In the article published in this magazine in July 2024, I challenged my readers to answer the following question: what are the non-classical (i.e. economic, financial, organisational, social) mechanisms of Corporate Command & Control (CCE)¹?
Next, we’ll look at the following CCE mechanisms:
In this article, we’ll look at them in turn:
- Control by information and data.
- Control by technological dependence.
- Control by social influence networks.
1. Control by information and data.
What is it?
Control is exercised through the collection, analysis and strategic use of critical data and information. This control is based on the ability to i) quickly access ii) reserved and/or confidential information; iii) process and interpret large volumes of data; iv) make informed decisions and v) direct the operations of third parties in their favour.
b. Practical example
Google uses vast volumes of data to personalise advertisements, decisively influencing the marketing strategies of other companies and the way consumers interact with products.
c. How does it work?
Embryo: at this stage, collecting market data and analysing trends can guide the definition of strategies and (re)positioning of the controlled company.
Growth: in this phase, data on customers and competitors can help expand operations and improve products or services, bringing them into line with market demands.
Maturity: in this phase, data analysis can optimise processes, reduce costs and identify new market opportunities, while maintaining the controlled company’s competitiveness.
Turbulence: in times of crisis, accurate data can help the company react quickly to changes and make strategic decisions to mitigate risks.
Decline: in this phase, the use of data can identify areas for innovation or new market segments to revitalise the controlled company’s business.
There is a risk of unethical practices if influence is not managed transparently
d. Pros and cons
Pros:
Operational efficiency: data analysis can identify inefficiencies and optimise processes.
Identification of opportunities: data helps identify new market opportunities and emerging trends.
Cons:
Privacy risks: misuse of data can lead to privacy violations and legal sanctions.
Technological dependence: high dependence on data technologies can be a risk in the event of failures or cyber attacks².
2. Control by Technological Dependence
a. What is it?
Control is exercised through the possession of proprietary or innovative technologies that are essential to another organisation’s operations. Dependence on these technologies can condition the use, access and technological development of other companies, creating a relationship of control and influence.
b. Practical example
Apple controls a closed hardware and software ecosystem, where developers and consumers depend on its proprietary technologies such as iOS and associated devices.
c. How does it work?
Embryo: at this stage, technological dependence can help the organisation differentiate itself in the market by providing a solid technological basis for the initial development of the product
or service.
Growth: at this stage, technological dependence can accelerate expansion by providing technologies that increase efficiency and productivity, reducing costs and increasing the capacity for innovation.
Maturity: in this phase, the company can use its technological advantage to maintain a competitive position, making it difficult for new competitors who don’t have the same technological capabilities to enter.
Turbulence: in this phase, technological dependence can be a crucial asset for adaptation and resilience, allowing for rapid adjustments in operations to face new challenges.
Decline: in this phase, the organisation can use its technological dependence to explore new markets or reinvent its business model, prolonging its viability.
d. Pros and cons
Pros:
Competitive advantage: keeps the company at the forefront of innovation.
Barrier to entry: creates significant barriers to new competitors.
Cons:
Risk of obsolescence: technologies can become obsolete quickly.
Critical dependence: the company can become overly dependent on its own technologies, limiting its flexibility.
Technological dependence can be a crucial asset for adaptation and resilience
3. Control by Social Influence Network
a. What is it?
Control is exercised through the use of a network of strategic contacts, relationships with opinion leaders and key stakeholders. This control is exercised by moulding perceptions, market practices and business decisions through social influence.
b. Practical example
Anna Wintour, editor-in-chief of Vogue magazine, uses her social influence network to shape fashion trends and direct the industry, influencing designers, brands and consumers.
c. How does it work?
Embryo: at this stage, an influencer network can help attract investors, partners and key talent, increasing the credibility and viability of the new business.
Growth: at this stage, the influencer network can facilitate expansion into new markets, access to new customers and additional resources, boosting growth.
Maturity: in this phase, the influence network helps maintain market relevance, protecting the company’s position against competitors and supporting the defence of strategic interests.
Turbulence: in this phase, a well-established network of influence can provide crucial support, such as access to inside information, strategic allies and innovative solutions for dealing with crises.
Decline: in this phase, the influence network can be used to find new market opportunities, strategic partners or even potential buyers to revitalise or sell the business.
d. Pros and cons
Pros:
Access to privileged information: allows access to information and opportunities that may not be publicly available.
Increased credibility: improves the company’s credibility and reputation on the market.
Cons:
Critical dependence: the company can become overly dependent on its network of influence, making it difficult to adapt to new realities.
Ethical risk: there is a risk of unethical practices or improper manipulation if influence is not managed transparently and responsibly.
4. Conclusion
Corporate Command & Control (CCE) mechanisms are complex and varied, reflecting the diversity of strategies that organisations use to i) generate dependence on third parties, ii) and thus secure competitive advantages, iii) and protect the interests of stakeholders.
The mechanisms explored demonstrate how power can be exercised in different ways, each with its own particularities and impacts.
Control by Financing: strategic financing can allow the financier to directly influence the decisions of the controlled company, sharing risks and ensuring that resources are used effectively.
Control of the Market and/or Distribution Network: owning or managing essential distribution networks can give substantial control over the flow of products and competitive presence in the market.
Control by Infrastructure Dependence: dependence on critical infrastructures, such as production facilities or telecommunications networks, can ensure stability and operational efficiency.
Control by Information and Data: collecting and analysing critical data allows for informed decisions and a significant competitive advantage.
Control by Technological Dependence: having proprietary technologies can create barriers to entry and maintain an innovative leadership position.
Control by Social Influence Network: utilising a network of strategic contacts and relationships with opinion leaders can shape market perceptions and practices.
CCE mechanisms represent the eternal quest for power and competitive advantage, encapsulated in the new³ Olympic motto ‘Citius, Altius, Fortius – Communiter’. And each CCE mechanism offers a different way of achieving them:
. Citius (Faster): implementing innovations quickly, improving efficiency and responsiveness.
. Altius (Highest): access new technologies and information before competitors, maintaining leadership.
. Fortius (Strongest): differentiating yourself through exclusive, high-quality products or services.
. Communiter (Together): strengthening operations through networks of influence and strategic partnerships.
¹ Definition of a CCE mechanism: a set of strategies, methods and tools that a private entity or individual(s) uses to exercise power, in the forms of influence, direction, generating dependence, governance, over a market, an organisation, or part of it, to ensure and control that strategic objectives are achieved, operations are efficient and the interests of stakeholders are protected.
GOMES, João – ‘Cultura, o Cavalo de Troia da (In)Segurança Cibernética?’ published in Economia e Mercado magazine, November 2023, and in Diário Económico, 02/11/23.
³ The International Olympic Committee in 2021 added a fourth ideal: ‘Communiter’, to emphasise solidarity and unity through sport.
