Technological advancements and changes are a major challenge for strategic management in the 21st Century. Many new technologies have emerged, including smartphones, computer systems, robotic systems, and other technologies (Cameron, 2019). Newly developed technologies have changed how businesses conduct numerous activities, and this has interfered with the operations of businesses that were being strategically managed with traditional business models. The businesses that have employed new technology in their strategic management activities are also facing the financial challenges of keeping up with the changes and advancements that happen now and then. Technology has also created new challenges for strategic management by creating a need for companies to be adaptable for them to maintain their competitive advantage in the competitive new market. This challenge has also made it mandatory for companies to develop new strategic management strategies to manage the new technological environments effectively. Managing and adapting to the new technological environments with new strategies is necessary for businesses to continue thriving well in the business market. Strategic management tools that were being used in the past century are now outdated; therefore, managers are forced by circumstances to learn using new technological tools currently being used in management and adapt to the changes, which is very challenging (Geissler & Krys, 2013). Changes in technology have also changed how information is handled, which has created new information challenges, and this presents a whole new set of challenges that need to be addressed in strategic management.
As a decision-maker, numerous potential organizational impacts will arise from the challenge of technological changes and advancements in strategic management. Higher costs and expenses are potential impacts that will arise from this challenge, whereby the business will incur extra costs as it acquires the various hardware and software to be used in the activities of the business, including strategic management activities. Another impact that will likely arise is resistance to change, where some employees and managers in the business might resist the change to the new technological systems (Mindfield Insights, 2022). Another potential organizational impact is more profits from the organization gaining the upper hand in competition than other organizations that have not digitally transformed to the new technological changes. The challenges arising from technological changes can have both positive and negative potential impacts on the running of an organization.
As a decision-maker, learning adequate information regarding the challenge would go a long way in helping me make informed decisions. I would learn about technological changes and challenges by reading journals, articles, industrial reports, and any other scholarly sources that might contain relevant information which could enrich my understanding of the challenge(Grant & John, 2007). Research through reading related scholarly articles on matters of technology would help me understand the current condition of the technological environment, and I would be able to assess the challenge my organization might be facing and how to approach it. I would also learn about the challenge by attending strategic management events and conferences, which would enable me to meet and network with other decision-makers in other industries, which would facilitate me in understanding the various challenges the organization faces and how to approach them.
Geissler, C., & Krys, C. (2013). The challenges of strategic management in the twenty-first Century. In Scenario-based strategic planning: Developing strategies in an uncertain world (pp. 21-41). Wiesbaden: Springer Fachmedien Wiesbaden. https://link.springer.com/chapter/10.1007/978-3-658-02875-6_2
Grant & John H. (2007). Advances and Challenges in Strategic Management. International Journal of Business, 12(1). https://ijb.cyut.edu.tw/var/file/10/1010/img/853/V121-2.pdf
Cameron, S. (2019, November 20). Definition of Energy Economics. Bizfluent. https://bizfluent.com/facts-5622278-definition-energy-economics.html
Mindfield Insights. (2022, September 13). 14 Challenges to the organization Made by New Technologies – Mindfield Consulting Corp. Mindfield Consulting Corp. https://mindfieldconsulting.com/challenges-organization-made-new-technologies/#:~:text=When%20introducing%20new%20technologies%20there,projects%20by%20cost%20or%20complexity