334.3.3 Managing Five Forces Through AI- enhanced Methods 1394.4 End of Chapter 1414.4.1 Revision Questions 1414.4.2 Case Study: Strategic Evaluation of Entering in a New Market as a Low- cost Airline Using System Dynamics Modeling 1424.4.2.1 Describing the Key Strategic Aspects of a Business Using a System Dynamics Model 1424.4.2.2 The easyJet Case 143References 148Further Reading 1505 Industry Evolution 1535.1 Dynamic Behavioral Model of Industry Evolution 1575.1.1 Industries as Feedback Systems 1585.1.2 A Behavioral Model of Organizations 1595.1.3 Dynamic Behavioral Model of Industry Evolution 1615.1.4 Types of Dynamic Behavior and Strategic Implications on the Evolution of Industries 1635.1.5 Industry Evolution: A Regional Socioeconomic Perspective 1665.1.6 Industries Evolution: A Power Game 1685.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 1735.2.1 Exploring Industry Evolution Using System Dynamics 1745.2.1.1 Market Development 1745.2.2 Understanding How the Levels of Integration/Interaction Between Companies Affect the Evolution of Companies Using NKC Models 1815.2.2.1 Insights from the Model 1835.2.3 Uncovering the Evolution of Technology in an Industry Using Text Mining Methods 1855.2.4 Mapping Industry Evolution Using AI 1865.3 End of Chapter 1875.3.1 Revision Questions 1885.3.2 Case Study: How Smartphones and AI Have Shaped the Camera Industry 189References 192Further Reading 1946 Competitive Advantage: Static Analysis 1956.1 The Direction of a Company: Vision and Mission 1966.2 Defining Value and Market Segmentation 1966.3 Mapping the Activities to Deliver Value 2006.3.1 Value Chain 2006.3.2 Activity System Map 2026.3.3 Business Model Canvas 2036.4 Type of Business Strategies 2056.4.1 Cost Advantage 2056.4.2 Differentiation Advantage 2066.4.2.1 The Management Response 2096.4.2.2 The Market Response 2106.4.3 Blue Ocean Strategy 2116.4.4 Sustainability as a Strategy 2126.4.5 AI as Strategy 2136.5 Integrating Management Science, Analytics, and AI for Strategic Management Practice 2136.5.1 Uncovering Market Segments Using Analytics Tools: Market Basket Transactions Analysis 2146.5.2 Uncovering Market Segments Using Analytics Tools: Clustering 2196.5.3 Defining Market Positioning Using AI 2206.6 End of Chapter 2206.6.1 Revision Questions 2236.6.2 Case Study: Revisiting Porter’s Generic Strategies Using System Dynamics 2246.6.2.1 The Model 2266.6.2.2 Expanding the Model to Consider Sustainability 231References 233Further Reading 2357 Dynamic Resource Management 2377.1 Resources and Capabilities 2387.2 Resource Management 2407.2.1 Resource Conceptualization 2417.2.2 Resource Development 2467.2.3 Business Performance 2487.3 Sustainable Resource Management 2497.3.1 Sustainability and Stakeholder Management 2507.4 Integrating Management Science, Analytics, and AI for Strategic Management Practice 2527.4.1 Boundary Definition: Using Systems Thinking to Facilitate Sustainable Systems 2537.4.2 Resource Conceptualization Using Resource Mapping (as a Problem Structuring Method) 2567.4.3 Resource Development Using Resource Mapping, System Dynamics, and Scenarios 2597.4.4 Resource Development Under Uncertainty Using Decision Trees 2637.4.5 Developing Decision Trees Using Big Data and AI 2697.4.6 Inferring Business Performance from Management Science Methods 2727.4.7 Using AI to Predict and Improve Business Performance 2727.5 End of Chapter 2737.5.1 Revision Questions 2757.5.2 Case Study: Majestic Wines 275References 278Further Reading 2818 Organizational Design 2838.1 Organizational Components 2848.1.1 Structure 2848.1.2 Processes 2878.1.3 The Soft Side of Organizations: Culture and Values 2888.1.4 Digital Transformation 2948.