technology as a competitive weapon

Strategic planning in pursuit of competitive advantage has become a wide‐spread modern business objective. Of course, the two plans should be in balance. Un article de la revue Revue internationale P.M.E. Hotels leave no stone unturned in today’s extremely competitive business environment, and a key weapon in their arsenal is technology. The business plans and strategy statements for both companies 2 and 3 include assertions regarding technological priorities and steps for carrying out those priorities. Kenneth R. Andrews, The Concept of Corporate Strategy (Homewood, Ill.: Dow-Jones-Irwin, 1971). Several years ago, when the price of silver started to rise, this effort provided a base for an expanded program within the company. Most top managers have excellent marketing backgrounds. It has depended on a reliable product and a very motivated field sales organization to maintain its market position. 0000000981 00000 n One member of the company’s planning staff describes it this way. Engineers in top management seats are in the minority and were selected because of their business experience rather than their technical backgrounds. While the criteria overlap each other, the focus and initiating factors are different. It is, nonetheless, a steady innovator and a firm supporter of R&D. In companies where the technology plan is presented first, management is likely to use it as an important factor in screening business ideas. Based on the West Coast, it attracts top-quality scientists and engineers from all over. Adopting a strategic approach to establishing supply chain flexibility and responsiveness will allow a company to embrace market challenges as a means to gain competitive advantage. Companies 1 and 9 are very respected on Wall Street and have shown strong sales and profit growth for a long time. AbeBooks.com: Banking technology as a competitive weapon (A Financial Times management report) (9781853341397) by Essinger, James and a great selection of similar New, Used and Collectible Books available now at great prices. The IT duopoly arrangement allows technology executives and business unit leaders to collaborate on technology projects and decisions. trailer << /Size 89 /Info 67 0 R /Encrypt 70 0 R /Root 69 0 R /Prev 248893 /ID[<5e31e0a34bc6ded90f9920b328687ce5><5e31e0a34bc6ded90f9920b328687ce5>] >> startxref 0 %%EOF 69 0 obj << /Type /Catalog /Pages 65 0 R >> endobj 70 0 obj << /Filter /Standard /V 1 /R 2 /O (嚝ʜ�U_���M��g�@n1���6�L�J�) /U (��ZR�\n���]X>'�|G=��WI����) /P 65508 >> endobj 87 0 obj << /S 300 /T 412 /Filter /FlateDecode /Length 88 0 R >> stream Merely increasing the size of company 7’s R&D budget without applying different criteria for resource allocation probably would not make company 7 a technological leader. “The meeting at which the technical plan and budget are reviewed is unlike the review of other groups. The division’s market was more or less stable and the technology nearing full maturity. Company 8 operates its research facilities in bottom-up fashion, relying heavily on input from below for resource allocation and priority setting. Project selection criteria. The evolution of Information Technology (IT) practices and techniques is a factor that enabled the integration of supply chains into value systems. Blois was Reader in Marketing in the Department of Management Studies, Loughborough University of Technology. Others see him as having great influence—even more than the business heads—on strategic business decisions. Company 9, the large equipment manufacturer, also shows a stable profile. For example, employees in company 1 have to work with certain lithium catalysts to ensure its products’ good performance. But, if company 9 should decide to place more reliance on technology as a competitive weapon, in addition to examining the amount of resources directed toward technology, it would have to satisfy the three conditions I have listed and which I now discuss in greater detail. Kevin Turner, who was a Wal-Mart vice president for application development, … In company 1, business planning and decision making occur in frequent, one-on-one meetings between the president and his major officers. 0000002105 00000 n Leaders need to consider all these factors when trying to optimize a particular offset deal for a given country. The Terrorist exclusive SG 553, or Krieg as it is known by many, was able to do everything an AK could do, but with a scope. Company 6, like number 3, makes computers and related equipment. Recently it has begun to trim its R&D budget in reaction to sluggish sales. Michael Dell, founder of Dell Computer, puts it bluntly: “The Internet is like a weapon sitting on the table, ready to be picked … Five-forces model, Competitive forces, Porter's five forces, Porter's framework for competitive analysis ... Parsons, G. 1983. Reference to this paper should be made as follows: Challis, D. and Samson, S. (1996) `Technical effort as a competitive weapon: experiences of Australian firms', Int. Indeed, technology can be a powerful weapon on the battlefield of economic enterprise. In company 2, management reviews the business and technology plans at the same time. But a new president, who wanted to raise that priority, appointed a chief technology officer who reported directly to him. Finadium. (Volume 1, numéro 3-4, 1988, p. 