Tech Execs Need To Improve Their Response To Major Market Changes

June 27, 2007
Lack of tools, talent and process are slowing reaction to change

Technology companies are having difficulty anticipating market change and are limited in their capacity to make effective course-correcting action, in large part due to insufficient investment in strategic planning, getting the right information and having the required talent that can look beyond today's sales, profitability, current products, customers and technologies. This conclusion is from a report entitled "Competition at the Crossroads: Strategic Planning and Action in Disruptive Markets", conducted by the Business Performance Management (BPM) Forum and Deloitte Consulting LLP's Technology, Media and Telecommunications group.

"Tech executives feel their companies are doing a good job with strategies and execution against current competitors and product markets," said John Ciacchella, a principal with Deloitte Consulting. "But when it comes to developing winning strategies and taking effective actions to address disruptive market changes, whether it is introduction of a breakthrough technology, developing new business models or entry of a non-traditional competitor, they are not meeting the challenge and may not have the tools, talent and processes they require."

Among the key findings:

  • While most respondents say their companies are able to identify market-altering change, only 25% believe they can anticipate such changes.
  • Executives also give their companies poor marks for their ability to take adequate action in the face of these changes. Only 35% of respondents said the executives responsible for managing course-correcting actions were "very effective" in this role.
  • The vast majority of respondents, 92%, believe competition is intensifying in their industry sector.
  • Some 96% say their sources of competition have changed in just the past two years, including 44% who say their sources of competition have changed
  • Respondents indicate that senior management is spending more of its time on the strategic planning process, but also that their companies' investments in strategic planning processes, tools and talent have not increased as fast as revenues.

Executives noted that they lack the resources, in terms of talent and information to effectively plan for change. They also say their ability to take course-correcting action is stymied by a focus on short-term profitability, current business issues and a lack of a quantifiable business case for taking action.

The full report is available at

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