Strategic Foresight plays an essential role in strategic planning and decision-making. And it challenges the organization to redefine its strategies to better align with societal development. When we discuss strategic foresight, we are in the process of creating a long-term view of both observable and actionable long-term trends. Preparedness for the future is a “strong indicator for organizations to become better performers in their field, achieve higher profitability, and gain distinct growth in the market.”
Thus, it is clear that there are benefits to strategic foresight. And every organization must work to consolidate its concepts within its strategies. Moreover, one of the reasons why strategic foresight organizations perform better is that it increases an organization’s ability to understand the changing world and make better decisions. So when we combine long-term research with short-term understanding, we often achieve feats that go undetected without a long-term vision. They are the results of calculating the opinions of various stakeholders in the strategic process and incorporating sustainable and equitable values into our strategic decision-making.
Results of the strategic foresight process that can make organizations outperform in the future:
1) Indicates knowledge gaps for market research
Through analysis and research that leads to identifying the most critical knowledge gaps, additional market research for a particular topic is often one of the outcomes far from strategic foresight. It means devoting time and money to understand further what is going on with a specific topic. Therefore getting a more in-depth overview at the moment in time for an entire industry and its potential future dynamics.
2) It leads to the investment of new resources and capabilities
Strategic foresight often leads to identifying a knowledge gap or needs for new areas of work. That leads to investing human and material resources in them to obtain the capabilities necessary for success in the future.
3) Reveals current and future strategic partnerships
Everyone is talking about ecosystems these days, managing their origins, and learning about them. It is worth noting that strategic foresight can discover the type of ecosystem that the organization should be a part of. Its main strategic partners will play a crucial role in the future.
4) Create strategic experiences
One of the primary outcomes that need to achieve through strategic foresight is the creation of strategic experiments. It means testing hypotheses in entirely new areas and business models. For example, by creating new teams or units within the organization that try new ways of doing business. Or form partnerships with unexpected actors. Often this requires reshaping some of the internal capabilities and competencies to seize new opportunities more effectively. It can lead to creating a new strategic area or an addition to the existing one with the new unit.
5) Creates a new organization for strategic learning and future profits
In large organizations, strategic foresight can show which part of the industry can benefit from having a completely new organization for strategic learning and future revenues. At the same time, it is often the most effective way for large global organizations to do something other than the current business. Consequently the new organization will operate independently, with its business logic and strategy. At the same time, it does not need to adhere to the standards of the old organizational structure.
6) Determines the possibility of mergers and acquisitions
Strategic foresight reveals the positions that different companies and new start-ups will take. The possibility of merger and acquisition appears to help integrate the capabilities of the current organization to be suitable for the future. Therefore they knew that the emergence of new businesses allows them to acquire new knowledge, culture, and know-how in the market quickly. However, doing so is complex and challenging, and caring to blend corporate cultures to maximize their gains.
7) Launches a new strategic direction for the organization
Strategic foresight can create the idea of a new strategic management or a radical reorientation of an organization’s role. Also it can be the starting signal by finding a new strategic management. It often leads to the break-up of private companies. And the formation of a fundamentally different market from the previous one. It is undoubtedly the most costly and challenging potential outcome and offers tremendous potential for future value creation and profits.
Systematically working on strategic foresight requires new skills and working methods at all levels of the organization. Whatever the terminology, an organization serious about its strategy and new ideas must also be serious about understanding the multifaceted future.
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