Technology Forecasting and Strategic Planning.
The objective of this report is to evaluate the risk and benefits of being an information technology leader or follower. The pros and cons of being on the leading (bleeding) edge will be discussed. Corporate strategy on this topic will also be explored and recommendations will be suggested.
Discussion.
In today's world of business it is becoming more evident that technology and information systems play a much larger role than they did in the past. In order to be a world leader in ones given industry, one must keep up to speed with the evolving world of technology and information systems. Being a technology leader does not come without some growing pains and expense. Lets take a look at some of the top technology leaders and briefly discuss some of their ups and down on the way to the top.
The Technology Leaders: Who Are They?.
(Information from: COMPUTERWORLD, INC Online, http://www.computerworld.com/).
The 20 Technology Leaders:.
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Amgen.
Merck.
Cisco Systems.
Micron Technology.
Compaq Computer.
Microsoft.
EMC Corporation.
Minnesota Mining.
Gillette.
Oracle.
Heartstream.
Parametric Technology.
Hewlett Packard.
Schlumberger.
Intel.
U.S. Robotics.
Synopsys.
International Flavors & Fragrances.
Thermo Electron.
Johnson & Johnson.
.
The Technology Leaders were selected on the basis of three criteria.
1) First, they compete in technology-intensive industries, (e.g., research and development expense as a percent of sales).
2) Second, they are the most profitable companies in their industries, (e.g., five-year average return on equity and profits per employee).
3) Third, they have a reputation for producing innovative products customers want to buy. .
These Technology Leaders are well over twice as profitable as the average company. Sales have grown almost six times faster, and stock prices have grown at a rate over four times that of the average competitor. This is displayed clearly in the figure below.