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 2968.2.1 Network Analysis for Organizational Structure Design 2968.2.2 Business Process Modeling 3018.2.3 Improving Manufacturing Productivity Using Analytics 3068.2.4 How AI Can Address the Soft Side of Organizations 3078.3 End of Chapter 3088.3.1 Revision Questions 3098.3.2 Case Study: Improving Processes in Health Services Using Simulation and Digital Twin 310References 315Further Reading 3179 Performance Measurement System 3199.1 Measuring Financial Performance 3239.2 Strategic Controls 3279.3 Integrated Reporting 3289.4 Sustainability Reporting 3299.5 Integrating Management Science, Analytics, and AI for Strategic Management Practice 3319.5.1 Causal Models to Design Performance Management Systems 3319.5.2 Implementing the Performance Management System: Analyzing, Reviewing, and Reporting Performance Data – the Role of Analytics 3439.5.3 Automating Performance Management Systems Using AI 3479.6 End of Chapter 3479.6.1 Revision Questions 3489.6.2 Case Study: The Impact of Performance Measurement Systems Adoption in Business Performance – the Shipping Industry Case 349References 354Further Reading 35610 Start- ups 35910.1 The Components of a Business Plan for a Start- up 36210.1.1 Management 36210.1.1.1 Entrepreneur 36210.1.1.2 Team 36310.1.1.3 Risk Management 36310.1.1.4 Growth Strategy and Business Idea as a Competitive Advantage of the Business 36410.1.2 Market 36610.1.3 Product/Service and Business Processes 36810.1.4 Organization Design and Resources 37010.2 Financial Management 37310.2.1 Critical Assumptions and Scenarios/Cases for Cash Flow Calculations 37310.2.2 Breakeven Analysis 37410.2.3 Projected Profit and Loss (Income) Statement 37610.2.4 Key Performance Indicators 37910.2.5 Sources and Amount of Funding 38010.3 Sustainable Entrepreneurship 38210.4 AI- based Start- ups 38410.5 Integrating Management Science, Analytics, and AI for Strategic Management Practice 38610.5.1 Monte Carlo Simulation 38610.5.2 Using AI to Create a Business Plan 39110.6 End of Chapter 39410.6.1 Revision Questions 39510.6.2 Case Study: Designing the Next Boutique Winery 396References 400Further Reading 40211 Maturity 40511.1 Strategies for Mature Organizations 40811.1.1 Concentrated Growth, and Market and Product Development 40811.1.2 Integration 41411.1.3 Diversification 41611.1.4 Associations With Other Companies: Joint Venture, Strategic Alliances, and Consortia 42111.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 42411.2.1 Linear Optimization 42611.2.2 Extensions in Linear Programming 42811.2.2.1 Integer Programming 42811.2.2.2 Nonlinear Programming 42911.2.2.3 Programming Under Uncertainty 42911.2.3 Making the Integration of Organizations Reality Through Internet of Things and Analytics 43011.2.4 Linear Programming Using AI 43111.2.5 Digitalization, AI, and New Product Development 43111.3 End of Chapter 43311.3.1 Revision Questions 43411.3.2 Case Study: Choosing the Right Set of Capabilities— Development Projects to Achieve Multiple Organization Goals 435References 443Further Reading 44512 Regeneration 44712.1 Strategies for Regenerating Organizations 45012.1.1 Innovation 45012.1.2 Turnaround 45512.1.3 Ambidextrous Strategies 46012.1.4 Toward a Fully AI- enabled Organization 46212.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 46712.2.1 New Product Development: The Use of Text Analytics 46712.2.2 Implementing Turnaround Strategies Using Data Envelopment Analysis: Identifying Operational Units for Either Improving or Pruning 47012.2.3 Sourcing Change Through AI 47412.3 End of Chapter 47412.3.1 Revision Questions 47512.3.2 Case Study: Managing Strategic Change Successfully: the Role of Benefits Realization Management 47612.3.3 Case Study: A Success Story of Transformation Using AI 480References 483Further Reading 486Index 489

MARTIN KUNC received his PhD from London Business School in Decision Science. He has built a distinguished career in business education and strategic consultancy. Currently, he serves as professor of Management Science at Southampton Business School, University of Southampton and holds visiting professorships at several other leading institutions. He is Editor-in-Chief of the Journal of the Operational Research Society and serves as an associate editor for several other academic journals. He is a member of the Operational Research Society and Arthur Andersen Alumni. Throughout his career, he has led consultancy projects addressing strategic challenges across a wide range of industries, contributing valuable insights and solutions to complex business problems.

