Tech strategy

A tech strategy written by a tech leader outlines the company’s long-term technological vision. It may complement the main business strategy or be fully integrated into it.

A good strategy identifies what should happen within the next five years—otherwise, it’s more of an operational plan than a strategy. The goals stated in the strategy should be ambitious. The strategy itself should be concise, logical, and easy to understand, communicate, and replicate.

It should also link the company’s current state to its envisioned future.

A great strategy is crucial for both tech and business teams, as it shapes how people make decisions.

Big targets and long term goals

I always start with a vision of the future I want to live in.

The bigger the picture, the better. Big targets make your short-term operations more focused and precise. If you’re walking toward geographic north, it’s much easier if you aim for the hills and trees on the horizon rather than for stones just 10 meters away.

A steady aim prevents you from getting distracted or confused by everyday news and events. War? Crisis? Layoffs? Lack of funding? It doesn’t matter—these are just operational challenges we’ll figure out.

Planning backwards

Writing strategies and plans “backwards” involves starting with the desired end state or outcome, then working in reverse to determine the steps and resources needed to get there. This reverse approach makes it easier to pinpoint the critical milestones, avoid unnecessary tasks, and maintain clear alignment with the overall goal.

These plans are much easier to connect to your reality.

Want to be a billionaire? I guess you have to make 500M first. And 100M before that.

Some important variables to reflect on while working on strategy

• What are the 5-15 year forecasts for the countries you are operating in and the markets you are targeting?
• What are the key mid-term and long-term tech trends that may impact your project?
• What is the current situation in the labor market?
• What are your competitors currently working on?
• Are there any legal factors that could impact your project?
• What is the state of the economy in the countries you are operating in and the markets you are targeting?

Money aspect

In my projects, I always want to see where the money comes from. It’s okay to work for fun or social impact, but for-profit companies are often easier to operate and more sustainable. Because of this, I prefer to incorporate financial considerations into my plans.

Money in tech typically comes in two ways: either tech companies provide something people didn’t have before (new experiences, opportunities, speed, or flexibility), or they replace existing professions, institutions, or businesses.

Sometimes, tech companies can do both at the same time.

Putting all things together — an example of tech+business strategy for fintech company

Our company is going to replace CFOs, accountants, and financial managers worldwide with autonomous AI systems. We aim to capture all the revenue these professionals currently earn. Finances are boring; human civilization should be freed from these tedious tasks, and all human resources involved in the finance sector should be utilized elsewhere.

Before that, we will fully automate finance management in select industries and/or countries.

Before that, we will build software that addresses the most challenging finance management tasks, such as modeling, budgeting, planning, and forecasting.

Before that, we will automate simple financial tasks like basic P&L statements, balance sheets, and reports. We plan to sell this technology widely across various regions, generate revenue, and gain market power. This traction, along with the data and revenues generated, will provide us with the necessary resources to develop complex AI tools.

Before that, we will connect to various sources of financial data (ERPs, CRMs, accounting tools, bank accounts) and build chatbot-style interfaces that can communicate with stakeholders almost like a human junior finance manager.

Initially, we will offer a simple financial service where individuals and businesses can manage their finances manually.

There are some tech constraints: we are using Python as the main programming language because it offers great speed and flexibility, is well-suited for developing AI products, and there is a large pool of available engineers. Our tech stack is conservative, utilizing Postgres, Linux, and Docker. We will not build mobile apps until the very late stages and will instead focus on shipping mobile and desktop websites. We are adopting a service-oriented architecture but aim to keep the number of services to a minimum. Ideally, the first 2-3 iterations should be completed with a monolithic architecture.

As you can see, this strategy defines entire evolution of tech company for years and defines some impoortant constraints. It will be much easier for all team members to navigate dangeros water of tech business using this document.

What if You Inherited a Company with No Strategy or a Legacy Strategy

In my professional career, I had to deal with a company with more than 25 years of history. I started by assessing the situation from multiple angles:

• What is the current status of the business?
• Are there any business and tech strategies I should be aware of?
• What was the strategic vision of my predecessor?
• What is the current situation in the market?

After collecting answers to these questions, I created my own version of a tech strategy that supports the business’s long-term goals and defines the key elements of the tech vision. I partially inherited the ideas of my predecessor.