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IT Strategy Assessment & Optimization - Catallysts Approach
- 1. IT Strategy: Assessment& Optimization Catallysts perspective & approach
- 2. IT Strategy Imperatives areality check… even with these challenges, co- creating a business aligned and technologically robust IT Strategy is still key to firms’ competitive performance….as… an IT Strategy helps in creating innovative and practical Technology Portfolio to support the business, and defining & developing an agile IT organization necessary to execute that strategy… perception differences prohibit an aligned way forward… • Business dependent IT vs. IT enabled Business • Innovation vs. Consumerization • Supporting current strategy vs. shaping future strategy • Business Value vs. IT Costs • Business Priorities vs. IT Investments • Growth vs. Containment and then there is Business – IT misalignment 74% of business executives feel that IT strategy developed by IT is not driven by Business goals and is more about technology adoption and system enhancements… dynamics that heavily impact firms’ IT strategies today… • Run the business (RTB) costs have grown to 80% of total IT costs, leaving remainder to fund innovation and business growth – Change the business (CTB) • Application portfolios are becoming increasingly complex, driven by M&A activity and deferring strategic initiatives • Flat budgets as a percent of revenue are crowding out application development • Re-sourcing strategies are still stuck in the labor arbitrage mode, failing to leverage global delivery networks • Competitive pressures to continue innovating remain intense even as spending ability is shrinking • Organizations continue to consolidate back-office / shared services Growth Center Investment Center Profit Center Cost Center the Ubiquitous IT’s Strategic Positioning dilemma… InnovationImplementation Business Technology Leadership Focus StrategicFocus
- 3. Why is aBusiness aligned IT Strategy necessary? Multi-faceted expectations on IT, driven by firm’s go-to-market strategies, 1) global firm in home market, 2) global firm in emerging market 3) start-up firm in any market Need for ever so important Business and IT alignment Optimize investments and allocation of IT budgets Manage Performance and Measure in the light of Business Performance Mitigate risk, deliver value and improve control
- 4. Optimizing your firm’sIT Strategy Catallysts Way™ 1Assess Business & IT context An assessment of Business & IT organization, business objectives & strategies, IT landscape, project portfolio, to identify opportunities for improvement 2Co-Create Business & IT Alignment Attain optimal alignment between Business and IT, thereby moving towards business growth and higher IT effectiveness 3Optimize IT Strategy and Performance measures Evolve an IT Strategy to deliver long term growth, addressing key constituents (operating model) and a framework for performance measurements defining a target operating model with clear financial benefits & optimized performance…
- 5. 1Assess Business &IT context An assessment of Business & IT organization, business objectives & strategies, IT landscape, project portfolio, to identify opportunities for improvement
- 6. IF: How doesBusiness perceive IT and its Value? first Step in optimizing IT Strategy is to capture IT’s current positioning 6 Benefit as IT Value Driver Cost as IT Value Driver High High Business – IT Relationship Maturity Map IT researches, recommends and implements technology to enable quantum leap in business capability Utility Commodity IT works with others to develop a service and provide resources/skills necessary to support the service IT provides quality service at a reasonable cost as part of overall cost of business IT provides basic IT services to keep business running with no value acknowledged by the business Partner Enabler 1
- 7. WHAT: Assess yourBusiness & IT Context Identifying the elements of IT Strategy and asking the right questions is key… 1 Key Questions that Catallysts will assist you to answer, • How does my business leaders see IT as, enabler or service provider? • Do we have the bests-fit capabilities to meet our business requirements? Does our Operating model supports an optimal organization structure? • Can we identify right processes & governance to optimize Business & IT alignment? • Do we have a solid sourcing strategy with the right internal resource capabilities? • What is the IT Landing zone that we should target, which is aligned with Business strategy and supports best-in-class technology footprint? Catallysts’ IT Strategy Assessment approach includes, • Experienced business and IT leadership for identifying opportunities, risks, and weaknesses • Expert prioritization of issues based on the impact to your business or organization • Development and execution of an IT strategy that aligns technology with your business goals • Industry knowledge, research and best practice analysis to baseline your company against your competition • Technology selection and implementation guidance IT Strategy Elements
