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IT Strategy
 

IT Strategy

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This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/it-strategy-209

This is a comprehensive document on Information Technology (IT) / Management Information Systems (MIS) Strategy.

This document includes IT strategy frameworks, critical success factors, detailed project approach and organizational structure, sample deliverables, and more.

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IT Strategy IT Strategy Presentation Transcript

  • Business Framework IT Strategy This is a comprehensive document on IT Strategy, including IT strategy frameworks, critical success factors, detailed project approach and organizational structure, sample deliverables, and more Strategy Structure Execution IT Delivery IT Management Provide IT CapabilitiesInputs Business Strategy Technology Trends Business Environment Output Int/ExtCustomers ITSystems&Services Technology Landscape Find our other documents at http://flevy.com/seller/learnppt
  • 3 “Provide IT Capabilities” is the overall process for deploying and managing Information Technology Assets in the Enterprise Provide IT Capabilities is the mega-process associated with providing the enterprise with information technology systems and services • Strategy sets the direction while; • Structure defines the roadmaps required to support the strategy and guides; • Execution which is the implementation of the strategy Strategy Structure Defined by the architectures: Technology Application Information Execution IT Delivery IT Management ITSystems&Services Internal/ExternalCustomers Provide IT Capabilities Technology Landscape Represents the technology capabilities available in the marketplace to be leveraged by the enterprise Inputs Business Strategy Technology Trends Business Environment Output
  • 5 Business Strategy IT Strategy IT Operating Model An IT Strategy Drives the IT Investments Choices Ecosystem IT Systems & Services IT CapabilitiesCompany Integrated Business & Technology Plan Clusters of tech-enabled business capability -------------- Provide decision making framework Skills and capability that enable System & Service delivery -------------- Sourcing strategy is critical Rules of engagement for decision making ------------------------- Coordinates complex relationships, orchestrating and brokering A plan for leveraging the IT capabilities of the company and the ecosystem to deliver business success
  • 7 IT Strategy Business Strategy Business Environment Systems and Services IT Operating Model Capabilities and Sourcing Principles IT Architectures Infrastructure Architecture Application Architecture Information Architecture IT Initiative Portfolio Infrastructure Initiatives Application Initiatives Data Initiatives IT Management Initiatives IT Management Environment IT Portfolios Processes Tools Applications Resources Information Repositories Infrastructure Measures IT Current State IT Management Environment IT Portfolios Processes Tools Applications Resources Information Repositories Infrastructure IT Future State Technology Environment What How IT Strategy drives the overall IT planning process
  • 9 Strong bi-directional alignment and clear linkage between IT investments and the business strategy Critical Success Factor IT Strategy Component Characteristics  Explicit linkage between product & services capabilities and the business strategy  All IT initiatives are integrated with IT environment rather than separated in enterprise and business unit activities  A “business oriented” view of the IT environment rather than a “technology oriented” view  The definition of the portfolio drives the IT investments required to support the business strategies  The portfolio provides a framework for defining a resource allocation model that shows where IT expenditures are going  Definition of the domain and usage for each system / service Portfolio of IT Systems & Services Development of the Portfolio of IT Systems and Services defines what should be done
  • 11 IT operating (governance) model that balances the IT roles & responsibilities not only within the enterprise but leverages external resources as well  Identification of all the internal constituents that participate in the planning, managing and deploying of IT  Identification of the external suppliers and partners that provide products & services as part of the enterprise IT environment  Identifies the roles & responsibilities of all the major constituents that influence and manage IT IT Operating Model Critical Success Factor IT Strategy Component Characteristics The IT Operating Model defines how IT will be managed
