Strategic planning technology

The growing competition in the market has been introduced new paradigms of competitiveness in the form of technology and innovation. Technology has become an inevitable part of business strategy. Strategic planning is a tool that facilitates firms with the competitive concerns and formulations of appropriate action plans. As per the Bryson strategic planning as a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does and why it does it. The decisions and actions impact on the firm's long-term competitiveness and therefore, merit tactful handling.

Technology plays an important role in the process of strategic planning. Technology enables operational effectiveness by improved product, productivity and process capability with lesser human intervention, Gerstenfeld defines technological forecasting's function as an aid to management in peering into the future. A technological forecast either predicts that new processes or products will be discovered or that the potential of the process or product will be recognized at a certain time.

The advent of technology helps the company:

To identify opportunities for business developments.

To explore whether technologies are enablers to enter new or unexplored markets.

Potential locations for R&D centers. Whether technology enables overcoming deterrents in locating facilities in certain areas.

Scope to outsource R&D activities to leverage advantages without risks of outsourcing.

Potential for technology up gradation through alliances and acquisitions.

Identification of appropriate directions for business development.

Identification of potential markets.

Addressing facilities location decisions.

Addressing decisions on outsourcing.

Addressing decisions on strategic alliances and acquisitions.

Firms need to adopt a systematic approach to strategic planning in today's highly competitive environment. Businesses operate in a rather competitive environment owing to globalization and rapid developments in technology. It is therefore important to incorporate global developments and current trends in technology during strategic planning initiatives. It is also important to track technological developments to ensure timely introduction of appropriate technologies, re-engineer processes and restructure businesses.

The adoption process starts with the sketch of technology map like:

Sometimes, various technologies offer possible for an application. An evolving technology may replace a current technology in the future. Such a technology is referred to as a disruptive technology. The term is formally defined as follows. A disruptive technology has performance attributes that are not valued by existing customers or for current products or performs much worse on some performance attributes that existing or future customers value but will quickly surpass existing technologies on such attributes when it is refined. In this globalization era, a systematic strategic planning decision is important serves as a powerful tool input in planning. Technological forecasting serves as an approach to understand the developments in technology which could be incorporated during road mapping.

Next Article

Banner Ads