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IT Strategy & Planning

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Building an effective IT Strategy & Architecture Plan

IT Strategy & Planning

1 of 42
Building an Effective
IT Strategy & Architecture Plan




              Presented By:

         Karthik Chakkarapani
               IT Manager

               8/15/2008
Agenda
Overview

IT Strategy Approach and Methodology

IT Strategy Framework

Implementation & Investment Strategy

IT Portfolio Management & Roadmap

IT Governance

IT Strategy Plan Maintenance




                                       2
IT Strategy & Architecture Definition
IT Strategy

An “IT strategy” is a company’s long-term strategic plan for managing and deploying IT
investments and resources. An IT strategy supports a company’s enterprise business
processes, strategic business goals, objectives and the customer. An IT strategy includes
the following:

       A review of the company’s value chain, business vision, business strategies, CSF’s
       and key performance metrics. This drives the IT strategy process.
       A baseline IT assessment is conducted to understand effectiveness of current IT in
       supporting the company’s business strategy.
       A strategic plan is developed to support the company’s business strategy. This plan
       includes the enterprise applications portfolio, data management, technology
       infrastructure, IT organization and IT investments.


                                                                                            3
IT Strategy & Architecture Definition

IT Architecture

An IT architecture is the conceptual/physical blueprint that enables a company’s IT
strategic plan. The architectural blueprint is the roadmap for implementing and
integrating the applications portfolio, databases, infrastructure and organization.


IT Strategy Implementation Plan

The IT strategy implementation plan is a high-level plan that defines the implementation
of the strategic and tactical projects over a 2-3 year time horizon. All of the key IT projects
included in the IT strategic plan are defined with priorities, milestones, dependencies,
resources and investments.




                                                                                                  4
Key Reasons – IT Strategic Plan

Key reasons for developing an IT Strategic Plan:

  Serves as the roadmap for managing all IT investments and resources.

  Provides a uniform vision for managing and deploying IT initiatives.

  Provides alignment of IT with business objectives. This allows for a focused and

prioritized investment in IT.

  Supports enterprise-wide business processes, value chain and the customers.

  IT investment returns are maximized.

  IT projects and investments are planned for the next 2-3 years.

  The IT organization has a well defined IT vision that can be measured and monitored.


                                                                                         5
Key Reasons – IT Architecture

Key reasons for designing an IT Architecture:

