Strategic planning is an important process when starting a new company. The directors and CEO of the organization must draw up a strategic plan. In this article, we present an example of a strategic plan for a software development company.
You can use it for your educational activities or even for real business planning.
Example of a good strategic plan for a software development company
The desired image of the company among the business
Preferred business partner in the field of software development, providing quality service that meets the diverse needs of customers.
The target market for products or services
B2B, Educational and financial institutions, accounting firms, entertainment companies, online retailers, or companies regardless of their professional field, but focused on expanding their services by integrating mobile applications into their activities.
List and description of the company’s products:
Personalized software services;
Development of applications according to customer specifications;
Application support;
Backup and disaster recovery;
Software security.
Scope of the company – local, national or global
The company’s physical office is based in New York, USA, but meets the needs of customers nationally, providing the opportunity for remote contact with customers.
Organizational strategy
Growth plans
The initial expansion of the office network at the national level and attracting new staff. Establishing the name of the company in the country as a trusted and quality partner. Gradual expansion of the office network beyond the borders of the country, attracting employees at the local level, using local currency, languages, communication with customers and work in the native language, websites presenting the company in foreign languages. Adding value to the software products we offer and expanding the expertise of employees.
Ethical statement
We adhere to honest business ethics in every aspect of our business. The company’s code of ethics adheres to values such as Respect – first to each other’s personality, and then to the personality of colleagues, management, customers, business partners, and all other persons with whom the company’s employees are in contact; Responsibility – to the daily work tasks, achieving results and fulfilling the goals of the company, compliance with the contractual relations of the organization; Honesty, Trust and Integrity in the relations between the company’s employees and the clients; Cooperation and teamwork to achieve the company’s goals, development, and consolidation of overall skills among employees. Manifestations that are harmful to the physical and mental health of employees and management, illegal actions, or actions that damage the reputation of the organization are not tolerated. Reference: Educational Masters University Club, Educational support for students, https://www.mu7club.com/
Challenges
There are many opportunities for training in the IT field in the United States, however, there is a shortage of staff in our country due to the high emigration rate and weak government policies to reduce emigration. Attracting and retaining talent is a major challenge for the company.
Competition analysis
Our competitors have a very strong marketing strategy aimed at establishing their brand, as well as a very active online presence through various communication channels.
What sets us apart from the competition
The company strives for a flawless image in the online space, where it is most accessible for each customer to check what consumers think about the company; we manage to maintain the level thanks to the fact that each of our employees accepts the company’s values as their own, providing customers with personal attitude and impeccable quality of the final product.
Changes in industry or service area
In the last 2 years, specialists in the IT industry have been extremely sought after because a large part of the employees in USA and around the world have switched to remote work. Accordingly, regardless of the nature of the work, the connection is made online through communication software, which requires technical support from IT specialists. More and more companies are looking closely at their IT capabilities, those who may not want to hire an in-house team are turning to companies that offer IT services. For example – retailers and suppliers of food and beverages are looking for ways to offer their customers the most affordable and fast way to order, then comes the need to develop your application. Reference: Articles for business and professionals, https://customer-service-us.com/
How does globalization affect the organization?
Technological growth plays a key role in the development of the global market, and in turn, the effect of globalization is affecting the IT industry to a great extent. IT professionals have the opportunity to work with companies from industries around the world – communication and data transfer are facilitated.
Competition and the world market
Larger companies located on the territory of Bulgaria are developing their activities abroad.
Are there opportunities for your business to be considered outside of your current market?
The company has the opportunity to develop regardless of its core business and other activities that bring additional revenue, and at the same time to promote our name even more – online video tutorials with paid access for basic programming skills.
Are you updating your technology? The company strives to periodically update its practices and implement tools for the automation of work processes that add value to the final product.
What impact does technology have on your customers, members, or employees?
The effect on customers: Each of our potential customers uses technology in their daily lives and the company’s presence in the online space facilitates the connection between us and customers, communication is easier and faster, regardless of who is where. This is an important element in the work process.
The effect on employees
Through online communication, employees have the opportunity to work and collaborate remotely, which facilitates the work process, especially for employees who do not live in the city where the company’s physical office is located, and especially given the epidemic situation in recent years. 2 years in the country and around the world But at the same time, in some cases, workers work longer hours, far outside their working day, on weekends or even when they are sick. This leads to the so-called “burnout”, lack of sleep, and others. This affects their productivity, as the stress of their work schedule reduces their results. More on the topic: “Types of professional recruitment and selection“
Customer expectations
Customers expect quality and innovative solutions for their business in a much shorter time than before, reducing lead time, but also maintaining the uncompromising quality of services and products.
