Opportunity engineering is a business strategy that embraces risk to leverage positive gains. It seeks to identify and harness opportunities that arise in uncertain environments, using a dynamic approach to minimize negative impacts. Managers may need training to overcome risk aversion, but the focus is on managing, not avoiding, risk.
Opportunity engineering is a business strategy employed to reduce risk while seizing opportunities to leverage that risk for positive gains. The theory behind opportunity engineering is that inherent opportunities tend to reside in an atmosphere of uncertainty. Similar to the concept of surfing, opportunity engineering seeks to harness the power of that risk, riding a wave of dynamic change. Opportunities that arise in an environment of uncertainty present a limited window of time in which companies can take advantage of these opportunities. This business approach sees risk as a positive force in business rather than something to avoid.
Linear thinking has been the traditional approach and is still widely considered the appropriate response to predictable situations. Linear thinking processes exemplify a traditional linear factory model. Predictability is desired and cultivated. Unexpected developments are considered disruptions to be avoided.
On the other hand, dynamically emerging environments create an atmosphere of unpredictability that limits the effectiveness of linear problem solving. Using a dynamic approach, this business concept seeks risk-adaptive strategies and, simultaneously, aims to minimize negative impacts. At the same time, companies also use this strategy to expand the profitable opportunities that can arise within these dynamically changing business environments.
A business opportunity model sees risk as an ideal way to take the innovative leaps that will have the greatest impact. Those who manage these opportunities try to reduce undesirable risks. When naturally emerging risks present opportunities, however, the opportunity engineer uses a structured paradigm to develop those opportunities.
Uncertain opportunities require flexible management and this is where the biggest impediment to implementing opportunity engineering lies. To create the forward-thinking mindset necessary for this business model, managers may need training to overcome risk aversion. This business strategy is usually implemented in stages, over time.
Risk aversion is not just a strategy, but a psychological attribute that can be ingrained in people and will take time to change the old way of thinking. In opportunity engineering, managers are given the responsibility of systematically identifying potentially rich income opportunities. Using mathematical models and careful analysis, the focus is on managing, not avoiding, risk.
Emergent risk-taking in business is not akin to gambling, but to harnessing the power of change. While beneficial opportunities for business innovation can arise through market risks, there are other types of business risks that are best eliminated. This includes risks of staff injury, medical emergencies and interruptions to business operations due to natural disasters or calamities.
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