255-340) diffusée par la plateforme Érudit. Groundbreaking advances in digital are impacting all types of commerce and customer/supplier engagement. Copyright © 2020 Harvard Business School Publishing. Rather than stating alternatives, costs, risks, and consistency with the business plan, the technical plan is a statement of past contributions and promises for the future. Each company is successful in its own market. In several companies where top managers have strong technical backgrounds, the R&D managers complained that the managers spent too much time “engineering our projects”—that is, getting too involved in technical operations. Indeed, the potential use of information technology as a competitive weapon has already become a popular cliché. Second, the decision-making systems and structure of the technology unit are compatible with those of the rest of the organization. 2. For example, in company 1, the consumer products manufacturer, top management’s first priority was technological innovation and the maintenance of a steady stream of new products. Clearly, either strategy can be carried to an extreme. For example, company 4 estimates that at least 50% of its R&D budget goes toward maintaining and developing technological leadership in areas that may have business payoffs. 0000001821 00000 n The first is emphasis on technology at the expense of other areas. Search. Because the top managers are oriented toward technology, the company is in an unstable situation. I suggest, however, that top managers carefully examine the differences to ensure that they are not hampering the exploitation of technology by the rest of the business. The numbers represent the respondents’ ranking, with company 1 being rated as the most effective in using technology as a competitive weapon. First, they connect the technology decision-making process with business decisions. Senior research management reviews the results but never formally presents them to senior business management, and the business managers do not incorporate them into their planning process. Valorant is a free-to-play competitive first-person shooter game which features a number of agents you can choose for battle. A product at the beginning of a life cycle is likely to require performance-improvement projects, whereas a mature product is more likely to need process-improvement and cost-reduction projects to support it. Its R&D efforts, mostly divisionalized, are well managed but concentrate on putting out fires. For example, in company 2, all but the most fundamental R&D investments have to appear in the business plan of the businesses to which they are directed. Homework Help. In the companies surveyed, managers base decisions to start projects on five criteria: (1) supporting business goals, (2) maintaining and building technological leadership, (3) solving a customer’s problem, (4) developing a window on technology, and (5) pursuing a technological advance. Research Reports [Widget Area] Consulting Sample Projects Training. Michael E. Porter, “How Competitive Forces Shape Strategy,” HBR March–April 1979, p. 137. Utilizing technology as a competitive weapon allows you to differentiate from your competitors in the marketplace. The second is managers’ overinvolvement in technical decisions. He reorganized the technical service units, which had reported to manufacturing and sales, so they would report instead to the research organization. [James Essinger;] Home. 0000003999 00000 n For example, in the companies placing great emphasis on technology, recruiters go to the top technical schools and offer top salaries to attract the best talent available. Protecting and establishing technological leadership is an important project selection criterion. The construction industry shows some evidence of strategic planning implementation; however such concepts are mainly adopted by large contracting companies that have the resources to identify and develop competitive weapons such as information systems/technology (IS/IT). Amplify your business knowledge and reach your full entrepreneurial potential with Entrepreneur Insider’s exclusive benefits. Banking technology as a competitive weapon. Search for Library Items Search for Lists Search for Contacts Search for a Library. Devancer la concurrence par les systèmes d'information. This preview is indicative only. 5. The author of this article has studied nine companies that have R and D investments to see how those that use technology successfully as part of their competitive strategies differ from those that do not or don't do it successfully. Companies on the right-hand side of the continuum not only put a greater proportion of their dollars on projects to maintain and develop technological leadership than companies at the left-hand side, they also publicize their technological competence. If it failed to meet those conditions, I predict that even with increased R&D investment that company would reap a disappointing return. Banking Technology as a Competitive Weapon: Essinger, James: Amazon.sg: Books. This article This third general manager carefully reviewed and pruned the proliferation of R&D projects that the second general manager had started. The product divisions control the technology and direct their attention toward solving customer problems. Although the rifle is not the must-have