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ICT Vision and Strategy Development

ICT Vision and Strategy Development


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Published by: Alan McSweeney on Nov 26, 2009
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ICT Vision and Strategy Development

Alan McSweeney

• To

describe a view of and approach to developing an ICT strategy

November 26, 2009


• IT • IT

Vision Challenges and Trends of IT Strategy to Developing IT Strategy

• View

• Approach

November 26, 2009


IT Vision
• • • •

A key enabler of business Proactively respond to the IT needs of the organisation Implement flexible and agile systems and infrastructures and be flexible and agile in it dealings with the business Connected to and aligned with the business and its requirements

Information Technology
November 26, 2009 4

IT - Core Principles

Recommends that IT define a core set of principles/policies:
− IT strategy will be developed and maintained in line with market analysis and key stakeholder requirements and IT strategy to be aligned with the organisation’s vision − IT delivers core services to cost and quality standards − IT as a function is controlled and compliant to industry standards − Security will be embedded in IT − IT enables flexible service delivery to users − IT supports business growth − IT supports and enables compliance in the wider organisation − IT budgets will be developed and maintained for new services or improved IT Services

November 26, 2009


IT Challenges and Trends

General challenges and trends in information technology
1. Information Security Management 2. Identity and Access Management 3. Conforming to Assurance and Compliance Standards 4. Privacy Management 5. Disaster Recovery Planning (DRP) and Business Continuity Management (BCM) 6. IT Governance 7. Securing and Controlling Information Distribution 8. Mobile and Remote Computing 9. Electronic Archiving and Data Retention 10.Document, Forms, Content and Knowledge Management 11.Training, Competency and Awareness 12.Business Process Improvement, Workflow and Process Exception Alerts 13.Improved Application and Data Integration 14.Web Deployed Applications 15.Enterprise System Management 16.Business Intelligence (BI) 17.Customer Relationship Management (CRM) 18.Information Portals 19.Environmental Concerns 20.Infrastructure Optimisation

• •

Which ones are of interest to you? IT aware of and monitoring key technologies, trends and challenges to ensure that the organisation will be ready to respond to changes quickly and effectively
− Benchmarking against other industries and competitors − Developing best practice
November 26, 2009 6

IT Demands
Increase Agility Maximise Return
• •

Improve business results; grow revenue and earnings, cash flow, and reduced cost of operations

Enable the business organisation and operations to adapt to changing business needs

Mitigate Risk

Improve Performance
Improve business operations performance end-to-end across the enterprise • Increase customer and employee satisfaction


Ensure security and continuity of internal business operations, while minimising exposure to external risk factors

November 26, 2009

Balancing Act

November 26, 2009


IT Demands

Internal stakeholders:
− Business uniits − IT

External stakeholders
− Partners − Regulators − Vendors and suppliers

November 26, 2009


IT Strategy

Develop IT strategy and architecture for the deployment and implementation, management and operation of IT solutions throughout the organisation in a cost-effective manner
− Doing things better − Doing better things

Process of defining a strategy or direction and making decisions on allocating resources to pursue this strategy including capital and people Create a blueprint that guides delivery of applications and information related to an organisation's activities The end result is a Strategic IT Plan

• •

November 26, 2009


Elements of IT Strategy
• • • • • • • • • •

Vision - Defines where the organisation wants to be in the future as it relates to IT Mission - Defines where the organisation is going now in IT and describing the purpose Situation Analysis - evaluates the current IT situation and how it came about Goals, Objectives and Targets - time bound statements of intended future results and general and continuing statements of intended future results Path/Policy Initiatives - maps routes to the goals/objectives Stakeholders
− Stakeholders means Ownership means Success

KPI’s Measurement Tools and KPI s
− Are we there yet?

Funding — cost, return on investment Implementation — roadmap, plans and handling change Governance - security, policies, procedures and risk IT strategic plan is a key to obtaining necessary funds

November 26, 2009


Benefits of Developing an IT Strategy
• Develop • Develop

a strategic plan that matches business requirements flexible IT architecture to accommodate a long-term growth plan and a faster response to business changes budget requirements and prioritise IT development and delivery investment

• Evaluate

November 26, 2009


IT and Strategy
• Strongly

believe that information technology is only a

− To be effective, it must be tightly linked to the underlying business
• Information

Technology Strategy seeks to

− Align the priorities of IT with the priorities of the business − Ensure that IT is capable of fulfilling its role in the business − Align the characteristics of IT with those of the business
• Information

Technology has significant leverage on the performance of an organisation
− An IT Strategy is a sensible and practical management action to gain control over this increasingly important element of the organisation

