What constitutes external environmental information is analysis and evaluation of the properties of these sources of data, together with the executive's "image" of the environment, that is, the individual's Weltanschauung.
Most investigations of organizations and their environment rely heavily on the assumption that environmental demands or opportunities are presented to the organization in the form of "the problem" (constraints, threats, opportunities).
Scanning and the Decision-making Process - a Dependency
Simon describes the decision-making process (DMP) as comprising three principal phases, "(1) finding an occasion for making a decision, (2) finding possible courses of action, and (3) choosing among courses of action (Simon, 1965, The Shape of Automation for Men and Management, Harper Torchbooks NY. P52-54)."
The first phase of the decision-making process (DMP) - searching the environment for conditions calling for a decision - is termed by Simon the "intelligence activity." The second phase, designated the "design activity," refers to inventing, developing, and analyzing possible courses of action. The third phase, referred to as the "choice activity," consists of selecting a particular course of action from those available.
For the terms "searching the environment" and "intelligence" imply gaining knowledge through active information-acquisition behavior. Intelligence has been defined as "data selected and structured such as to be relevant in a given context for a decision."
If one were to add, as a fourth phase of DMP, the implementation and evaluation of chosen courses of action (decision), then one would be forced to admit that the link between the final phase of DMP and scanning is quite significant. Implementation of a decision will require information about the system that is prior to or concurrent with it (feedforward). The evaluation of a decision will require information for determining how effective the course of action was (feedback).
(Schoderbek, et.al. 1990, Management Systems Conceptual Considerations, IRWIN, Burr Ridge. P203-204)
Environmental scanning
- Environmental scanning is a concept from business management
- By which businesses gather information from the environment, to better achieve a sustainable competitive advantage.
- To sustain competitive advantage the company must also respond to the information gathered from environmental scanning by altering its strategies and plans when the need arises. ( http://en.wikipedia.org/wiki/Environmental_scanning )
- Environmental scanning is the internal communication of external information about issues that may potentially influence an organization's decision-making process.
- Environmental scanning focuses on the identification of emerging issues, situations, and potential pitfalls that may affect an organization's future.
- The information gathered, including the events, trends, and relationships that are external to an organization, is provided to key managers within the organization and is used to guide management in future plans.
- It is used to evaluate an organization's strengths and weaknesses in response to external threats and opportunities.
- In essence, environmental scanning is a method for identifying, collecting, and translating information about external influences into useful plans and decisions.
(Albright, 2004, Environmental Scanning: Radar for Success, Information Management Journal 38 (3), May/June p. 38)
- Environmental Scanning is the Acquisition and Use of Information
- About events, trends, and relationships in an organization's external environment, the knowledge of which would assist management in planning the organization's future course of action.
- Organizations Scan the Environment in Order to
- Understand the External Force of Change
- Secure or Improve Position in the Future
- Avoid Surprises, Identify Threats and Opportunities, Gain Competitive Advantage, and Improve Long-term and Short-term Planning
(Choo, 2001, Environmental scanning as information seeking and organizational learning. Information Research, Vol. 7 No. 1)The Environment-Organization Informational Flow
In Fig8-4 the box labeled Environment represents the various components of the total environment from which information may routinely be acquired or from which information may be sought. The box labeled Organization lists the sources of internal information available to the organization. Top management relies primarily on information external to the organization. First-line management relies primarily on information internal to the organization.

The Nature of the Scanning System - Scanning Intensity
One might hypothesize a priori that at the organizational level the degree and intensity of scanning will depend, among other things, upon
- The availability of organizational economic resources.
- The perceived nature of the relationship between the organization and its environment.
- The frequency and magnitude of changes in the states of the environment.
Modes of Scanning
Scanning was defined as the process whereby the organization acquires information for decision making. This certainly must include human activity. As with all human activity, scanning is subject to all biological, psychological, social, cultural, and economic laws governing human behavior.
In general, one can distinguish between two basic methods of scanning: surveillance and search (Aguilar, 1967, Scanning the Business Environment, Macmillan, NY). The term surveillance refers to "a watch over an interest." The term is similar to what is termed "current awareness," the function of which is to give the information seeker some general knowledge. Search aims at finding a particular piece of information for solving a problem.
All scanning modes can be viewed as processes for:
- Seeking a problem solution.
- Gathering data about problem structure that will ultimately be used in discovering a problem.
- Increasing one's awareness or familiarity with an environment.
- Making an information decision whether to (1) make the decision with the existing information or (2) acquire more information. The term could approximately be equated with "continuation or termination of search."
(Schoderbek, et.al. 1990, Management Systems Conceptual Considerations, IRWIN, Burr Ridge. P210-226)


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