Posted by: Linda Tucci
Leadership and strategic planning, Recession
Downturn, shmownturn. Your peers at technology companies apparently don’t need a global recession to get their juices flowing. A new survey of 151 U.S. technology company executives by Deloitte Consulting LLP identified competition, not a downturn in the economy, as a main driver of change at their companies. The execs hailed from a variety of technology sectors, including telecommunications, semiconductors, OEM/hardware and software industries, Deloitte said.
According to the study, a majority of the technology companies (59%) surveyed said they had shifted focus prior to the economic downturn to concentrate more on tuning up internal operations that would make them stronger and more flexible in the face of global competition. Company-wide initiatives centered on implementing information technology, driving cost reductions and restructuring operations, as opposed to emphasizing new products and services.
“While new product innovation and market expansion have and will continue to be crucial elements to a technology company’s success, they alone are not longer sufficient to guarantee long-term survival and value creation,” says John Ciacchella, principal and U.S. consulting technology leader at Deloitte.
Not only were these technology warriors on the rampage before the recession hit, but they’re also pretty delighted by their own efforts. Another eye-opener from the survey: The majority of initiatives met (60%) or exceeded (23%) expectations, while comparatively few failed (5%) or only partially met (12%) expectations