IT StrategyAKA Discussion Papers                        April, 2012
Four key deliverables of AKA’s IT Strategy Process                    IT Strategy                    An actionable IT Stra...
IT Strategy Services: Current State Assessment & GapAnalysis   Interviews, workshops, and data analyses are used to creat...
IT Strategy Services: Action Plan   The action plan is grounded in the mechanics by which revenues are    created:       ...
Example: IT Initiative Portfolio - “ROI” View for Major                Business Programs                                  ...
The Economics of Function Designed Around IndividualsAre CompellingWe’ve gone from relatively small market and high costs ...
We Employ AKA’s Proprietary IT/Business Alignment Toolto Ensure Solution Leverage Across Business Needs                   ...
ITBA: Final tool output scores each ITinitiative and they may be grouped intoimplementation “waves”                       ...
ITBA: Technology weightings can beestablished to weight scores of IT initiatives                                          ...
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IT Strategy

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IT Strategy

  1. 1. IT StrategyAKA Discussion Papers April, 2012
  2. 2. Four key deliverables of AKA’s IT Strategy Process IT Strategy An actionable IT Strategy presentation that outlines desired state and provides strategic directions for application portfolio, infrastructure, sourcing, organization & governance, providing the context for strategic, tactical and operational IT decisions and IT investments. IT Transition Roadmap The plan addressing sequence and overall approach, linked to business priorities and metrics, to transform and execute the IT strategy for the coming three years. Serves as a foundation for IT planning cycle. Includes identification of main initiatives (some may be business-owned), as well as short list of strategic IT issues that need further research. Tactical Actions Tactical Actions 1 Documented and prioritized Quick-wins, tactical actions, and practical 3 recommendations to improve effectiveness and performance of IT that are 2 identified as part of the strategy development process. The Business Case The justification, required management action, and financial implications to execute the IT strategy, and the aggregation of work products like current state assessment, design principles, blueprints, and others 2
  3. 3. IT Strategy Services: Current State Assessment & GapAnalysis Interviews, workshops, and data analyses are used to create an actionable assessment of the current state Importance to Business Users vs. Satisfaction with Corp IT Questions High Q1. “If you had funds to spend on building capabilities at Corp. IT, what areas would you spend?– please indicate Top 3 priorities?” a. Building IT business cases to support your objectives b. Providing Information on technologies to address business needs c. Reducing downtime… improve IT applications, systems, and networks d. Responding immediately to critical system issues e. Effective help desk application support to users 4 f. Providing user training on applications g. Upgrading ABC Co. infrastructure with higher performance systems and networking Q2. d. Immediate response to critical systems issues “How do you assess ABC Co.’s Corporate IT performance on the following factors on a scale of 1 (low) – 5 (high)?” c. Reduce downtime a. Building IT business cases to support your objectives e. help desk b. Providing Information on technologies to address business needs 3 c. Reducing downtime… improve IT applications, systems, and networks d. Responding immediately to critical system issues e. Effective help desk application support to users f. User training f. Providing user training on applications g. Upgrading ABC Co. infrastructure with higher performance systems and networking g. Upgrading systems/network a. Assist with business case 2 b. Provide Info on relevant technologies Low 25% 50% 75% Q1. % of interviewees rating factor in Top 3 areas for improvement 3
  4. 4. IT Strategy Services: Action Plan The action plan is grounded in the mechanics by which revenues are created: 3-4x revenue 5x EBITDA New Products Build Sales Customer Growth Excellence Intimacy New Acquisitions Run Business as we grow All project proposals, management controls, resource recommendations must contribute to this model Action plans are creative, specific and pragmatic to maximize ROI 4
  5. 5. Example: IT Initiative Portfolio - “ROI” View for Major Business Programs Run business Grow business Minds hare Very High Digit. Web Minds hare Core Transform Lever business 1 R&D age ERP Minds hare Major ProgramBusiness Priority S&M R&D Mindshare ELN HRIS CRM empl. HRIS High 1 data R&D 2.0 Customer 2.0 IT Railroad, iPad Leverage ERP 1 HRIS Perf. mgt. Medium Low Low $150k Medium $300k $500k High $1,000k+ Cost to Execute 5
  6. 6. The Economics of Function Designed Around IndividualsAre CompellingWe’ve gone from relatively small market and high costs to hugemarket and, effectively, no cost Broadband Users Cost to Operate Application/Month 2,000,000,000,000 1,500,000,000,000 $150,000 1,000,000,000,000 $100,000 500,000,000,000 $50,000 - $- 2000 2011 2000 2011 50 million users 2 billion users $150,000/month $1,500/monthSource: Why Software Is Eating The World – WSJ – 8/20/11 6
  7. 7. We Employ AKA’s Proprietary IT/Business Alignment Toolto Ensure Solution Leverage Across Business Needs 7
  8. 8. ITBA: Final tool output scores each ITinitiative and they may be grouped intoimplementation “waves” 8
  9. 9. ITBA: Technology weightings can beestablished to weight scores of IT initiatives 9

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