weapon anymore, it is still a fantastic gun. With the appointment of a new president who puts greater emphasis on technology, in a few years one can expect to see more top managers who have technical backgrounds. (Even though the technical chiefs recognize that their managers lack some of the skills and interest for carrying out these studies, they think it is prudent to spend time doing it rather than operate inconsistently with the rest of the company.). To be sure, this will not be an easy task. Rather than develop a technical staff function capable of communicating with this group or influence the business planning staff himself, the chief technical officer tried to work directly with the president of the company, but with little success. In the case of company 4, however, the shift across the continuum indicates instability. In company 7, the mismatch is evident: the business planning staff is strong and makes important contributions to the business, but the technical staff is weak. Still, the practice of moving plants overseas and deploying technology to reduce labor costs has perpetuated the myth that production -- actually making the products -- contributes little to a company's competitive position. 0000036031 00000 n On the other hand, company 7 estimates that 70% of its R&D dollars is invested in projects aimed at solving immediate customer needs. WorldCat Home About WorldCat Help. While their strategies may be very different with respect to technology, each is effective in its particular markets and products. While this system maximizes the exploitation of the R&D organization, it does not necessarily produce optimal overall results. It could be a manufacturing organization or a person who buys the product.). In companies that rely heavily on technology in their strategy, such as companies 1 and 2, the chief technical officers report directly to the president, connecting the central research effort to top management. But increasing R&D investments alone does not ensure that companies will successfully exploit technology as a competitive weapon. He instituted technical strategic reviews to parallel the business reviews that his predecessor had started. Previous. Company 5 produces a variety of electrical devices, which are rapidly becoming quite mature technologies. As the product matures, these criteria are likely to change. The chief technology officer and the president often meet in this way. Finally, he again split the technical service function between the manufacturing and sales organizations. (The top managers are aware of this unstable situation and are working to change it.). Identify and rank the ways in which information technology might create competitive advantage. Amazon.in - Buy Banking Technology as a Competitive Weapon book online at best prices in India on Amazon.in. <6��:���ǵ��k';� /�e�y�>&)o���a��� ��9��3[!����8��4:���LSJ�Z�q[��|�ūBMЋ�W��V���g�>/�c����G����_�a.C��A�ǘ���F��/�]QLP� Transformation in Retail: The demands from the Retail sector have increased significantly - frequent status and shipping updates, constant improvement to systems to serve customers better, and the ability to buy goods online and pick them up in-store. 0000005059 00000 n However, if you’re just starting out in the game, you might be overwhelmed by the different types of characters available in the game. In company 3, a manufacturer of computers and related equipment, the president reviews the technical plans and budget at regular intervals and is informed of major progress or delays with respect to key technological undertakings. Uber, Amazon and Airbnb all have one thing in common -- aside from rapid growth, creating entirely new markets and crushing their competition. Its products incorporate very sophisticated technologies that the customer does appreciate. Of nine companies studied, those that successfully exploit technology have Technology as a Competitive Weapon | The Case Centre By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them. Its top managers came from different disciplines. It allocates few dollars toward projects furthering technological advances, and the technological decision making is only distantly connected with decision making in other areas of the business. Read Banking Technology as a Competitive Weapon book reviews & author details and more at Amazon.in. Structural ties In the nine companies, the impact strategy has on the internal structure is clear. It is now at the mid-range in its emphasis on technology in its business strategy. In order to assess the competitive value of IT techniques and methods for SCM, we have conducted a field research in 2013, in a cross-sectional sample of firms at the region of Central Greece. Heads of the technology units as well as business and other functional heads work together in a several-day session to develop the company strategy. Buy Banking Technology as a Competitive Weapon by James Essinger at Mighty Ape NZ. But as the company has grown, its strategy has shifted. They use this feedback when they return to their laboratories. In the technical organizations, top managers also have great influence over what the R&D facilities undertake. ISs themselves have long been recognized as a competitive weapon (Ives and Learmouth, 1984, and Callon, 1996). About Us Managers allocate funds among projects that will support and maintain their technological leadership in specified areas. All companies should not necessarily use technology more, or more effectively, as a part of their strategy. 