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Integrating business and IT strategy and driving business performance and IT execution in a single integrated process transforms the way business gets value from IT.
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Business Architecture the Key to Enterprise Transformation
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Chapter 12
IT Strategy and Balanced Scorecard
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Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
Learning Objectives
Aligning IT with Business Strategy
Balanced Scorecard
IT Sourcing and Cloud Strategy
IT Strategy and Strategic Planning Process
IT Strategy and Strategic Planning Process
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IT Strategic Planning
A systematic process for determining what a business should become and how it can best achieve that goal.
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Assess current performance
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IT Strategy and Strategic Planning Process
IT Deployment Strategies
In-house development
Systems are developed or other IT work is done in-house, possibly with the help of consulting companies or vendors.
Sourcing
Onshore: sourced to consulting companies or vendors that are within the same country.
Offshoring: work sourced to other countries.
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Figure 12.2 IT strategic planning process.
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IT Strategy and Strategic Planning Process
IT Steering Committee
Set the direction
Links corporate strategy with the IT strategy,
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Approves the allocation of resources for and within the information systems organization including outsourcing policy.
Make staffing decisions
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Communicate and provide feedback
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Set and evaluate performance metrics
Establish performance measures for the IT department and see they are met.
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IT Strategy and Strategic Planning Process
Governance
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Long-rang ...
Chapter 12IT Strategy and Balanced ScorecardPrepared b.docx
Chapter 12
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Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
Learning Objectives
Aligning IT with Business Strategy
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Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
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IT Strategic Planning
A systematic process for determining what a business should become and how it can best achieve that goal.
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Fail to align IT to real business needs.
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IT Strategies Support the Business Strategy
Four IT Strategic Plan Objectives:
Improve management’s understanding of IT opportunities and limitations
Assess current performance
Identify capacity and human resource requirements
Clarify the level of investment required
Chapter 12
Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
IT Strategy and Strategic Planning Process
IT Deployment Strategies
In-house development
Systems are developed or other IT work is done in-house, possibly with the help of consulting companies or vendors.
Sourcing
Onshore: sourced to consulting companies or vendors that are within the same country.
Offshoring: work sourced to other countries.
Chapter 12
Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
IT Strategy and Strategic Planning Process
Chapter 12
Figure 12.2 IT strategic planning process.
Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
IT Strategy and Strategic Planning Process
IT Steering Committee
Set the direction
Links corporate strategy with the IT strategy,
Allocate scarce resources
Approves the allocation of resources for and within the information systems organization including outsourcing policy.
Make staffing decisions
Key IT personnel decisions involve a consultation and approval process made by the committee, including outsourcing decisions.
Communicate and provide feedback
Information regarding IT activities should flow freely.
Set and evaluate performance metrics
Establish performance measures for the IT department and see they are met.
Chapter 12
Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
IT Strategy and Strategic Planning Process
Governance
Formally established statements that direct the policies regarding IT alignment with organizational goals and allocation of resources.
Long-rang.
Chapter 12IT Strategy and Balanced ScorecardPrepared b.docx
Chapter 12
IT Strategy and Balanced Scorecard
Prepared by Dr. Derek Sedlack, South University
Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
Learning Objectives
Aligning IT with Business Strategy
Balanced Scorecard
IT Sourcing and Cloud Strategy
IT Strategy and Strategic Planning Process
IT Strategy and Strategic Planning Process
Value Drivers
Enhance the value of a product or service to consumers, creating value for the company (such as advanced IT, reliability, and brand reputation).
Three general types of Business Value Drivers:
Operational Shorter-term factors
Financial Medium-term factors
Sustainability Long-term factors
Chapter 12
Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
IT Strategy and Strategic Planning Process
IT Strategic Planning
A systematic process for determining what a business should become and how it can best achieve that goal.
Reactive Approaches Fail
Fail to align IT to real business needs.
and, as a result
Fail to deliver value to the business.
Chapter 12
Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
IT Strategy and Strategic Planning Process
IT Strategies Support the Business Strategy
Four IT Strategic Plan Objectives:
Improve management’s understanding of IT opportunities and limitations
Assess current performance
Identify capacity and human resource requirements
Clarify the level of investment required
Chapter 12
Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
IT Strategy and Strategic Planning Process
IT Deployment Strategies
In-house development
Systems are developed or other IT work is done in-house, possibly with the help of consulting companies or vendors.
Sourcing
Onshore: sourced to consulting companies or vendors that are within the same country.
Offshoring: work sourced to other countries.
Chapter 12
Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
IT Strategy and Strategic Planning Process
Chapter 12
Figure 12.2 IT strategic planning process.
Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
IT Strategy and Strategic Planning Process
IT Steering Committee
Set the direction
Links corporate strategy with the IT strategy,
Allocate scarce resources
Approves the allocation of resources for and within the information systems organization including outsourcing policy.
Make staffing decisions
Key IT personnel decisions involve a consultation and approval process made by the committee, including outsourcing decisions.
Communicate and provide feedback
Information regarding IT activities should flow freely.
Set and evaluate performance metrics
Establish performance measures for the IT department and see they are met.
Chapter 12
Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
IT Strategy and Strategic Planning Process
Governance
Formally established statements that direct the policies regarding IT alignment with organizational goals and allocation of resources.
Long-rang ...
It Governance Slides for MISA Ontario June 2009
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Chapter 12IT Strategy and Balanced ScorecardPrepared b.docx
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The holy grail
- 1. The Holy Grail: Linking Corporate and IT Strategy to IT execution How Portfolio, Program and Project management can be linked to optimize IT value realization and performance 08/02/11 Copyright: Crocus Hill Associates, All rights reserved
- 8. The Key is Linking the Management Processes and Providing Real Time Feedback to Stay in Control 08/02/11 Copyright: Crocus Hill Associates, All rights reserved Corporate Strategy IT Portfolio Management Program Management Project Management Governance Inside Loop Control Linking Planning and Execution Outside Loop Control Provide Execution Feedback to Planning
- 16. Summarizing Activity Value Analysis data Provides Capacity and Decision able Resources 08/02/11 Copyright: Crocus Hill Associates, All rights reserved Classifying and summarizing activity types from time sheet history provides insight into development capacity Classifying support work below this summary level provides the basis for total quality and lean efforts to streamline operations and provide improved ‘yield’ against ‘value driving’ projects.
- 18. Board Priority Drives Scheduling 08/02/11 Copyright: Crocus Hill Associates, All rights reserved After Board review, projects are released for scheduling. Projects are loaded on the schedule based on Board priority rating Resources are encumbered by the project estimates from the profiles
- 19. Priority, Schedule and Resource Conflicts are Highlighted and Managed – Real time 08/02/11 Copyright: Crocus Hill Associates, All rights reserved Projects are loaded on the schedule based on Board priority and commitment dates in the strategic plan Capacity constraints are immediately visible for management attention Management can authorize temporary staff additions or changes in schedule to balance work and capacity Feedback from the decisions returns to the strategic plan, adjusting performance dates and the budget for temporary resources
- 21. Making It All Work Requires Effective Management of Organization, Processes and Tools 08/02/11 Copyright: Crocus Hill Associates, All rights reserved Governance needs to be integrated into planning and execution processes to assure control Standard reporting and estimating processes are required to provide timely, relevant information Project and Program management needs to provide feedback to Planning and Governance A robust, integrated tool set is required to assure that the pieces stay connected
- 22. For more information 08/02/11 Copyright: Crocus Hill Associates, All rights reserved Additions, arguments, corrections or for a copy of this presentation: Contact us: Craig Bickel [email_address] 612 978 3737 – Cell 612 216 2403 – Direct