Why you should be scanning
A business operates in a dynamic environment that is constantly changing. Change opens up opportunities, as well as risks. Understanding change and what it might mean for your business is a vital part of it operating strategically, which is where scanning comes in.
Horizon scanning is an ongoing practice useful for making sense of change.
We do it all the time and monthly we produce a business intelligence report, The Briefing, which we offer to our clients. [BTW - get in touch if you are interested in subscribing too.]
How we do scanning
There are many different approaches to scanning, but experience has fine-tuned our approach towards a structure which works well, particularly for business clients that are intent on improving their approach to innovation.
Using a framework is critical for effective scanning, because it helps you direct your search and classify the changes that you are picking up for later referencing and deeper levels of analysis. We use the VERGE framework that was initially developed by Richard Lum and Michele Bowman in 2004.
We scan the horizon for significant changes in six dimensions (Define, Relate, Connect, Create, Consume, Destroy) that are regarded as having the potential to impact all organizations.
We consider scanning hits that are relevant on a global, regional, country and category level primarily relevant in the medium-term time horizon (3-5 years).
The aim of this content is to alert innovators and decision-makers of changes in the environment that may affect their organisations in due course and couple that with opinionated insights as to how to further consider these developments
from a strategy point-of-view.
Ultimately we are asking three key questions of the information
gathered:
- Does this confirm something that we already know?
- Does this change something we already know?
- Is this something new to us?
We then further interrogate the information to define what uncertainties this presents the decision-maker, what the basic future scenarios are that are related to the uncertainties, the risks and opportunities and a series of key strategic questions that should be considered by the organisation.
Horizon scanning - much like strategy - is an ongoing practice that informs an organisation's approach to innovation. In these times of uncertainty it's a vital part of managing a business strategically.