A framework for developing a strategy for a small information technology company.

Abstract

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.