Developing A Winning Technology Strategy

In today’s business environment, a successful technology strategy must do three things: 1) Continuously align with the business; 2) build trust on a foundation of security, privacy, and resilience; and 3) empower the business to readily adapt to changing market conditions and customer demand. Forrester’s high-performance IT strategy has been built on these three guiding principles of alignment, trust, and adaptivity.

Following are some details on the value of each principle and guidance on how to build them into your technology strategy.

1. Alignment. Alignment ensures that technology delivers business outcomes. Businesses today operate in an environment characterized by constant change — be it market dynamics, regulatory shifts, or competitive pressures. If a technology strategy is not aligned with business goals, it risks becoming obsolete quickly, leading to misallocated resources and missed opportunities. Also, today’s digital business models rely heavily on technology integration to drive innovation, efficiency, and customer engagement.Emerging technologies such as AI, the internet of things (IoT), and blockchain are potent drivers of innovation, capable of unlocking novel business models and revenue streams. Without alignment, a technology strategy and its initiatives can fail to deliver the value expected or required by the business, resulting in suboptimal outcomes. By aligning IT efforts and business priorities, organizations ensure that critical projects receive the necessary attention and resources. They also improve their relationships with business partners — an important foundation for building trust.
2. Adaptivity. Adaptivity speeds response to opportunity or threat. Technologies such as AI, machine learning, blockchain, and IoT are rapidly evolving, offering new opportunities but also presenting new challenges. An adaptive IT strategy allows organizations to exploit these technologies quickly and effectively. Whether due to economic shifts, global pandemics, or competitive disruptions, the business landscape can change unexpectedly.Adaptivity also helps IT pivot proactively to address these changes, minimizing downtime and maximizing resilience. Finally, an environment of adaptivity encourages ongoing learning and innovation within the IT organization. This continuous improvement mindset evolves the IT strategy in line with both technology trends and business needs, keeping the organization ahead of the curve.
3. Trust. A successful technology strategy develops trust and confidence in IT’s role. When business leaders trust the IT organization’s strategy, it creates a collaborative environment where IT is seen as a strategic partner rather than just a service provider. This leads to better cooperation, quicker decision-making, and more effective execution of initiatives. Stakeholders are also more likely to support and back IT-led initiatives, even in situations requiring immediate responses or significant change. But trust takes work and commitment.Trust is built through consistent, reliable performance. An IT strategy that delivers predictable and repeatable results strengthens the credibility of the IT organization and builds confidence among stakeholders. Finally, transparent communication about IT strategy intentions, progress, and outcomes helps in managing expectations and reinforces the trust of the business leaders. This openness is key in building a trusting relationship.

With these guiding principles in place, the next step is to begin building out a more concrete plan, including a technology strategy on a page. Forrester recommends four steps that will help you develop a strategy that will align with the overall business priorities.

Step 1: Engage stakeholders to secure buy-in. To ensure that the technology strategy you develop is embraced and supported across the organization, you need to get stakeholders in at the ground floor. That means identifying stakeholders, gathering their expectations and concerns, and engaging key executives.

Step 2: Assess your IT organization’s current state. Developing a successful technology strategy requires a thorough understanding of the current business strategy and technological landscape. At this stage, you can conduct a SWOT analysis to evaluate your organization’s technological capabilities against industry benchmarks and identify gaps and areas for improvement in the new tech strategy.

Step 3: Run an immersive IT strategy workshop to drive alignment. With stakeholders identified, workshops foster the cocreation of the vision and objectives of the technology strategy. These collaborative efforts lead to a strategy that reflects a shared vision and collective insights.

Step 4: Finalize and communicate your strategy. By this point, you should be able to create a concise “technology strategy on a page” document to be shared across the IT team and broader organization. Maintain ongoing engagement and feedback to continuously refine and adapt the strategy, keeping it aligned with business objectives.

In a continually changing business environment, tech execs must evolve, continually breaking away from old norms that limit their technology organizations from achieving high performance. The most successful technology teams will adopt an end-to-end shift toward emphasizing customer and business value, strategy-driven governance, shared accountability, clear communication, and smart spending. This fresh high-performance-IT approach allows businesses to thrive, seamlessly aligning technology strategy with the overall organization’s strategic business objectives, constantly driving business value through tech.

To achieve this alignment, it is crucial for technology leaders to have a deep understanding of the business strategy and ensure that the technology strategy be developed with a forward-thinking mindset, anticipating future needs and opportunities. By staying ahead of the curve and embracing new and emerging technologies, businesses can position themselves as industry leaders and gain a competitive edge.

Building trust is equally paramount in executing a successful technology strategy. Organizations should foster a collaborative environment where technology is seen as a strategic partner rather than a mere service provider. This trust is cultivated by consistently delivering reliable performance and maintaining transparent communication about the intentions, progress, and impact of the technology strategy. Engaging stakeholders throughout the process encourages a sense of ownership and promotes a shared vision of success.

A well-crafted technology strategy is essential for businesses aiming to thrive in today’s dynamic business landscape. By aligning the IT strategy with overall business goals, fostering trust and collaboration, embracing forward-thinking qualities and innovation, investing in research and development, and prioritizing cybersecurity, organizations can position themselves for success. With a proactive and strategic approach to technology, businesses can leverage transformative power to drive growth, enhance operational efficiency, and meet the evolving needs of customers.

Technology leaders today are under more pressure to develop a technology strategy that delivers business value and exponential growth. Your next step to developing a winning strategy is closer than you might think. Whether you have a strategy that needs an overhaul or you’re starting from scratch, Forrester can help.

Forrester Decisions for Technology Executives helps leaders develop a high-performance IT strategy that aligns to the business, creates trust, and adapts quickly. Forrester provides a bold technology vision for the future as well as the frameworks, blueprints, and guidance needed to build a forward-looking technology strategy.