IT Strategic Planning The Role of IT

IT Strategic Planning

The Role of IT in the Enterprise 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. 2 2 2

Why do a Strategic Plan? Expectation Setting • Business and IT are on the same page! Creditability • IT consumes between 6 and 10% on average as a percentage of total revenue* 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. ” 3 3 *Source: Forrester Research, Inc. 3

Business and IT Alignment As a partner/enabler to the business • Shared strategies are key • Objectives that align to enterprise strategies • Shared accountability for results • Measurable performance indicators that show contribution to company goals • Communication of IT objectives, strategies and measures must be in business terms Information Technology is a strategic asset to the enterprise 4 4 4

Aligning Capabilities with Business Strategy Business Environment Business Mission Business Strategy Determine IT Capabilities To Meet Business Objectives Define IT Needs Develop Requirements For Capabilities IT Strategy Business Identity 5 5 5

IT As a Business Operation: Managing the IT Portfolio 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 6 6 6

IT as a Business Operation: Driving Stability Considerations include: • Architecture • Security • Risk (DR, Change Management, Compliance) Standards and process methodologies are employed • ITIL/Cob. IT • CMMI • Six Sigma/ISO 20000 7 7 7

IT as a Business Operation: Measuring Performance Tracking and measuring “services” • Performance and availability Tracking and measuring delivery • Project milestones, quality, cost Tracking and communicating continuous improvement 8 8 8

The Plan re t he Star Business Enablers (b) Strategic Direction (a) “What Business enablers do we need to strengthen in order to achieve Business Excellence” Mission Statement “Why do we exist? ” Vision “What will our future look like? ” Strategy “How will we achieve the mission? ” Strategic Objectives “How will we measure our progress? ” Breakthrough Planning (d) 9 9 “What are the Breakthroughs required to achieve the results we need? ” 9

Planning Process: Micro Level Innovation Requirements Develop Break-through Plan / Prioritization Breakthrough Estimation Review Breakthrough Initiatives Assure the Stable Foundation “Keeping the ship afloat” Review Sustaining Initiatives Breakthroughs, Budgeting, Plan Finalization Changes needed? Revise the Plan Develop Sustain / Enhance Plan Changes needed? Revise the Plan Sustain / Enhance Estimation Plan Finalization Develop a Communications Plan “What does this mean to me? ” Job descriptions/personal performance objectives Communicate the Plan Execute the Plan execution (metrics, G&O’s, Ownership) Review Plan Changes needed? 10 1 0 Achieve your objective Revise the Plan 10

Executing the Plan IT Investment Process (Technology, Process, Training) IT Strategic Plan Portfolio Management IT Governance Process 11 1 1 11

Measuring the Results Status: = Above target = On target = Slightly below target = Well below target Trend: = Improving = Declining = Steady Concern: L = Low 12 M = Medium 1 H = High 2 Record the action that will be taken to get the item back on target Explain why the item has deviated from its targeted value 12

Not a One Size Fits all Model Characteristics that Drive Planning • Role of Technology in Product and Service Offerings • John Deere versus Microsoft • Business Volatility • Pharma versus Manufacturing • Competitive Pressure • Highly competitive versus stable • Organizational Structure • Centralized versus decentralized • Geographic Scope • Local versus international 13 1 3 13

When and How Often to Plan? 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-toyear, or fiscal year, basis). 14 1 4 Copyright 2006. Inte. Q Corporation 14

When to Review the Plan Stable Marketplace • Quarterly Volatile Marketplace • Monthly – or as necessary 15 1 5 Copyright 2006. Inte. Q Corporation 15

Contact Information Compliance Process Partners Phone: 888 -718 -1708 www. cppit. com Valerie Arraj valerie. arraj@cppit. com 16 1 6 16