Strategic Management: Formulation and Implementation

Technology And Strategy Vision

The firm that will succeed in global marketplace will develop clearly understand business visions which are intimately linked with core technology competencies.

Core competencies define the identity of the organization: "who we are?" and "what we are good at?" Researchers Gary Hamel and C.K. Prahalad have made a contribution to articulating the concept of "core competencies":

In sum, core competencies:

The longrange strategies, or strategic visions, should be formed from an integration of an understanding of the marketplace (the customer and the competitors), the company and the future.

Technology is fundamental to these three elements of strategic visioning:

Technology is the basis for the key attributes of most products. Technology also provides insights into the products and processes of the future that will meet unrealized customers needs. Many researches believe that for a company to succussed in its corporate vision, it must recognize and harness the proper core technology competencies. This requires:

Vision development and core competencies management must be ongoing business processes. Therefore, to succeed in the marketplace, firms must be agile enough to continually reorient themselves to change, while maintaining leadership in their core technologies.

The concept of creative chaos described by Nonaka (1988) may be a particularly appropriate model for international companies in a rapidly changing globalized technological environment.

This concept is based on the physicists proposition that none equilibrium is the sources of new order and it suggests that organization that compete through innovation should foster non equilibrium.

Managed disequilibrium provides the desired creative environment. Such chaos is achieved by moving into an uncertain environment where markets fluctuate constantly and technology is always changing.