  Provides a cohesive framework for effectively integrating IT components

  Provides a conceptual blueprint for managing and integrating the applications

portfolio, data, infrastructure and organization

  Global policies, principles, standards are developed and used for managing and

procuring IT assets; provides vendor leverage and reduces costs

  Maintenance costs/TCO goes down




                                                                                   6

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IT Strategy & Planning

  • 1. Building an Effective IT Strategy & Architecture Plan Presented By: Karthik Chakkarapani IT Manager 8/15/2008
  • 2. Agenda Overview IT Strategy Approach and Methodology IT Strategy Framework Implementation & Investment Strategy IT Portfolio Management & Roadmap IT Governance IT Strategy Plan Maintenance 2
  • 3. IT Strategy & Architecture Definition IT Strategy An “IT strategy” is a company’s long-term strategic plan for managing and deploying IT investments and resources. An IT strategy supports a company’s enterprise business processes, strategic business goals, objectives and the customer. An IT strategy includes the following: A review of the company’s value chain, business vision, business strategies, CSF’s and key performance metrics. This drives the IT strategy process. A baseline IT assessment is conducted to understand effectiveness of current IT in supporting the company’s business strategy. A strategic plan is developed to support the company’s business strategy. This plan includes the enterprise applications portfolio, data management, technology infrastructure, IT organization and IT investments. 3
  • 4. IT Strategy & Architecture Definition IT Architecture An IT architecture is the conceptual/physical blueprint that enables a company’s IT strategic plan. The architectural blueprint is the roadmap for implementing and integrating the applications portfolio, databases, infrastructure and organization. IT Strategy Implementation Plan The IT strategy implementation plan is a high-level plan that defines the implementation of the strategic and tactical projects over a 2-3 year time horizon. All of the key IT projects included in the IT strategic plan are defined with priorities, milestones, dependencies, resources and investments. 4
  • 5. Key Reasons – IT Strategic Plan Key reasons for developing an IT Strategic Plan: Serves as the roadmap for managing all IT investments and resources. Provides a uniform vision for managing and deploying IT initiatives. Provides alignment of IT with business objectives. This allows for a focused and prioritized investment in IT. Supports enterprise-wide business processes, value chain and the customers. IT investment returns are maximized. IT projects and investments are planned for the next 2-3 years. The IT organization has a well defined IT vision that can be measured and monitored. 5
  • 6. Key Reasons – IT Architecture Key reasons for designing an IT Architecture: Provides a cohesive framework for effectively integrating IT components Provides a conceptual blueprint for managing and integrating the applications portfolio, data, infrastructure and organization Global policies, principles, standards are developed and used for managing and procuring IT assets; provides vendor leverage and reduces costs Maintenance costs/TCO goes down 6
  • 7. IT Strategy Approach & Methodology Project Initiation with full management support Prepare an IT Strategy/Architecture to support the business strategy. Review and confirm business strategy. Perform IT baseline assessment. Develop IT strategy & conceptual architecture. Develop implementation & investment strategy. Develop IT Portfolio & Roadmap. Develop IT Governance matrix and guidelines Develop IT Strategy plan maintenance. 7
  • 8. IT Strategy Framework IT Baseline IT Baseline Enterprise Assessment IT Strategy & Review Business Strategy Assessment Conceptual Architecture Strategic Drivers Phase 2 IT Strategies Phase 3 Strategic Objectives & Principles Strategic Initiatives IT Organization • Structure • Skills Target Architecture • Practices • Staffing “Blueprint” IT IT Infrastructure Business Processes/ Expenditures Applications Portfolio • Hardware • Networks Applications Data • Business Systems • Systems Development • Central IT • Communications (Voice/Data) Portfolio Management • Systems Maintenance • User department • End-User • Tools & Techniques • Telecommunications Computing Customers & Business Data Management Units Phase 1 • Data Integrity • Data Access • Decision-Support • Data Repository Technology • Ad Hoc Query IT Organization Infrastructure Phase 4 IT Strategy Implementation Plan, IT Strategy Implementation Plan, Maintenance and IT Portfolio Management Maintenance and IT Portfolio Management 8
  • 9. Business Strategy Review – Phase 1 Key Activities: Key Outcomes: Review and confirm business strategy Business strategy model Review business balanced score card Mission, Vision, Values Identify key initiatives (tactical and strategic) Key business strategies Define the value chain & confirm core processes Core processes Conduct stakeholder analysis Value Proposition Identify change management issues Key business initiatives Critical success factors Review the role and effectiveness of IT in Critical business issues supporting the business strategy SWOT analysis Identify strategic IT opportunities that improve Quick wins business performance 9
  • 10. Business Strategy & Value Proposition Sales, Publications Operations Customer IT, Finance, Advocacy Solutions Meeting Marketing & Data Security HR Policy Travel Relations Planning Education Audit Govt Relations Services Unified Developing a Healthcare Delivery System for the 21st Century healthcare policy Improved Quality Optimizing Operational Effectiveness And patient Safety Improved Enabling Hospitals to Better Serve Their Patients and Communities Community Health Strengthen Planning/Infrastructure/Administration Community Connections — Core Business Functions — 10