  • 13 IT Systems & Services Element The IT systems and services that are provided to support the business processes and enable the implementation of the business strategy. Includes definitions of: Key capabilities - business functionality required to support business strategies Key characteristics - operational functionality necessary to support business operations (e.g. user types, availability requirements, access requirements Domain – at what level the system / service is deployed Usage – is the system a shared, common or point resource Description IT Capabilities & Sourcing – Definition of capabilities (operations, development, management, planning) required to deliver the systems and services – Identification of where the capabilities will be sourced (internally or externally) and strategic importance vs. ability to meet the need IT Operating Model – A definition of the processes for managing IT and making decisions about IT investments – Specification of the roles and responsibilities of all the IT stakeholders (business and IT people) in managing and executing the processes IT Principles Statements about the IT environment, how it will be architected and developed, how it will be managed and how it will operate IT Strategy Outputs IT Investment Model (Optional) Resource allocation model organizing the IT spend by systems and services defined above. Identifies where IT spend is going : new business capabilities, ongoing operations, support and maintenance
  • 15 The IT Strategy development process is accelerated, phased, and iterative PHASE I Project Initiation PHASE II IT Strategy Development & Information Gathering PHASE III IT Strategy Refinement Workshop PHASE IV Documentation and Next Steps Week 1 Weeks 2-5 Weeks 6-8 Weeks 9-10 Prepare Project Materials Establish And Kick-off Project Team Determine Business Strategy and Identify IT Enablers Create, Review, and Update Initial IT Strategy Document IT Strategy Document Implications and Next Steps Update and Refine IT Strategy WORKSHOP Validate IT Strategy with Key Business Executives Review IT Strategy with IT Management
  • 17 Project Phases III & IV PHASE III IT Strategy Refinement Workshop PHASE IV Documentation and Next Steps KEY ACTIVITIES  Develop workshop “seed” material  Conduct IT strategy workshop  Refine set of IT systems and services, characteristics, sourcing opportunities  Define IT operating model and roles & responsibilities  Summarize required IT capabilities and appropriate sourcing model  Develop IT investment model KEY ACTIVITIES  Updated list of IT Products & Services –Capabilities –Characteristics –Domain –Usage  Governance model  Competency model  IT Investment model DELIVERABLES  Compile and present results  Determine action steps for execution DELIVERABLES  Final IT Strategy document
  • 19 Our approach focuses on speed and reusability  Process Focus – An iterative, process oriented approach to strategy development that enables establishment of a continuous IT strategy process to be integrated with existing business and IT planning activities  Collaborative Effort – Leverages our experience in strategy development across many different clients in many different industries with your business and applied technology knowledge for your enterprise  Acceleration – Use of parallel tasking wherever possible – Leveraging our IT Strategy templates – Facilitated sessions to gain agreement by all stakeholders quickly and leverage our Subject Matter Experts at the appropriate time  Knowledge Transfer – Provides for knowledge transfer of our tools and methods for ongoing management of the IT Strategy by your IT planning group  Practical and Usable Outputs – Provides an IT strategy guidebook that serves as a practical tool for both IT and business people to use for ongoing management of IT investments     
  • 21 Documenting Enterprise Business Strategies - Sample  Increase Volume  Expand Market Share of Worldwide Widget Sales  Maximize Long Term Cash Flows  Improve Economic Profit and Create Economic Value Add  Transform consumer information into actionable marketing knowledge  Be the preferred partner with our customers  Strengthen our worldwide distribution (& other business partner) system  Increase sales force effectiveness Company Objectives Sales & Marketing Strategies • Build brand preference and value • Aggressively place our products “within an arm’s reach” of consumer demand • Increase our human capability & capacity for value producing action • Leverage financial fundamentals to create sustainable results Product Portfolio Strategies Operating Strategies