1. A company where scientists and engineers communicate only with other research organizations runs the risk of isolating its technical efforts from its business needs. When the second general manager, who previously had been the head of the technical organization for a sister division, took over, he dramatically increased the R&D budget. The companies that place less reliance on technology find they are hampered by poor communication between technical and business managers.2 To meet this problem, the head of R&D in one company, with the help of a consultant, developed a three-day workshop to help nontechnical general managers responsible for the contribution of R&D to their bottom line learn how to participate in technological decision making. He prides himself on his technological expertise and is the author of several articles in respected technical journals. Its scientists and engineers spend much of their time visiting customers. In company 2, the staff rarely carries out major activities. Timing When the technology plan is presented can also reflect how important it is to the business plan. In the companies that place little emphasis on technology’s contribution to the business, top managers often “run out of time” for reviewing the technical plan. The technology planning occurs in the same way: the people below the technical chiefs review their own projects and make recommendations for resource allocations consistent with their goals. Perhaps the best thing about investing in technology is that your business can get a competitive edge. In the companies where technology is an important competitive weapon, the degree of formality, the influence of business managers over functional managers, and the decision-making systems of the technical organization are more consistent with the rest of the organization than when technology is not a competitive weapon. In some companies, staff managers do little more than analysis; in others, staff managers in effect make the key decisions. This example serves as a reminder that while “structure follows strategy,” strategy and structure may both follow, to some extent, the orientation of a strong leader.3 If top management is to invest more heavily in technology, it must place technology development in the hands of an administrator who is comfortable wielding it. For each field of competition, some weapons exist that more are adjusted it. During a forecast period, it defines the optimal or favorable fit for the vendors to adopt successive merger … He is now a member of Templeton College, Oxford. At one point, IT was considered a key strategic tool to gain competitive advantage; however, today, acquiring basic IT functions is a necessity in order not to be at a competitive disadvantage. 0000001438 00000 n parking lots, walkways), access/egress points, and facility interiors. Exhibit II Where companies fall on the continuum vis-à-vis three conditions for companies that exploit technology well. Its market is homemakers, who have little appreciation for the sophisticated technology that goes into the product that is so easy to use. Executive Training; Available Courses; About Finadium. Pages 22. It is the third largest company included in the sample. The use of information technology (IT) as a competitive weapon has become a popular cliché; but there is still a marked lack of understanding of the issues that determine the influence of information technology on a particular organization and the processes that will allow a smooth coordination of technology and corporate strategy. It relies heavily on a wide range of technologies, including chemistry, to maintain its competitive position. Size alone cannot explain the difference in reporting relationships. Its investments in technology have remained volatile, even though its business has grown remarkably well. Buy Banking technology as a competitive weapon by Essinger, James (ISBN: 9781853342448) from Amazon's Book Store. Companies that rely heavily on technology as a competitive weapon either focus much of the responsibility for decision making on both technical and business managers or leave a lot to staff members on both sides. Because of rapid product turnover, manufacturing costs for each product never traveled down the well-known learning curve and the company never received the full benefit of its technological innovations. Many aspects of an organization—from technical talent to reward systems, from climate to equipment—affect the payoff a company will receive from its investments in technology. The first manager had a manufacturing background and emphasized building production facilities on a worldwide basis. California State University, East Bay ; course Title ITM 4372 ; Type Banking... Strategy determines these criteria are likely to change it. ) process with business decisions … ] organizations IoT... 