• Preface to Second Edition xiiiAcknowledgments xvAbout the Companion Website xvii1 Introduction to Strategic Analytics 11.1 What Is Analytics? 31.2 What Is Management Science? 101.3 What Is Information Technology: New Challenges? 201.4 What Is AI and How Can It Enhance Business Analytics? 231.4.1 Integration of GenAI with BA 261.4.2 Implications of AI Adoption in Business Decision- making Processes 291.5 What Is Strategic Management? 311.5.1 What Are the Characteristics of Strategic Problems? 331.5.2 Different Approaches to Strategic Management 361.6 Strategy Analytics: Integrating Management Science and AI with Strategic Management 40References 442 Dynamic Managerial Capabilities for a Complex World with AI 492.1 Dynamic Managerial Capabilities 502.1.1 Task Dimension 532.1.2 Cognitive Dimension 542.1.3 Behavior Dimension 552.1.4 AI Dimension 572.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 612.2.1 Managers as Modelers 622.2.2 Behavior with and Beyond Models 652.2.3 Modeling Systems 662.2.4 Big Data Analytics Capabilities 692.2.5 AI Capabilities 702.3 End of Chapter 732.3.1 Revision Questions 742.3.2 Case Study: The Future of Strategizing with AI 74References 77Further Reading 823 External Environment: Political, Economic, Societal, Technological, and Environmental Factors 853.1 The PESTE Analysis 873.1.1 Limitations of PESTE Analysis 883.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 923.2.1 Achieving Consistency in PESTE Analysis Using the Analytic Hierarchy Process 923.2.2 Understanding the Evolution of PESTE Factors Using Visualization Analytics 1053.2.3 Scanning PESTE Factors Using AI 1063.2.4 Developing Scenarios Supported With AI 1073.2.5 Developing Scenarios Supported With System Dynamics 1083.3 End of Chapter 1093.3.1 Revision Questions 1103.3.2 Case Study: Westmill Co- op and the Rise of Renewable Energy 111References 113Further Reading 1154 Industry Dynamics 1174.1 Defining the Industry 1184.2 Porter’s Five Forces and Industry Dynamics 1194.2.1 Bargaining Power of Suppliers 1204.2.2 Bargaining Power of Buyers 1214.2.3 Substitutes 1224.2.4 Threat of New Entrants 1224.2.5 Intensity of Rivalry 1234.2.6 Strategic Issues Derived from Five Forces Analysis 1254.3 Integrating Management Science, Analytics, and AI for Strategic Management Practice 1304.3.1 Revenue Management 1304.3.2 Evaluating Competitors’ Performance in the Market Using Text Mining 1334.3.3 Managing Five Forces Through AI- enhanced Methods 1394.4 End of Chapter 1414.4.1 Revision Questions 1414.4.2 Case Study: Strategic Evaluation of Entering in a New Market as a Low- cost Airline Using System Dynamics Modeling 1424.4.2.1 Describing the Key Strategic Aspects of a Business Using a System Dynamics Model 1424.4.2.2 The easyJet Case 143References 148Further Reading 1505 Industry Evolution 1535.1 Dynamic Behavioral Model of Industry Evolution 1575.1.1 Industries as Feedback Systems 1585.1.2 A Behavioral Model of Organizations 1595.1.3 Dynamic Behavioral Model of Industry Evolution 1615.1.4 Types of Dynamic Behavior and Strategic Implications on the Evolution of Industries 1635.1.5 Industry Evolution: A Regional Socioeconomic Perspective 1665.1.6 Industries Evolution: A Power Game 1685.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 1735.2.1 Exploring Industry Evolution Using System Dynamics 1745.2.1.1 Market Development 1745.2.2 Understanding How the Levels of Integration/Interaction Between Companies Affect the Evolution of Companies Using NKC Models 1815.2.2.1 Insights from the Model 1835.2.3 Uncovering the Evolution of Technology in an Industry Using Text Mining Methods 1855.2.4 Mapping Industry Evolution Using AI 1865.3 End of Chapter 1875.3.1 Revision Questions 1885.3.2 Case Study: How Smartphones and AI Have Shaped the Camera Industry 189References 192Further Reading 1946 Competitive Advantage: Static Analysis 1956.1 The Direction of a Company: Vision and Mission 1966.2 Defining Value and Market Segmentation 1966.3 Mapping the Activities to Deliver Value 2006.3.1 Value Chain 2006.3.2 Activity System Map 2026.3.3 Business Model Canvas 2036.4 Type of Business Strategies 2056.4.1 