This document summarizes key points from a presentation on crafting an effective IT strategy. It discusses defining organizational strategy and how IT strategy aligns with and supports business goals. It also covers IT skill sets, why strategic planning is important, how to align capabilities with business needs, and managing the IT portfolio as a business operation including measuring performance. The document provides examples of strategic planning processes and emphasizes the importance of keeping strategies brief and balanced. It concludes with an exercise for workshop participants to develop an IT strategy for a sample company.

1. CRAFTING A WINNING ICTSTRATEGY
CSKITMANAGEMENTCONGRESS-P5
TUESDAY 26TH APRIL 2022
Peter Owenje

2. • IT Strategy Planning Process
• Keeping Strategy Brief and Balanced
• Strategy Group Work Exercise
Crafting a Winning IT Strategy
CSKITMgtCongress- Overview

3. WHAT IS STRATEGY

4. AN ORGANIZATION’S INTENT
IDENTITY

5. AN ORGANIZATION’S STARTEGY
Org Strategy
STRATEGY BUSINESS UNIT STRATEGY IT STRATEGY
GOALS FINANCIAL GOALS ( OBJECTIVE
)
IT GOALS
AT WHAT YOU WILL BE GOOD CUSTOMERS ( SCOPE ) WHAT TYPE OP PROBLEMS ,
WILL YOU SOLVE
HOW YOU WILL BE GOOD VALUE PROPOSITION (
ADVANTAGE )
How will we solve these problems

6. Information Technology Skill Sets
IT Skill Sets
DATA MANAGEMENT ARCHITECTURE BUSINESS ANALYTICS SYSTEMS ANALYSIS
OUT SOURCING MGT Q & A TESTING AGILE DEVELOPMENT DATA VISUALIZATION
FUNCTIONAL APP DEV DATA SCIENCE HIGH SPEED APPLICATION
DEV
PROJECT MANAGEMENT

7. • Faster time-to-market
• Increased profitability
• Better customer experience
• Improved collaboration
• Greater industry and IT agility
• Strategic technological transformation
WHY. - Information Technology Strategic Planning

8. IT STRATEGIC PLANNING

9. Fundamentals of ICT strategy

10. • Technology has no value unless there is a
business context
• Technology must provide a stable
foundation upon which the business can
predictably operate
• Technology must facilitate innovation that
allows enterprises to be competitive in their
market space.
The Role of IT in the Enterprise

11. • Expectation Setting
• Business and IT are on the same page!
• Creditability
• IT consumes between 6 and 10% on average
a percentage of total revenue*
Why do a Strategic Plan?

12. • Establishes a policy for decision making
• Priorities are set according to alignment with strategy
• Focuses resources on key priorities
• IT is at risk of failure without it!!!
• Short-term, quick fix solutions become the norm
• You are the architect of your fortune.”
Why do a Strategic Plan?

13. Aligning Capabilities with
Business Strategy
Business
Environment
Business
Mission
Business
Identity
Business
Strategy
Determine
IT
Capabilities
To
Meet Business
Objectives
Define
IT
Needs
Develop
Requirements
For
Capabilities
IT
Strategy

14. • Document and track costs and business
benefits
• Consider both new investments ongoing
operations
• Integrate technology life cycle
management
• Appoint IT and business process owner
responsible for realizing planned results
IT As a Business Operation:
Managing the IT Portfolio

15. • Considerations include:
• Architecture
• Security
• Risk (DR, Change Management, Compliance)
• Standards and process methodologies are employed
• ITIL/CobIT
• CMMI
• Six Sigma/ISO 20000
IT as a Business Operation:
Driving Stability

16. • Tracking and measuring “services”
• Performance and availability
• Tracking and measuring delivery
• Project milestones, quality, cost
• Tracking and communicating continuous
improvement
IT as a Business Operation:
Measuring Performance

17. The Plan
Breakthrough Planning (d)
“What are the Breakthroughs required to achieve
the results we need?”
Business Enablers (b)
“What Business enablers do we
need to strengthen in order to
achieve Business Excellence”
Strategic Direction (a)
Mission Statement
“Why do we exist?”
Strategic Objectives
“How will we measure our
progress?”
Vision
“What will our future look like?”
Strategy
“How will we achieve the mission?”

