Exploring the Critical Success Factors for Developing and Implementing A Predictive Capability in Business

Predictive capability (when implemented in a business context) refers to the early recognition of business opportunities and threats, improved customer intimacy, and agile reaction to changes in the business environment. In this article, we propose that developing and implementing a predictive capability depends on a change process that is only implementable under certain conditions. Based on a review of the research literature and interviews, three critical success factors relating to the successful implementation of the relevant change process were identified. They are (1) identifying the change drivers; (2) organizing vision for the change; and (3) the capacity to execute change. These three factors were further divided into 11 dimensions, which are as follows: (1a) increasing networking; (1b) changing customer needs; (1c) increasing elements of the knowledge economy; (1d) development of the information technology; (2a) strategic benefits; (2b) transactional benefits; (2c) informational benefits; (3a) strategic capabilities; (3b) management capabilities; (3c) knowledge capabilities; and (3d) operational capabilities. The findings suggest that Finnish manufacturing companies are willing to start the change toward developing and implementing a predictive capability. However, they are currently only at the stage of orienting toward this new managerial paradigm. Copyright (C) 2011 John Wiley & Sons, Ltd.