TECHNOLOGY STRATEGY

TECHNOLOGY STRATEGY:
The strategy actually implies long-term, purposeful and interconnected efforts, while tactics implies action to deal with immediate specific problems. (Strategy is an antonym of tactics). Technology strategy is defined as a strategy to deal with the technology and related issues at macro and micro levels, with respect to set objectives.
MACRO LEVEL STRATEGY:
At macro level, each country outlines and adopts a technology strategy to achieve its political, economic, and social objectives and translated the same into action through appropriate policies and mechanisms.
For example, US may adopt of excel in “defense” or “warfare technologies” or in generation of first stage new technologies for knowledge-based industries, while Japan may excel in technologies for consumer products of newer designs at lower costs. Korea may decide to adopt and upgrade imported technologies using mass production techniques for consumer products without really caring much for aesthetic or high quality levels, and without bothering for defense or other strategic applications. On the other hand, India may decide to develop its own capabilities in strategic areas such as defense, atomic energy and space where technologies are usually closely guarded or for maximum utilization of its own resources. It may thus train S&T manpower, generate employment, promote rural development, and check population. Thus, technology strategies may vary with the national perspectives, and accordingly policies and mechanisms are evolved and implements. Financial resources play and important role in evolving the technology strategies. Depending on the resources available and the will of the government, the policies are evolved, mechanisms are set up and measures are taken to ensure the achievement of the set objectives.

MICRO LEVEL STRATEGY:
The industrial and organizational turbulence engendered by technological change and increasing international competitive pressures provide threats and opportunities for firms. An effective strategic approach to technology allows firms to cope better with these changes, and reduces the threats and insecurities facing them and their employees. In particular, technology strategy must anticipate the transient impact of technological innovation on the future competencies of the corporation. An appropriate level of formal planning provides systematic and documented strategy. The inputs to the process occur through participation of staff and line management and of special planning groups. Technology scenarios should help management focus on the interaction of changes between technology and change in markets, resources, regulation and competition.

IMPORTANCE OF TECHNOLOGY STRATEGY:
There are five issues which bear on the importance of corporate strategy for technology:
i) The need to cope with technology uncertainty.
ii) Complexity and discontinuous nature of technological development.
iii) The need for technology to be viewed in a global context.
iv) The need to attain complementarities, and
v) The relationship between corporate strategy technology and public technology policies.



LINKING BUSINESS AND TECHNOLOGY STRATEGY:

i) In what business should the firm engage in future?
ii) How should the firm be positioned in these businesses?
iii) What research, production and marketing will be necessary to attain those positions?

FORMULATING A TECHNOLOGY STRATEGY:

1. Identify all the distinct technologies and sub-technologies in the value chain.
2. Identify potentialy6 relevant technologies in other industries or those under scientific development.
3. Determine the likely path of change o f key technologies.
4. Determine which technologies and potential technological changes are most significant for competitive advantage and industry structure.
5. Assess a firm’s relative capabilities in important technologies and the cost of making improvements.
6. Select a technology strategy, encompassing all important technologies, that reinforces the firm’s overall completive strategy.
7. Reinforce business unit technology strategy at the corporate level.