Accidental success is dangerous. Strategy is “how we succeed.” In the private sector, it describes how an enterprise will compete and win in the long term, including how IT (Technology) will be used to achieve business success. In the public sector, the focus is on how the organization will achieve its mission. Technology is becoming ever more embedded in modern enterprises, blurring the line between the business and technology.
Ask yourself, could we have grown and become even more successful if we’d organized a little better?” If answer is yes, we need to do some work.
Having a clear understanding of the business is crucial to creating an IT strategy that aligns with, enables, and drives the business forward.
“Understanding the importance of a corporate strategy is a no brainer. Getting it right is the challenge” Gartner Research
Alarmingly, 90% of organizations fail to effectively execute their strategic plans, according to Harvard Business School
3 ways to develop IT Strategy:
IT Strategy - Consultative Approach: A traditional approach to IT Strategy, where workshops, discussion, meetings with senior business leaders are used to document their goals and objectives. And then based on previous research from across the different or same industry types, benchmarks, industry best practices, consultant will develop IT strategy and road maps with recommendations.
Pro: It’s small commitment on time and investment to build IT Strategy for large corporation
Cons: Here’s list of only few:
- It doesn’t reflect IT operations since it builds based on discussions and understandings.
- As business process changes and IT systems change – no updates to IT Strategy
- Major execution issues since considering gaps in IT and Business initiatives, lacks 100% executions
IT Strategy - Consulting & IT Assessment Approach: This approach is similar to consultative approach but also includes IT Assessment to gather all infrastructure (Systems, Network, Users, Security etc) information. Based on discussions with business leaders, technology information, industry best practices and benchmarks, IT Strategy and IT Roadmaps are built to achieve outlined business goals.
Pros: IT Strategy is detailed and provides IT health check and align IT strategy with business objectives
Cons:
- IT Strategy is in point-in-time, as systems change, business changes: IT Strategy becomes obsolete over time.
- In global organization, decentralize IT and access to equipment may cause for incomplete information.
IT Strategy based on IT Process: This means that business deploy IT process to align their technology with business goals as on-going basis. IT process also run ongoing testing and gap analysis to update IT Strategy, roadmaps and budget. This will support the entire organization’s technology needs, from running the service desk to driving innovation. This blueprint will help to create and document the IT strategy, mature IT Process, and increase business alignment. IT Process should also eliminate all HR and business risks.
Pro: Predictable results from IT, lean payrolls to provide high profit margin. Lower business and IT Risks.
Cons: Required commitment, discipline and hard work from IT Staff
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Also review – Impact on Revenue blog
