Strategic Planning in the IT Sector Essay (Critical Writing)

Exclusively available on Available only on IvyPanda® Made by Human No AI

Introduction

The continuing rapid growth of internet applications and web technology is evident in the home access to the internet; this figure has increased 32% over the 1998-2000 period from 33% to 65% (Khosrowpour, 2001). The world is changing fast and the role of information and communication technology is increasingly having more of an impact on every sector as well as on the society at large (Kamel, 2003)Thus, this dynamic nature of information technology makes it a special case in strategic planning.

Strategies that apply

Some of the strategies in strategic planning that have been mentioned by Wirth do apply in the IT sector. They are:

Benefits for strategic planning

The benefits that apply here are: planning is categorized as being one of the important things, with proper allocation of resources such as time, talent, and money being allocated to the activities with the most benefits; planning proves awareness of the changing environment as is evinced by the statistics on internet usage figures given by Khosropow; the need to bring about change in the company due to the changing environment; allows for poor-performing areas to be identified and eliminated and thus give a sense of security among employees that comes with the better understanding of the changing environment and the company’s ability to change with it (Wirth, 2010).

Pitfalls to strategic planning

Some of the pitfalls identified by Wirth that apply to the IT industry are poor communication between the management and the employees hence a lack of direction for them; failure to involve key employees in all phases of the planning environment and failure to adapt to changes in the industry. Once these pitfalls have been identified, it means they can be eliminated and thus make strategic planning more practical and productive in the IT sector.

Implementation problems

The implementation challenges cited by Wirth are specific to small companies, while the IT industry is composed of both small and large corporations, making the challenges subjective to the size of the company.

Key factors that influence company performance

The ability to bring about change in the IT market is the most profound factor that will influence the impact the IT company has on its market. Today, opportunities and challenges of available technology can be utilized as strategic and tactical resources by an IT company to leverage market gains on its side (Khosropow, 2001). This is therefore the most important factor for consideration during strategy planning by an IT company.

Strategies that do not apply

Some of the strategies highlighted by Wirth do not apply in the context of IT companies. They are:

Benefits for strategic planning

Setting objectives in the IT industry is not a sure-footed approach to strategic planning because of the changing nature of the industry. This will be a risky endeavor.

Implementation Problems

The implementation problems put forth by Wirth assume that there is no planning to plan (Wirth, 2001), and this is logically impossible because it is usually the first step in coming up with a strategy.

Conclusion

Finally, dynamism is the main factor to be considered while coming up with a strategy for IT companies, due to the changing nature of the industry. Hence, it is prudent for an IT company to be able to adapt to the changes effectively.

References

Kamel, M. (2003). Managing Globally With Information Tecnology. Pennsylvania: Idea Group Inc (IGI).

Khosropow, M. (2001). Managing Information Tcechnology In A Global Economy. Pennsylvania: Idea Group Inc (IGI).

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2022, March 25). Strategic Planning in the IT Sector. https://ivypanda.com/essays/strategic-planning-in-the-it-sector/

Work Cited

"Strategic Planning in the IT Sector." IvyPanda, 25 Mar. 2022, ivypanda.com/essays/strategic-planning-in-the-it-sector/.

References

IvyPanda. (2022) 'Strategic Planning in the IT Sector'. 25 March.

References

IvyPanda. 2022. "Strategic Planning in the IT Sector." March 25, 2022. https://ivypanda.com/essays/strategic-planning-in-the-it-sector/.

1. IvyPanda. "Strategic Planning in the IT Sector." March 25, 2022. https://ivypanda.com/essays/strategic-planning-in-the-it-sector/.


Bibliography


IvyPanda. "Strategic Planning in the IT Sector." March 25, 2022. https://ivypanda.com/essays/strategic-planning-in-the-it-sector/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1