Strategy as a concept is setting the direction of your business and then planning out how to achieve it. As a theory, its been around since the 1950s and continues to be an essential element of business today.
What is a Business Strategy?
Business strategy and developing your strategic business plan are terms that we often hear and they apply to businesses of all sizes. Strategy development and strategic planning are key activities that ensure businesses understand their environment and respond appropriately to them. These activities ensure businesses are sustainable, profitable and grow into the future.
Is strategic planning for business still relevant today?
In today’s fast-paced dynamic world, is business strategy development or strategic planning activities the best use of time and resources for digitally-enabled businesses? If a strategy or plan is at risk of being out of date the minute it is released, what is the benefit of the activity?
Is the importance of strategic planning the same now as it was 20 years ago? Or are businesses and their environments now too fast-moving to strategically plan for?
The answer is both yes and no. The importance of strategic planning is the same, if not more critical today than it was 20, 30 or 40 years ago. Having a guiding goal to work towards is critical, more so in the chaotic environment that many businesses operate in today. However, how we develop and implement plans must change.
Agility is the key
Taking a traditional, static strategic planning process and turning it into an agile, dynamic tool to help guide new processes and methods is essential. The answer lies in utilising innovative business software and technology approaches to increase the speed and accuracy of strategic planning.
What drives innovation in strategy?
Examples of innovation in business that drive agility and the ability to be dynamic are the use of technology, artificial intelligence and innovative business software. Customised software can automate the time consuming and sometimes monotonous tasks of environmental scanning and analysis. Artificial intelligence can quickly and easily identify trends and patterns in the environment and collate them together to form a picture of what’s going on. Through automation, this can be done in minutes or hours; far less time than it takes for a human to analyse the same amount of information.
What’s the solution?
Specialised business software can then suggest responses to the trends, run financial, business growth or risk scenarios and recommend which initiatives, projects or actions can deliver the best results for the business. Complimentary strategies and support service strategies such as marketing strategies, communications strategies, or similar can be quickly developed and aligned to the core business strategy through automation, modelling results and creating recommendations for the business to consider and implement.
The final response
So, in response to the question of the importance of strategic planning in today’s hyperactive environment, the answer is yes. Strategy is still critically important to guide and direct businesses. The ways in which businesses develop strategy or business plans must change, however. For more information about business strategy contact the experts at vLinkD here.