A framework for developing a strategy for a small information technology company.
Much has been documented about the importance of effective strategic planning as a basis for an organisation to gain a sustainable competitive advantage. Inadequate strategic planning is also widely recognised to be one of the major factors that contribute to the failure of most small organisations. At the same time, developing a strategy for an information technology organisation is increasingly becoming a complex exercise, considering the rate at which the field is growing and the need for organisations in this field to respond quickly to changing market demands. For large organisations, it may be a matter of ensuring that existing, tried and tested strategies are frequently updated. For small organisations on the other hand, this may be a nightmare of an exercise. In this research, the author explores a number of strategic planning approaches with the aim of identifying elements in them that could assist the strategy development process of a small information technology company. After a detailed analysis of conventional approaches to strategic management, it suggests a framework which uses the Core Competence Approach to strategy development as a basis. It is supplemented by selected techniques of Strategic Choice as a toolset for systematic decision-making within the strategy development process of a small information technology company. Also included, is a case study on the application and evaluation of the suggested framework for an initial strategy-development process at a typical small information technology company.