[...] One approach to master strategic risk in this changing environment—both in terms of focusing on fundamentals and managing the digital space—is to leverage “big data” and data analytics. In adopting and deploying data analytics, companies may be in a position to better monitor the vast information (and misinformation) available on the internet. This includes monitoring news, tips and rumors about competitors as well as following or influencing the changing tastes and demands of consumers. These tastes and demands are shaped by an ever wider set of influences and trends that can originate anywhere in the markets where companies choose to do business.
To assess and adequately address these digital age strategic risks, companies must look outside the traditional corporate structure to adopt more of an “outside-in” perspective in terms of assessing their strengths, challenges and opportunities. This means a new focus on gathering data and appreciating external perspectives from outside sources, whether it is customers, bloggers, information trendsetters or marketplace and security analysts. Big data analytics also raise new possibilities. Information gathered from a CEO’s direct reports no longer constitutes a sufficient first-line of defense in shaping a company’s risk profile. The data these executives supply are typically generated from an “inside-out” perspective and do not necessarily factor in the other avenues of information. [...]
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Gino Tocchetti