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Scanning the periphery
George S Day1, Paul J H Schoemaker
1Mark Center for Technological Innovation, University of Pennsylvania's Wharton School, Philadelphia, PA, USA. dayg@wharton.upenn.edu
Harvard Business Review
|November 23, 2005
Summary
Companies can improve strategic foresight by systematically scanning the periphery for weak signals. A question-based framework helps identify and interpret these signals for better business adaptation and competitive advantage.
Area of Science:
- Business Strategy
- Organizational Behavior
- Strategic Management
Background:
- Organizations face unpredictable environmental changes like new rivals and technologies.
- These changes often originate as weak signals at the periphery of organizational vision.
- Current methods for scanning the periphery and interpreting weak signals are often unsystematic.
Purpose of the Study:
- To provide a systematic, question-based framework for companies to scan the periphery more effectively.
- To help organizations identify and interpret weak signals for improved strategic foresight.
- To enhance a company's ability to anticipate and capitalize on future changes.
Main Methods:
- Development of a question-based framework for peripheral scanning.
- Categorization of questions into learning from the past, evaluating the present, and envisioning the future.
- Inclusion of a self-test for assessing peripheral vision capabilities.
Main Results:
- The framework offers a structured approach to identifying weak signals.
- Questions guide scanning efforts towards relevant peripheral zones.
- The method aids in interpreting signals and allocating scanning resources efficiently.
Conclusions:
- Systematic peripheral scanning is crucial for anticipating business horizon changes.
- The question-based framework enhances a company's ability to detect and act on weak signals.
- Companies can improve their strategic adaptability and competitive positioning through enhanced peripheral vision.