Set the guiding Principles and Priorities which will be the basis for all Technology Management decisions; including investment. The Technology Strategy must flow directly from and be completely aligned with the Business Strategy such that it represent the Technology Function’s best approach for meeting Business objectives. The strategy can be represented by a plan which shows linkage between Key Market Drivers/Targets, the planned Product (Offering) development required tohit those targets, and the Technology Development aligned with Product Development. The plan should make it clear what the investment strategy will be for achieving the appropriate balance between:
A successful Technology Strategy and Plan should answer these key questions:
- Market/Customer Driven and Technology Push development
- Improved Performance and Cost Reduction focus
- New Differentiated Products and Supporting Services focus
- Internal Development and Strategic Partnerships
- Innovation Risk and Evolutionary Certainty
Key elements of a successful Technology strategy and plan:
- How will Technology support the company’s key growth objectives?
- What core technology areas will provide the foundation for current and future market leadership?
- How is the company’s R&D investment aligned to support business objectives?
- Fully aligned with Business strategy; cross-functional (i.e. Marketing, Product, Technology) accountability and commitment
- Objective and fact based: Clear understanding of Competitive positioning, Benchmarking, Alternatives
- Maximizes Development Efficiency; Productivity and Quality
- Accountable financial metrics for measuring progress and managing change