Aligning Technology with Business Strategy

Abstract

OVERVIEW:This article describes the approaches being used by large high-technology companies, including the author's, to align technology strategy with business strategy. Comparative data are given that were obtained through benchmarking interviews with senior technology executives at 16 corporations. Following a discussion of how R&D processes depend on local organization history and climate, the article describes four processes for technical and business strategy integration: (1) The organization of central research laboratories according to technical specialty rather than according to market addressed. (2) Core competencies, described in several contexts: their widening use in defining technology strategy; nontechnical core competencies; and core “incompetencies.” (3) Technical networks for nourishing technical core competencies, with three distinct examples: 3M's democratically based Technical Forum; Hughes Aircraft's management-linked Technical Networks; and Martin Marietta's electronically connected Knowledge Networked Corporation. (4) The use of research account executives to provide direct interface from the central lab to the business units. These concepts are then related to an evolving “global culture” of technology business management.