  • 23 Specialty Retailer - IT Systems & Services Model - Sample Info. Mgmt. Repositories Corporate Support Apps Store Mgmt & Ops Apps Merchandising Apps Supply Chain Apps Infrastructure Services • Product Info Rep. • Customer Info Rep. • Vendor Info Rep. • Store Info Rep. • Pricing, Promo- tions, Markdown Rep. • Operations/ Process Info Rep. • Merchandising Info Rep. • Purchasing Mgmt Sys • Allocation Mgmt Sys • Pricing Mgmt Sys • Replenishment Modeling Sys • Returns Modeling Sys • Distribution and Inv. Planning & Forecasting Sys • Purchase Order Mgmt Sys • Warehouse Mgmt Sys • Order & Fulfillment Processing Sys • Point of Sale Sys • Prod Master Sys • Store Labor Sys • Self-Service Sys • Customer Loyalty Mgmt Sys • Gift Certificate Mgmt Sys • Institutional Accounts Sys • Human Resource Mgmt Sys • Financial Mgmt Sys • Financial Reporting Sys • Sales Mgmt Sys • Communications Infrastructure • Productivity Tools • Collaboration Environment
  • 25 A brief description of this IT system / service Description Current State Future State  Variety of systems in use  ACT!, Rainmaker  Single, shared or uniform system serving enterprise  Internal users only, primarily office-based with limited mobile workforce  Connected and mobile/disconnected users  External access for customers and partners  Requires manual intervention to sync up personal and corporate data  Problems with remote access of data  Marketing - Business day availability (hours of outage)  Synchronization for disconnected users  In many cases, data is not shared between departments/users  Limited direct feed interfaces between systems  Interface to customer information database to facilitate sharing between business groups  Ability to receive external data feeds such as marketing data Portfolio/ Usage Users Availability/ Performance Integration / Interfacing  Basic contact management  Some systems are too sales-oriented, and do not have sufficient focus on customer relationships  Users are concerned about sharing their private contacts in a corporate database  Implement web front end to access application logic, and tiered (privilege-based) access to product data  Keyed to customer information  Facilitate front-to-back integration of ordering, manufacturing and delivery processes  Provide ability to track transaction status Capabilities IT System & Service – Current / Future State DefinitionCharacteristics
  • 27 Investment Council ITBusiness SteeringComm (orGroup Pres/StaffHead) Relationship Managers Application Delivery Managers ProjectOffice TPI XXX YYY OtherExternal Resources Outsourcing Mgmt CIO IT Delivery Processes - Infrastructure – Sample Roles / Responsibilities Matrix Design Develop Deploy Operate Support Maintain AP2 A AP1 I I4 I4 I4 I4 I4 I A,E3 I4 E3 I4 I I4 I I4 I I4 I A,E,I AP,E AP,E AP AP AP ITDeliveryProcesses Influencers & Decision Makers Service Providers I E5 E5 E5 E5 I E5 E5 E5 E5 E5 E E5 E5 E5 E5 E5 I A A A A A E5 Notes: 1 - Business Units approve up to $50,000 threshold for Point Infrastructure Products 2 - Investment Council approves > $50,000 threshold 3 - Project Office manages selected enterprise-wide projects 4 - Relationship Managers and Application Delivery Managers are not required to provide input for Point Infrastructure unless their business units or applications are affected 5 - In the design phase, the SOW will specify the actual responsibilities to resolve issues regarding execution, responsibility and approval AP- Approves (input as well) A - Accepts responsibility (input as well) I - Provides input E - Executes (input as well) Future State Roles & Responsibilities Matrix
  • 29 • Package/service selection • Package implementation and integration • Application development and maintenance • Systems management • Operations • Capacity planning • Change mgmt. • Fault mgmt. • Configuration mgmt. • Performance mgmt. • Asset mgmt. • Planning and design • Implementation • Architecture design and refresh Technology Infrastructure Applications Environment Knowledge and Information Management Common Capabilities • Project management • Security administration • Relationship management (consulting, interpersonal skills, managerial skills, people management) • Strategic planning (includes leveraging emerging technologies) • Lifecycle management • Change management • Information management • Knowledge management • Data analysis • Supplier/vendor management • Partner management • Value management (business cases, metrics) • Help desk • Testing, Quality Assurance • Business analysis • Training • Technical documentation Sample Capabilities Matrix