back to the future: the evolution of environmental scanning
TRANSCRIPT
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Back to the Future:The Evolution of
Environmental ScanningInfoToday 2003
National Online : The Art & Science of ResearchA202 : Developments in Competitive Intelligence
Wednesday, May 7, 2003
Copyright © 2002 Margaret Metcalf Carr. All rights [email protected]
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Today’s Agenda
s Definitionss Purposes Historical Highlightss Current Strategies & Trendss Future Implications
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Definitionss Environmental Scanning: “A term
coined in the mid-1960’s by Francis Aguilar, a Harvard Business School professor, to describe the action of watching and collecting information on a company’s rivals and the overall market.”
Source: Fuld & Company, Inc. “CI Strategies & Tools: Intelligence Dictionary”. www.fuld.com/dictfiles/record26.htm
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Definitions, continued
s “Environmental scanning is one of four activities comprising external analysis.”
Source: Jsmrd zl. Morrison. “Environmental Scanning”. horizon.unc.edu/courses/papers/enviroscan.
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PurposesProvides a system to organize information flowsDetects scientific, technical, social, and political trends and events important to the institutionsProvides early warning for managers of changing external conditions
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Purpose, continuedsDefines potential threats, opportunities, changes implied by trends and events.sPromotes a future orientation in the thinking of management and staffsEnables decisionmakers to understand current and potential changes to determine organizational strategies
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“What’s past
is prologue”-- William Shakespeare, The Tempest, also carved on the
National Archives Building, Washington, DC
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Historical Highlights
s BC – Mosess 1450 – Oxford English Dictionarys 15th & 16th Centuries - House of
Fuggers 1696 - Lloyd’s Lists 19th Century – House of
Rothschild
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Historical Highlights, Cont’d
s 1912 – Schumpeter’s Theory of Economic Development
s 1966 – Allen’s “Performance of Information Channels in the Transfer of Technology”
s 1967 - Aguilar’s Scanning the Business Environment
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Historical Highlights, Cont’d
s 1979 – Montgomery &Weinburg’s “Towards Strategic Intelligence Systems”
s 1979 – Porter’s How Competitive Forces Shape Strategy
s 1980 – Porter’s Competitive Strategy
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Current “Scanning” Processes
s Porter’s Five Forcess Intelligence Cycles Linear Processs Concentric Circless Scientific Methods Hub & Spokes Visualization
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Porter’s Five Forces
Source: Porter, Michael. Competitive Strategy. New York : The Free Press, 1980, p. 4.
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Intelligence Cycle
Dissemination
Proper Collection
And Reporting
Analysis and
Production
Planning &
Direction
Information Storage and Processing
Sources: Sawka, Kenneth. “it’s the Analysis, Stupid!” Competitive Intelligence Magazine, 2(4), Oct-Dec, 1999, p. 43. Herring, Jan. , “Building a Business Intelligence System”, Journal of Business Strategy, May/June, 1988 and “Key Intelligence Topics: A Process to Identify and Define Intelligence Needs”, Competitive Intelligence Review, 10(2), 1999.
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Linear Process
Technical and
Financial
Analysis
Mix with Internal
Supporting
Documentation
InternalAnalysts
CommunicateResults
Maintain
Baseline Information
In parallel: Internal Interviews
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Concentric CirclesGovernment
Target Company
Trade Experts
Customers & Suppliers
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Scientific Method
10. Seek Feedback from Client
9. Issue Report & Deliver Presentation
8. Review & Approve
7. Prepare Draft Report
6. Prepare Findings and Select Best Recommendation
5. Analyze Appropriate Data
4. Filter & Organize Data
3. Gather Data
2. Develop Hypothesis
1. Define Question
Source: Cliff Kalb, Merck
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Pyramid
Decision Support Requests (Proactive vs. Reactive)
Competitive News (Awareness & Implications)
CI Systems –(Automation &
Archival)
Simulation/War Gaming
Incr
easi
ng V
alue
Increasing Influence
Assessment, Evaluation, and Measurement
Source: Bret Breeding
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Hub & Spoke
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Visualization
“You need to tell a story.” -- John Prescott, PhD
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Further Reading - Articless Aguilar, F. (1967). Scanning the
business environment. New York: Macmillan.
s Coates, J.F., Inc. (1985). Issues identification and management: The state of the art of methods and techniques (Research Project 2345-28). Electric Power Research Institute.
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Further Reading – cont’ds Fahey, L., King, W.R., & Narayanan,
V.K. (1981). Environmental scanning and forecasting in strategic planning: The state of the art. Long Range Planning, 14(1), 32-39.
s Morrison, J. L. “Environmental Scanning.” In M.A. Whitely, J.D. Porter, and R.H. Fenske (Eds)., A primer for new institutional researchers, p 86-99. Tallahassee, Florida, The Association for Institutional Research.
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Further Reading - Bookss The Business Intelligence System, by Benjamin
Gilad. New York, AMACOM, 1988. s Competitive Strategy: techniques for analyzing
industries and competitors, by Michael E. Porter. New York, The Free Press, 1980 (reprinted1998 )
s The New Competitor Intelligence: the complete resource for finding, analyzing, and using information about your competitors, by Leonard M. Fuld. New York, John Wiley & Sons, Inc., 1995.
s Proven Strategies in Competitive Intelligence by John E. Prescott and Stephen H. Miller Society of Competitive Intelligence Professionals. www.scip.org.
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For More Information
CyberAge BooksJune 2003/260 pp/softboundISBN 0-910965-64-1Regular price: $24.95 • Sale price: $19.95
http://books.infotoday.com/books/SsOnCompetitive.shtml