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Ict Vision And Strategy Development

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  • 1. ICT Vision and Strategy Development Alan McSweeney
  • 2. Objectives
    • To describe a view of and approach to developing an ICT strategy
  • 3. Agenda
    • IT Vision
    • IT Challenges and Trends
    • View of IT Strategy
    • Approach to Developing IT Strategy
  • 4. IT Vision
    • A key enabler of business
    • Proactively respond to the IT needs of the organisation
    • Implement flexible and agile systems and infrastructures and be flexible and agile in it dealings with the business
    • Connected to and aligned with the business and its requirements
    Business Information Technology
  • 5. IT - Core Principles
    • Recommends that IT define a core set of principles/policies:
      • IT strategy will be developed and maintained in line with market analysis and key stakeholder requirements and IT strategy to be aligned with the organisation’s vision
      • IT delivers core services to cost and quality standards
      • IT as a function is controlled and compliant to industry standards
      • Security will be embedded in IT
      • IT enables flexible service delivery to users
      • IT supports business growth
      • IT supports and enables compliance in the wider organisation
      • IT budgets will be developed and maintained for new services or improved IT Services
  • 6. IT Challenges and Trends
    • General challenges and trends in information technology
      • Information Security Management
      • Identity and Access Management
      • Conforming to Assurance and Compliance Standards
      • Privacy Management
      • Disaster Recovery Planning (DRP) and Business Continuity Management (BCM)
      • IT Governance
      • Securing and Controlling Information Distribution
      • Mobile and Remote Computing
      • Electronic Archiving and Data Retention
      • Document, Forms, Content and Knowledge Management
      • Training, Competency and Awareness
      • Business Process Improvement, Workflow and Process Exception Alerts
      • Improved Application and Data Integration
      • Web Deployed Applications
      • Enterprise System Management
      • Business Intelligence (BI)
      • Customer Relationship Management (CRM)
      • Information Portals
      • Environmental Concerns
      • Infrastructure Optimisation
    • Which ones are of interest to you?
    • IT aware of and monitoring key technologies, trends and challenges to ensure that the organisation will be ready to respond to changes quickly and effectively
      • Benchmarking against other industries and competitors
      • Developing best practice
  • 7. IT Demands
    • Mitigate Risk
    • Ensure security and continuity of internal business operations, while minimising exposure to external risk factors
    • Maximise Return
    • Improve business results; grow revenue and earnings, cash flow, and reduced cost of operations
    • Improve Performance
    • Improve business operations performance end-to-end across the enterprise
    • Increase customer and employee satisfaction
    • Increase Agility
    • Enable the business organisation and operations to adapt to changing business needs
  • 8. Balancing Act
  • 9. IT Demands
    • Internal stakeholders:
      • Business uniits
      • IT
    • External stakeholders
      • Partners
      • Regulators
      • Vendors and suppliers
  • 10. IT and Strategy
    • Strongly believe that information technology is only a tool
      • To be effective, it must be tightly linked to the underlying business
    • Information Technology Strategy seeks to
      • Align the priorities of IT with the priorities of the business
      • Ensure that IT is capable of fulfilling its role in the business
      • Align the characteristics of IT with those of the business
    • Information Technology has significant leverage on the performance of an organisation
      • An IT Strategy is a sensible and practical management action to gain control over this increasingly important element of the organisation
  • 11. IT Strategy
    • Information Technology Strategy provides benefits to the organisation
      • Supports active management and leadership on the use of IT to support the business strategy
      • Enhances management control over IT resources
      • Maximises the value contribution of IT by ensuring alignment of the IT strategy with the business strategy
    • IT strategy addresses two separate but interrelated sets of issues:
      • Demand issues relate to what the business needs and wants from IT
      • Supply issues relate to how the IT business area has to operate in order to satisfy business demand
  • 12. IT Controls and Compliance
    • IT Controls and Compliance
      • IT must implement internal controls around how it operates
      • The systems IT delivers to the business and the underlying business processes these systems actualise must be controlled – these are controls external to IT
    • The de-facto standard for IT governance is COBIT
      • C ontrol Ob jectives for I nformation and related T echnology
    • COBIT aims to be different from other quality and governance approaches in two ways:
      • It is an IT governance framework and supporting set of tools that IT can use to bridge the gap between control requirements, technical issues and business risks
      • It provides a detailed implementation structure and toolset that translates the framework theory into a practical and achievable deliverables
  • 13. Contexts and Perspectives on Change and Impact
    • Business-Oriented Context
      • Business Process focuses on the actions, how and in what sequence activities are carried out, what rules are followed, and the types of results obtained
