How to align your tech and business strategies

We’re always being told that every business is a tech business, however one of the CTOs in our network explained it differently. Technology is like electricity, back in the day, when you were the only one with electricity you had an edge. 30 years ago, if you were using tech to drive your business you had an edge over your competitors. Now everyone has technology, your edge evolves from having tech to knowing how to implement it correctly to give yourself that advantage over others.

At Atom CTO, I keep saying to clients that “an app is not a business”. An app is not your tech strategy or indeed all of the tech you’ll implement within your business. You need to think beyond the offering you give to customers and think about how tech can help in every aspect of your business.

Your business strategy is the foundation upon which everything is built.

Your business strategy should define your unique value proposition, target market, competitive advantage, and long-term goals. It's your north star, guiding all decisions and actions. Without a solid business strategy, you have no plan to reach your overall business objectives.

Once you have a firm grasp on your business strategy, you can start aligning your tech strategy with it. This is where the magic happens. By ensuring that your tech investments and initiatives are in sync with your overarching business objectives, you'll be able to optimize resources, streamline operations, and achieve your goals more efficiently.

So, what are the key components of a solid tech strategy? Well firstly let's not confuse product strategy with tech strategy. Your product strategy defines how you will solve your customer’s problems. How you will win new customers, retain current ones and keep them spending more.

Your tech strategy should support your product strategy but your product might not be technical, it may not need software developers and this is why I always say that first and foremost, your tech strategy should address potential risks and build resilience. Identify areas where tech failures could seriously impact your business, like your website crashing during a big sale and plan accordingly.

Look at areas such as scalability, backup and recovery, threat detection, prevention and remedies. Have a cybersecurity strategy in place, not just for your product or service, but also internally for your employees - don’t forget that the single biggest cause for data breaches and financial loss are employees themselves. De-risk your business as far as possible and for those risks that will inevitably materialize, make sure you have contingency and remedial plans in place.

Next, think about how tech can boost productivity and streamline operations. Are there manual processes you can automate to save time and money? Tools to help your team collaborate better? Consider what data you need to track to measure progress and make informed decisions.

Following on from this, your data strategy should be a part of your tech strategy. Is your data consistent, is it kept up to date, is it clean, is it secured, can you rely upon it? How can you gather more data to help you make more informed and accurate business decisions, not just for the C-Suite or the board but for everyone within the organization?

Now that you are well on your way to defining your tech strategy, how do you start implementing it?

Start by clearly defining your business milestones and roadmap. What are your short-term and long-term goals? What tactics will you use to achieve them?

Then, work backwards to determine what tech solutions you need to support those goals, and by when. Aim to have your tech ready to go 2-3 months before any major business milestone. This buffer will give you wiggle room to test, troubleshoot, and make necessary tweaks.

A common mistake is trying to build tech for every single business process right out of the gate. Instead, focus on the activities that bring the most value. Can you get by with a simple spreadsheet or off-the-shelf software for certain tasks? Prioritize spend based on potential return on investment.

Stakeholder engagement is also key. Always keep your various stakeholders in mind - employees, customers, suppliers, etc. You cannot impose tech on people and you should never seek to make changes that will impact your ability to sell or retain customers or will cause mass disruption to your employees.

Get their input on pain points and opportunities for improvement. The more buy-in you have for tech implementation and the more you reduce the barriers people have to doing their jobs or using your product, the better adoption you'll have.

Some other key considerations:

- Choose tech that fits your budget at each stage of growth. You don't always need the flashiest, most expensive options.

- Create contingency plans for if/when the business trajectory changes. Build in flexibility.

- Regularly assess and adjust your tech strategy as the business evolves. What made sense a year ago may not be the best solution now.

Remember, your tech isn't just a cost centre. When done right, it's a valuable tool to drive efficiency, open up new markets, and ultimately boost that bottom line. So take the time to map out a comprehensive plan and weave it into the fabric of your overall business strategy. Your future self (and investors) will thank you!