How technology‐driven business strategy can spur innovation and growth

Abstract

PurposeThe aim of this article is to show how technology‐driven business strategy can offer some distinct advantages.Design/methodology/approachThe IBM Institute for Business Value studied ten companies that are known within their respective industries for strong innovation.FindingsThe study found that these companies' innovations stood out because they accomplished one or more of the following: changed the basis of competition; broke the rules of scale; and/or introduced totally new business models.Practical implicationsMany of today's most exciting and “disruptive” innovations now tend to occur at the intersection of market insight and technological know‐how, and many of the companies that are seizing the initiative in this new competitive environment are doing so by taking a fundamentally different approach to strategy development – an approach the authors call “technology‐driven business strategy.”Originality/valueThe authors observed six common principles that innovative companies, like the ten in their study and others that they have worked with, seem to follow in their approach business strategy development: Consider technology a core input. Revisit strategy and technology context regularly. Uniquely manage emerging businesses opportunities. Plan for disruptions. Manage for today's and tomorrow's context. Focus technology on the customers’ priorities.