What do you do to maintain any competitive advantage? In the training of new staff, we emphasize that the employees of our company have the same approach to our customers, according to the code of ethics of the company. In the work on each project, we strive to ensure that the software is accessible and convenient for use by all its users.
How changes in strategy will affect employees
The expectations are that the changes in the strategy will increase the productivity of the employees, and will lead to the growth of the company and the establishment as a name of the market, which will attract more clients. Following the organizational strategy, in the long run, no matter at what stage it will change will lead to the possibility of increasing organizational incentives to staff. Reference: “Business management publications“, https://www.powerhp.net/
Staff needed
The last year has seen a large turnover of staff in the company, which leads to a loss of already trained staff and time to train new employees. Motivational methods are needed to retain qualified staff in the company using new organizational incentives.
Legal or regulatory changes
Because of the current health situation, it is possible to introduce compulsory vaccination against Covid19 in the workplace, which would make it difficult to hire new employees who do not want to be vaccinated but prefer to work in a company that fully offers to telecommute.
Read more: “Example of Procurement Management Plan Template“, https://bpedia.org/example-of-procurement-management-plan-template/
Competitors’ strategies
How different is your strategy from those of your competitors and why? Is this good or not? The strategies of competing companies include:
Higher pricing, the purpose of which is the impression of higher quality of the final product;
Implement a sustainability policy that significantly reduces energy costs;
Increased presence and communication with clients on social networks;
Strong marketing plan. Reference: “Competitive model in strategic modeling”, https://eduwiki.me/competitive-model-in-strategic-modeling/
Our strategy emphasizes eliminating the weaknesses of the organization and filling in the gaps that slow down development. The company needs to develop the marketing department, forming a larger team of specialists to develop the necessary and correct marketing strategies.
Previous budgets and forecasts
Because of the implementation of the strategy for the past calendar year, our team has managed to plan and implement the set goals in terms of ensuring the technical part of the strategy. As a weak link, we consider the incorrect planning of the company’s marketing strategy, which is why new goals have been set in this year’s plan, and the budget is adjusted to such an extent that one of the most important areas for this calendar year – more prominent digital presence. since at the end of the year, there will be real results achieved for the company.
Measuring results
Who will measure the results of the strategy and with what tools? How often will you monitor progress? Key performance indicators:
Customer satisfaction, monthly monitoring, PR specialist:
customer retention / loss;
positive/negative feedback;
Staff Satisfaction, Monthly Monitoring, HR Manager:
achieved results;
turnover of employees;
Company Revenues, Monthly Monitoring, Technical Director:
new customers – number;
costs of attracting new customers;
started and completed projects – number;
release of the software product on time;
The implementation and progress of each element of the company’s organizational strategy need to be monitored following the deadlines set in the strategy based on monthly data collection by those responsible.
The plan should be reviewed at the end of each quarter of the year or at a shorter time if necessary, at the discretion of those responsible.
ORGANIZATIONAL MISSION
We develop quality and efficient services, helping our clients to develop their business successfully.
CODE OF ETHICS
The company’s code of ethics adheres to values such as Respect, Honesty, Trust, and Integrity to All; Responsibility – to the daily work tasks, achieving results and fulfilling the goals of the company, compliance with the contractual relations of the organization; Cooperation and teamwork to achieve the company’s goals, development and consolidation of overall skills among employees. Manifestations that are harmful to the physical and mental health of employees and management, illegal actions, or actions that damage the reputation of the organization are not tolerated.
ADVANTAGES OVER THE COMPETITION
We combine impeccable customer service with a personal approach and a guarantee of the quality end product, maintaining the good face of the company in business circles, thanks to the desire to always adhere to our values, occupying a leading position in the work of each employee.
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OBJECTIVES OF THE ORGANIZATION FOR THE YEAR
- Website redesign
- Enrichment of the company portfolio
- Launch a blog with thematic articles
- Preparation of video materials with lessons for the section with paid access on the site
- Opening a marketing department and forming a team of specialists
- Create company profiles on Instagram, Twitter, and original content
- Launch an advertising campaign on Facebook, Google AdWords
- Collection of detailed customer data to assess their unmet needs
- Opening of two more offices on the territory of the country
- Research of market attitudes and opportunities for expanding the company’s activities to foreign markets
- Reconstruction of unusable space to provide additional jobs
- Conducting interviews for the selection of new employees
- Evaluation of employee performance
- Development of a system for additional incentives
- Coordination between HR and IT departments to set minimum standards for hiring new staff
- Training of IT staff to use the technology in full capacity
