Cullen Bass
May 16, 2016
Futuring and Innovation
Colorado Technical University
Unit 3- IP1
Instructor-Dr Imad AlSaeed
• How does scenario-type planning support planning and innovation for the change?
There are two main reasons for failure with strategies and plans.
External reasons:
1) Do not understand the environment- whereas many companies do not invest properly. Does not have a clue of the customer needs the competitor, new customers or new technological trends. JC Penny ex-CEO Ron Johnson learn the hard way when is “Everyday Low Prices “approach did not word or resonate with consumers. As a result, he was let go. Then JC Penny Found a new CEO. Any ideas that are built upon a false conception of the market is subject to failure
2) Do not understand the changing of the environment - Some company fails to listen to the warning signs such as the 2008 financial crisis that took several companies by surprise. Such as the unforeseen events that happen frequently such as the Arab Spring and Eurozone Crisis as well as industry-specific changes, such as new technologies which appeared on the scene with rapid changes that happen with material cost. These changes can have a tremendous effect on a company.
3) Competitive Actions- There is a saying from the military and is has to do with why plans have to evolve. And the reason is that the enemy also has a vote. That saying is also with business. Let look at CNN that was a preeminent source for continuous reporting of news daily. But there was time back in the day when CNN failed to respond to a challenge brought by Fox News. Not being prepared from competitors cannot be good for business with a strategic plan.
Internal Reasons:
1). How many companies has put objective and target sin place but did budget the money, time or people to accomplish the projects?
2). Overly complex plans/ continual changing - One is to protect the markets which the company is the strongest. And attack the market that is growing the fastest.
3) People don’t buy into the strategy or know it- If you do not want support from management on your ideas or strategy the best way is not to include them.
4). Friction – what make easy things hard with business is a lack of communication, politics, stress, and confusion.
How to use scenario-type planning?
1). Is to understand the environment by investing time and money into research and to analysis customer needs competitive options and political, and technological trends.
2) To deal with unforeseen changes with the environment through scenario planning. That will evolve having different options that are based on how trends play out with the future world and test the strategy in those world scenario.
3) Have to be very disciplined with your planning by building a work plan and stick to that plan. Be focus and keep the plan as simple as possible
4). Develop a strategy strategically whereas building the plan is half the battle. You also have to execute the plan.
5) Minimize the friction by having a positive culture and strong communication.
• What forces are involved, and what impacts do they make?
The main forces that I will like to consider are technology and culture with plans an important role as stated throughout my paper.
- How will you use scenario planning for future innovation efforts?
It will be critical to have a long- term goal in mind for planning, budgeting and with forecasting. So that the short term goals do not overpower the long term goals
- Does the scenario plan account for the social impact of change?
In most case it does. There are three essential components for change
1) Compelling influences
2) Relative certainties or events
3) Key uncertainties of elements
Reference
Fastcompany.com,2016
Retrieved from http://www.fastcompany.com/3025681/how-to-avoid-a-strategy-fail
Sustainablecities,2016
Retrieved from https://sustainablecities.usc.edu/files/2015/01/Chapter-11.-Scenario-Planning-12-19-p-c.pdf
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