There is an opportunity when there is a likelihood that a favorable opportunity will occur and have a positive effect on the performance of the business. Although good opportunity management ensures the optimal, balanced, and sustainable performance of the company. Below this post is all about the opportunity management, objectives, conditions, and process.
Objectives of Opportunity Management
- Ensure the optimal, balanced, and sustainable performance of the company
- Develop a comprehensive, systematic, integrated, and flexible method of identifying, evaluating, analyzing, and managing opportunities
- Develop best practices for managing opportunities
- Treat all kinds of opportunities related to running a business
- Identify the best opportunities
- Make informed decisions
- Better manage change
Conditions for good management of Opportunities
- Opportunity management must be aligned with the company’s strategy and must support performance management
- Opportunity management should focus on the same management activities as performance management, performance tools, performance conditions, management skills, stakeholder satisfaction
- The opportunity assessment system should focus on the most important opportunities
- The opportunity management process must be simple and remain simple and flexible
Provenance of Opportunities
Opportunities can come from two main sources: from outside the company (external opportunities) and from within the company (internal opportunities).
- External opportunities come from changes in the business environment (political, economic, technological, sociological changes, market changes, customers, competitors, products, suppliers) that can positively influence objectives. And the strategies of the company.
- Internal opportunities can come from changes in company strategy, processes, resources, and performance management.
Opportunity Management System
An opportunity management system (OMS) is a system that collects and organizes data on sales leads and opportunities, as well as other relevant data. Typically, these systems will have a visual interface that organizes data such as customer or potential customer identifiers, transaction status, previous transactions, and other pertinent information to aid sales teams.
Opportunity in Strategic Management
The concept of ‘opportunity’ is one of the pillars of entrepreneurial study. One of the key sectors of interest and source of a vital research discussion is the systematic search, exploration, and/or development of an opportunity. The phrase ‘opportunity’ is also frequently used in strategic management literature. The concept of favorable future conditions is crucial to strategy development since it is a critical component of the early phases of the strategy development process. The question arises as to whether the literature on strategic management differentiates this term. We discovered that in strategic management research, an implicit understanding of opportunities dominates, based on a review of the literature. This is unfortunate because precisely stated conceptions of opportunity can help strategy researchers and practitioners.
Opportunity Management Process
- What are the changes and the potential opportunities?
- What are the opportunities that can arise?
- Identify the level of opportunities:
Evaluate the Opportunities
Evaluate opportunities according to their importance and likelihood.
Analyze the opportunities
- Where do the opportunities come from?
- What are the causes and consequences of opportunities?
- What are the uncontrollable opportunities and the level of interesting opportunities?
- Can we follow the interesting opportunities closely?
- Can we abandon the uninteresting opportunities?
Develop Action Plans
- Maximize opportunities of high importance and probability.
- Check for opportunities that are high in importance and low probability.
- Analyze opportunities of low importance and high probability.
- Temporarily ignore opportunities whose importance and probability are low.
More From Business Study Notes:- Strategic Planning Process
Where to Find New Strategic Opportunity?
To be strategic, you must devise a plan that will result in a favorable future situation. Anticipating future events allows you to maximize your abilities while minimizing your limitations. Risk is almost always there, but having a strategy entails planning and preparation in order to attain a goal.
- Products and Services
Customers: how satisfied your customers are?
Customer happiness is the glue that ties everything together and, when properly cared for, can breathe fresh life into a product or business. Is there a way to add more value to the products and services you deliver to your internal and external clients?
Products and Services: finding and offering new products or services?
Is it possible to improve the physical or intangible services, goods, or products you provide?
Relationships: Can you use your existing network of contacts to identify a new strategic target?
Business opportunities, honest opinions, and more can all be found in relationships. These are your friends, coworkers, team members, and sponsors, or in other words, the individuals who will help you succeed in the future.
Stakeholders: have you met the expectations of stakeholders?
These are the people who have put their trust in you with their money. Make sure you’re up to speed on their company expectations and what you can do to fulfill and surpass them. Always be on the lookout for strategies to expand your company and revenue.
Resources: are there any strategic chances to improve any of these areas?
The resources you employ to develop the items and services you offer are referred to as resources. Materials, time, money, technology, assets, and knowledge are among them.
Opportunity Management Practices
- Enhance opportunity management across the enterprise.
- Develop a continuous process of evaluating opportunities in the company.
- Integrate the opportunity management process into the processes.
- Evaluate opportunities against the strategic objectives of the company.
- Extend opportunity management in all aspects and at all levels of the company.
- Evaluate performance factors, processes, development projects, departments, strategic, operational, and financial decisions taking into account possible opportunities.
- Evaluate opportunities and re-evaluate them continually based on their importance and likelihood.
- Develop opportunity optimization strategies based on opportunity assessment levels.
- Reassess and regularly improve the methods and tools for identifying, evaluating, analyzing, and optimizing opportunities.
- Perform extreme situation simulations to measure the effectiveness of methods and tools for optimizing opportunities.
- Involve managers in the process of identifying, evaluating, analyzing, and optimizing opportunities.
- Organize training courses to master the concepts and tools for managing opportunities.
- Form an Opportunity Management Committee to approve the opportunity management policy and tools and to regularly evaluate opportunities.
- Develop information systems to provide all the information needed to manage opportunities.
- Regularly evaluate the performance of the opportunity management process.
- Communicate the results to the managers.
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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