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IT Strategy Process[8]
IT Strategy does not have to follow a specified series of steps and often does not. Different
situations demand a different starting and ending point and the steps in between. However, a
well-defined process and can help you create an effective IT strategic plan. The critical elements
of an IT Strategy process are:
Of course, the IT strategic plan won’t be static. Changes in corporate goals and objectives will
impact strategic IT implementations. Other factors, such as changes in the economy and new
technology could also require adjustments to your strategy. Your plan needs to be fluid to
accommodate changing conditions.
IT Strategy Framework[9]
The creation of an IT Strategy is facilitated using a framework or methodology. 'IT Strategy
Framework (Information Technology Strategy Framework) is a formal definition of the essential
elements or components of IT Strategy, and their inter-relationship. An IT Strategy Framework
can define strategic IT concept(s) in general or relate to a specific IT Strategy solution. Listed
below are some of the known IT Strategy frameworks:
As an IT leader, you must understand your business, build consensus and synergy among
factions, break down the information silos and prioritize IT initiatives to benefit the entire
organization. You must align IT Strategy with your business’s core values, guiding principles
and goals. To succeed with technology, you must have the support and commitment of company
leadership and the financial resources to make these changes. There is a definite cost to
implementing a successful IT Strategy. But the real question you need to ask is “What is the cost
to your company if you don’t?” You must weigh and balance many factors that drive your IT
decisions. An IT Assessment is an excellent way to identify and prioritize technology initiatives.
Strategy Components
o Service Strategy: deliver better and cost effective services to the business and
customers
o Information/Data Strategy: maintain integrity, availability and accuracy of
business data across business processes
o Platform/Application Strategy: deliver the required business functionality with
lower TCO, easy maintainability, and reduced delivery time
o Infrastructure Strategy: provide a high performing, reliable, energy and cost
efficient environment to run IT services
o Security Strategy: protect confidentiality, integrity and availability of information
by establishing physical and logical controls
o Sourcing Strategy: procure services with the right quality, at the right price and
with right controls
Strategy Enablers
o Governance: processes, structures and mechanisms to control and manage the
strategy and ensure the realization of IT strategic objectives
o Operating Model: functional alignment of business and IT structures and IT
supplier groups
o Architecture: business process and technology map to enable effective change
delivery, business continuity and strategic decision making
o Processes: Industry frameworks and models (e.g. ITIL for service delivery) to
ensure consistent delivery, reduced rework and greater productivity
o Skills and Capabilities: Expertise and proficiency in aligning IT with the business,
managing the business relationship, understanding business strategy and plans,
delivering solutions and services, and enabling continuous improvement
Implementing IT Strategy[12]
As part of the first phase Pre-Implementation, the analysis of the IT strategy (as the result
of all IT strategy development related activities) and the implementation environment
(e.g. organization structure) depicts how profound the desired change will be.
Implementation complexity, quality of the IT strategy as well as a feasibility study will
lead to agreed implementation objects. This step allows for the identification of important
implementation carriers and responsibilities throughout the organization. The objective is
to install a first anchor in terms of content and human resources needed to implement the
IT strategy.
The purpose of the second phase Implementation planning is to first derive and agree on
specific implementation goals and initiatives by taking all stakeholders into regard. The
IT Balanced Scorecard (IT-BSC) can be used as a technique within this activity. To fulfill
the given goals within a set timeframe, it becomes necessary to define and evaluate an
implementation plan. This plan consists of a number of different projects to be detailed
and bundled to programs. Resource requirements and business cases need to be defined
for every project. Hence, a comparison and prioritization creates the basis for a detailed
implementation plan. According to the plan, an adequate coordination structure as well as
an adequate implementation tactic needs to be determined. Finally, the project teams need
to be brought together. It is of high importance to remediate existing conflicts and to
prevent new ones.
