Scenario-Type Planning

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 Hewlett Packard

In 1939,  David Packard and Billy Hewlett founded the Hewlett-Packard company, which we call “hp.”  It is a multinational technology company specializing in hardware development (Black, 2009). This hardware includes personal computers and printers. The firm also develops software and provides various computing-related services to businesses and individuals worldwide. Before splitting into two companies, they had their headquarters in Palo Alto.


HP

The firm's merger with Compaq computer was the beginning of its problems, and we can blame this on a lack of good scenario and strategy planning from both companies. According to their forecast, the partnership would have been beneficial. However, the lack of planning made it difficult for the employees and management to adjust to each company’s culture or create a better one. In addition to poor scenario planning, family feuds contributed to the firm's problems. They eventually decided to split the company into two. They could have avoided this by appropriately combining standard forecasting and scenario planning.

How Scenario-Type Planning supports Planning and Innovation for Change.

Business owners, decision-makers, and company strategists use scenario planning for reliable analysis and future insights. It allows the firms to evaluate possible innovation threats and opportunities. Scenario planning also aids firms in creating and setting up the appropriate plans and responses for future events. The firms can predict and narrate specific scenarios and outcomes of possible interactions and partnerships with accurate information. Adequate scenario planning would have helped Hewlett-Packard company predict and evaluate the effects of the alliances and cultural values on the success of their organization. The scenario planning would show them how the staff of each company will behave after a merger and the steps they can put in place to avoid failure.

Companies that build machines and technical tools can use scenario planning to predict and work on forces that will affect the functionality and prices of their product. They study the various phases of a product and the possibility of its change in the future. After investigating, they draft, analyze, and possibly change their production process to accommodate future changes and set appropriate measures for possible breakdowns or alterations.

To grow a company and increase profit, companies innovate business processes that help achieve this goal. Scenario planning enables them to access various outcomes and deficiencies of these processes. It guides them into adequate planning, hiring, and resource appropriation. They can determine if the process, product, or partnership is viable and beneficial.



Forces 

One significant advantage of scenario planning is evaluating a wide range of forces. These forces are either predictable or unpredictable (Neiner et al., 2004). Scenario and strategy planning usually happen around these forces. We must quickly and accurately foresee unexpected forces. However, we can accurately mention and include predictable forces because we know they will happen. We can further categorize these two forces into the various factors below.

  • Technological or Technical Forces: They are externally generated technology-related forces that may affect the completion of a product and its success.

  • Societal and Environmental: These include beliefs, behavioral patterns, and cultural values that can affect a business decision.

  • Financial: It has to do with budgeting and money. The availability and unavailability of financial resources will affect planning and modifications to accommodate future changes.

  • Government; Specific government policies can affect a product’s or a process’s future. It may promote or dismiss future outcomes and concerns about a product.

  • Educational; It covers the effects of schools and educational bodies on products and processes.


How I will Use Scenario Planning for Future Innovation Efforts.

After conducting my research, I discovered that scenario planning improves innovation processes and gives one an idea of what to innovate. With forecasting and scenario planning, I would determine a product of utmost importance to people. I can now embark on a research and development process. I would include scenario planning in my planning process to predict possible and negative outcomes and how to avoid them.  I will conduct enough research to build my knowledge of scenario planning and employ qualified data analysts who will join me in utilizing scenario planning for our benefit. I will also dedicate financial resources to ensure we use the best software and tools.

Scenario planning is a catalyst for change (Totin et al., 2018). However, it can not drive change alone. Forecasting, scenario planning, and other tools can drive the change we need to recognize, accept and implement innovation, products, or processes. 


References

Black, B. (2009). The Story of Hewlett-Packard. Faculty Articles and Other Publication, 77. https://scholarship.law.uc.edu/fac_pubs/49/?utm_source=scholarship.law.uc.edu%2Ffac_pubs%2F49&utm_medium=PDF&utm_campaign=PDFCoverPages

Neiner, J. A., Howze, E. H., & Greany, M. L. (2004). Using scenario planning in public health: anticipating alternative futures. Health Promotion Practice., 71-73. 10.1177/1524839903256792

Totin, E., Butler, J., Sidibe, A., Partey, S., Thornton, P., & Tabo, R. (2018). Can scnario planning catalyse transformational xhange? Evaluating climate change policy case study in Mali. 50-54. https://doi.org/10.1016/j.futures.2017.11.005

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