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Technology Strategy

Technology strategy used to consist primarily of the "IT Strategic Plan," a document which was mainly focused on aligning IT with business goals.  As the competitive landscape has changed, so has the IT Strategic Plan.  Now, a truly comprehensive plan for IT must include more than just supporting the business.  Technology strategy is a vital part of the overall business strategy.
The technology strategy must include challenges identified by the business, framed in terms of how they interact with the technology landscape within and without the business.  Policy for technology must be defined, including goals/milestones, timelines, priorities, and criteria for decisions.  Each of these must be in support of, and a collaboration with, primary business strategy.
Technology strategy must recognize and account for trade offs inherent in the business of technology.  There are costs to moving ahead and costs to standing still.  Which trade offs make sense can only be decided correctly when the technology strategy has been defined and aligned with the business strategy.
As the IT department executes on the technology strategy they will, by definition, be executing on the business strategy.  Dealing with operational efficiency, growth and expansion will be aligned to business needs and milestones.  Managing incidents or unforeseen obstacles will be communicated properly and acted on according to the needs and priorities of the business goals.
Well designed technology strategy prevents IT for IT's sake, aligns IT expansion with business expansion, creates buy-in with IT staff, and guides technology decision-making.
Technology is no more separate from the core business than accounting.  While it is possible to run a business without accounting, it is generally not advisable.  Likewise, you can run a business without technology, but is it advisable?