Cost Advantage 2056.4.2 Differentiation Advantage 2066.4.2.1 The Management Response 2096.4.2.2 The Market Response 2106.4.3 Blue Ocean Strategy 2116.4.4 Sustainability as a Strategy 2126.4.5 AI as Strategy 2136.5 Integrating Management Science, Analytics, and AI for Strategic Management Practice 2136.5.1 Uncovering Market Segments Using Analytics Tools: Market Basket Transactions Analysis 2146.5.2 Uncovering Market Segments Using Analytics Tools: Clustering 2196.5.3 Defining Market Positioning Using AI 2206.6 End of Chapter 2206.6.1 Revision Questions 2236.6.2 Case Study: Revisiting Porter’s Generic Strategies Using System Dynamics 2246.6.2.1 The Model 2266.6.2.2 Expanding the Model to Consider Sustainability 231References 233Further Reading 2357 Dynamic Resource Management 2377.1 Resources and Capabilities 2387.2 Resource Management 2407.2.1 Resource Conceptualization 2417.2.2 Resource Development 2467.2.3 Business Performance 2487.3 Sustainable Resource Management 2497.3.1 Sustainability and Stakeholder Management 2507.4 Integrating Management Science, Analytics, and AI for Strategic Management Practice 2527.4.1 Boundary Definition: Using Systems Thinking to Facilitate Sustainable Systems 2537.4.2 Resource Conceptualization Using Resource Mapping (as a Problem Structuring Method) 2567.4.3 Resource Development Using Resource Mapping, System Dynamics, and Scenarios 2597.4.4 Resource Development Under Uncertainty Using Decision Trees 2637.4.5 Developing Decision Trees Using Big Data and AI 2697.4.6 Inferring Business Performance from Management Science Methods 2727.4.7 Using AI to Predict and Improve Business Performance 2727.5 End of Chapter 2737.5.1 Revision Questions 2757.5.2 Case Study: Majestic Wines 275References 278Further Reading 2818 Organizational Design 2838.1 Organizational Components 2848.1.1 Structure 2848.1.2 Processes 2878.1.3 The Soft Side of Organizations: Culture and Values 2888.1.4 Digital Transformation 2948.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 2968.2.1 Network Analysis for Organizational Structure Design 2968.2.2 Business Process Modeling 3018.2.3 Improving Manufacturing Productivity Using Analytics 3068.2.4 How AI Can Address the Soft Side of Organizations 3078.3 End of Chapter 3088.3.1 Revision Questions 3098.3.2 Case Study: Improving Processes in Health Services Using Simulation and Digital Twin 310References 315Further Reading 3179 Performance Measurement System 3199.1 Measuring Financial Performance 3239.2 Strategic Controls 3279.3 Integrated Reporting 3289.4 Sustainability Reporting 3299.5 Integrating Management Science, Analytics, and AI for Strategic Management Practice 3319.5.1 Causal Models to Design Performance Management Systems 3319.5.2 Implementing the Performance Management System: Analyzing, Reviewing, and Reporting Performance Data – the Role of Analytics 3439.5.3 Automating Performance Management Systems Using AI 3479.6 End of Chapter 3479.6.1 Revision Questions 3489.6.2 Case Study: The Impact of Performance Measurement Systems Adoption in Business Performance – the Shipping Industry Case 349References 354Further Reading 35610 Start- ups 35910.1 The Components of a Business Plan for a Start- up 36210.1.1 Management 36210.1.1.1 Entrepreneur 36210.1.1.2 Team 36310.1.1.3 Risk Management 36310.1.1.4 Growth Strategy and Business Idea as a Competitive Advantage of the Business 36410.1.2 Market 36610.1.3 Product/Service and Business Processes 36810.1.4 Organization Design and Resources 37010.2 Financial Management 37310.2.1 Critical Assumptions and Scenarios/Cases for Cash Flow Calculations 37310.2.2 Breakeven Analysis 37410.2.3 Projected Profit and Loss (Income) Statement 37610.2.4 Key Performance Indicators 37910.2.5 Sources and Amount of Funding 38010.3 Sustainable Entrepreneurship 38210.4 AI- based Start- ups 38410.5 Integrating Management Science, Analytics, and AI for Strategic Management Practice 38610.5.1 Monte Carlo Simulation 38610.5.2 Using AI to Create a Business Plan 39110.6 End of Chapter 39410.6.1 Revision Questions 39510.6.2 Case Study: Designing the Next Boutique Winery 396References 400Further Reading 40211 Maturity 40511.1 Strategies for Mature Organizations 40811.1.1 Concentrated Growth, and Market and Product Development 40811.1.2 Integration 41411.1.3 Diversification 41611.1.4 Associations With Other Companies: Joint Venture, Strategic Alliances, and Consortia 42111.