      • Organisation focuses on the people and organisations involved in the change: their culture, capabilities, capacities, roles, structures, and organisational units
      • Location focuses on the geographic distribution of locations where business is conducted and the characteristics of various location types
    • Technology-Oriented Context
      • Information and Data focuses on business rules, content, structure, relationships, and the transformation of information used by processes and applications
      • Systems and Applications focuses on the capabilities, structure, and user interface of software applications and components
      • Technology focuses on the hardware, system software, and communications infrastructure used to enable and support systems and services
  • 14. Business and IT Strategy
    • Business Strategy
      • Defines the strategic goals, imperatives and initiatives to direct the business
      • Business strategy is the principal driver of IT strategy
      • IT strategy is developed to support the business strategy
      • IT can also provide opportunities to reshape the business strategy
    • Organisation IT Strategy
      • Defines the strategic direction of information technology within the organisation required to support and achieve business strategy.
    • IT Business Function Strategy
      • Defines the strategic direction of the IT function to develop, deploy, operate, manage and support the IT systems needed by the business
      • Includes processes and supporting technology
  • 15. Information Technology Demand and Supply
    • Demand Issues - what the business needs and wants from IT
    • IT portfolio alignment
    • Initiative identification and business strategy enablement
    • IT-enabled business invention
    • Demand rationalisation and prioritisation such as cost/benefit analyses and risk assessments
    • Supply Issues - how the IT function has to operate to satisfy business demand
    • IT mission alignment
    • Cost and affordability constraints
    • Organisational positioning
    • IT governance and leadership
    • Core competencies and sourcing
    • Practical constraints
  • 16. Organisational and IT Strategy
    • Starting point of IT strategic plan
    • IT strategic plan must align with organisational strategy
    • IT architecture influences organisational strategy (and vice versa)
    • Organisational strategy helps set initial IT strategic planning priorities
  • 17. Business Vision and Strategy
  • 18. Business Vision and Strategy
  • 19. Business and IT Strategy
  • 20. IT Strategy Realisation Issues
    • The strategy is unrealistic with regard to resources and investment
    • The strategy is not consistent with the maturity of the business
    • The strategy is not aligned with the strategic imperatives of the business
    • The strategy contradicts the business culture
  • 21. Targeting an Information Technology Strategy
    • To understand and support the business strategy and to contribute to its development
    • To define the direction for Information Technology within the organisation
    • To define the direction for the Information Technology business function within the overall organisation
  • 22. Vision, Strategy, Architecture and Implementation
    • Vision defines the overall and high-level set of principles that will govern the use of ICT within the organisation
    • Strategy takes the Vision to the next level of detail
      • Contains the set of goals and objectives to realise the Vision
    • Architecture translates the Vision and Strategy into an implementation framework
    • Implementation Plan defines the portfolio of projects needed to implement the agreed Architecture, the sequence in which the need to be performed, their dependencies and pre-requisites and implementation requirements
  • 23. Vision, Strategy, Architecture and Implementation
  • 24. IT Vision
    • Designed to meet challenges, both now and in the future
    • Balancing the need to control costs, provide flexibility, reduce and manage risk and provide service and performance
    • Develop an integrated IT framework
    • Defined and costed a customised programme of work to achieve vision incrementally
  • 25. IT Architecture Framework
  • 26. Service Management
    • Information is a key strategic asset which the organisation needs to manage
    • IT Service Management is the processes, methods, functions, roles and activities used to deliver value to the business in the form of services
    • IT Service Management is a strategic asset, rather than an organisational capability
    • Benefits of implementing Service Management
      • Provide consistent service to users
      • Measure level of service being provided
      • Implement processes to ensure reliable IT service
      • Enforce consistent management of IT systems and infrastructure
      • Improve service reliability, reduce downtime
      • Control costs
      • Platform for organisation growth
  • 27. IT Process and Service Management Framework
  • 28. ICT Vision, Strategy and Implementation Plan Work Programme
    • Two streams
      • Delivery Stream – where the analysis, strategy, design, specification, architectural planning work will be done
      • Project Management Stream – where the project will be managed, controlled and reported on
    • Review milestone at the end of each of the project stages
      • Output from the stage is reviewed and agreed by designated personnel
    • Ensure that the exercise is kept focussed
      • Allows the workplan to be modified if required
      • Ensures that issues are addressed quickly
  • 29. Sample Work Programme - Develop Future ICT Vision and Strategy
    • Scope: The vision of the desired future IT condition consists of:
      • Set of prioritised IT business uses
      • Set of IT business area capabilities and processes sufficient to deliver the high-priority business uses.