November 26, 2009


IT Strategy

Information Technology Strategy provides benefits to the organisation
− Supports active management and leadership on the use of IT to support the business strategy − Enhances management control over IT resources − Maximises the value contribution of IT by ensuring alignment of the IT strategy with the business strategy

IT strategy addresses two separate but interrelated sets of issues:
1. Demand issues relate to what the business needs and wants from IT 2. Supply issues relate to how the IT business area has to operate in order to satisfy business demand
November 26, 2009 14

IT Controls and Compliance

IT Controls and Compliance
− IT must implement internal controls around how it operates − The systems IT delivers to the business and the underlying business processes these systems actualise must be controlled — these are controls external to IT

The de-facto standard for IT governance is COBIT
− Control Ob Objectives for Information and related Technology

COBIT aims to be different from other quality and governance approaches in two ways:
1.It is an IT governance framework and supporting set of tools that IT can use to bridge the gap between control requirements, technical issues and business risks 2.It provides a detailed implementation structure and toolset that translates the framework theory into a practical and achievable deliverables
November 26, 2009 15

Contexts and Perspectives on Change and Impact

BusinessBusiness-Oriented Context
− Business Process focuses on the actions, how and in what sequence activities are carried out, what rules are followed, and the types of results obtained − Organisation focuses on the people and organisations involved in the change: their culture, capabilities, capacities, roles, structures, and organisational units − Location focuses on the geographic distribution of locations where business is conducted and the characteristics of various location types

TechnologyTechnology-Oriented Context
− Information and Data focuses on business rules, content, structure, relationships, and the transformation of information used by processes and applications − Systems and Applications focuses on the capabilities, structure, and user interface of software applications and components − Technology focuses on the hardware, system software, and communications infrastructure used to enable and support systems and services

November 26, 2009


Business and IT Strategy

Business Strategy
− Defines the strategic goals, imperatives and initiatives to direct the business − Business strategy is the principal driver of IT strategy − IT strategy is developed to support the business strategy − IT can also provide opportunities to reshape the business strategy

Organisation IT Strategy
− Defines the strategic direction of information technology within the organisation required to support and achieve business strategy.

IT Business Function Strategy
− Defines the strategic direction of the IT function to develop, deploy, operate, manage and support the IT systems needed by the business − Includes processes and supporting technology
November 26, 2009 17

Information Technology Demand and Supply

Demand Issues - what the business needs and wants from IT IT portfolio alignment Initiative identification and business strategy enablement IT-enabled business invention Demand rationalisation and prioritisation such as cost/benefit analyses and risk assessments
November 26, 2009

Supply Issues - how the IT function has to operate to satisfy business demand IT mission alignment Cost and affordability constraints Organisational positioning IT governance and leadership Core competencies and sourcing Practical constraints

• • • •

• • • • • •

Organisational and IT Strategy
• Starting • IT • IT

point of IT strategic plan

strategic plan must align with organisational strategy

architecture influences organisational strategy (and vice versa) strategy helps set initial IT strategic planning priorities

• Organisational

November 26, 2009


Business Vision and Strategy

November 26, 2009


Business Vision and Strategy

November 26, 2009


Business and IT Strategy

November 26, 2009


IT Strategy Realisation Issues
• The • The • The • The

strategy is unrealistic with regard to resources and investment strategy is not consistent with the maturity of the business strategy is not aligned with the strategic imperatives of the business strategy contradicts the business culture

November 26, 2009


Targeting an Information Technology Strategy

To understand and support the business strategy and to contribute to its development

To define the direction for Information Technology within the organisation

To define the direction for the Information Technology business function within the overall organisation

November 26, 2009

Vision, Strategy, Architecture and Implementation

• •

Vision defines the overall and high-level set of principles that will govern the use of ICT within the organisation Strategy takes the Vision to the next level of detail
− Contains the set of goals and objectives to realise the Vision

• •

Architecture translates the Vision and Strategy into an implementation framework Implementation Plan defines the portfolio of projects needed to implement the agreed Architecture, the sequence in which the need to be performed, their dependencies and pre-requisites and implementation requirements
November 26, 2009 25

Vision, Strategy, Architecture and Implementation

November 26, 2009


IT Vision
• Designed

to meet challenges, both now and in the

• Balancing

the need to control costs, provide flexibility, reduce and manage risk and provide service and performance an integrated IT framework and costed a customised programme of work to achieve vision incrementally

• Develop • Defined

November 26, 2009


IT Architecture Framework

November 26, 2009


Service Management
• •

Information is a key strategic asset which the organisation needs to manage IT Service Management is the processes, methods, functions, roles and activities used to deliver value to the business in the form of services IT Service Management is a strategic asset, rather than an organisational capability Benefits of implementing Service Management
− − − − − − − Provide consistent service to users Measure level of service being provided Implement processes to ensure reliable IT service Enforce consistent management of IT systems and infrastructure Improve service reliability, reduce downtime Control costs Platform for organisation growth

