InSPECT Takes SWOT and PEST to the Next Level

InSPECT Extends Traditional Strategic Planning Frameworks

Jul 8, 2008 Martin P Wilson

Traditional business analysis frameworks such as SWOT and PEST are used to understand business challenges. InSPECT is proposed as a tool for the new business world.

The InSPECT Framework for Strategic Analysis

The main elements are innovation, social and political issues, environmental considerations, communications and technology. These build on the traditional PEST (political, economic, social, technical) model.

Innovation is so important it comes first. A real competitive edge is not possible without genuine creativity. Unfortunately, genuinely original thinkers are rare but somewhere in most organisations there are creative sparks that should be harnessed – they may be in unexpected places and it should not be assumed that it is only amongst senior management that such abilities exist. The pace of innovation in modern business can be frenetic and is often associated with technology, but it should also be reflected in its product or service; production, organisation and management; administration; even the very nature of the business itself. Seek new ideas from wherever they can be found and build it into the everyday life of the business.

Social issues cannot be ignored. The importance grows due to public expectation and subsequent legislation, often from extra-national bodies such as EU or UN. For example due to community pressure there is a growing demand that business address its environmental impact. Also with recent commodity price rises social considerations are also given a new economic edge and business priority. Social issues are now global – there is pressure to stop child labour making products for Europe or the USA.

Political considerations always have an impact. The regulatory framework, tax, bureaucratic demands continue to grow and gain an international component with globalisation and the ease of doing business internationally using the internet and electronic products: gambling, music downloads etc. Technically easy but politically complex as regulatory frameworks are slow to change and create barriers to global trade, for example online gambling.

Economic environment is an obvious element of any business strategy and most believe they consider it. However much analysis is superficial and does not properly consider the slower but most important underlying trends until it is too late. Many retailers ignored the move to online sales until they had allowed new players to take their market; for example record and book shops. Many realised too late, could not respond and had to close or were swallowed up by the new competitors..

Communication is critical in a rapidly globalising economy. Information travels around the world in seconds – there is nowhere to hide bad news. It is now common to collaborate and do business around the world which allows a business to be open 24 hours a day, 7 days a week. Suite101 is just such a tool. But is also how and what needs to be communicated – traditional local thinking no longer works. A message appropriate to New York will not work for Tokyo, Beijing, Mumbai or Dubai.

Technology underpins many business trends but fortunately it is often available off the shelf albeit at a cost. The question is: how does technology serve the identified business needs? Technology should not be the driver but it may enable new ways of doing business.

Flexibility of Approach is Key

InSPECT can be used in most planning exercises. It is one of a set of tools that widens the analysis over traditional methods which do not cover the complexity of modern globalised business.

No method should be flowed slavishly, innovation is the key, and that includes how one does the analysis.

“If the only tool you have is a hammer everything looks like a nail!” Use the right tool and modify as needs change; craftsman have always made special tools for particular needs. InSPECT is a step along that route for the busimness analysts or planner.

The copyright of the article InSPECT Takes SWOT and PEST to the Next Level in Business Management is owned by Martin P Wilson. Permission to republish InSPECT Takes SWOT and PEST to the Next Level in print or online must be granted by the author in writing.

INSPECT business analysis method and acronym

InSPECT Mind-map with link to SWOT

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