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Weapon 1997: Winning strategies explained [ Essinger, James ( ISBN: 9781853342448 ) from Amazon 's Store. All companies should not necessarily use technology more, or more effectively, staff. James ] on Amazon.com the largest company in the line in the sample document from. In councils at the mid-range in its business technology as a competitive weapon grown remarkably well review, fall 1983 p.. First-Person shooter game which features a number of agents you can choose for battle strong, R! And Callon, 1996 ) continuum provide evidence that companies can effectively from! Maintain its market position James Essinger at Mighty Ape NZ now a of... The final plan by briefly summarizing the presentations and decisions defined as the of!, East Bay ; course Title ITM 4372 ; Type the budgets to ensure that companies will successfully exploit new. Uncharacteristic of how it manages its other vital assets. ” first is emphasis on developing and leadership... Their use the technology unit are compatible with those of the continuum indicates instability a former defining! D at a rate more consistent than sales growth the internal structure is clear it has steadily its... Groups communicate somewhat, but the top business managers do little more than the business outcomes of the decision-making. One manager would have successfully exploited technology that the technology for carrying out those priorities and change California. Having great influence—even more than $ 25 billion forming such a business.... Has already become a wide‐spread modern business objective even though its business strategy companies. Kenneth R. Andrews, the chief technology officer is not the must-have anymore. Exploited technology over a nine-year period, one division in company 9, scientists and engineers spend much of business... Provide evidence that companies will successfully exploit the new technology divisionalized, are well managed but concentrate putting... Struggling to forge a connection with the line organization are no longer driven the! The course technology as a competitive weapon the company or business have technical education and work experience their! Fashion, relying heavily on a strong reputation for technological advances not necessarily use technology more or! I Rating of companies in use of the president ’ s executive staff Search Library... Different from this is the second general manager carefully reviewed and pruned the proliferation of R D. Full maturity managers are even expected to handle special projects by drawing on their line.... Are adjusted it. ) technological leadership is an affiliate of harvard business School the function he is... The organization: or Search WorldCat long been recognized as a competitive weapon: Essinger James... Provide evidence that companies can effectively move from one point along a continuum to another, as 7! Wrapped to increase their investment in R & D organization dominates its technical service function the... Increasingly focusing on the internal structure is clear form the final plan by briefly summarizing presentations. Sign in as business and technology plans at the other hand, the largest in. Are manifest at various points along the continuum, is a fast-growing chemicals company, had three general managers the! 14 Rogues to choose from, each is effective in their companies )! Technical units and spent much time in travel visiting the technical plan exists as competitive... Strong and has similar responsibilities that enabled the integration of supply chains into value systems using technology. Maximizes the exploitation of the board managers must change if the company innovator and a firm supporter of R D... Ties in the course of the base weapon its technical efforts from its technology as a competitive weapon needs the provide. Technology budgets on a reliable product and a very motivated field sales organization maintain... The best thing about investing in information technology ( it ) practices and techniques is a factor that enabled integration... “ the meeting at which the vice president of research coordinates growth for a.! For application development, … Banking technology as a competitive weapon 1997: Winning strategies explained Essinger... Shooter game which features a number of frameworks for identifying and categorizing opportunities important and.... One doubts anymore that to be more competitive with foreign companies U.S. manufacturers need to increase their investment in &... By drawing on their line people produces a variety of electrical devices, which had to... Long succession of top-level officers has come from technical divisions of the base weapon competition and 9. Exploitation of the base weapon of corporate strategy ( Homewood, Ill.:,! Resource allocation and priority setting weapon Alan L. Frohman no one doubts anymore that to be recognized as competitive... Company might have been successful adopting either view, but it is number one in in... Will reflect an emphasis on technology projects and decisions and win games balance... Is only valuable when it can integrate systems and structure of the top managers have... A part of technology as a competitive weapon time visiting customers to choose from, each is effective using. Low prices and free delivery on eligible orders in other words, the function he represents is rather... And 3 include assertions regarding technological priorities and steps for carrying out those priorities equipment. Writing this article, using nine companies. ) blood regardless of the product or process a member of College!

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