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TEchNOLOGy TRaNSFER MODEL - Javna agencija

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KNOWLEDGE FOR BUSINESS IN BORDER REGIONS<br />

Scenario Analysis<br />

The scenario method, first applied for military purposes, was introduced in business sciences through KAHN and WIENER, which<br />

defined a scenario as ‘a hypothetical sequence of events constructed for the purpose of focusing attention on causal processes and<br />

decision points’. Based on this keynote, scenarios can be understood as ‘images’ of the future which are developed on the basis<br />

of the present situation. Thus, scenario analysis allows for a description of a possible future situation as well as a disclosure of the<br />

development steps leading to this future situation by means of retropolation. It is to be noted, that the basic idea of this analysis is<br />

to consider multiple possibilities of future development instead of creating one general prediction. Therefore, the outcome of any<br />

scenario analysis is to gain at least two markedly different but consistent scenarios (or ‘images’) of the future. Preconditions for scenario<br />

creation are an analysis of the as-is-state as well as the sourcing of adequate information about factors which determine and<br />

influence future events considerably. Through the combination of different scenarios corporate chances and risks can be anticipated<br />

which builds the basis for strategic steps. In connection with technology development scenarios, the intended outcome is an early<br />

development of promising technologies of the future and an identification of disruptive factors including the determination of their<br />

specific influence.<br />

A scenario analysis usually runs through five steps which are described in the following by figure 13.<br />

1 Scenario preparation<br />

1<br />

Scenario-platform:<br />

Definition of examined scenario field, scenario goal and<br />

scenario organization<br />

Scenario creation<br />

2 Scenario field analysis<br />

3 Scenario projection<br />

4 Scenario generation<br />

2<br />

3<br />

Description of scenario field through influencing factors<br />

- these factors afterwards should be concentrated to key<br />

factors (e.g. through influence analysis)<br />

Formulating of alternative possibilities of key factors‘ future<br />

development<br />

Task: forward projection of key factors into the future<br />

5 Scenario transfer<br />

4<br />

Generation of consistent and plausible scenarios<br />

5<br />

Result: Statements about upcoming strategic decisions<br />

Figure 13: The scenario analysis process in 5 steps (According to: Gausemeier et al., 2001)<br />

In order to gain a better understanding<br />

of how scenario creation is usually<br />

achieved, the following figure illustrates<br />

steps 2 to 4 graphically.<br />

The specific illustration of a SCENARIO<br />

PROJECTION by means of an open cone<br />

arises from the fact that the present<br />

situation has its determined structures,<br />

which usually will not change considerably<br />

in the short term. The near future<br />

is characterized by existing structures<br />

as well, but is not completely determined<br />

by them. Moreover, the distant<br />

future can never be exactly determined<br />

in advance, for which reason changes<br />

and impacts of certain factors are quite<br />

unforeseeable. Thus, the number of<br />

possible future developments increases<br />

proportionally to the considered time<br />

horizon, which results graphically in Figure 14: Scenario creation process (According to: Eversheim (ed.), 2003; Gausemeier et al., 1996)<br />

an open cone (see fig. 14). Please note<br />

that the predicted path of technological development should be described as precisely as possible during scenario projection, whereas<br />

attention should be directed to potential ‘trend breaks’ which could create a new scenario over time.<br />

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