  • 11. IT Mission, Vision & Values Vision: To align people, processes & technology so our customers can achieve the Organization’s strategic goals Mission: We support the technology needs of our internal & external customers by: Understanding our customers business needs Maintaining existing technologies Researching & implementing new technologies Educating our customers about technology systems and IT services Values: Proactive…Collaborative…Effective…Consistent…Strategic 11
  • 12. Key Strategic Business Initiatives Finance HR Online finance report distribution Manager self-service Restricted online customer access to I-Recruitment financial information Online professional development plan I-Expense Web based training, E-Learning Invoice scanning, integration and Internal online mini-surveys management Digital employee record – scan and XML Publisher to publish W2, 1099 store reports EEO reporting Additional Financial reports Automation of Kbase, Ceridian, Actuary, Automation of AP and Payroll interfaces Insurance, 401k and Payflex interfaces * Do the same for other business areas – Sales, Marketing, Engineering, Operations etc 12
  • 13. Critical Business Issues Managing all the homegrown access dbs – Redundant, labor and time intensive Lack of enterprise data mart, warehouse and analytical reporting tools and systems Lack of access/availability of customer, financial and BI reports and tools/systems Managing web-site content and forms maintenance is labor and time intensive Lack of e-commerce capabilities in the websites Inefficient use of resources due to many manual processes and reports Lack of resources for online content and forms management Low end-user computing productivity – remote access, desktop refresh Inefficient HR and Finance systems, periodic upgrades and issues, limited reports 13
  • 14. Critical Success Factors Customer loyalty and growth, world class customer service, developing and engaging members and increase membership retention Diversify revenue streams and achieve targeted margin to ensure stability Leverage the latest technologies to enhance customer’s experience in the websites Provide Web 2.0 for customer collaboration Ease of use, access and search of CRM information Fully automated customer new/renewal application processing Secure online credit card processing for selling products and services 14
  • 15. Opportunities for IT Recommend technology options to improve, automate and integrate many access databases and manual processes Conduct brown-bag sessions to get more information on technology trends and exchange ideas Implement IT intranet to know more about the IS&T strategy, services, projects and team Improve IT support structure by having dedicated resources in IS&T to fix break-fix issues/service requests and projects Form a technical resource/council in IT to provide recommendations on many business/IT initiatives, communication on issues, projects, and upgrades Provide resources to answer basic PC and software questions/issues Form an IT Advocacy group – members from IT & Business units 15
  • 16. IT Baseline Assessment – Phase 2 Management & Organization • Structure • Skills • Practices • Staffing IT IT Infrastructure Business Processes/ Expenditures Applications Portfolio • Hardware • Business Systems • Networks • Systems Development • Communications • Systems Maintenance • Central IS (Voice/Data) • Tools & Techniques • User department • End-User • Telecommunications Computing Data Management • Data Integrity • Data Access • Decision-Support • Data Warehouse • Ad Hoc Query 16
  • 17. IT Baseline Assessment Applications Portfolio Are these the right applications to support the business strategy? Do they deliver the required capabilities? Are they maintainable? IT Assessment Framework How is the quality? Are they flexible to support process redesign? Management & Organization Data Management • Structure • Skills What is the quality of data? • Practices • Staffing How difficult is it to access & manipulate data? How is my decision making? Business Processes/ IT Expenditures IT Infrastructure User Community Applications Portfolio • Hardware • Networks What is their level of awareness? • Business Systems • Systems Development • Central IT • Communications (Voice/Data) Do we understand their needs and concerns? • Systems Maintenance • Tools & Techniques • User department • Telecommunications • End-User Computing What is their ability to participate in planning and implementation? Data Management IT Resources • Data Integrity • Data Access Are we “right-sized”? • Decision-Support • Data Repository Do we have the right infrastructure in place? • Ad Hoc Query Do we have the right people? Number? Mix? Are we acquiring and managing the assets effectively? IT Management Is the IT organization configured to meet the needs of the enterprise? Are the right performance measures in place? The right management processes? Financial How much do we spend on IT? What is our investment value? What are the economies of scale? 17
  • 18. IT Baseline Assessment - Deliverables Key Outcomes: High-level schematics of IT’s current portfolio. Applications portfolio observations; technical and functional quality overview Applications development/integration observations. E-Business observations. Observations on IT organization, skills and management practices. Infrastructure analysis observations. Data management observations. Financial analysis. 18
  • 19. Application Portfolio Assessment – TQ/FQ Analysis Sample Technical Quality (TQ) & Functional Quality (FQ) Assessment ERP Finance Application Score: 0-70(Unsatisfactory), 65-75(Marginal), 75-85(Acceptable), 85-92(Good), 92-100(Excellent) Score: 0-70(Unsatisfactory), 65-75(Marginal), 75-85(Acceptable), 85-92(Good), 92-100(Excellent) Technical environment Documentation Support resources Integration capabilities Ease of upgrades Security compliance Test environment availability Self-service capabilities Resource Utilization System availability Enhancements Attributes Attributes Report & query tools Issue Resolutions Automated processes Performance & Standards Documentation Quality Support customer needs Scalable capabilities Support business needs System uptime Data Reliability Integration capabilities Data Integrity & Quality Security features Overall Functional Quality Overall Technical Quality 0 20 40 60 80 100 0 20 40 60 80 100 Functional Quality Scores Technical Quality Scores 19
