The OODA loop (for observe, orient, decide, and act) is a concept originally applied to the combat operations process, often at the strategic level in both the military operations. It is now also often applied to understand commercial operations and learning processes. The concept was developed by military strategist and USAF Colonel John (Richard) Boyd (January 23, 1927–March 9, 1997) who was a United States Air Force fighter pilot and military.
In later versions, Boyd listed the ingredients as “IOHAI”: insight, orientation, harmony, agility, and initiative.
observation-orientation-decision-action (OODA) loop
“Agility” means to operate inside customer’s and competitor's OODA loop.
Wrap-up from Boyd:
He who is willing and able to take the initiative to exploit variety, rapidity, and harmony—as the basis to create as well as adapt to the more indistinct - more irregular - quicker changes of rhythm and pattern, yet shape the focus and direction of effort—survives and dominates or contrariwise - He who is unwilling or unable to take the initiative to exploit variety, rapidity, and harmony … goes under or survives to be dominated.