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    G3 - The Industries Plagued by The Most Uncertainty

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    Norhan Ayman
    The document discusses two primary types of uncertainty that industries face - demand uncertainty and technological uncertainty. Demand uncertainty arises from unknown customer preferences, while technological uncertainty results from unknown emerging technologies. Industries facing high levels of both uncertainties require greater innovation management skills. The document provides examples of local industries and their levels of demand and technological uncertainty. It concludes that organizations should plan for multiple scenarios to confront uncertainty and clarify their strategic posture to guide decisions under conditions of uncertainty.

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    G3 - The Industries Plagued by The Most Uncertainty

    Uploaded by

    Norhan Ayman
    46 views5 pages
    The document discusses two primary types of uncertainty that industries face - demand uncertainty and technological uncertainty. Demand uncertainty arises from unknown customer preferences, while technological uncertainty results from unknown emerging technologies. Industries facing high levels of both uncertainties require greater innovation management skills. The document provides examples of local industries and their levels of demand and technological uncertainty. It concludes that organizations should plan for multiple scenarios to confront uncertainty and clarify their strategic posture to guide decisions under conditions of uncertainty.

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    G3- The Industries Plagued by the Most Uncertainty

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    The document discusses two primary types of uncertainty that industries face - demand uncertainty and technological uncertainty. Demand uncertainty arises from unknown customer preferences, while technological uncertainty results from unknown emerging technologies. Industries facing high levels of both uncertainties require greater innovation management skills. The document provides examples of local industries and their levels of demand and technological uncertainty. It concludes that organizations should plan for multiple scenarios to confront uncertainty and clarify their strategic posture to guide decisions under conditions of uncertainty.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    46 views5 pages

    G3 - The Industries Plagued by The Most Uncertainty

    Uploaded by

    Norhan Ayman
    The document discusses two primary types of uncertainty that industries face - demand uncertainty and technological uncertainty. Demand uncertainty arises from unknown customer preferences, while technological uncertainty results from unknown emerging technologies. Industries facing high levels of both uncertainties require greater innovation management skills. The document provides examples of local industries and their levels of demand and technological uncertainty. It concludes that organizations should plan for multiple scenarios to confront uncertainty and clarify their strategic posture to guide decisions under conditions of uncertainty.

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    The Industries Plagued by

    the Most Uncertainty


    Harvard Business Review
    Sept.11,2014

    Dr.Mohamed Radwan

    Group Members
    Norhan Ayman | Yara Mostafa

    BMAM522 -External Analysis & Evaluation 2020


    Uncertainty has increased over the past 50 years

    There are two primary types of uncertainty —


    demand uncertainty (will customers buy your
    product?) and technological uncertainty (can we
    make a desirable solution?) —

    New technologies and new competitors are hitting


    the market at an unprecedented rate.
    Key
    Insights Demand uncertainty arises from the unknowns
    associated with solving any problem, such as
    hidden customer preferences. The more
    unknowns there are about customer preferences,
    the greater the demand uncertainty.

    Although uncertainty is accelerating, it isn’t


    affecting all industries the same way Technological uncertainty results from
    unknowns regarding the technologies that might
    emerge or be combined to create a new
    solution.As the overall rate of invention across
    industries increases, so does technological
    uncertainty.
    Demand Uncertainty

    Upper Left Quadrant Upper Right Quadrant

    High Demand Uncertainty High Demand Uncertainty


    High Technology Uncertainty
    Low Technology Uncertainty
    Greater Innovation Management Skills Required

    Lower Left Quadrant Lower Right Quadrant

    Low Demand Uncertainty Low Demand Uncertainty

    Low Technology Uncertainty High Technology Uncertainty

    Technology Uncertainty
    Local Examples

    e-Banking Food & Beverages Payment Technology Services

    Delivery Virtual Exhibitions e-Learning


    Conclusion

    Underestimating uncertainty can lead to strategies that neither defend against the threats nor take advantage of the opportunities that higher
    levels of uncertainty may provide.

    To confront uncertainty, organizations deal with predictions and forecasts which may end up being misleading if they are not based in the appropriated analytical tools.
    Using the right approaches enables the organization to anticipate the future enabling them to designing plans for multiple scenarios.  

    When envisioning a wide range of scenarios, organizations may focus on scenario planning and technology forecasting to plan of possible outcome
    scenarios. For example, an American, good consumer company, introducing itself into the Indian market, needs to plan for multiple-scenarios
    characterized by different variables, such as customer penetration and the demand level.

    Act guided by a strategic posture, in order to clarify your intent strategy. This posture includes shaping: leading the organization's structure towards a new
    model; adapting: choosing how and where to compete within the current industry; reserving the right to play: increasing the investment to stay in the
    game without modifying the strategy.

    The bottom line is that success requires an understanding of how much uncertainty you face and the ability to manage those uncertainties in new ways.

    Harvard Business Review : Strategy Under Uncertainty

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