1. IT Strategic Plan
موسسه آموزشي و تحقيقاتي صنايع دفاعي

2. 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

3. 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

4. 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

5. 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…

6. 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

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

8. Impact on IT

9. 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

10. 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?

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

12. 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

13. 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.

14. 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

15. 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

16. Stars vs. Laggards

17. Comparative Performance: Stars vs. Laggards

21. 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.

22. 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.

23. 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

24. 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

25. Do IT Smart - Rule #3

26. 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.

27. 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.

28. 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.

29. 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.

30. Improving Performance

31. IT Strategic Plan
…and now on to the plan…