Business and Technology Alignment

Business Strategy
1

How well do business align with technology? Does technology follow business or is it the other way around? Are businesses sending money down a mythical technology black hole? And yet more than half of the top 10 largest companies in world are tech companies. Management reports consistently show technology alignment as a key concern of management.

2 Likes
2
  • The relationship between business and technology is complex and constantly evolving, and there is no definitive answer to whether one follows the other or vice versa. However, it is clear that businesses need to align with technology in order to remain competitive and succeed in today’s fast-paced digital landscape.
  • Technology can be a great enabler for businesses, helping them to streamline processes, improve efficiency, and reach new markets. However, investing in technology without a clear understanding of the business needs can result in wasted resources and a “black hole” effect.
  • It is crucial for businesses to have a clear technology strategy in place that aligns with their overall business strategy. This includes assessing current and future needs, identifying potential risks and benefits, and defining clear objectives for technology investments.
  • Management plays a key role in ensuring technology alignment, as they are responsible for making strategic decisions and allocating resources. It is essential for management to have a solid understanding of both the business and technology landscapes in order to effectively align the two.
  • The fact that many of the top 10 largest companies in the world are tech companies highlights the immense impact and importance of technology in today’s business world. These companies have a deep understanding of the role of technology and are constantly innovating and adapting to stay ahead of the curve.
  • Technology alignment should be an ongoing concern for management, as the technology landscape is constantly evolving and businesses need to adapt in order to remain competitive. This requires continuous evaluation, adjustment, and integration of technology into business processes.
  • In summary, while the exact relationship between business and technology may be difficult to define, it is clear that businesses need to align with technology in order to succeed in today’s digital world. This requires a strategic and ongoing effort from management to ensure that technology investments are aligned with business objectives.
    “This is an AI-generated response from Strivo.ai. For deeper insights and real-world perspectives, refer to the expert opinions below. You can also use the Summary feature to compile AI and expert insights into a structured overview.”
3

And thus, Business-Technology Alignment poses a difficult and interesting question to strategy. The fact that business still struggle with it indicate that there are no clear successful strategies. Technology is challenging in fact that it is rapidly changing, so its like we need a strategy to manage strategic change - almost a meta-strategy of sorts.

4

Thanks @ocorreia for raising this. I think technology is just an enabler for businesses other than tech companies. Companies have been in business for centuries and they were doing just fine. Technology has enabled them to be more efficient. But their core nature has not changed.

As far as tech companies are concerned, they have identified a business opportunity that a technology can bring. Its a very interesting debate.

5

Thanks @Shikhar for your insightful remarks. But allow me to take you further: is technology an enabler at an operational level, transformational or a strategic level. In East Africa, where I live, we have had multiple local retail chains (3 at a minimum) grow to become huge (USD 100M+ annual revenue) and then suddenly collapse. Beyond sheer mismanagement could their failure to use technology in a strategic way (similar to Walmart) be the reason why emerging retail chains in Sub-Saharan Africa are not yet able to compete on the global level?

6

I am not an expert in retail but technology is certainly an operational enabler in short term and strategic enabler in long term. Let me find a retail expert to help u out

7

@ocorreia This is a classic chicken-and-egg problem — and it’s getting harder to separate the two.

In the past, tech followed business needs: ERP for operations, CRM for sales, etc. But today, entire business models are being shaped by what tech makes possible — from platform businesses to AI-native startups.

The bigger issue is not alignment — it’s shared clarity. Many leaders still see tech as a support function, not a strategic lever.

8

Technology neither follows business nor vice versa. I belive they are in a complex symbiotic relationship where each transforms the other.

Companies that treat technology as a separate function to be aligned are already losing. The most valuable companies in the world don’t have technology strategies; they have business strategies powered by technological capabilities.

9

Thanks for all the useful insights on the topic. Nicholas Carr (2003) famously caused a stir when he claimed that technology does not matter. Not that it was useless, rather that is low cost nature allowed competitors to quickly copy it and erode competitive advantage.