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).