Answers:

1. opportunities for new products and services. Opportunity recognition is a theory

explaining how individuals, and by extension business firms and organizations
come to identify new opportunities that were hitherto unknown to them.

2.

3. 7 Sources of opportunity

1. The Unexpected

When disaster strikes, those who can meet the needs of the masses first have a
massive opportunity. Those whose products and services already fit the new niche
have a massive advantage. The unexpected doesn’t have to be the completely
unexpected. There is an old joke that the ideal store to open up after a hurricane
sells only ice, gas, and chainsaws, though beer, Pop Tarts, flashlights, and glow
sticks sell well before the storm on the expectation of being needed.

2. Industry and Market Disparities

These disparities can take the form of regulations, deregulation, changes in supply
chains, obsolescence over time, and structural problems after an industry boom. The
first generation of hover boards catching fire after their initial use was unexpected
the second generation that met UL standards on battery performance are a case of
products taking advantage of market disparities.

3. Process Vulnerabilities / Process Needs

 Process vulnerabilities may be internal or external. The risk that your manufacturing
plant shuts down because the Asian region where 90% of that electronic component
is produced is hit by a typhoon was a major problem several years ago.

Internal bottlenecks like the risk that the only specialized machine for an operation
goes down, the servers with your product data are inaccessible due to a hack attack,
or strikes that shut down a manufacturing facility for days are process vulnerabilities
risk management can and should try to address.

4. Incongruities
An incongruity is when there is a gap between what is and what should be in terms
of performance. You aren’t living up to customer standards or you want to meet a
higher standard. Or you need to manage their expectations, something that is hard
to do unless you literally invent the niche.
5. Demographic Shifts

Demographic shifts can be a source of opportunity as well as a source of incongruities.

Japan’s aging population caused a milestone several years ago when they saw more
sales of adult diapers than baby diapers—the diaper manufacturers that retooled to
make adult-sized diapers that fit customer preferences prospered.

6. Changes in Perception

Changes in perception can kill sales. Target has tried to capitalize on being more
upscale than Walmart. Organic labeling commands a premium, regardless of the
science, so you see a proliferation of organic anything and everything.

7. New Knowledge

The classic example of this is new discoveries. New materials, new manufacturing
methods, new methods of doing business, new technologies are all forms of “new
knowledge”. What you discover for yourself is always new knowledge, while the first to
commercialize what was previously theoretical are also considered to have seized the
opportunity of new knowledge.