IT Strategic Plan موسسه آموزشي و تحقيقاتي صنايع دفاعي

IT Strategy Hierarchy Business Strategic Management Executive Management User Management IS/IT Strategic Management Impact Analysis User Operations Information Systems Management Functionally, IS has 3 of the 4 major strategy steps. Get smart around your company and its business strategic planning. Source: Strategic Planning for Information Systems, 1996, John Ward and Pat Griffiths Information Analysis Project and Computer Management Systems Design

On The Importance of Strategy… “Forget about turbo charging the strategic planning process –that just gets you to the wrong place sooner.” - Kathleen Eisenhardt, Red Herring Handout workbook Explain – Make notes in the seminar; use as a take-away tool to work with your people

Parallel Strategic Planning Process Business Goals Strategic Tactical Operational Business Strategic Vision Development Business Strategic Vision Business Strategic Vision Communication IT Goals Strategic Tactical Operational IT Strategic Vision Development IT Strategic Vision IT Strategic Vision Communication Strategic – Tactical – Operational Goals Source: Strategic Information Technology: Opportunities For Competitive Advantage, 2001, Raymond Papp

The Role of Technology Has Changed IT is pervasive as never before… Supporting & Enabling IT’s “Sphere of Influence” runs across the company… Technology is a primary driver of change… and opportunity…

IT / Business Strategy Because… A business is made up of a set of processes managed by information IT creates and manages those process and creates the information Insight into strategy provides a new level of understanding and creates ongoing incremental change and improvements

IT / Business Strategy Because… Technology enables change! Change creates opportunities! E-business is The example of how technology can transform and create opportunities…

Impact on IT

Traditional IT Roles Changing Are information technology and strategy now so much a part of each other that all senior managers are – or should be – “Information Officers?” Harvard Business Review, March / April 2000

Relationship Between Business and IT Business Strategy Business Decisions Objectives and Direction Change IS/IT Impact and Potential Where is the business going and why? Supports business Direction for Business IS Strategy Business Based Demand Orientated Application Focused What is required? Infrastructure and services Needs and Priorities Source: Strategic Planning for Information Systems, 1996, John Ward and Pat Griffiths Understand al the pieces of this relationship IS/IT impact is an opportunity to influence the business strategy IT Strategy Activity Based Supply Orientated Technology Focused How it can be delivered?

Product / Industry Life-Cycle Growth Maturity Emerging Decline Birth Early Adopters Innovators Early Majority Late Majority Laggards Product / Industry Life-Cycle

Technology / Product / Industry Cash Cow Rising Star New Venture End of Life Technology Enthusiasts Visionaries Pragmatists Conservatists Skeptics Overlay Product Life Cycle onto The Technology Adoption Life Cycle Turns a bell curve distribution model into a time-based projection

Discovering The Chasm Chasm No longer can stay in Early Market Cannot take on any more “specials” Must develop repeatable business Mainstream market not yet ready to adopt Nothing yet “in production” Technological innovation leads demand.

What Chasm dwellers do wrong 2. Crossing the Chasm Problem 80% of many solutions - 100% of none Pragmatists won’t buy 80% solutions What Chasm dwellers do wrong Working on the most common enhancement requests Never finishing any one customer’s wish-list Solution Focus on a single beachhead Accelerate formation of that segment’s whole product Pick league leaders and close on them

Evaluating Strategy Methodology Define your Core Business What are the boundaries of your core business? What customers, channels, and competitors are within the boundaries? What are the threats to your core business? Business Strategy Industry & Market Analysis Identify Core Opportunities Is your core business growing or declining? What capabilities would serve your core? How much can you improve your core business? Identify Satellite Opportunities What opportunities are being created by your core business? Which opportunities are the most attractive? How well do these opportunities “fit” with the companies capabilities? Ease of implementation? What is the customer value proposition? What are the Economics? Define core business & agree on growth opportunities Qualify & prioritize new satellite growth opportunities Develop Strategic, Tactical & Operational Goals

Stars vs. Laggards

Comparative Performance: Stars vs. Laggards

How to Do I.T. Smart Make IT a priority in Product Development Integrate IT into Marketing, Sales and Service Use IT to selectively integrate order processing across the company Shift the Focus of IT in Administration to Business Planning and Management Development Make IT a Top Management Affair Create a Customer-Oriented Service Network Introduce standard software – but redesign the business first.

Make IT a Priority in Product Development Do IT Smart - Rule #1 Make IT a Priority in Product Development Manufacturing: CAD migrates to Modeling Software Service delivery effectiveness depends on IT systems Integration between product design, assembly and packaging can drive speed to market and cost reductions Information provides basis for product features, anticipating customer preferences, and understanding buyer behaviors.

Integrate IT into Marketing, Sales and Service Do IT Smart - Rule #2 Integrate IT into Marketing, Sales and Service Customer Databases increasingly used. But is value created? Use for real-time inventory counts, estimate generating. Improves speed, quality of service, strength of sales process Critical time with customer gained by reducing efforts of order taking

Use IT to selectively integrate order processing across the company Do IT Smart - Rule #3 Use IT to selectively integrate order processing across the company Aim for greatest impact ERP systems effectiveness limited in certain environments Integration with suppliers/customers key benefit Flexibility allowed should vary with complexity of order fulfillment Technology optimizes inherent conflict

Do IT Smart - Rule #3

Do IT Smart - Rule #4 Shift the Focus of IT in Administration to Business Planning and Management Development Information Systems traditionally used for basic systems (finance/accounting) first. Movement towards use of planning tools. Executive Information Systems/Decision Support Systems in real time improve quality and speed of decisions.

Make IT a Top Management Affair Do IT Smart - Rule #5 Make IT a Top Management Affair One of the key differentiators between Star and Laggards Management should be users of the companies technology Operational vs. Strategic decisions are often a function of pressure, not strategic thinking – Involving Top Management can reduce those pressures. Management time and focus is key.

Create a Customer-Oriented Service Network Do IT Smart - Rule #6 Create a Customer-Oriented Service Network The support function of the IT department is still critical, but is our approach outdated? Different needs from different groups requires a decentralized approach. A network of capable support personnel can provide localized and specific support, or can be specialized by function (help desk, network administration) to provide opportunities for performance measurement. Outsource when its effective, not efficient. Utilize user groups extensively, including top management to drive new initiatives.

Introduce standard software – but redesign the business first. Do IT Smart - Rule #7 Introduce standard software – but redesign the business first. Unless distinct competitive advantage exists through proprietary software, use standard packages. Use a fast-follower model – don’t be first, but don’t be last Wait until expertise has been developed in its implementation and adaptation and bugs have been worked out. 80% of needs is OK. When implementing, move swiftly to convert business units.

Improving Performance

IT Strategic Plan …and now on to the plan…