"Environmental Scanning;" A Thing of the Past?

In their series of textbooks on entrepreneurial ventures, Jim and Joanne Carland refer to "environmental scanning" as a strategy by which entrepreneurs can visualize the competitive environment around them and therefore make a decision or build a strategy to better start or maintain a successful business venture. In chapter four of "Entrepreneurial Growth," the Carlands interestingly refute the "old strategic principles of environmental scanning," asserting that "entrepreneurs don't engage in the traditional environmental scanning...the pot is boiling too fast."

The University of North Carolina's James Morrison seems to suggest that the term is a bit more mulit-dimensional: "We all do informal environmental scanning. However, continuous scanning is required if decision makers are to understand, anticipate, and respond to the threats and opportunities posed by changes in the external environment."

Why the sudden departure from a time-tested entrepreneurial strategy? Let me offer an argument.

Traditional environment scanning for starting a brewery (for example) may work like this: I would travel around town keeping track of all the various alcohol distribution points in the area (bars, restaurants, grocery stores, etc.) and then find as much information on how all of these businesses interact with local competitors (other local breweries, beverage companies, macro-breweries, etc.) Then I would make an informed, forward thinking strategic decision based on my findings.

The internet has changed everything. Because the Internet is more or less a town of its own, complete with malls, shops, plently of people and plently of products but with ever-changing rules, tastes, dimensions and competitors, I cannot simply scan this "mega-town" every once in a while--like a traditional entrepreneur would scan a physical land area. As Mr. Morrison suggests, "continuous scanning" of both the physical and "e" worlds are a must for survival in the modern business environment.

But I would go one step further and argue that even continuous scanning is impossible for any entrepreneur looking to start and grow a venture. Where would one find the time to continuously scan the Internet for potential threats, competitors and room for new ideas? Instead, as the Carlands suggest, it may be better to use the Internet less for environmental scanning and more as a jump-off point for knowledge. Even in today's world--knowledge is still power, and the more an entrepreneur is able to obtain, the better.

Entrepeneurs need to use the Internet as a tool to learn everything their is to learn about their trade--methods, business practices, general information. In a way, more learning stimulates more ideas and better strategies, and thus takes the place of traditional scanning in a more complicated world.

Modern scanning practices can still be very valuable--if not for entrepreneurs then for management teams in established businesses. Things like search engine optimization, social/business networking memberships, establishing e-commerce divisions and internet advertising can all be construed as strategies resulting from continuous scanning of the Internet's new and ever-changing business infrastructure.