If an enterprise wants to be invincible in a complex and changeable environment, it must formulate an overall strategy within the company and at the technical level, and execute it efficiently, so as to achieve organizational flexibility, scalability, stability, and choice. Respond to various changes in future development.
Looking at the world, technology has become a major strategic subversive factor. Smart strategy makers are seeking to formulate clearer, timely, and aggressive strategies for the various possibilities in the future. They are constantly reviewing the situation, exploring new competitive advantages, and avoiding hidden potentials. threat. More and more organizations are actively building new competitive advantages by joining forces with existing and new ecosystem partners to expand the business scope of their product portfolios and win competition.
To be invincible in a complex and changeable environment, it is necessary to formulate an overall strategy at the company and technical levels to achieve organizational flexibility, scalability, stability, and choice. Traditional strategy formulation frequency is too low and very laborious, so that the strategy makers can not detect and seize opportunities when they appear.
More and more organizations are turning to integrated and agile processes to formulate, evaluate, and execute company and business department strategies through the use of technical tools. Such tools can continuously perceive, predict, and monitor the effectiveness of strategy selection and execution.
The result is: companies make more timely and wiser choices, accelerate their adaptation to the environment, make bolder strategic choices, and gain sustainable competitive advantages.
Bridging the gap between technology and business
With the increasing integration of business strategy and technology strategy, many corporate executives have discovered that the past technology choices of their organizations have limited their strategic possibilities and business agility. In order to eliminate technical barriers, outstanding executives rely more on technical architecture and implementation plans to ensure that the overall business strategy receives clear and consistent technical support.
Of course, just formulating a strategy is not enough, efficient execution is the key. When asked about their strategic focus and execution capabilities, although chief strategy officers hope to achieve disruptive growth and realize their digital vision, they generally lack confidence in the company’s execution capabilities. According to Deloitte’s 2020 Chief Strategy Officer survey, most respondents (70%) regard disruptive growth as the key to the company’s success, but only 13% believe that their company can execute this strategic focus.
Efficient execution needs to grasp potential strategic options and assumptions from time to time, and make adjustments as needed. Although most senior interviewees stated that they are seeking disruptive growth, 71% of executives stated that it took them more than 3 months to develop a round of strategy. Nearly half (45%) of the respondents update their strategy only once a year, and some even longer: update their strategy only once every two years (23%) or three years (22%). Ultimately, strategy makers should work with technology leaders to confirm that the organization’s key technologies can support the organization’s strategy—the organization’s technical staff can have the correct technical framework and understand the company’s strategy to make daily technical decisions.
Agile strategy formulation and execution are not created in a vacuum-in order to achieve good results, organizations need to have the following basic capabilities.
Authorized strategic functions. Whether it is a CEO, chief strategy officer or other executives, an authorized strategy leader is essential for efficient strategy formulation and execution. In cooperation with the CIO, the strategy leader can help the corporate executive team and the board of directors to expand and clarify the corporate vision. As an executive of a large oil and gas company said: “The chief strategy officer needs to challenge a fixed point of view, and let the executives think about a completely different market environment from today.” Successful strategy makers need to go beyond the daily challenges of the organization and collaborate. Select key technologies and constantly review the situation to predict emerging challenges to strengthen strategic execution.
A team of tech-savvy executives. Chief executives and the board of directors should broadly understand and invest in key technologies in order to gain a competitive advantage and “resilience” against disruption. The leadership should support and invest in the technology investment portfolio, including from proof of concept, new technology testing, to the promotion and implementation of mature platforms. Of course, business executives must also question the key assumptions of these technology implementation plans to ensure that the implementation of the technology will bring value to the enterprise.
A technical leader who is proficient in business. Similarly, IT leaders and technical personnel should participate in the strategy formulation process and be given relevant training to fully understand the business and strategic goals. As a strategic partner, technology leaders can help strategy and business leaders identify and explore emerging technologies that can support the strategic vision to ensure the consistency of technology strategy and company strategy.
In fact, a survey conducted by Deloitte and The Wall Street Journal shows that 40% of CEOs believe that their chief information officer or technical leader is the key driver of business strategy-even more important than the chief financial officer , The sum of the chief operating officer and chief marketing officer. In addition, large-scale technology investment requires the active participation of the CEO/Chief Strategy Officer to ensure that the organization can take and manage the corresponding risks.
Collaborative technology and partners. Efficient organizations will carefully select technology platform and ecosystem partners, so that their selection and implementation decisions are consistent with their strategic goals. When selecting important ecosystem partners, evaluate their long-term development direction and development plan to understand whether their goals and vision are consistent with the company’s own goals and vision. In the worst case, platform partners may pose a competitive threat after “learning” your industry.
Work together to form a list of strategic assumptions. In the early stages of the strategy formulation process, strategic leaders, technology leaders, and ecosystem partners should explore and challenge strategic assumptions to ensure the effectiveness of technology-driven strategies. Consider discussing in an open environment to encourage and organize discussions without any prejudice, and use the opinions of the discussions as the main indicators for evaluating the success or failure of the strategy in the future.
Agile investment. Executing an agile strategy requires a flexible process to plan and invest in the technology investments required to implement the strategy.
To compete in an increasingly complex world, not only strategies have become increasingly digital, but the process of strategy formulation and execution and results monitoring must also be digital. When leaders are forced to consider a wider variety of variables and future scenarios, a technology-driven strategy platform helps strategy makers to think about future possibilities more comprehensively and accurately.
Technology also helps leaders gain insights from seemingly unrelated events, thereby continuing to drive smarter strategic choices. Strategy makers should evaluate related technologies. These technologies can enrich the strategic ideas of strategy makers by identifying driving forces, communicating strategic decisions, and monitoring execution results.
Finally, technology plays an increasingly important role in helping companies transform strategies into strategic initiatives, assisting in strategy execution, and monitoring the impact of strategies in the market.
Strategy formulation is not a once-and-for-all thing, but a continuous cyclical process. With the increasingly close integration of technology and business, business strategy will drive technology strategy and vice versa. As the strategy continues to evolve, the known and unknown strategic driving factors inside and outside the organization will become very complex, and even the most witty and agile strategy makers cannot consider them thoroughly.
Although the accelerated development of technology can make strategies more complex, corporate executives can also deploy related technologies to simplify and accelerate smarter strategy formulation and execution. Leading organizations are engineering their strategic functions to make them more agile, expandable, and stable, forming a series of strategic alternatives to respond to future changes at any time.