Environmental Scanning in Ntpc

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

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Environmental Scanning in Ntpc

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