These risk-management practices should facilitate flawless
business execution and avoid fluctuations in commerce. There exist numerous well-known industry
approaches for risk mitigation and market predictability, such as Strategic Risk Management1
(SRM), Business Continuity Planning, and Ratio Analysis techniques to predict future financial
impact on companies based on their past performance.
In 1992, Kent Miller suggested four major ways to combat business unpredictability in an
article in the Journal of International Business Studies.2 All these measurements should be part
of a powerful business strategy that can mitigate risk and thus should provide guidance to the
establishment of a service-oriented life cycle strategy:
??? Unpredictability avoidance. This pertains to avoiding events that may damage the business.
??? Pursuing a proactive approach. This means taking a strategic proactive approach rather
than reacting to market events.
Service-Oriented Life Cycle Model Structure 39
??? Alliance. This refers to establishing alliances through multilateral agreements with business
partners such as suppliers, vendors, and joint ventures and by acquiring technology
licenses.
??? Agility. This requires increasing business agility to enable quick response to market
trends.
This planning approach advocates first conducting business studies that can yield predictions
of business events.
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