  • 20. Application Portfolio Assessment - TQ/FQ Overview Application portfolio assessment overview 100 IT Productivity Healthy 90 Loss Zone Zone Systems F U Inefficient & costly to run and maintain A. GL 80 Candidates for technical enhancement N B. AP C G 70 C. AR T D B D. FA I O 60 E E. Payroll N F F. Online Store A 50 G. HR L A H H. Benefits 40 Q I I. Reporting Tools U 30 A L C I 20 T Y 10 Consumes significant resources Requires excessive maintenance to upgrade the functionality and support the business Candidates for User Effectiveness Candidates for functional enhancement Replacement Loss Zone 0 0 10 20 30 40 50 60 70 80 90 100 TECHNICAL QUALITY 20
  • 21. Data Management Assessment Lack of effective BI reporting system for management and operational decision making Lack of analytical reporting system to create segmentation and analysis reports Lack of integration across business critical systems which makes reporting a complex process for business Lack of reports for business to effectively share membership information across the organization to better serve the association’s internal and external stakeholders Lack of a data mart/warehouse and analytical reporting tools/system Lack of online reporting distribution and ad-hoc data query capabilities Business relies heavily on MS Access databases for reports and analytics Data redundancy across multiple systems 21
  • 22. Infrastructure Assessment No BC and DR for critical business applications No redundancy in network infrastructure Legacy applications still runs on obsolete and de-supported versions of O/S and databases. Business critical systems run on dedicated servers Improve the Service Oriented Infrastructure capabilities * Do the same assessment for other areas – IT Organization, IT Expenditures 22
  • 23. Applications Portfolio Principles – Phase 3 Open Standards: Use technology that follows proven, open standards with multiple interoperable implementations. Community Driven: Partner with vendors and the technology community to steer the future direction of technology. Best Practices: Follow the best practices of the industry and peers, recognizing the unique challenges faced by other manufacturing companies. Integrated: Choose technologies that can be reused and built on the existing infrastructure. Automated: Automation of all routine tasks, deployment and provisioning should be the top priorities in any technological decision. Foundational: Focus on deploying technology that is useful across the largest possible set of users and that is secure, stable, reliable, robust, well-documented, and easy to integrate with. 23
  • 24. Applications Portfolio Initiatives & Strategy Key Strategies Applications Portfolio Initiatives Implement Oracle IDM for enterprise SSO and Access management AP Invoice Automation, iExpenses, Manager Self-Service Implement Oracle SOA Suite to improve, optimize and automate existing business processes and interfaces Enterprise Identity Management Implement Avectra NetForum for CRM (SSO, Access Manager, Policy Manager) Implement HR Manager self-service Web Center Suite Implement Oracle AP Invoice and Document (Web 2.0 - Networking & Collaboration) Management Implement Oracle Web Center Suite for networking and Customer Relationship Management (Sales, Marketing, Service) collaboration applications Web 2.0 Implement new applications using Applications Service Oriented Architecture Implementation Methodology. (BPEL) Implement applications on an open-standard platform and on a VM infrastructure for higher scalability, security, performance and reliability. 24
  • 25. Applications Portfolio Architecture Customers CxO Process Workers Managers Sales Teams Partners Suppliers Information Driven Applications Management & Monitoring Dashboards Embedded Analytics Core Systems Web Center Human Capital Finance CRM iStore Portal Administration & Support Systems / Enterprise Information Model Decision Support Systems / Middleware – Integration Framework Business Intelligence Data Warehouse Discover, XML Publisher DB 3rd party 25
  • 26. Data Management Principles & Strategy Key Principles Data Warehouse will be the central repository for all information. All systems should access DW for data needs. Reports should be retrieved and distributed electronically to minimize paper usage. Physical storage and archiving is the responsibility of data architecture group. Data administration and database administration teams should be properly defined within the IT organization. Key Strategies Develop stringent audit and control standards for all data systems Implement Oracle BI and analytical reporting tools to access finance, customer and sales information, operational decision making and segmentation reporting Implement Oracle data warehouse/mart system to consolidate all disparate data sources and implement ad- hoc reporting tools Develop an enterprise-wide data resource management function to safeguard and track the users/usage of data systems Implement data encryption technologies to transfer sensitive data to 3rd party vendors 26
  • 27. Data Conceptual Architecture Business Decisions Operational Tactical Strategic Low Cost Provider & High Value Provider Market Innovation Product Innovation Value Levers Market Share Leadership Geographic Reach Business Portfolio Channel Innovation Market Assessment Data Value Chain Data Information Intelligence Insight Static Reports Dynamic Reports Static Reports Dynamic Reports Knowledge Discovery BI Capability Analytics Discovery 360° Insight Continuum BI Process Structural Analytical Free-Form Enablement Functional Enterprise Data Warehouses Real-Time Technology Reporting Intelligence Enablement Global Data Access by Portals Systems 27 27
