Chapter 2 Flashcards
Describe PESTEL
PESTEL is used to analyze external factors that can affect the project
Politics
Economics
Social-Demographic,geographic,cultural
Technology
Environment
Legal - Labour, tax and consumer regulations
What is key drivers of change
Factors with high impact on industries and that can create a change in the industry in the future
Forecasting for the future has three fundamental approaches…..
Single point forecasting
Range forecasting
Alternative futures forecasting
Describe single point forecasting
The organisation is confident about the future and only need one forecast
Describe range forecasting
The organisation is not as certain so they create a different number of outcomes, some of them are more likely to happen then others.
Describe Alternative futures forecasting
The outcome is uncertain and unclear, they either happen or not happen
Define sustainable development
Something you can do over and over again without making the world worse
During forecasting it is important to keep an eye on three different turning points….
Megatrends - Big changes that often take time and affect many parts
Inflextion points - Trend shifts in direction like a trend shift from bad to good
Weak signals - Unstructured information that often seems weird, it is advanced signs of future trends
How can you build a scenario and what is the purpose of a scenario
You can build a scenario when you have found the possible key drivers of change, companies should follow their scenario to see if they predicted it correct and the purpose of the scenario is to learn
It is a alternative view on how the macro environment can change in the future
What is Triple bottom line
All firms need to report this, economy, social and ecological
What is the three traps of digitalization
If the firm transport to slow in changes
If the firm don’t understand the customers value
Misunderstood business model consequences
What is radical innovation
What is incrementally innovation
Radical - is new to the world and has massive impact but is hard to accomplish
Incrementally is small improvements that has smaller impacts but normally give good returns
