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.

Why do a Strategic Plan? Expectation Setting Creditability 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.” *Source: Forrester Research, Inc.

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

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

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 Business process owners should be held accountable for projected results such as headcount reduction or process efficiency.

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

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

Strategic Direction (a) The Plan (d) (c) (b) (a) Document Start here Business Enablers (b) “What Business enablers do we need to strengthen in order to achieve Business Excellence” Strategic Direction (a) Mission Statement “Why do we exist?” CSFs and KPIs (c) Critical Success Factors “What is critical to our success in achieving our objectives?” Key Performance Indicators “How will we measure our progress?” 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) “What are the Breakthroughs required to achieve the results we need?”

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

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

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

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

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). Copyright 2006. InteQ Corporation

Copyright 2006. InteQ Corporation When to Review the Plan Stable Marketplace Quarterly Volatile Marketplace Monthly – or as necessary Copyright 2006. InteQ Corporation

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