Also included is a case study on the application and evaluation of the proposed framework for an initial strategy development process at a typical small information technology company. C - Example of Interrelated Decision Area Analysis (AIDA) Method D - Example of the Comparative Advantage Judging Scale.
INTRODUCTION
- The Background to the Research Problem
- Goals of the Research
- Scope and Delimitations of the Research
- Research Methodology
- Significance of the Research
- Overview of the Structure of the Dissertation
The main objective of the research is to develop a framework for strategy development for a small information technology (IT) company. The second chapter is an analysis of the IT environment in which Southern Focus operates.
THE SMALL INFORMATION TECHNOLOGY COMPANy
Overview of the Strategic Management Process in Small to
The formulation of the strategy must therefore follow the life cycle determined by the growth stages of the small to medium-sized enterprise. This brief overview of the strategic management process illustrates the importance of strategy formulation to the success of SMEs.
Defining a Small Business and its Characteristics
Another unique characteristic of a small business that must be considered in strategy development is its ability to respond quickly to a changing work environment. Accordingly, a typical strategy-building framework should be equally relevant in the context of a small organization.
General Characteristics of the Information Technology (IT) Sector
These are the questions that our desired strategic framework must answer, and they will form the basis for ensuring that the framework used for a small IT company addresses, among other things, key issues related to vulnerability and capability of the company to respond to changes. market requirements. The next section contextualizes some of the challenges that small IT companies face, turning attention to a typical small IT company, Southern Focus, through an assessment of its innovation capabilities.
Assessment of Southern Focus's Innovation Capabilities
The focus areas of this business unit are the development and implementation of the IT strategy and the outsourcing strategy. Management capacity at business unit level to assess the coherence of entrepreneurial initiatives with core capabilities:
INVESTIGATION INTO CURRENT RESEARCH ON
Managing Stakeholders within the Strategy Development Process. 37
- The Prescriptive Strategic Process
- The Emergent Strategic Process
If the process is consultative (C-type), some stakeholders will be consulted in some way, but the decision remains that of the person(s) responsible for the problem. In the context of this dissertation, this model is useful for the implementation phase of the strategy development process. As shown in Figure 3.4, this approach emphasizes the cyclical nature of the strategic management process.
It also highlights some important considerations within the various elements of the strategic management process. There is also consensus among the views on the cyclical nature of the strategic management process.
Potential Contribution of Systems Thinking to the Strategic
Implementation of the intervention using the chosen methodology that itself provides feedback on the creativity phase. The next section examines the contribution of the Strategic Choice Approach to the overall strategy development process. One of the reasons is the recognition of the need to manage uncertainties that often accompany a complex decision-making process.
The origins of the Strategic Choice Approach are in the areas of operations research, mathematics, social science, philosophy and management. Therefore, as one goes through the process of developing a strategy, regardless of the strategic planning model, the decision-making process can further apply the Strategic Choice framework and techniques to improve this process.
The Core Competence Approach to Strategy Development
The core competencies approach to strategy formulation was developed by Prahalad and Hamel (1990:80), who define core competencies that should be. The Core Competency approach to strategy development requires management's ability to challenge existing business and industry models by allowing for diversity of opinion and perspective, a willingness to suspend judgment, and openness to new ideas. For a successful implementation of the Core Competency Approach to strategy formulation, Clark presents a process model that identifies four categories of key factors that can influence the implementation of the core competency strategy creation process.
The strategy process refers to the need to develop in-depth knowledge and understanding of the specific content of the Core Competence Approach. The Core Competence Approach is of the view that the strategy making process is an innovative and a discovery process.
Conclusion
This approach is more suitable for the type of organization around which this thesis seeks to build the strategy framework. It anticipates change and encourages innovation, which are characteristics of a successful small business in the IT industry. On the other hand, in dynamic environments such as the IT industry, it is necessary to use cyclical approaches to quickly adjust the strategy in response to changing environments.
Most of the approaches explored have been found sufficient as guidelines for the strategic planning process, but lack methods and techniques to deal with the context of a small company in the IT industry. Although the importance of thinking through choices at each decision point during the strategy formulation process should be emphasized, for the purpose of this dissertation, we apply some of the techniques of Strategic Choice at selected points using the core competency approach as a framework. for strategy development to demonstrate the value of these techniques in the decision-making process of a small IT company.
FRAMEWORK FOR STRATEGY DEVELOPMENT FOR A SMALL
The Important Principles of the Suggested Strategy Development
P1 The framework must be guided by an approach that emphasizes the central elements of the strategic planning process. P4 The framework must allow for recognition of the strategy's effect on all stakeholders and incorporate plans for managing such effects. And finally, during the strategic architecture phase of the strategy development process, it allows the members involved to apply their minds to these building blocks for a path toward achieving the strategic intent.
Overall, the Core Competence Approach provides a solid framework to enable those involved in the strategy development process to focus on key strategic issues that require a shared vision of the future of the business. For the purposes of this thesis, only certain techniques of the Strategic Choice Approach are considered of interest.
