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Course: 0624M / Information

Technology Valuation

IT Planning for Right Results

Week 09

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Learning Outcome

! #: explain and apply IT Value Planning Practices

$ession 9 %lan for The &ight &esults

'enson et al( Cha)ter 9 ))* +6#,+9# 

Bina Nusantara

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Bina Nusantara

Plan for the right result

To)ics to -e .iscusse.

•  Two planning process

•  The strategic demand/supply planning practice

•  The innovation planning practice

• Plan for the right results

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Intro.uction• After we do )rioritiation and alignment, we

need a new approach to eective planning thatcreates realistic IT )lans !producing new

pro"ects and renewed portfolios# stronglyconnected to and driven from real -usinessreuirements*

• Let see e$hi%it &'('

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)ntroduction* pro%lems immediately confront us+

a' onnected %usiness/)T planning has * verydierent aspects+- .trategic emand/.upply Planning and

- )nnovation Planning

%' Business and )T planning are often disconnectedin companies'

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Bina Nusantara

 Two planning process• Let see e$hi%it &'*

•  There are * planning relationship %etween%usiness strategic intentions and )T0

(' where we want )T strategies, plans and actionsto carry out the %usiness1s strategic intentions, toena%le them and the re2uired %usiness changesto achieve the outcomes needed'

*' where )T can innovate and contri%ute new%usiness strategic intentions, as well as newmeans for achieving the %usiness strategicintentions'

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Bina Nusantara

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 The %usiness /)T Planning disconnectPlanning disconnect e$hi%it several symptoms+

(' )T is not directly engaged in the %usiness planning process

*' )T and %usiness strategic planning is essential shelfware,re3ected %y the fact that annual plans and %udgets arenot speci4cally lin5ed to or driven %y the startegic plans'

6' )T and %usiness planning are done separately, with wea5or no interaction or lin5ed'

7' )T planning it self is highly siloed, with little or no planning

across silos and with few company - wide initiatives' Technical !applications, infrastructures, )T services oftenplanned indipendently# and organitational !multiple%usiness units plan )T seperately#

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onnecting )T and Business Planning•  The )T organi8ation often doesn1t help %uild

connections to %usiness planning %y manner inwhich it conducts its own planning'

• Often, the term 9)T strategic plan9 conveys a highlytechnical perspective, focusing on the infrastructureand technical application developments thought to%e needed'

•  The %usiness/)T planning disconnect is complicated%y the common idea that %usiness users areresponsi%le for doing something a%out the %usinessplan, and )T is reduced to planning its owninfrastructure re2uirements and positioning itself towor5 through the %usiness users'

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onnecting )T and Business Planning

.olving the disconnect starts %y properly stating someo%"ectives to %e addressed %y an )T plan'

• A clear statement of the strategic requirements for IT forthe company as a whole, and for each %usiness units

• A basis for prioritizing those strategic requirements%ased on su))ort of -usiness strategic intentions

• $trategic .irection for the IT organiation forcreating and maintaining the necessary infrastructures,

and the capa%ilities for deleping, delivering, andsupporting the company1s applications'

• lear direction for eectively controlling the IT s)en.,at the same time as improving, or maximizing, )T1s%ottom:line impact'

t

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onnect ngplanning to ;ission and

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 The strategic demand/supply

planning practice

•  Typically, corporate strategic planning process failto e$plicitly account for )T activities and

strategies, either on the front end as drivers fornew %usiness strategies or on the %ac5 end asena%lers of strategic intentions'

• Let see e$hi%it &'7'

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=hat does a .trategic /. loo5 li5e>

• Properly esta%lishing the )T strategic plan re2uires aclear de4nition of the %usiness strategies, ase$pressed through its strategic intentions, and therelationship %etween those strategies and what wee$pect )T to do a%out them'

•  The ideal planning process, shown in e$hi%it &'?, dealswith these elements+

: inputs ! strategic intention, portfolio strategic management,performance management#

: outputs ! strategic agenda for the use of )T, )T strategic plan,

.trategic )T re2uirement#

: connections %etween the plan and the process• The %usiness and )T processes for pro"ects

• The %usiness and )T annual Planning

• The company1s and )T annual %udget

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 The strategic agen.a for the useof IT

• A critical middle step is re2uired %etween%usiness strategy !as a resources of demand# and)T strategies and actions !as the supplies#

• Let see e$hi%it &'@

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.trategic emand/.upply Plan•  The strategic emand/.upply is a speci4c

e$ample of what we mean %y cause and eect'

• Let see e$hi%it &'

• ;carlan has said that Cdeciding what to do is

(?D of the )O1s "o%0 the rest is managing thetransformation9

• Let see e$hi%it &'E0 &'& and &'(F !important ta%le#

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Bina Nusantara

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Bina Nusantara

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 The strategic /. planning process

overview

•  The 5ey elements of the process are+

(' esta%lish %usiness drivers - the company1s

.trategic )ntentions

*' de4ne the role of )T in reaching those %usinessdrivers - the company1s strategy agenda

6' de4ne what )T is to do - the company1s )T

strategic plan'

• Let see e$hi%it &'((

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;anagement issues and Process

escription

•  The * outcomes we loo5 for in .trategic /.planning are+

(' )T resources have a direct and importantimpact on achieving the company1s strategicintentions

*' )T resources are most eectively allocated to

meet the company1s needs'

Let see e$hi%it &'(*' and loo5 to answer 6fundamental 2uestionsG

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.

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.+

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 The innovation planning practice

• Let see e$hi%it &'(? and &'(@

• Alignment ulture

• )nnovation ulture

 The N)H )nnovation Planning process practice has 7components+

(' Business and Technology monitoring

*' )nnovation Iisioning6' Business onte$t and hoices

7' Actiona%le )nnovation

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Plan for the right results

• =here is .trategic /. planning applied>

• =hat outcomes does strategic /. planning

produce>• =here is the )nnovation Planning practice

applied>

• =hat outcomes does the innovation planning

practice produce>

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 The end of session F&