Download - IT_StrategyPresentation
Developing IT Strategy for Business Value
Yasmine Badawy
What is IT Strategy• IT strategy is a comprehensive plan that
information technology management professionals use to guide their organizations.
Cost Human Capital
Hardware&
Software Vendor
Risk
Enterprise IT Environment
IT Strategy address all components in Enterprise IT Environment
Business Strategy• A business strategy is a set of guiding principles that,
when communicated and adopted in the organization, generates a desired pattern of decision making.
- Harvard Business Review
• A strategy is therefore about how people throughout the organization should make decisions and allocate resources in order accomplish key objectives.
Components of Business Strategy (Porter 1985)
Cost Leadership
Differentiation
Focus
Deliver the lowest costs in that industry
products of an organization meet the demands of some customers in the market place better than others.
Scope over which the company should compete basedon cost leadership or differentiation.
Business Strategy and IT Strategy• Management of technology is analogous to the management of
investment.• The development and use of technology must be guided explicitly by
the business strategy of the firm.
Role of “IT Strategy” in business• IT strategy is a potential powerful tool for pursuing the Business
Strategy.
IT Strategy
Business Strategy
How IT helps Business• Faster process, generate more money• Efficient• Easy access for customers• Effective- prevent mistakes• More enjoyable for customers• Opens new business opportunities
Today’s Business Environment• Increased globalization• Increased competitive pressure• Frequent mergers• Rapidly changing technology• Evolving patterns of consumer demand
IT Strategy development
Assess Current
State
Define Future Vision
Develop Improvement
Roadmap
1 2 3
IT assessment Approach is made of 3 steps
People
Process Technology
3 Elements of IT development Roadmap
Critical Success Factors of IT Strategy
• Revisit your Business Model• Adopt Strategic Themes right people Involved-• Work in Partnership with the Business
Initiatives to allocate the IT BudgetUtility and Basic Support eat up between 30 and 70 percent of the focus group budget. (James D. Mckeen & Heather A. Smith)
How to do more with lessAllocating the remaining budget
Examples of IT-led initiatives to savemoney: outsourcing,shared services, use of Software-as-a-Service (Saas)global sourcing and partnership
Five Types of Initiatives to implement a Strategic Program
Big Opportunities are at the enterprise level and cut across lines of business
• Eliminating unnecessary or duplicate activities• Revenue-Growing• Experimental Initiatives• Copy people’s ideas and do it better• Infrastructure-struggle how to justify funding
Strategy-Development process that reflects a balance of all dimensions of IT Strategy
• Linking IT Strategy with Business
• IT Budget needs attention more than once a year• An enterprise architecture (Merging work)• Different funding ‘buckets” (Incrementing)• Appointed IT Account Managers to work with key Lines of Business• A prioritization rubric
Challenges for CIOs• Broader scope• Underfunding and Overfunding Projects
“It’s always a balancing act between our tactical and operational commitments and the work that builds our long term capabilities.” James D. Mckeen & Heather A. Smith
Conclusion• Developing an effective IT Strategy and synchronizing it with an
overall business strategy
• Getting the balance between the many different ways IT can be used to affect a business is a constant challenge for leaders