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 42411.2.1 Linear Optimization 42611.2.2 Extensions in Linear Programming 42811.2.2.1 Integer Programming 42811.2.2.2 Nonlinear Programming 42911.2.2.3 Programming Under Uncertainty 42911.2.3 Making the Integration of Organizations Reality Through Internet of Things and Analytics 43011.2.4 Linear Programming Using AI 43111.2.5 Digitalization, AI, and New Product Development 43111.3 End of Chapter 43311.3.1 Revision Questions 43411.3.2 Case Study: Choosing the Right Set of Capabilities— Development Projects to Achieve Multiple Organization Goals 435References 443Further Reading 44512 Regeneration 44712.1 Strategies for Regenerating Organizations 45012.1.1 Innovation 45012.1.2 Turnaround 45512.1.3 Ambidextrous Strategies 46012.1.4 Toward a Fully AI- enabled Organization 46212.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 46712.2.1 New Product Development: The Use of Text Analytics 46712.2.2 Implementing Turnaround Strategies Using Data Envelopment Analysis: Identifying Operational Units for Either Improving or Pruning 47012.2.3 Sourcing Change Through AI 47412.3 End of Chapter 47412.3.1 Revision Questions 47512.3.2 Case Study: Managing Strategic Change Successfully: the Role of Benefits Realization Management 47612.3.3 Case Study: A Success Story of Transformation Using AI 480References 483Further Reading 486Index 489

MARTIN KUNC received his PhD from London Business School in Decision Science. He has built a distinguished career in business education and strategic consultancy. Currently, he serves as professor of Management Science at Southampton Business School, University of Southampton and holds visiting professorships at several other leading institutions. He is Editor-in-Chief of the Journal of the Operational Research Society and serves as an associate editor for several other academic journals. He is a member of the Operational Research Society and Arthur Andersen Alumni. Throughout his career, he has led consultancy projects addressing strategic challenges across a wide range of industries, contributing valuable insights and solutions to complex business problems.

• Preface to Second Edition xiiiAcknowledgments xvAbout the Companion Website xvii1 Introduction to Strategic Analytics 11.1 What Is Analytics? 31.2 What Is Management Science? 101.3 What Is Information Technology: New Challenges? 201.4 What Is AI and How Can It Enhance Business Analytics? 231.4.1 Integration of GenAI with BA 261.4.2 Implications of AI Adoption in Business Decision- making Processes 291.5 What Is Strategic Management? 311.5.1 What Are the Characteristics of Strategic Problems? 331.5.2 Different Approaches to Strategic Management 361.6 Strategy Analytics: Integrating Management Science and AI with Strategic Management 40References 442 Dynamic Managerial Capabilities for a Complex World with AI 492.1 Dynamic Managerial Capabilities 502.1.1 Task Dimension 532.1.2 Cognitive Dimension 542.1.3 Behavior Dimension 552.1.4 AI Dimension 572.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 612.2.1 Managers as Modelers 622.2.2 Behavior with and Beyond Models 652.2.3 Modeling Systems 662.2.4 Big Data Analytics Capabilities 692.2.5 AI Capabilities 702.3 End of Chapter 732.3.1 Revision Questions 742.3.2 Case Study: The Future of Strategizing with AI 74References 77Further Reading 823 External Environment: Political, Economic, Societal, Technological, and Environmental Factors 853.1 The PESTE Analysis 873.1.1 Limitations of PESTE Analysis 883.