According to the results of the previous phases, the phase Implementation execution puts
emphasis on the enforcement of the implementation plan. Initially, the focus is on soft
facts, which the implementation success fundamentally depends on. To avoid fear of
change, potential behavioral resistances, and divergence in objectives, all impacted
personnel need to be treated according to their situation and interest. Therefore, the
audience is to be identified and divided up into target groups. A comprehensive
communication plan comprising target group appropriate information details is to be
developed and maintained centrally. A structured and systematically conducted
communication can help to avoid implementation problems concerning human resources.
The phase Completion of implementation comprises all actions necessary to establish the
results within the organization. First, there is the need to agree on the dimensions of IT
strategy implementation: the time dimension and the detail dimension. The time
dimension differentiates between installed, completed and benefits, whereas installed
marks a simple installation (e.g. without user training) and benefits can be considered as
the effect of the change (difference of the current and proposed way of work is done).
The detail dimension refers to the implementation content, which may be the whole plan,
one or more projects or even one or more systems in one project. In our definition, the
whole plan needs to be completed. Hence, trainings for future users need to be prepared
and executed; lessons learnt need to be documented. Additionally, according projects
need to be dissolved to allow for a new resource allocation.
The last phase Implementation control is about setting up appropriate qualitative and
quantitative control measures to allow for a continuous implementation control and
navigation. Measurement of the actual implementation state at any time during the
implementation allows for an early identification of discrepancies. Therefore, possible
causes can be identified and corrective actions can be taken. Implementation control acts
as the central component in our process model and can therefore influence activities
within previous and following phases.
The figure below show's how the approaches compare across the major attributes:
Computers are New. Computers are a relatively recent invention. Many of us have seen
the mainframe, the mini, the PC, the laptop, and now the mobile device each take its turn
as the crucial computer of the decade. After only 50 or 60 years, it is difficult to imagine
life without computers. Yet the discipline of IT strategy has not matured as quickly as the
technology itself. (Were cloud computing and social business on your agenda three years
ago?)
Technology is Continually and Rapidly Changing. This is the fundamental challenge. The
power and storage capacity of devices seems to be increasing exponentially. Some of us
can remember thinking, “Who could possibly ever need a 10 MB hard drive”? These
days, your phone may have close to 1000 times that amount of storage. Not only is the
technology changing more rapidly, but mass adoption rates are speeding up. Consider
this: it took one year for Apple to sell the first million iPods—and one month to sell the
first million iPads, just 10 years later.
Technology Projects are Getting Bigger. There was a time when a “major” application
developed for a Fortune 100 client took only a month or so to get up and running.
Consider an example, circa 1982, of an application, written in Basic, that estimated the
time and resources needed to clean and inspect offshore oil rigs. It took two weeks to
develop the algorithm (based on 50 or so previous inspections); one week to design the
screens and reports; one week to program and test; and two days to write a manual—and
then it went live. Compare that with the projects we see today. One company is
implementing a worldwide ERP system across its 25 process-manufacturing locations.
The project has a multimillion-dollar budget and an eight-year plan. Admittedly, the
client is unusually methodical and conservative, but the contrast is striking.
Business IT Alignment
Strategy
e-Strategy
Business Strategy
Corporate Strategy
IT Strategy Framework
IT Capability
Business Capability
IT Vision
IT Governance
Enterprise Architecture
Technology Roadmap
Information Technology Value
References
1.
What is IT Strategy
Explaining IT Strategy
Defining IT Strategy
Why is important to have an IT Strategy? MSG
IT Strategy vs. Corporate or Business Strategy IT Business Strategy
Definition of IT Strategy Oakleigh
IT Strategy vs. Business IT Alignment CIO Portal
IT Strategy process
IT Strategy Framework
What are the drivers that influence Information Technology Strategy Advance 2000
IT Strategy Elements: Components and Enablers University of Sussex
Process Model for Implementing IT Strategy Jens Bartenschlager
An Agile Approach to IT Strategy deloitte.wsj.com
Best Practices for an Effective IT Strategy Milestone
Understanding the Challenges of IT Strategy WSJ
Further Reading
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