Role of technology in strategic management

The accelerating pace of technological change has made technology a major strategic factor for many organizations. Some firms respond defensively, seeing technology as a problem, while others through strategic use of technology gain permanent advantage.The engineering function typically contains the bulk of the firm's technological expertise, yet engineers and engineering managers are seldom directly involved in strategic analysis. Strategy typically trickles down to engineering in the form of technological problems demanding solutions. This weak linkage between engineering activities and strategic thinking is far from optimal, and in the current turbulent technological environment it can even endanger the firm's survival.The linkage can be strengthened, but it requires behavioral and managerial changes at the top of the firm and at the engineering level. First, both levels must understand the concepts of strategic management and commit to implementing them. Then the strategic nature of technology must be understood, including the limitations and potential traps of technology-based strategies. Finally, creative opportunities for considering technology strategically must be made available at the engineering level, and both design engineers and engineering managers must be rewarded for their strategic contributions.