      • The IT Strategy consists of the changes to the current supply and demand condition necessary to realise the vision.
      • This definition of the demand and supply portfolios may also suggest updates to the outputs created in earlier programme activities
    • Entry Conditions
      • IT best practices have been investigated
      • Technology trends have been analysed
      • Application, technology, and project portfolios have been analysed for strategic alignment
      • Application, technology, and project opportunities have been identified and analysed
      • Capability of IT to meet demand has been analysed
    • Exit Conditions
      • Future has been described in terms of satisfied business demands (applications, data, technology) and IT capabilities and processes
      • All relevant IT environments and processes have been considered
  • 30. Approach
    • Business requirements drive strategy and architecture
    • Capturing business requirements is essential
    • Define key principles/policies/critical success factors for IT
    Requirements Strategy Architecture Implementation Business Functional Technical Implementation
  • 31. ICT Vision and Strategy Deliverables
    • Enterprise Architecture and Information and Communication Vision, Strategy – translate the Strategic Aims and Strategic Objectives contained in the organisation’s Strategic Plan into an ICT oriented vision and strategy
    • ICT Strategy Architecture – translate the ICT Vision and Strategy into a physical architecture and associated sub-projects, initiatives and changes that will realise the overall strategy
      • Suitable technologies will be identified
      • Business cases for each project, initiative and change.
    • IT Architecture Implementation Plans – overall implementation plan for the entire project and implementation plans for each constituent sub-project, initiative and change
      • Project resources, dependencies and pre-requisites.
    • Project Management and Delivery Documentation – material generated during the life of the project
  • 32. Project Phasing Feasibility Low Low High High Deliverable 1 Deliverable 2 Deliverable 3 Deliverable 4 Business Value
  • 33. Strategy Realisation Programme
    • Identify project sequencing and dependencies
  • 34. Business Case Justification
    • Scope Definition and Agreement - Scope and requirements of the engagement are confirmed. The required outputs are agreed
    • Requirements Analysis, Definition and Agreement - Business, functional, technical and implementation requirements are identified, analysed and documented
      • Existing processes and systems impacted by the proposed investment are analysed
    • Solution Architecture Specification and Design - Logical solution is designed to meet the defined and agreed requirements
    • Solution Implementation Options and Selection - Options for implementing the solution – package acquisition and customisation, existing system upgrade, system development – are analysed
      • Options or options are recommended
    • Implementation Plan Roadmap - A realistic plan to implement the solution is creating, incorporating resource requirements and constraints and includes risk, assumptions and dependencies
    • Financial Analysis - The full costs to implement and operate the solution are quantified
      • Tangible savings are identified
  • 35. Business Case Preparation
  • 36. Key Messages
    • IT strategic plan is a key to obtaining necessary funds - worthwhile investment
    • IT strategic plan is an enabler of doing things better and doing better things
    • Strategy development exercises can be short and cost-effective engagements – low cost, high-value
    • Take a practical focussed, realistic, sensible, down-to-earth approach
    • Develop realistic IT strategies
    • IT strategy can unblock IT spending plans
    • IT strategy is applicable across all business areas
  • 37. More Information
        • Alan McSweeney
        • [email_address]