This week's readings were on Information Technology (IT) Strategy. The Gartner glossary defines IT strategy as “the discipline that defines how IT will be used to help businesses win in their chosen business context.” It deals with effective planning and deployment of IT resources in alignment with the business strategy of the organization. IT is about empowering business and getting the organizational activities done quickly and with ease. Hence effective IT planning is necessary for improved agility and efficiency in an enterprise.
Technology innovation these days has become the distinguishing factor that provides the edge among competing organizations. The faster an organization adopts technology best practices and latest innovations, the further ahead is the organization. This makes it important to plan IT implementation and develop an effective IT strategy. Technology is the enabler to achieve the vision and goals of an organization. So, not only is necessary to have an IT strategy, but also it is equally important to develop a strong one.
Technology innovation these days has become the distinguishing factor that provides the edge among competing organizations. The faster an organization adopts technology best practices and latest innovations, the further ahead is the organization. This makes it important to plan IT implementation and develop an effective IT strategy. Technology is the enabler to achieve the vision and goals of an organization. So, not only is necessary to have an IT strategy, but also it is equally important to develop a strong one.
The figure above shows Gartner's model on IT strategy planning. Three main aspects must be defined:
1. Demand
2. Control
3. Supply
'Demand' refers to the underlying business motive and needs to which IT resources must be aligned to such as the business context, defining capabilities etc.
'Demand' refers to the underlying business motive and needs to which IT resources must be aligned to such as the business context, defining capabilities etc.
'Control' defines the decision making to satisfy the demands. Hence, it includes the IT principles, governance and metrics
'Supply' involves efficiently managing and reusing IT services to achieve the goals. It also includes human resources management, deciding on IT sourcing and enabling EA to support capabilities.
In addition, the IT strategy includes identification of the risks and threats and ways to mitigate them. It also involves discussion on the current state and the ways to achieve the future state. A detailed migration plan is also included. A good way to represent these aspects is use a matrix representation. The enterprise business Strategies, the Change Requirements, IT Strategies and Initiatives must be decided. They can be shown in the matrix form:
- Business Strategies to Change Requirements and IT Strategies Matrix
- Business Strategies to Change Requirements and Initiatives Matrix
This gives a clear view of the important factors involved in planning. These diagrams are useful because they help model the contribution of IT towards achieving the business goals.
References:
Bank XYZ IT Strategy Document. Gartner. Retrieved from http://online.ist.psu.edu/sites/ea872fusco/files/eaimprovesitsynergy.pdf
Schulte, A. (2014, March 28). IT Strategic Planning Key Initiative Overview (ID: G00262933). Retrieved from Gartner database.
Hi Swathika,
ReplyDeleteGood reference to IT Strategy and planning. I agree with the statement that adopting technology best practices and latest innovations can take an organization further. This holds more value currently in Oil & Gas industry, where the competition is high due to decline in oil prices. Usage of technology to automate processes or derive algorithmic solutions is the need of the hour, which not only provides an edge in the competition with the peers but also gets the company to increase production. Planning and IT Strategy are key factors that contribute towards success in achieving these business objectives.
Thanks,
Veena.
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ReplyDeleteSwathika – It would be hard to argue against your points. IT Strategy needs to be robust and comprehensive, and cannot be developed independently of the business’ goals. A strong IT strategy, which complements the planning efforts completed at all levels and divisions is the only way a company can thrive in such a competitive market. Thank you for sharing your thoughts! -KB
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