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7/31/2019 Environmental Scanning in Ntpc
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ENVIRONMENTAL SCANNING
Pradip Chanda
NTPC
Corporate Planning
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WHAT IS ENVIRONMENTAL
SCANNING?
A kind of radar to scan the organisations external
environment systematically
Acquisition and use of information about events,trends and relationship.
Signal the new, unexpected, the major and the minor.
Not only covers competitors, suppliers and customers,but also includes technology, economic condition,
political & regulatory environment and social and
demographic trend.
It includes strategy
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WHY ENVIRONMENTAL SCANNING?
Research suggests that It improves organisational performance.
Coupled with strategy, it can be effectively in the
planning process.
It increases communication and discussion about
future issues.
Coupled with information on external change, it canpromote generative organisational learning.
It manages the sustainability.
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OBJECTIVES OF ENVIRONMENTAL SCANNING
Detecting scientific, technical, economic, social and
political trends.
Define the potential threats, opportunities or changes
for alternative. Promoting a future orientation in the thinking of
management and staff
Alerting management and staff to trends that are
converging, diverging, speed up, slowing down or
interacting.
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INFORMATION-SEEKING FRAMEWORK
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MODES OF ENVIRONMENTAL SCANNING
ScanningModes
Information Need Information Use Amount ofTargeted
Effort
Number ofSources
Tactics
Undirected
Viewing
General areas ofinterest;specific need to berevealed
Serendipitousdiscovery"Sensing"
Minimal Many - Scan broadly a diversity ofsources, taking advantage ofwhat's easily accessible- "Touring"
Conditioned
Viewing
Able to recognize
topics of interest
Increase
understanding
"Sensemaking"
Low Few - Browse in pre-selected sources
on pre-specified topics of interest
- "Tracking"
Informal
Search
Able to formulatequeries
Increase knowledgewithin narrow limits"Learning"
Medium Few - Search is focused on an issue orevent, but a good-enough searchis satisfactory- "Satisficing"
Formal
Search
Able to specifytargets
Formal use ofinformation forplanning, acting
"Deciding"
High Many - Systematic gathering ofinformation on a target, followingsome method or procedure
- "Retrieving"
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MODES OF ENVIRONMENTAL SCANNING
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BEST PRACTICES IN SCANNING
Scanning as a strategic activity.
Implementing scanning as a formal system.
Partnering with IT and domain expert for designing
the scanning sys. Manage information as the core of scanning.
Balance the tension between control and creativity.
Looking at information to looking for information..
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GETTING STARTED
SWOT ANALYSIS
STRENGTH - Inherent capacity which an organization
an use to gain strategic advantage over it competitors
WEAKNESS - Inherent limitations or constraint whichcreates a strategic disadvantage
OPPORTUNITY - a favorable condition in the
organizations environment which enables it toconsolidate and strengthen its position
THREAT - an unfavorable condition in organizations
environment which creates a risk or causes damage to the
organization
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GETTING STARTED
FIRST TO DECIDE THE LEVEL OF SCANNINGWHETHER IRREGULAR, PERIODIC OR
CONTINUOUS.
RESOURCE ALLOCATION ACCORDINGLY. SEEK SIGNS OF CHANGE.
LOOK FOR POTENTIAL EVENTS ON THE
HORIZON.
LOOK FOR FORECASTS OF EXPERTS.
LOOK FOR INDIRECT EFFECTS.
WRITE ABSTRACTS.
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GETTING STARTED
SOURCES OF INFORMATION
Documentary or secondary sources
- Magazines, newspaper, journals, books, trade
&industry Assn. publication, Govt. Publication,Annual report of competitor company
Mass media
Internal sources - employees, files, MIS, documents
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GETTING STARTED
SOURCE OF INFORMATION
EXTERNAL AGENCIES - Customers, marketing
intermediaries, suppliers, trade Assn., Govt. Agencies
FORMAL STUDIES - Consultants, EducationalInstitutions, in-house
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AREA OF SCANNING
TECHNOLOGICAL
Transportation capability
Mastery over energy
Ability to alter character
of material
Mechanization of
physical activities
telecommunication
network
SOCIAL
Population, demographic
data
Spread of literacy
Income distribution
Social Values
Ethical standards
Concern for health
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AREA OF SCANNING
ECONOMIC
GDP, Growth rate
Money supply
BOP
Policies and regulations
POLITICAL
Regulatory
Legal provisions Stability of Government
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Indication where the opportunities exist
Grasp of the major sources of threats to the industry
Indication of the critical requirement for success inthe industry
SUPPLIERS- shortage, location, cost, quality
MARKETING INTERMEDIARIES - distribution
channels, transporters, advertising & marketing
research firms
- absence or presence
WRITING ABSTRACT
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MARKET TYPES - consumer markets, industrial
markets, institutional markets, international markets,
resellers markets - stable or volatile
MARKET DEMAND
Quantum - Volume / value
Behaviour - Seasonally
Structure - OEM + replacement, household
consumers, concentration of consumers
WRITING ABSTRACT
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FINANCIAL CLIMATE - Availability of funds,
Incentives, exemptions REGULATORY ENVIRONMENT - Free trade
zones, sales tax, tax rebates - central/state Govt.
WRITING ABSTRACT
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NTPC CONTEXT
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NTPC ENVIRONMENT
ORG.
Micro
environment
Macro
Environment
Internal
Environment
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INTERNAL ENVIRONMENT
Culture CreativityCompetency
Commitment Social
Internal Env
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Organisational climate survey to understand
Strength & weakness
Social & cultural stability
Adaptability to change
Nurturing creativity.
Bodh and Disha are approach by NTPC to
understand the internal environment
internal Factors
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Suppliers
MarketingIntermediaries MarketTypes MarketdemandCompetition
MICRO ENVIRONMENT
Financial
Institutions
RegulatoryProvisions
Industrial
relation
climate
Availability ofskilled
manpower
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Regulatory risk.Mitigation through policy advocacy
Regulatory strategy
Fuel risk
Alternative resources
Fuel mix strategy
Fund sourcing
Through MarketLoan
Land, water
Issues
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Technology risk.
Adoption
Indigenization
Utilization of capacity & Realization
Market study
Security mechanism.
Climate change mitigationCDM approach
Renewable.
Issues
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Where do we want to see ourselves may be 20 years
henceforth?.
Vision and mission statement and revisiting the same.
Management agenda
Dynamic Corporate plan
Alternative business opportunity.
Research and development requirement.Extensive training for capability development
Building relation with customer (CRM)
Building image in the market
Returning to the society (CSR).
Process
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OPPORTUNITY MATRIX
High Very Moderately
Attractive Attractive
Attractiveness
Moderately Least
Low Attractive Attractive
High Low
Probability of occurrence
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IMPACT MATRIX
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IMPACT MATRIXTrends Probability Impact on strategies
of occurrence S1 S2 S3 S4
T1
T2
:
Degree of quality of impact of each trend on differentstrategies using impact scale
+2 Extremely favorable Impact
+1 Moderately favorable Impact0 No Impact
+1 moderately unfavorable Impact
-2 Extremely unfavorable Impact
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THANK YOU