IT Strategy and Planning Step 4: Scan External Factors and Technology Trends

🎯Objective

Understand the evolving external landscape—emerging technologies, industry shifts, competitor strategies, vendor movements, and talent markets—to ensure your IT strategy remains relevant, competitive, and future-proof.

📌 Why It Matters

The IT strategy must not be developed in isolation. Rapid changes in the external world—from AI breakthroughs to geopolitical shifts—can:

Open new opportunities for innovation
Influence infrastructure, platforms, and architecture choices
Impact sourcing, partnerships, and skills availability
Determine whether a company remains ahead or falls behind

This step ensures strategic foresight, enabling IT to become a proactive force rather than a reactive function.

🧭 Key Areas to Analyze

Area	Key Questions
Emerging Technologies	Which technologies are moving beyond the hype into practical business use (e.g., GenAI, edge computing, LLMOps)?
Industry-Specific Innovations	Are there use cases where technologies like computer vision, IoT, AR/VR, or blockchain are being adopted in your sector?
Competitive Landscape	What are competitors doing with technology? What digital capabilities are they investing in?
Vendor & Product Evolution	How are major platform vendors (AWS, Microsoft, SAP, Salesforce, etc.) evolving? Are new solutions disrupting the landscape?
Regulatory/Compliance Trends	Are there upcoming data residency, cybersecurity, ESG, or AI regulations that may shape IT decisions?
Talent & Location Strategy	Is there sufficient availability of key skills locally or globally (e.g., cloud engineers, data scientists)? How should that impact sourcing and hiring?

🧰 How to Conduct the External Scan

Step 1: Conduct a Technology Radar Review

Use frameworks like Gartner Hype Cycle, Forrester Tech Radar, or ThoughtWorks Technology Radar
Assess maturity, risk, and potential fit for each key tech domain
Score technologies using a 2×2 grid: Value vs. Feasibility

Step 2: Analyze Competitors & Industry Benchmarks

Analyze competitor websites, investor reports, case studies
Review analyst reports (e.g., Gartner Magic Quadrants, IDC, McKinsey)
Benchmark digital maturity vs. peers

Step 3: Engage with Vendors & Analysts

Attend briefings with major software/hardware vendors to understand roadmaps
Participate in industry events, conferences, or tech incubators
Leverage partnerships with consultancies or think tanks

Step 4: Assess Workforce Trends

Analyze skill availability (e.g., via LinkedIn Talent Insights, job market data)
Evaluate nearshore/offshore cost and talent trends
Map trends against sourcing strategies (in-house, outsourced, hybrid)

Step 5: Map Risks & Opportunities

Consider macroeconomic, geopolitical, or sustainability shifts
Identify where agility or innovation could offer competitive advantage

🧩 Example: Global Snack Retailer Use Case

External Factor	Implication for IT Strategy
Rise of Generative AI	Use for marketing copy automation, personalized promotions, customer support chatbots
Shift to Composable Commerce	Move toward microservices-based e-commerce architecture
ESG & Sustainability Regulation	Implement better supply chain traceability, carbon tracking systems
Competitor Adopting AR	Consider AR for product experience (e.g., “scan and visualize” packaging via mobile app)
Increased Cost of Cloud Talent	Explore nearshore delivery hubs, internal reskilling programs
Vendor Launching AI-Powered ERP	Evaluate roadmap alignment if using that vendor, or consider migration if current system is aging

📝 Deliverables from This Step

🌍 External Trends Summary Report (with tech, talent, and competitor sections)
🔭 Technology Radar or Watchlist (value vs. risk/feasibility matrix)
📊 Competitor Digital Benchmarking
📍 Talent Availability & Location Strategy Map
⚠️ Risks & Opportunities Brief (for strategic alignment discussions)