Ict Vision And Strategy Development


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Ict Vision And Strategy Development

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