Opportunity engineering is a business strategy that embraces risk to exploit opportunities for positive gain. It requires a flexible mindset and risk-adaptive strategies to manage unpredictable environments. Managers must identify potentially lucrative opportunities while minimizing negative impacts. Risk management, not avoidance, is the focus.
Opportunity engineering is a business strategy employed to reduce risk while simultaneously seizing opportunities to exploit that risk for positive gain. 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 by riding a wave of dynamic change. Opportunities that arise in a climate of uncertainty present a limited time frame in which companies can seize those opportunities. This business approach sees risk as a positive force in business and not something to be avoided.
Linear thinking has been the traditional approach and is still widely regarded as the appropriate response to predictable situations. Linear thought 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 while at the same time aiming to minimize negative impacts. At the same time, companies are also using this strategy to expand those lucrative opportunities that can emerge within these dynamically changing business environments.
A business opportunity model views risk as an ideal way to make those innovative leaps that will have the greatest impact. Those who manage these opportunities try to reduce unwanted risks. When emerging risk naturally presents opportunities, however, the opportunity engineer will use a structured paradigm to develop those opportunities.
Uncertain opportunities require flexible management, and therein lies the biggest obstacle to implementing opportunity engineering. To create the innovative thinking mindset required for this business model, managers may need training to overcome risk aversion. This business strategy is typically implemented in stages, over time.
Risk aversion is not just a strategy, but a psychological attribute that can be ingrained in the personal and will take time to change old thinking. In opportunity engineering, managers are assigned the responsibility of systematically identifying potentially rich return opportunities. Using mathematical modeling and careful analysis, the focus is on risk management, not avoidance.
Seizing emerging risks in business is not akin to gambling, but rather harnessing the power of change. While beneficial opportunities for business innovation can arise through market risks, there are other types of risks that can best be eliminated. These include risks of personnel injury, medical emergencies, and business disruption due to natural disasters or calamities.
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