18. 18
10
Develop Break-through Plan /
Prioritization
Execute the Plan
Review Plan
Revise the Plan
Achieve your objective
Breakthrough Estimation
Plan Finalization
Innovation Requirements
Plan execution (metrics, G&O’s,
Ownership)
Assure the Stable Foundation
“Keeping the ship afloat”
Breakthroughs, Budgeting, Plan
Finalization
Changes
needed?
Changes
needed?
Revise the Plan
Sustain / Enhance Estimation
Develop Sustain / Enhance Plan
Changes
needed? Revise the Plan
Review Sustaining
Initiatives
Review Breakthrough
Initiatives
Communicate the Plan
Develop a Communications Plan
“What does this mean to me?” Job
descriptions/personal performance
objectives
Planning Process: Micro Level

19. IT
Strategic
Plan
Portfolio Management
IT Governance Process
IT Investment Process
(Technology, Process, Training)
Executing the Plan

20. 20
12
Record the action that will be taken to
get the item back on target
Explain why the item has deviated
from its targeted value
Status:
= Above target
 = On target
 = Slightly below target
 = Well below target
Trend:
 = Improving
 = Declining
 = Steady
Concern:
L = Low
M = Medium
H = High
Measuring the Results

21. • Characteristics that Drive Planning
• Role of Technology in Product and Service
Offerings
• john Deere versus Microsoft
• Business Volatility
• Pharma versus Manufacturing
Not a One Size Fits all Model

22. • Competitive Pressure
• Highly competitive versus stable
• Organizational Structure
• Centralized versus decentralized
• Geographic Scope
• Local versus international
Not a One Size Fits all Model

23. When Should Strategic Planning Be Done?
• Volatile Marketplace with Rapidly Changing Products and Services
• Detailed, comprehensive plan once or twice a year
• mission, vision, values, environmental scan, issues, goals, strategies, objectives,
responsibilities, time lines, budgets, etc
• Stable Marketplace
• Planning might be carried out once a year and only certain parts of the planning process, for
example, action planning
• objectives, responsibilities, time lines, budgets, etc are updated each year
• Other Guidelines
• When an organization is just getting started. (The strategic plan is usually part of an overall
business plan, along with a marketing plan, financial plan and operational/management plan.)
• In preparation for a new major venture, for example, developing a new department, division,
major new product or line of products, etc.
• Strategic planning should also be conducted at least once a year in order to be ready for the
coming fiscal year (the financial management of an organization is usually based on a year-to-
year, or fiscal year, basis).
When and How Often to Plan?

24. IT STRATEGY PLANNING PROCESS

25. Information Technology Strategic Planning

26. Information Technology Strategic Planning

28. KEEPING STRATEGY BRIEFAND
BALANCED

29. Keep Strategy Brief and Balanced
Keep Strategy Brief and Balanced
DEMAND CONTROL SUPPLY
BUSINESS CONTEXT IT PRINCIPLES IT SERVICES
BUSINESS SUCESS IT GOVERNANCE ARCHITECTURE
BUSINESS CAPERBILITIES IT FINANCIAL MANAGEMNET PEOPLE
IT CONTRIBUTION MERTICS SOURCING
IT SECURITY SERVICES AND. MANAGEMENT
How will we win and how will IT help How will we ensure strategic decisions
and development
How will we evolve IT supply and
capability

30. STRATEGY GROUP WORKEXERCISE

31. IT Strategy Group Work
Work group Company
DEMAND CONTROL SUPPLY
BUSINESS CONTEXT
Clean and efficient water provision
IT PRINCIPLES IT SERVICES
BUSINESS SUCESS
Adequate and reliable water supply for all
customers
IT GOVERNANCE ARCHITECTURE
BUSINESS CAPERBILITIES IT FINANCIAL MANAGEMNET PEOPLE
IT CONTRIBUTION
Automated services mgt
MERTICS SOURCING
IT SECURITY SERVICES AND. MANAGEMENT
How will we win and how will IT help How will we ensure strategic decisions
and development
How will we evolve IT supply and
capability