The numbers represent the respondents’ ranking, with company 1 being rated as the most effective in using technology as a competitive weapon. In companies 7, 8, and 9, the technical plan is presented after the business plan. Structural ties In the nine companies, the impact strategy has on the internal structure is clear. The orientation of top managers must change if the company is to continue with its new strategy most successfully. All rights reserved. This article surveys the major efforts to arrive at a relevant framework and … The company hires top technical people who now dominate all its top management positions; its founder is now chairman of the board. To keep its leadership in this field, the company undertakes projects that provide a continuous stream of information and experience in the handling of lithium catalysts. That weapon is an immensely valuable yet often underappreciated asset: data capital, specifically around consumer insights and demand forecasting. It is, nonetheless, a steady innovator and a firm supporter of R&D. The business managers are even expected to handle special projects by drawing on their line people. Books Advanced Search Today's Deals New Releases Amazon Charts Best Sellers & More The Globe & Mail Best Sellers New York Times Best Sellers Best Books of the Month Children's Books Textbooks Kindle Books Audible Audiobooks Livres en français Over the years it has steadily increased its investment in R&D at a rate more consistent than sales growth. WorldCat Home About WorldCat Help. In company 5, top management reviews the business plan two months before it reviews the technical plan. Our management resigns itself to a leap of faith uncharacteristic of how it manages its other vital assets.”. To be sure, this will not be an easy task. 2. 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. In company 3, although no formal planning system exists, who participates in the strategy development meetings is evidence that the business and technical plans mesh. While, the weapons are the half ones to reach the objective of, for example, productivity, quality in the process and domain of technology. This article explains that information databases are not only to be prized and jealously guarded, but that the Information Systems Technology (IST) that allows manipulation of information can be wielded as a formidable weapon in the marketplace. %PDF-1.2 %���� By Randy Littleson, Vice President of Marketing, KinaxisToday, the only constant is change. Likewise, most manufacturers employ production technology to increase quality and speed delivery as well as to cut costs. They use this feedback when they return to their laboratories. The Competitive Strategic Window helps the vendor define an alignment or fit between their capabilities and opportunities for future growth prospects. Protecting and establishing technological leadership is an important project selection criterion. The author of this article has studied nine companies that have R&D investments to see how those that use technology […]. Buy Banking Technology as a Competitive Weapon by James Essinger at Mighty Ape NZ. The technology asset is the second most important asset of IT use as a competitive weapon. Most of them have degrees in either science or engineering and a number have Ph.D.s, as well as experience in the technical organization of the company. The goal here is that no skin makes a weapon feel unfamiliar. In contrast, company 8, the large transportation equipment manufacturer, has drawn most of its top managers from the administrative side of the organization, usually from the financial divisions. While this system maximizes the exploitation of the R&D organization, it does not necessarily produce optimal overall results. There is evidence that companies can effectively move from one point along a continuum to another, as company 7 is doing. In my experience, however, companies that exploit technology well have three conditions in common: 1. Read Banking Technology as a Competitive Weapon book reviews & author details and more at Amazon.in. The giant oil company wrapped to increase their investment in R&D. Its investments in technology have remained volatile, even though its business has grown remarkably well. For example, employees in company 1 have to work with certain lithium catalysts to ensure its products’ good performance. 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. *FREE* shipping on qualifying offers. It has relied on a strong sales and service staff to support its market position. 0000002917 00000 n A company where scientists and engineers communicate only with other research organizations runs the risk of isolating its technical efforts from its business needs. Utilizing technology as a competitive weapon allows you to differentiate from your competitors in the marketplace. On the other hand, a company that encourages its scientists and engineers to be market oriented runs the risk of focusing on only short-term priorities and yesterday’s problems. How well a company satisfies these three conditions will determine where it falls on a continuum from those that rely heavily and effectively on technology as a competitive weapon to those that either do not rely on it or don’t do it successfully. The division’s market was more or less stable and the technology nearing full maturity. In all three companies it has become something of a joke when, time after time, top management finds that it is either too late in the day or too close to some important deadline for them to spend much time going over the technical plan. 0000001940 00000 n Next. All companies should not necessarily use technology more, or more effectively, as a part of their strategy. 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 fact, some companies in fields such as optics, integrated circuits, software development, and chemistry have been leaders in technology development when their competitors had invested much more in the development of new technology. However, if you’re just starting out in the game, you might be overwhelmed by the different types of characters available in the game. 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. A central R&D organization is struggling to forge a connection with the line organization. Create lists, bibliographies and reviews: or Search WorldCat. It shows operating consistency among the three conditions that reflects the high priority it attaches to technology as a competitive weapon. In companies 8 and 9, the chief technical officers report to a level below the president. Every two years, management reviews the budgets to ensure that dollars are well spent to maintain technological leadership. 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 running-out-of-time phenomenon clearly communicates to the rest of the company, especially the technical people, that management thinks little of technology’s contribution to the business. 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). The majority of top managers in the companies that rely heavily on technology have strong technical backgrounds. HTC next to accuse Samsung of using component supplies as a "competitive weapon" Apple isn’t the only company grappling with its relationship to Samsung as both a smartphone component supplier and handset competitor. Where such systems are not consistent, someone who acts as an integrator can be a help.5. 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. 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. 3. AbeBooks.com: Banking technology as a competitive weapon (9781853342448) by James Essinger and a great selection of similar New, Used and Collectible Books available now at great prices. He is now a member of Templeton College, Oxford. (The top managers are aware of this unstable situation and are working to change it.). While their strategies may be very different with respect to technology, each is effective in its particular markets and products. The product divisions control the technology and direct their attention toward solving customer problems. One member of the company’s planning staff describes it this way. But increasing R&D investments alone does not ensure that companies will successfully exploit technology as a competitive weapon. The business manager is responsible for developing the technology effort and effectively integrating it into his plan. Research. India, for example, offers multipliers of up to 3x for technology with unrestricted domestic production and export—valuable and necessary information for Western contractors that are looking to gain a competitive edge. Identify and rank the ways in which information technology might create competitive advantage. 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