Technology and markets change continually. To keep pace, a firm must look beyond its current products and processes, notice developments that could reshape its industry, and understand whether it has the capabilities to respond. This lesson explains how external environmental scanning and internal assessment help managers plan for future technology and innovation.
All flashcards
What is environmental scanning?
Gathering and interpreting information about external developments, such as competitors, inventions, discoveries, and trends.
What should a firm assess internally?
Its tasks, processes, skills, resources, and current capabilities.
Why consider external scanning and internal assessment together?
Scanning identifies potential opportunities; assessment shows whether the firm can pursue them or needs to address capability gaps.
What are the three guiding questions for managing technology and innovation?
Where are we now? Where do we want to be? What do we need to move from here to there?
How can the three guiding questions structure planning?
Describe the current position, define a desired future, then identify the actions and capabilities needed to progress.
Quiz questions
What is environmental scanning?Answer: Gathering and interpreting information about external developments that may affect a firm.
What should environmental scanning help a firm do beyond collecting news?Answer: Recognize broader trends and opportunities to create value.
Why should a firm assess internal capabilities as well as scan its external environment?Answer: External scanning reveals potential changes, while internal assessment indicates the firm's ability to respond.
What sequence do the three guiding questions establish for innovation planning?Answer: Describe the current position, define a desired future, and identify what is needed to progress.
Based on Principles of Management by David S. Bright, Anastasia H. Cortes, Eva Hartmann, K. Praveen Parboteeah, Jon L. Pierce, Monique Reece, Amit Shah, Siri Terjesen, Joseph Weiss, Margaret A. White, Donald G. Gardner, Jason Lambert et al. (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.