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 923.2.1 Achieving Consistency in PESTE Analysis Using the Analytic Hierarchy Process 923.2.2 Understanding the Evolution of PESTE Factors Using Visualization Analytics 1053.2.3 Scanning PESTE Factors Using AI 1063.2.4 Developing Scenarios Supported With AI 1073.2.5 Developing Scenarios Supported With System Dynamics 1083.3 End of Chapter 1093.3.1 Revision Questions 1103.3.2 Case Study: Westmill Co- op and the Rise of Renewable Energy 111References 113Further Reading 1154 Industry Dynamics 1174.1 Defining the Industry 1184.2 Porter’s Five Forces and Industry Dynamics 1194.2.1 Bargaining Power of Suppliers 1204.2.2 Bargaining Power of Buyers 1214.2.3 Substitutes 1224.2.4 Threat of New Entrants 1224.2.5 Intensity of Rivalry 1234.2.6 Strategic Issues Derived from Five Forces Analysis 1254.3 Integrating Management Science, Analytics, and AI for Strategic Management Practice 1304.3.1 Revenue Management 1304.3.2 Evaluating Competitors’ Performance in the Market Using Text Mining 1334.3.3 Managing Five Forces Through AI- enhanced Methods 1394.4 End of Chapter 1414.4.1 Revision Questions 1414.4.2 Case Study: Strategic Evaluation of Entering in a New Market as a Low- cost Airline Using System Dynamics Modeling 1424.4.2.1 Describing the Key Strategic Aspects of a Business Using a System Dynamics Model 1424.4.2.2 The easyJet Case 143References 148Further Reading 1505 Industry Evolution 1535.1 Dynamic Behavioral Model of Industry Evolution 1575.1.1 Industries as Feedback Systems 1585.1.2 A Behavioral Model of Organizations 1595.1.3 Dynamic Behavioral Model of Industry Evolution 1615.1.4 Types of Dynamic Behavior and Strategic Implications on the Evolution of Industries 1635.1.5 Industry Evolution: A Regional Socioeconomic Perspective 1665.1.6 Industries Evolution: A Power Game 1685.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 1735.2.1 Exploring Industry Evolution Using System Dynamics 1745.2.1.1 Market Development 1745.2.2 Understanding How the Levels of Integration/Interaction Between Companies Affect the Evolution of Companies Using NKC Models 1815.2.2.1 Insights from the Model 1835.2.3 Uncovering the Evolution of Technology in an Industry Using Text Mining Methods 1855.2.4 Mapping Industry Evolution Using AI 1865.3 End of Chapter 1875.3.1 Revision Questions 1885.3.2 Case Study: How Smartphones and AI Have Shaped the Camera Industry 189References 192Further Reading 1946 Competitive Advantage: Static Analysis 1956.1 The Direction of a Company: Vision and Mission 1966.2 Defining Value and Market Segmentation 1966.3 Mapping the Activities to Deliver Value 2006.3.1 Value Chain 2006.3.2 Activity System Map 2026.3.3 Business Model Canvas 2036.4 Type of Business Strategies 2056.4.1 Cost Advantage 2056.4.2 Differentiation Advantage 2066.4.2.1 The Management Response 2096.4.2.2 The Market Response 2106.4.3 Blue Ocean Strategy 2116.4.4 Sustainability as a Strategy 2126.4.5 AI as Strategy 2136.5 Integrating Management Science, Analytics, and AI for Strategic Management Practice 2136.5.1 Uncovering Market Segments Using Analytics Tools: Market Basket Transactions Analysis 2146.5.2 Uncovering Market Segments Using Analytics Tools: Clustering 2196.5.3 Defining Market Positioning Using AI 2206.6 End of Chapter 2206.6.1 Revision Questions 2236.6.2 Case Study: Revisiting Porter’s Generic Strategies Using System Dynamics 2246.6.2.1 The Model 2266.6.2.2 Expanding the Model to Consider Sustainability 231References 233Further Reading 2357 Dynamic Resource Management 2377.1 Resources and Capabilities 2387.2 Resource Management 2407.2.1 Resource Conceptualization 2417.2.2 Resource Development 2467.2.3 Business Performance 2487.3 Sustainable Resource Management 2497.3.1 Sustainability and Stakeholder Management 2507.4 Integrating Management Science, Analytics, and AI for Strategic Management Practice 2527.4.1 Boundary Definition: Using Systems Thinking to Facilitate Sustainable Systems 2537.4.2 Resource Conceptualization Using Resource Mapping (as a Problem Structuring Method) 2567.4.3 Resource Development Using Resource Mapping, System Dynamics, and Scenarios 2597.4.4 Resource Development Under Uncertainty Using Decision Trees 2637.4.5 Developing Decision Trees Using Big Data and AI 2697.4.6 Inferring Business Performance from Management Science Methods 2727.4.7 Using AI to Predict and Improve Business Performance 2727.5 End of Chapter 2737.5.1 Revision Questions 2757.5.2 Case Study: Majestic Wines 275References 278Further Reading 2818 Organizational Design 2838.1 Organizational Components 2848.1.1 Structure 2848.1.2 Processes 2878.1.3 The Soft Side of Organizations: Culture and Values 2888.1.4 Digital Transformation 2948.