ABSTRACT

Innovation, as a process, is applied to the strategic competitive, sustainable, and regeneration advantage, by a min–max modeling of probabilities and strategic entropy in the so-called strategic cube of distinctive advantage and the Hamming–Putz algebra (space). Thus, an innovation hierarchy centered in the trifecta point (three times perfect) of the competitive, sustainable, and regeneration advantage is obtained. It is presented as the referential of zero entropy (maximum complexity) followed by the “animal spirits” strategy (specific to red ocean strategy) and two groups of strategic approach with successively increasing the entropy (less and less utility) of business; each group consists of three forms of distinctive advantage with equal entropies. The results show, at the same time, universality in the strategic modeling by path maximization (options) between different types of distinctive advantages. Their continuous change along a Hamiltonian chain (by which each strategy is touched one time on a strategic chain) is promoted, thus supporting the paradigm change from the productivity economy toward utility economy (or wise business) with the aid of the postmodern strategic innovation.