IT Strategic Planning

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The Role of IT in the Enterprise

Technology has no value unless there is a business contextTechnology must provide a stable foundation upon which the business can predictably operateTechnology must facilitate innovation that allows enterprises to be competitive in their market space.

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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*Source: Forrester Research, Inc.

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Business and IT AlignmentAs 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

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Aligning Capabilities with Business Strategy

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Business Environment

BusinessMission

BusinessIdentity

BusinessStrategy

DetermineIT

CapabilitiesTo

Meet BusinessObjectives

DefineIT

Needs

DevelopRequirements

For Capabilities

ITStrategy

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IT As a Business Operation:Managing the IT Portfolio

Document and track costs and business benefitsConsider both new investments ongoing operationsIntegrate technology life cycle managementAppoint IT and business process owner responsible for realizing planned results

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IT as a Business Operation:Driving Stability

Considerations include:• Architecture• Security• Risk (DR, Change Management, Compliance)

Standards and process methodologies are employed

• ITIL/CobIT• CMMI• Six Sigma/ISO 20000

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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

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The Plan

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Breakthrough Planning (d)“What are the Breakthroughs required to

achieve the results we need?”

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”

Business Enablers (b)“What Business enablers do we need to strengthen in order to achieve Business Excellence”Strategic Direction (a)Strategic Direction (a)

Mission Statement“Why do we exist?”

Mission Statement“Why do we exist?”

Strategic Objectives “How will we measure our

progress?”

Strategic Objectives “How will we measure our

progress?”

Vision“What will our future look like?”

Vision“What will our future look like?”

Strategy “How will we achieve the mission?”

Strategy “How will we achieve the mission?”

Start here

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Planning Process: Micro Level

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Develop Break-through Plan / Prioritization

Develop Break-through Plan / Prioritization

Execute the PlanExecute the Plan

Review PlanReview Plan

Revise the PlanRevise the Plan

Achieve your objectiveAchieve your objective

Breakthrough EstimationBreakthrough Estimation

Plan Finalization 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?

Changes needed?Changes needed?

Revise the PlanRevise the Plan

Sustain / Enhance EstimationSustain / Enhance Estimation

Develop Sustain / Enhance Plan

Develop Sustain / Enhance Plan

Changes needed?Changes needed? Revise the PlanRevise the Plan

Review SustainingInitiatives

Review BreakthroughInitiatives

Communicate the PlanCommunicate the Plan

Develop a Communications Plan“What does this mean to me?” Job descriptions/personal performance

objectives

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Executing the Plan

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ITStrategic

PlanPortfolio Management

IT Governance Process

IT Investment Process(Technology, Process, Training)

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Measuring the Results

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Record the action that will be taken to get the item back on target

Record the action that will be taken to get the item back on target

Explain why the item has deviated from its targeted value

Explain why the item has deviated from its targeted value

Status: = Above target = On target = Slightly below target = Well below targetTrend: = Improving = Declining = SteadyConcern:L = LowM = MediumH = High

Status: = Above target = On target = Slightly below target = Well below targetTrend: = Improving = Declining = SteadyConcern:L = LowM = MediumH = High

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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

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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-to-year, or fiscal year, basis).

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When to Review the Plan

Stable Marketplace• Quarterly

Volatile Marketplace• Monthly – or as necessary

Copyright 2006. InteQ Corporation 15

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Contact Information

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Compliance Process Partners

Phone: 888-718-1708

www.cppit.com

Valerie Arrajvalerie.arraj@cppit.com