Other Areas Where Game Theory Applies
The Open Options Process has successfully been applied to a very broad range of issues, and is effective for both short and long range decision making. It is very effective whenever you need to make important decisions, or wish to test the validity of existing strategies, and recognize that critical uncertainties relate to questions about the actions and reactions of other stakeholders. If you recognize that other players can proactively or reactively take actions that will affect your success, then a game theory analysis is most likely to be relevant.
The Open Options Process is particularly effective when applied to an important issue at a point where organisational momentum has gathered. Organisational momentum is characterised by a broad awareness of the importance of the issue, the existence of a group of diverse individuals with knowledge of the different aspects of the issue, and a willingness to devote sufficient resources to determine the best strategy to address the issue.
Every case is different
The Open Options Process is very flexible. It has been used to model situations with anywhere from three to twelve players, such as suppliers, distributors, governments and regulatory bodies, competitors, joint venture partners, new market entrants, as well as competing internal interest groups. It can sort through hundreds of millions of outcomes while taking into account situational constraints such as mutually exclusive actions, legal obligations, and first-mover advantages. It can also help clients tackle challenges associated with multiplayer complexity, when the different players are interacting under uncertainties that relate to macro-economic trends, political changes, technological developments, or other environmental uncertainties.
Below is a selected list of some of our success stories, helping our clients manage their tough strategic issues. Please contact us to learn more about our process and review a relevant case study.
Dealing with Disruptive Technology – “Leading from Behind” Show more
This is a very unusual case study because Open Options can reveal the identity of our client - IBM - who has given Open Options permission to reveal details of the work that we did with them in relation to their strategy on dealing with the emergence of Linux several years ago. At the time, IBM saw Linux as a technology in which they had to have a strong presence. IBM faced lots of competition, a rapidly evolving technology market, a significantly different culture as compared with IBM’s traditional businesses, competing versions of similar technology, and uncertainty as to whether Linux would actually ever be widely adopted. Open Options helped IBM recognize that their path to success lay in strategic actions that were not in line with IBM’s typical way of acting, and the result was a successful outcome.
Dramatic Industry Changes – “Rough Water Ahead” Show more
An industry leader was concerned about possible dramatic changes in the competitive landscape in the next 5 years. A large overseas competitor was suspected of contemplating entering the North American market with a low cost offering. While traditional competitors were happy with the status quo, non-traditional competitors were looking to aggressively introduce new technologies which would reduce the availability of core resources. To exacerbate the situation, large customers were very interested in reducing their need for the client’s traditional services.
Managing Feedstock Challenges – “Live to Fight Another Day” Show more
A chemical company was facing challenges due to fluctuations in feedstock and finished product pricing that threatened the viability of a significant product line. However, strategic levers in the hands of the Client offered a way out that allowed the facility to stay in business until market conditions improved.
Winning a Nomination – “Be the Monarch” Show more
A potential candidate for an elected position needed to develop sufficient support among a variety of interest groups in order to secure his/her party nomination. Open Options helped the candidate find the right positions to take on critical issues and develop an effective communications plan, which allowed the candidate to secure the nomination and eventually win the election.