The Suggested Framework for Strategy Development in a Small
At this point, the strategy development team begins to explore the various choices they have in each of the areas in their chosen problem focus. At this point, the strategy development team developed and aligned the elements of the company's strategic intent. The strategy development team's next task is to develop a shared vision for the future of the industry.
Finally, the commitment package is put together as a method to capture the team's decisions and approaches at all stages of the strategy development process. On the other hand, the definition of the strategic architecture component of the Core Competency Approach focuses on achieving consensus among the strategy development team on the desired roadmap to achieving the identified strategic intent.
Justification of the Framework: Its Validation and Legitimatisation
The Strategic Choice decision graph technique was used to map the group's reflections on the company's strategic intentions. Nothing else should play a role in the company's final statement of strategic intent. Decision areas are abbreviated at the top of the table using labels defined earlier in the process.
The aim of the group was to arrive at a vision of the future within the chosen problem focus. The decision areas are abbreviated at the top of the table, using labels defined earlier in the process. For the first time, they felt that the company's success depended on their shared view of the problems.
To what extent do you feel personally responsible for the group's results from the strategy development process?
A CASE STUDY ON THE APPLICATION OF THE STRATEGY
Background to the Process
Identifying the Company's Strategic Intent (Workshop 1)
- Shaping the Company's Strategic Intent
- Designing the Company's Strategic Intent
- Comparing Feasible Options for the Company's Strategic
- Consolidation and Reflection on the Process of Identifying
At this stage the group concluded that it had formed a common understanding of the shape of the strategic intent to be developed. Using the decision graph allowed the group to incorporate their views on the shape of the task of building the company's strategic intent. The group believed that the development of a common vision of the future depended on the group's combined choices around the decision areas identified in Figure 5.4.
The group was satisfied that as a unit it had formed a common view of the shape of the competencies that the company should build in the future. Most importantly, they all believed that the process made them feel part of the company's future; And.
Developing the Industry Foresight for the Company (Workshop 2)
- Shaping Industry Foresight for the Company
- Designing Industry Foresight for the Company
- Comparing Feasible Options for Developing Industry
- Consolidation and Reflection on the Process of Developing
Identifying the Company's Core Competencies (Workshop 3)
- Shaping the Company's Core Competencies
- Designing the Company's Core Competencies
- Comparing Feasible Options for the Company's Core
- Consolidation and Reflection on the Process of Identifying
During this part of the workshop, the emphasis was placed on identifying the decision areas within which the participants believed the process of identifying the Company's Core Competencies revolved. During this stage of the process, participants thought about issues surrounding a comprehensive definition of the company's core competencies. The next step was to get closer to the specific choices within the chosen focus area for identifying the Company's core competencies.
Following on from the previously identified decision areas, the group formulated a set of options that represented the range of available choices within each of the four decision areas contained in the problem focus. At this stage, the group was satisfied that it had sufficiently gone through the process of developing a common understanding of the core competencies that the company would build and maintain in the future.
Defining the Company's Strategic Architecture (Workshop 4)
- Managing Uncertainties
- The Company's Strategic Architecture
- Consolidation and Reflection on the Process of Defining the
Similar packages were developed from the workshops on strategic intent and the industry forecasting components of the Core Competency Approach to strategy development. This exercise highlighted some of the typical challenges faced by small companies in the IT industry. The main purpose of the research was to develop a framework for strategy development for a small IT company.
The practical benefits of the framework were evident in the four workshops held. The scope of this research covered only the initial application of the strategy development framework in a small IT company.
Reflective Commentary on the overall Process of Strategy
- Ownership of Commitments Made During the Strategy
- Appropriateness of the Core Competence Approach as
- Usefulness of the Strategic Choice Techniques as a
CONCLUSiON
How the Goals of the Research were Achieved
The method used to achieve this was first an analysis of the role of small businesses in the economy and some of the strategic management issues affecting them. The stage was already set for achieving the main goal of this research, ie the framework for developing a strategy for a small IT company. Implicit in achieving the main goal of the research is the theoretical and practical validation of the framework, which was addressed in chapter 5.
To achieve the fourth sub-objective, a case study was used for the practical verification that the main aim of the research was achieved, and that it met the main requirement: that the framework will improve the strategic planning processes within a small IT company. The Southern Focus case study, together with the evaluations of the process and the framework, was covered in Chapter 5.
The Theoretical and Practical Contribution of this Research
The results of the evaluation of the strategy development process and the framework by the participating management team are indications that the practical validation of the framework was successful. It was clearly demonstrated through the workshops how the framework helped facilitate the strategic planning process in a small IT company.
Directions for Possible Further Research
The resource-based view of the company in the two environments: the Hollywood film studios from 1936 to 1965. To what extent did you find the use of Strategic Choice techniques useful in the framework of strategy development. The perceived interconnectedness of the decision areas (decision connection) - reflected by straight lines between the interconnected decision areas.
The results of using the AIDA method reflect all combinations of available options for each of the decision areas within the selected focus of the problem. The last column (decision scheme) is a consecutive alphabetical letter assigned to each of the feasible combinations.
