Externalities: Forces & Trends
When I was in b-school, we addressed externalities as opportunities and threats.
I’ve never been a fan of the term threats. There are opportunities and risks.
Or, if you are an opportunist, like me, there are opportunities and potential missed opportunities.
No matter how you choose to look at these, it is helpful to understand the impact of each.
First, forces. Forces are like a box that define your current reality. There are market, industry, and macro-economic forces. Some typical considerations follow.
Market Forces
- Supply & Demand
- Market Issues
- Switching Costs
- Revenue Attractiveness
- Business Model Innovation
- Globalization/Deglobalization
Industry Forces
- Stakeholders & Partnerships
- Supplier & Other Value Chain Actors
- Substitutes
- New Entrants (Insurgents)
- Competition (Incumbents)
Macro-Economic Forces
- Global Market & Trade Conditions
- Regulatory Landscape
- Demographic Change
- Natural Disasters
- Economic Strength & Business Cycle
- Shifting Economic Power
- Political Forces
- Currency & Price Volatility
- Capital Markets
- Economic Infrastructure
- Currency & Price Volatility
- Commodities & Revenue Scarcity
Second, trends. Trends guide future direction. There are technology, customer, and macro trends. Some typical considerations follow.
Technology Trends
- Augmented & Artificial Intelligence
- Augmented & Virtual Reality
- Blockchain
- Internet of Things
- Automation & Robotics
- Additive Manufacturing / 3D Printing
- Cloud Computing
- Everything2Everything Connection
- Social Technologies
- Sensory & Geo-Spatial Technologies
- Data Rights & Privacy
Customer Trends
- Individualization & Customer Empowerment
- Desire for New Experiences
- Accelerated Behavioral Influences
- Evolving Market Segments
- Cultural Evolution & Mindset Change
- Refocus on Purpose
- Health & Well-Being
- Digitalization of Everything
Macro Trends
- Security & Cyber Risk
- Societal & Cultural Trends
- Sustainability
- Next Gen-Workforce
- Concentration & Distribution of Wealth
- Gender & Race Equality
- Social Stability, Mass Migration & Terrorism
- (De-)Urbanization
- Climate Change
- Knowledge-Based Society
Could any one of these trends or forces be an existential threat to your business? Sure.
But that’s a paralizing perspective.
There is opportunity everywhere. Map it, prioritize, and move forward.
Your turn.
Now go spark that revolution.