  • 28. Technology Infrastructure Principles & Strategy Key Principles Key Strategies Implement redundant networking infrastructure Business Driven: Current and future using MPLS solution to increase network reliability, business needs and strategic priorities are the main drivers for the technology stability, performance and flexibility infrastructure and architecture. Develop and implement BC and DR for business critical applications Standardization: Standardization of Implement failover and backup systems for business technology infrastructure to drive efficiencies, economies of scale, critical applications based on DC plans supportability and simplicity. Consolidate the existing blade servers into VM machines to reduce TCO and to improve maintenance Cost Effective: The focus to be on the capabilities total cost of ownership (TCO) not only the cheapest to acquire. Implement email and file archival and storage on hosted environment Independence: Use non-vendor Implement robust and ease of use FTP service dependant platforms and solutions whenever possible. Implement robust file compression technology to transfer rich media documents and to decrease storage space 28
  • 30. End- User Computing Strategy and Architecture Key Strategies Develop/maintain Configuration Management system to maintain assets Develop/maintain IT Service Catalog with policies, procedure and SLAs Communicate IT End user computing services catalog to all users Establish workflow process for adding new applications in Citrix Provide training and self-help resources for end-users to maximize productivity Refresh and recycle all desktops and laptops every 3 years to maximize productivity Provide and maintain world-class IT support by following ITIL practices 30
  • 31. Organization Principles & Strategy Key Principles Business unit and IT to develop joint ownership and management of business systems. Decisions will be taken at the corporate level, local IT needs to have buy in from corporate. IT organization should strive towards maximizing benefit to the enterprise. All organizations in the enterprise participate in information management decisions needed to accomplish business objectives. Key Strategies IT Steering committee needed to provide strategic direction by checking all requests. Need for a joint business unit & IT team structure for implementing projects. Keep IT application development, DBA & Infrastructure teams separate. Implement strong project management expertise (PMO). Implement aggressive training program to keep up-to-date with latest technologies. Consolidate multiple functions, e.g., establish single Help Desk. 31
  • 32. Enterprise PMO & Dashboard Enterprise PMO Create & maintain Executive Dashboard. Define & train Team-Program Level Processes. Facilitate Program Level Communication, including status reporting & meetings. Report & track Program level issues & action items. Dashboard Purpose Provide a concise & balanced view of Organization enterprise-level measures. Focus entire organization on key strategic metrics. Support senior management decision-making & status communication. Provide a consistent measure of success to all levels of management. Establish a consistent measure of success for performance review / appraisal / compensation behavior consistent with strategic objectives. 32
  • 33. Enterprise Architecture Framework Business Business Strategy Business Architecture Application Architecture Data Architecture IT Infrastructure Architecture 33
  • 34. IT Investments Strategy Framework Current Condition Business Risk IT Investments Impact on Business Processes & Strategic Business Benefits Customer Prioritized List of IT investments 34
  • 35. IT Project Prioritization Framework Business Strategy IS&T Strategy, Roadmap Identify Projects Identify Project/Investment Bucket Discovery Project Assets Rank and Prioritize Projects – IT Governance Financial Management, Resource Management Change Management, Risk Management 35
  • 36. IT Portfolio Strategy Framework IT Discovery Portfolio (10%) Opportunity fit with strategic objectives Long-term, Basic Research Feasibility AFTER NEXT Strategic IT Project Portfolio (25%) Future Strategic Medium/short-term, New Development Mandatory NEXT Factory/Lights On Service IT Asset Portfolio (65%) Quality Operational, Apps/Data/Infrastructure TCO Existing Business Alignment 36
  • 37. IT Portfolio Strategy Framework Metrics Score projects based on weighted average metrics IT Discovery Portfolio (10%) Total Cost, Business Value, Technology Innovation IT Project Portfolio (25%) Business Alignment, Strategic fit, User Needs, Risk, Revenue, Timeframe Costs, HR capabilities, Constraints, Dependencies, Feasibility, Value, Quality, Scope Productivity, Life cycle, ROI, Payback, Architecture Impact IT Asset Portfolio (65%) Key business processes enabled, Overall business value, User Satisfaction Technical Quality, Functional Quality, Operational Quality, Replacement Costs, Issues Annual Costs, Risk, Strategic Alignment, SLAs, Skill Availability, Risk, Effectiveness 37
  • 38. IT Portfolio – Project Scoring Template Project Scoring Template to Prioritize Projects 38
  • 40. IT Governance Framework What decisions should be made to efficiently use the IT services? Who should make these decisions? How will these decisions be made and monitored? 40
  • 41. IT Strategy Plan Maintenance The IT strategic plan should be kept as a living document and be made available to its stakeholders A formal IT steering committee should be established to provide guidance and steer the IT strategic plan to meet the business strategy The IT steering committee members should be formed from key representatives of the main business units. The IT strategic plan should be prioritized and updated to stay effective in supporting the business strategic priorities. 41
  • 42. Questions Contact Info Karthik Chakkarapani, chakraj@yahoo.com 42