The role of the two-order model for digital disruption in strategy formulation

Brian Stewart, Anshuman Khare, Rod Schatz

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review


The impacts of COVID-19 have both accelerated and accentuated the acceptance of digital technologies into business operations. There is a shift in their locus of adoption from efficiency of improving how things are done, to effectiveness of what things are done, thereby increasing value to stakeholders. The degree of penetration varies by industry, in particular being dependent on the level of digital maturity. Business leaders, therefore, need to move the focus from the macro or national level to the meso level and look at industries and their response to the pandemic, to view how they have responded using digital technology to either withstand the impacts temporarily or to shift their operating models more fundamentally to a technologically enabled one. To address this issue this paper expands and develops on how the Two-Order Model can be helpful, using examples from major industrial sectors, in formulating a business model that leverages digital technologies to increase corporate agility and resiliency to what has become a VUCA environment. We undertake our analysis at the industry level and highlight activities we believe are representative of the future.

Original languageEnglish
Title of host publicationSustainable International Business Models in a Digitally Transforming World
Number of pages18
ISBN (Electronic)9781000546729
Publication statusPublished - 1 Jan. 2022


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