How to grow an organization’s technological strategy. It characterizes an organi
ID: 350966 • Letter: H
Question
How to grow an organization’s technological strategy. It characterizes an organization’s learning framework in terms of three building blocks, technological capabilities, technology strategy, and experience. Technology strategy consists of a competitive strategy stance, a value chain stance, a resource commitment stance, and a management stance. There are forces that shape the evolution of technology strategy, which include the industry structure, internal organizational learning, and organizational structure. Capabilities drive strategy and strategy drives experience. In turn experience drives capabilities and strategy.
QUESTION
1.What are potential benefits of process and product development?
2.What is the difference between a firm’s core competence and the firm’s strategic capabilities?
3.How do capabilities encompass the entire value chain?
4.What are the four dimensions of technology strategy? State the characteristics of each dimension.
Explanation / Answer
1.What are potential benefits of process and product development?
Answer: Process Development: It refers to controlling the process KPIV (key process input variables) to generate required KPOV (Key process Output variables). The process development helps in obtaining a defect-free process and hence is producer friendly. The more efficient a process is, the better are the results produced.
Product Development: It is the process of improving the existing product or designing the new product by taking customer needs into consideration. The more conforming a product is towards the customer, the more is the purchases, repurchases, and loyalty of the customer in the longer run.
2.What is the difference between a firm’s core competence and the firm’s strategic capabilities?
Answer: Core competence: It refers to the inherent capability or strength of a firm which helps it to stand out from the crowd in the market. It is sometimes the sole reason for the firm’s existence and market share. For e.g. The core competence of Apple is product innovation.
Strategic Capabilities: It refers to the firm’s ability to utilize different competitive strategic steps in order to survive and boost its business value over a period of time. For e.g. the marketing campaign operated by different companies makes then attract new customers and gain more profits.
3. How do capabilities encompass the entire value chain?
Answer: Capabilities do transfer and travel across the entire value chain as a firm with high business capabilities can’t stay in isolation. It has to transact with other firms in order to create value and mutually beneficial transactions. For e.g. a company like Apple who is innovation rich will want all its suppliers to be at par with its capabilities. For that to happen, it will also try to strengthen them in different ways.
4. What are the four dimensions of technology strategy? State the characteristics of each dimension.
Answer: The four dimensions of technology strategy:
Competitive Strategy Stance: The firm should be technologically competitive in order to stay ahead and lead the market. In order to become attractive and stay in the mind of the customers, it has to continuously innovate and adapt to new environments.
Value chain stance: The firm has to create and share value for and with all other members in the market or at least all its stakeholders (both internal and external).
Resource commitment stance: The firm should be committed to the resources and its optimum utilization so that operational efficiency can be achieved and growth can be driven by the firm.
Management stance: The firm should be management sound and efficient in its working so that best utilization can happen. The firm should adopt the best policies and methods in order to create value for its stakeholders and should provide growth opportunities for all.
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