Austrian economics is distinctive in its recognition and, indeed, embrace of continuous change: customer preferences change, competitors’ actions change, markets change, technology changes, prices change, business methods change. New knowledge is continuously created and accumulated. And Austrian economics equally recognizes that entrepreneurial businesses must change in response: capital combinations change, supplier and customer relationships change, organization structure changes, business portfolios and value propositions change. Continuous change is required — which is something business has not traditionally been designed for. How do businesses manage continuous change?
In the current digital age, the rate of change in the external business environment is accelerating, largely as a consequence of rapid technological evolution and the ways in which customer behavior and preferences change in response. We plan to cover the issue of continuous change from multiple angles in the coming weeks and months.
This week, Mark McGrath joins us to review a tool for value creation amidst continuous, roiling change. It has been around for a while and so is proven in multiple arenas and situations. It goes by the name of OODA.
Show notes: https://Mises.org/library/mark-mcgrath-adaptive-entrepreneurial-method-vuca-ooda-iot
"The Adaptive Entrepreneurial Model — Core Thesis" (PDF): https://Mises.org/E4B_138_PDF
John Boyd’s "OODA Loop Graphic" (PPT): https://Mises.org/E4B_138_PPT
"The Epistemology of the OODA Loop" (PDF): https://Mises.org/E4B_138_PDF2
"Destruction And Creation" by John R. Boyd (PDF): https://Mises.org/E4B_138_Boyd
The Theory Of Dynamic Efficiency by Jesús Huerta De Soto: https://Mises.org/E4B_138_deSoto
The Ultimate Foundation Of Economic Science by Ludwig von Mises: https://Mises.org/E4B_138_Mises