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 2968.2.1 Network Analysis for Organizational Structure Design 2968.2.2 Business Process Modeling 3018.2.3 Improving Manufacturing Productivity Using Analytics 3068.2.4 How AI Can Address the Soft Side of Organizations 3078.3 End of Chapter 3088.3.1 Revision Questions 3098.3.2 Case Study: Improving Processes in Health Services Using Simulation and Digital Twin 310References 315Further Reading 3179 Performance Measurement System 3199.1 Measuring Financial Performance 3239.2 Strategic Controls 3279.3 Integrated Reporting 3289.4 Sustainability Reporting 3299.5 Integrating Management Science, Analytics, and AI for Strategic Management Practice 3319.5.1 Causal Models to Design Performance Management Systems 3319.5.2 Implementing the Performance Management System: Analyzing, Reviewing, and Reporting Performance Data – the Role of Analytics 3439.5.3 Automating Performance Management Systems Using AI 3479.6 End of Chapter 3479.6.1 Revision Questions 3489.6.2 Case Study: The Impact of Performance Measurement Systems Adoption in Business Performance – the Shipping Industry Case 349References 354Further Reading 35610 Start- ups 35910.1 The Components of a Business Plan for a Start- up 36210.1.1 Management 36210.1.1.1 Entrepreneur 36210.1.1.2 Team 36310.1.1.3 Risk Management 36310.1.1.4 Growth Strategy and Business Idea as a Competitive Advantage of the Business 36410.1.2 Market 36610.1.3 Product/Service and Business Processes 36810.1.4 Organization Design and Resources 37010.2 Financial Management 37310.2.1 Critical Assumptions and Scenarios/Cases for Cash Flow Calculations 37310.2.2 Breakeven Analysis 37410.2.3 Projected Profit and Loss (Income) Statement 37610.2.4 Key Performance Indicators 37910.2.5 Sources and Amount of Funding 38010.3 Sustainable Entrepreneurship 38210.4 AI- based Start- ups 38410.5 Integrating Management Science, Analytics, and AI for Strategic Management Practice 38610.5.1 Monte Carlo Simulation 38610.5.2 Using AI to Create a Business Plan 39110.6 End of Chapter 39410.6.1 Revision Questions 39510.6.2 Case Study: Designing the Next Boutique Winery 396References 400Further Reading 40211 Maturity 40511.1 Strategies for Mature Organizations 40811.1.1 Concentrated Growth, and Market and Product Development 40811.1.2 Integration 41411.1.3 Diversification 41611.1.4 Associations With Other Companies: Joint Venture, Strategic Alliances, and Consortia 42111.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 42411.2.1 Linear Optimization 42611.2.2 Extensions in Linear Programming 42811.2.2.1 Integer Programming 42811.2.2.2 Nonlinear Programming 42911.2.2.3 Programming Under Uncertainty 42911.2.3 Making the Integration of Organizations Reality Through Internet of Things and Analytics 43011.2.4 Linear Programming Using AI 43111.2.5 Digitalization, AI, and New Product Development 43111.3 End of Chapter 43311.3.1 Revision Questions 43411.3.2 Case Study: Choosing the Right Set of Capabilities— Development Projects to Achieve Multiple Organization Goals 435References 443Further Reading 44512 Regeneration 44712.1 Strategies for Regenerating Organizations 45012.1.1 Innovation 45012.1.2 Turnaround 45512.1.3 Ambidextrous Strategies 46012.1.4 Toward a Fully AI- enabled Organization 46212.2 Integrating Management Science, Analytics, and AI for Strategic Management Practice 46712.2.1 New Product Development: The Use of Text Analytics 46712.2.2 Implementing Turnaround Strategies Using Data Envelopment Analysis: Identifying Operational Units for Either Improving or Pruning 47012.2.3 Sourcing Change Through AI 47412.3 End of Chapter 47412.3.1 Revision Questions 47512.3.2 Case Study: Managing Strategic Change Successfully: the Role of Benefits Realization Management 47612.3.3 Case Study: A Success Story of Transformation Using AI 480References 483Further Reading 486Index 489