Technology Strategy: Important for SMEs and Startups
Technology Strategy: Important for SMEs and Startups
Steve Jobs, while introducing the iPad 2 back in March 2011, said:
“It is in Apple’s DNA that technology alone is not enough—it’s technology married with liberal arts, married with the humanities, that yields us the results that make our heart sing.”
These words do not apply exclusively for Apple. Just having the technology is not enough to succeed. One must figure out a way to make use of technology so that business will not only survive, but thrive. Technology strategy is a necessity.
Let’s break down what technology strategy means.
‘Technology’ is the hardware, software and devices used within a company to help perform business operations. The technology in this case includes Information Technology (IT), computer systems, and any other machines the company uses.
A ‘strategy’ is a plan or action which is done to achieve a goal over a long period. The time and timing, both are very important as strategy differs from a tactic on this front. A tactic is a plan for short-term goals (one day to two years) whereas strategy is a plan for a long-term goal between two to five years. The decisions are made not only on the immediate needs of the company, but also understanding the long-term goals of the company.
‘Technology strategy’ is using the technology within a business in an efficient and effective manner to improve the firm.
A good technology strategy is important to advance in the business world. Technology strategy involves deciding which hardware should be bought or upgraded and which is obsolete and to be discarded. It involves deciding investment in trending technologies such as SMAC, IoT, Bots, and Data Science, etc. Check my recent posts about SMAC and Bots.
The strategy also involves analyzing the competitor’s strategies and deciding whether they should be followed or whether your company should lead from the front.
When deciding how to proceed with your technology strategy, you should ask yourself these questions:
- What comprises our technology platforms?
- How can we differentiate our technology from that of our competitors?
- What is the cost or investment required to build and maintain our technology?
- Do we want to make our technology or buy it from someone else?
- What are our goals moving forward and what role does our technology play in reaching those goals?
An effective technology strategy is also essential for SME’s even if they have recently begun their business or have low revenues. Bigger firms can afford losses due to cost overruns (although they are keen to avoid them) however, smaller firms do not have this luxury and a good technology strategy could mean the difference between success and failure.
Whenever you or your company makes a business plan, be sure to include technology planning along with it. Know the time and budget, and take them into consideration when developing your technology strategy. The Chief Technology Officer (CTO), plays a vital role in the technology strategy of the company. His or her job is to find the technical problems with the technology, within the company and work towards fixing or solving these problems. He also draws a roadmap for use/acquisition/development of technology over a 2-3-year period. Again make sure that future technologies like Artificial Intelligence (AI), Machine Learning, Predictive Analytics are covered in the roadmap.
The technology officer’s job is to make sure the company’s business strategy and technology strategy are in sync. Companies cannot prosper if everyone has their own agenda.
You should always stick to the goals of the technology plan and not divert from that path unless it’s for a critical reason. Make sure you cover the basics well first, for only if the foundation is strong can a huge enterprise be built. Failure to plan is planning to fail, so have a proper plan on how you proceed with the technology of the enterprise.
In the words of Bill Gates:
“A bad strategy will fail no matter how good your information is and lame execution will stymie a good strategy. If you do enough things poorly, you will go out of business.”
A good framework and platform should be established. Do not worry if this takes a while, as it will save you much time. If you rush with this part, you will suffer later and wished you spent more time on this. (Unfortunately, the technology to build a time-machine hasn’t yet been developed.)
For startups, although consulting technology advisors may seem like an unnecessary expense, it will help in the long run and will save you a lot of hand-wringing later.
Startups and SMEs unsure about how to proceed regarding their technology can hire advisors and consultants to help. These advisors and consultants can assist in devising technology strategies that help companies scale easily when the time comes, and funding is available to invest in growth plans.
Jayakumar Radhakrishnan is a practicing SMAC consultant. He has worked with Big Enterprises, Small businesses and Startups and helped formulate their SMAC strategy. He is also the Co-founder of OptiSol Business Solutions, a global provider of SMAC Solutions.
@optisol