- 8. HOW: Assess yourBusiness & IT Context Catallysts’ IT Strategy Assessment Methodology 1 Review Business Objectives and present IT Strategy IT Strengths and Weaknesses (metrics, technology landscape, architecture) Need Analysis / Current Operating Model IT Discovery and Analysis Current State Gap Analysis & Scorecard Current Gap Recommendations Business Case Development IT Strategy Blueprint & Plan Future State Modelling Business Stakeholders’ Perspectives Kick-Off Quick Wins Initiate Alignment Aligns with Firm’s Target State? No Yes
- 9. 2Co-Create Business &IT Alignment Attain optimal alignment between Business and IT, thereby moving towards business growth and higher IT effectiveness
- 10. IF: Is Business& IT Alignment feasible? Yes…an aligned IT strategy and strong governance can deliver value to varying degrees 2 Application Portfolio Organizational Capabilities IT Process and Governance Technology Infrastructure Business and IT Alignment Impact on Bottom line Time-to-Market Quality (First Time Right) Customer Satisfaction IT enabled Business Governance IT Strategy Elements BusinessDrivers Very High Impact High Impact Catallysts interventions will assist you in explicitly capturing IT strategy elements for high-impact alignment… Alignment and Impact will vary and unique for different IT organizations
- 11. WHAT: Co-Creating Business& IT Alignment for high-impact alignment, IT Strategy Optimization should be strongly linked to Business drivers Organization’s Purpose and Business Objectives Business strategies are derived and confirmed leading based on business scope Analysis and impact of business strategies drive changes and priorities of external business perspectives and internal business structure Analysis of the business changes and priorities drive the IT principles and the characteristics of the IT portfolio, Operating model and required capabilities and competencies External Business Dynamics • Changes in Products and services offered • Changes in market place constituents and relationships Internal Business Dynamics and Structures • Changes in business scope/ processes • Changes in governance and organization structure IT Strategy IT Direction & Target State (Technology & Functional scope) Business Strategies • Product • Marketing • Operational • Regulatory Business Environment Drives the Elements of IT Strategy IT Operating Model (Governance, Structure, Metrics) IT Capabilities (Systemic and Functional competencies) IT Infrastructure & Processes (Technology landscape) 2 1 2 3
- 12. HOW: Through LearningIntervention & Workshops align human elements: prepare required mind-set to take on IT Strategy Optimization Desired Outcomes Participants Identification Delivery Methodology • Developing aligned IT Strategy with strong execution capability • Aligned Technology landscape with Business priorities Gap Analysis Designing Interventions (Coaching & workshops) • Business Leaders • IT Leadership team • Subject Matter experts • Other departments • Vendors Survey to analyse Business – IT Relationship Maturity • Perception Gaps • Vision Alignment Gaps • Competency Gaps • Orientation Gaps • Behavioural Gaps Capture human element based roadblocks to Business / IT alignment Driving IT Strategy Case studies on Business / IT alignment and IT Strategy Optimization Experiential Learning Business Simulations • Identify the cause and symptoms of the misalignment between Business and IT • To understand how IT initiatives can create more impact to the organization • Capability building for IT leadership in Strategic management of IT and for non-IT decision-makers to understand the value accrual by IT • Initiate co-creation of IT Strategy for the firm Linking classroom learning to current challenges Functional Capability RethinkingBusiness Developing Organizational Capabilities Global Academicians IT Strategists & Experts Capability building workshops Interactive Sessions Personal Mentoring (through-out engagement) Kick-off IT Strategy Optimization 2
- 13. 3Optimize IT Strategyand Performance measures Evolve an IT Strategy to deliver long term growth, addressing key constituents (operating model) and a framework for performance measurements
- 14. WHAT: Address allCritical Elements of IT Strategy Catallysts leverages expertise and solutions to co-create a holistic IT Strategy • Business driven IT strategy • Consolidation and standardization • Strategic Planning and Budgeting • Strategic sourcing & Vendor management • Strategic Alignment of IT with business • Co-evolution of IT and Business Strategy & Planning • Approval and Prioritization • Portfolio and program management • Project Analysis and Design documents • Resource & demand management Managing Technology Investment • Application Portfolio management • Asset Rationalization • Business Architecture • Enterprise Architecture standards • Technology Architecture Strategic Enterprise Architecture • Communication Strategy and management • Compliance & Risk management • OD & change management • Strategic & Tactical Governance Governance and Organization 3 Drives Enables Business / IT Alignment