• •

November 26, 2009

IT Process and Service Management Framework

November 26, 2009


ICT Vision, Strategy and Implementation Plan Work Programme

Two streams
− Delivery Stream — where the analysis, strategy, design, specification, architectural planning work will be done − Project Management Stream — where the project will be managed, controlled and reported on

Review milestone at the end of each of the project stages
− Output from the stage is reviewed and agreed by designated personnel

Ensure that the exercise is kept focussed
− Allows the workplan to be modified if required − Ensures that issues are addressed quickly

November 26, 2009


Sample Work Programme - Develop Future ICT Vision and Strategy

of: Scope: The vision of the desired future IT condition consists of:
− Set of prioritised IT business uses − Set of IT business area capabilities and processes sufficient to deliver the high-priority business uses. − The IT Strategy consists of the changes to the current supply and demand condition necessary to realise the vision. − This definition of the demand and supply portfolios may also suggest updates to the outputs created in earlier programme activities

Entry Conditions
− − − − − IT best practices have been investigated Technology trends have been analysed Application, technology, and project portfolios have been analysed for strategic alignment Application, technology, and project opportunities have been identified and analysed Capability of IT to meet demand has been analysed

Exit Conditions
− Future has been described in terms of satisfied business demands (applications, data, technology) and IT capabilities and processes − All relevant IT environments and processes have been considered

November 26, 2009


• Business

requirements drive strategy and architecture business requirements is essential

• Capturing • Define

key principles/policies/critical success factors for

Business Functional Technical Implementation





November 26, 2009


ICT Vision and Strategy Deliverables
Enterprise Architecture and Information and Communication Vision, Strategy — translate the Strategic Aims and Strategic Objectives contained in the organisation’s Strategic Plan into an ICT oriented vision and strategy • ICT Strategy Architecture — translate the ICT Vision and Strategy into a physical architecture and associated sub-projects, initiatives and changes that will realise the overall strategy

− Suitable technologies will be identified − Business cases for each project, initiative and change.

IT Architecture Implementation Plans — overall implementation plan for the entire project and implementation plans for each constituent sub-project, initiative and change
− Project resources, dependencies and pre-requisites.

Project Management and Delivery Documentation — material generated during the life of the project
November 26, 2009 34

Project Phasing

Deliverable 2 Deliverable 1

Business Value
Deliverable 3

Deliverable 4

Low Low
November 26, 2009



Strategy Realisation Programme

Identify project sequencing and dependencies

November 26, 2009


Business Case Justification

Scope Definition and Agreement - Scope and requirements of the engagement are confirmed. The required outputs are agreed Requirements Analysis, Definition and Agreement Business, functional, technical and implementation requirements are identified, analysed and documented
− Existing processes and systems impacted by the proposed investment are analysed

Solution Architecture Specification and Design - Logical solution is designed to meet the defined and agreed requirements Solution Implementation Options and Selection - Options for implementing the solution — package acquisition and customisation, existing system upgrade, system development — are analysed
− Options or options are recommended

Implementation Plan Roadmap - A realistic plan to implement the solution is creating, incorporating resource requirements and constraints and includes risk, assumptions and dependencies Financial Analysis - The full costs to implement and operate the solution are quantified
− Tangible savings are identified
November 26, 2009 37

Business Case Preparation

Strategic Fit Business need and its contribution to the organisation's business strategy Key benefits to be realised Critical success factors and how they will be measured.

Options Evaluation and Procurement and Identification Implementation Cost/benefit analysis of Proposed sourcing realistic options for option with reasons meeting the business need Key features of proposed commercial Statement of possible arrangements soft benefits that cannot be quantified in Procurement financial terms approach/strategy with supporting details Identify preferred option and any tradeoffs

WholeWhole-Life Costs Statement of available funding and details of projected whole-life cost of project (acquisition and operation), including all relevant costs Expected financial benefits

Plan for Achievement Plan for achieving the desired outcome with key milestones and dependencies Contingency plans Risks identified and mitigation plan External supplier plans Resources, skills and experience required

November 26, 2009


Key Messages
• • • • • • •

IT strategic plan is a key to obtaining necessary funds worthwhile investment IT strategic plan is an enabler of doing things better and doing better things Strategy development exercises can be short and cost-effective engagements — low cost, high-value Take a practical focussed, realistic, sensible, down-to-earth approach Develop realistic IT strategies IT strategy can unblock IT spending plans IT strategy is applicable across all business areas
November 26, 2009 39

More Information
Alan McSweeney alan@alanmcsweeney.com

November 26, 2009


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