Technology Strategy for Small Businesses

A technology strategy is a plan comprising the principles, objectives, and tactics relating to technology that an organization uses to achieve its objectives. These strategies center on technologies and the personnel managing these technologies.

For the most part, small and medium-sized companies tend to use technology with no clear long-term goals. In some cases, they may not have a overall strategic plan, let alone a technology plan. Some wait for other companies to incorporate new technologies and see if such advances might work for them. Instead, they should focus on their objectives and find out which technologies can help to achieve them.

Still, small and medium-sized enterprises have limited resources. Hence, they should acquire only those technologies that fit their business models. An effective technology strategy can help to identify such technologies.

Information technology (IT) has many benefits to organizations, including data sharing, electronic data management, better collaboration, and reduced expenses through task automation. However, it has challenges such as security risks, increased costs, potential delays, and delivering the anticipated value.

Technology strategy, also known as information technology strategy or IT strategy, helps to avoid these challenges. It is a continuous process that involves specific steps.

The first step is to assess a company’s long-term strategy. Company executives should look at what's happening outside their business environment. The aim is to identify forces that will affect a business in the future and how these executives can use technology to address any challenges. A company may, for instance, look into ways to reduce costs and maintain employees despite economic challenges. Accordingly, an IT plan in such a scenario may employ technology advances such as remote access and website improvements to maintain efficiency and improve profitability.

After assessing the environment and how to use technology to address specific concerns, the next step is to work with vendors and educate executives and employees on how to use these advances. This also involves specifically identifying the technologies that fit a certain business profile. When choosing a vendor for technology products, a company should consider the vendor’s track record, research and development, profitability, and customer reviews. These markers will help in choosing vendors whose products will have a positive return on investment.

Next, an organization needs to formulate a realistic implementation plan. Since small and medium-sized companies have limited resources, they need to use them efficiently to realize their IT goals. A common mistake with some businesses is taking large steps initially, which can overwhelm an organization. Instead, they should take small steps and monitor their successes along the way. While making the decision, a company should review the costs of purchase, training, and support, as well as the contract terms.

Implementing a new technology strategy may be met by employees who are not ready to embrace change. Therefore, after formulating an implementation plan, a company’s management should identify team champions who can implement the new initiative with the least resistance. The management should empower such personnel by tasking them with visualizing and internalizing the changes required, and developing the required training to make them happen.

The last step involves communicating with customers regarding technological applications that save time and money. By informing customers about the new technology and changes, trust is built. Indeed, it helps to create transparency and shows clients that the business is thinking about the future. It also makes them feel like part of the business. Such communication may involve seminars and video conferences.