- 15. 3HOW: Co-Creating anOptimized IT Strategy a highly engaging and comprehensive intervention approach by Catallysts IT Strategy Optimization Goals • To provide cohesive blueprint for IT organization • To document strategies and priorities in a ready-to-execute state, enabling dialog with business stakeholders • To ensure alignment of IT Strategy with overall organization’s business strategy and needs Strategies (Business, IT, Innovation) Interactions (Stakeholder Perspective and Needs) Technology Review (IT Footprint, portfolio, processes) ApproachEngagement Workshop 1 • Vision, Mission, Goals • Opportunities • Primary Choices Workshop 2 • Architecture (Enterprise, Application, Technology) Workshop 3 • Services • Resources • Governance Workshop 4 • IT Strategy Map • IT Roadmap (3-5 years) Strategic Alignment (Business + IT) • Select Business Initiatives • Define Governance Gap Fitment & Prioritization • Analyze IT Characteristics (Gap) • Prioritize Actions Capability Building • Strategic Management of IT • Portfolio Mgmt. IT Strategy and Execution Roadmap • Create IT Roadmaps • Identify initiatives for quick wins
- 16. Operational Excellence TechnologyMaturity IT Principles & Standards Brand Support OUTCOME: Optimized IT Strategy Map (Representative) 3 Strategic Initiatives Financial Perspective Customer Perspective Internal Perspective People Perspective Long Term Business Value Improve Cost Structure Enhance Brand Value Improve ROI / ROC Reduce IT Spend Cost BrandQualitySecurity Service ConnectConsistencyPerformance Culture Leadership Alignment Coordination Human Capital Information Capital Organization Capital Operations Mgmt. • Vendor Management • Business Continuity • Service Levels Technology Mgmt. • Architecture • Innovation • IT Rationalization Process Mgmt. • Program Management • Risk Management • Quality Processes Brand Mgmt. • Digital Strategy • Business Process Design • User Experience Vision* A performance oriented, operationally excellent, and customer centric set of business systems. Mission* Be the trusted advisor for enabling business strategies by designing effective processes and building innovative solutions. * Representative only Service Management Governance Stakeholder Management
- 17. 1Assess Business &IT context An assessment of Business & IT organization, business objectives & strategies, IT landscape, project portfolio, to identify opportunities for improvement 2Co-Create Business & IT Alignment Attain optimal alignment between Business and IT, thereby moving towards business growth and higher IT effectiveness 3Optimize IT Strategy and Performance measures Evolve an IT Strategy to deliver long term growth, addressing key constituents (operating model) and a framework for performance measurements
- 18. Catallysts Advantage: Co-CreatingOptimized IT Strategy Integrated Services to deliver Transformational IT • Business Process Transformation • Business & IT Alignment • Portfolio & Account Management • Sourcing Strategies and Vendor Management • Post – M&A IT Integration • Result based Program Management Unit • Digital Strategy (Social, Cloud, Mobility) • Technology & Application Landing Zone Definition
- 19. Ahmedabad | Bangkok| New Delhi | Dubai Prof. Rajanish Dass rajanish@catallysts.com www.catallysts.com
- 20. About Catallysts Catallysts isa next generation business advisory and management education firm with deep commitment to partner with organizations at strategic & functional levels, to co-create the Next Practices, thus enabling their short term and future-ready states; Catallysts brings deep vertical (industry) and horizontal (subject matter) expertise from around the globe, as part of its unique Catallysts Cube™ model. Catallyst Constellations (Catallysts) was established by a core team of management academicians and industry professionals with cutting-edge analytics, management practices and technology at its core, and provides best-in-class capabilities throughout the engagement life-cycle. Today, our clients engage with Catallysts for its unique business insights and best-fit interventions by leveraging a matrix of vertical and horizontal acumen, with years of experience in management research, public policy, executive coaching, consulting and advisory services. Spread across the globe, Catallysts has engagement capabilities in APAC (incl. Australia), Europe, Middle East and Africa with local presence in more than half a dozen countries.