IT Strategy Illustrative Example

IT Strategy Illustrative Example
United Telecom Company
Info-Tech Research Group, Inc. is a global leader in providing IT research and advice.
Info-Tech’s products and services combine actionable insight and relevant advice with
ready-to-use tools and templates that cover the full spectrum of IT concerns.
© 1997-2015 Info-Tech Research Group Inc. Info-Tech Research Group 1
Introduction: How to Use This Template
The goal of this template is to produce a succinct

record of the IT strategy. Use it in conjunction with
the project blueprint, Define an IT Strategy and
Roadmap.
Instructions:
• As you proceed through the project exercises, the
storyboard will prompt you to document the
outcome of discussions.
Typical activity slide
• Fill in blanks marked by an underscore, square
parentheses, or empty cells in tables.
• Replace the text in dark grey with information
Watch for this icon in the
customized to your organization. blueprint.
• When complete, delete all introductory or
example text and convert all remaining text to
black prior to distribution.
Info-Tech Research Group 2

About Info-Tech Research Group
Info-Tech Research Group is the world’s fastest growing

information technology research and advisory company,
proudly serving over 30,000 IT professionals. Their
research helps IT leaders make strategic, timely, and well
informed decisions.
Info-Tech Research Group has deep expertise from
working with dozens of other municipal governments to
develop their IT strategies. For [Company X], our team of
expert analysts facilitated the development of the IT
strategy.
The development of the IT strategy is based on three
phases:
1. Assess the current state of IT
2. Develop the target state of IT
3. Communicate the IT strategy

Executive Summary
Situation
• United Telecom Company (UTC) is the primary telecommunications provider for a small tropical country.
• The company is partly government-owned and a majority share was acquired in June 2014 by an American
communications provider.
• UTC offers fixed telephony, wireless, and Internet to its customers. Its four product lines are: Landline, Wireless,
Broadband and Data, and Enterprise services.
Complication
• The IT department is headed by the CIO who reports directly to the CEO of the organization. There are 27 employees in
IT.
• UTC faces competition from “Cable Talk” in the landline voice and data sectors.
• In July 2017, UTC’s monopoly on the wireless sector ends as “Digitel” enters the market.
• As the threat of new competitors looms, UTC must adjust its current strategy or risk price pressures and customer churn.
• This new strategic direction by the business has serious implications for IT.
Resolution
• With UTC’s new strategic direction set, the CIO has developed a business-centric, data-driven IT strategy.
• The CIO embarked on the IT strategy project and conducted multiple stakeholder interviews.
• After analyzing stakeholder needs, the CIO determined that the scope of the mandated strategy includes business
capabilities, sourcing, and the technology landscape.

Table of Contents
1. Title
2. Executive Summary
3. Summary of Drivers and Constraints
• List of Business Drivers
• List of External Drivers
• List of Opportunities to Innovate
• Summary of Risk Appetite
• List of Implications for IT
4.Summary of the Current State of IT
• Summary of IT Current State Assessment
5.Summary of the Target State of IT
• IT Mission and Vision Statements
• IT Guiding Principles
• IT Strategic Goals
• Target-State Visions
• Objectives and Measures
6.IT Strategic Initiatives
7.IT Strategic Roadmap
• Organizational Readiness Assessment Results
• Summary of High-Level Economics
• Risk Management Plan
• IT Roadmap
8. Execution Plan
9. IT Strategy Refresh Plan

IT Strategy
Summary of Drivers and Constraints
Company X
List of Business Drivers
Business Objectives High-Priority Business Initiatives
• Accelerate revenue generation • Accelerate revenue generation

• Optimize operating costs o Launch new value added services (VAS)
• Improve customer experience • Optimize operating costs
o Optimize IT application costs
• Improve customer experience
o Redesign customer-facing transactions

List of External Drivers
PESTLE Trends
• Economic Trends
o Rising threat of new competition in the market may lead to new products or a major shift in business strategy.
• Social Trends
o Customers would like more web-enabled interactions with phone companies, which would require enhancements
to the customer portal and UTC website.
• Technological Trends
o A decreasing demand for television and an increasing demand for streaming will impact product offerings and
require website enhancements.

Business SWOT Analysis
Strengths (Internal) Weaknesses (Internal)
• UTC is currently a market leader in wireless offerings. • UTC is facing declining sales with aging population.
• Excellent brand recognition and reputation in local • UTC customers report slow service in peak tourist
market. season due to power outages and strain on power grid.
• Superior sales staff. • Limited resources for emergency service calls.
• Innovative marketing campaigns. • Weak online digital commerce presence.
Opportunities (External) Threats (External)
• M&A opportunities given recent acquisition. • New entrants are increasing local competition. They
• Value-added services such as parental controls, to could offer faster service, cheaper devices, and better
customer touch points.
compete with local market offerings.
• Spectrum auctions could bring even more competition.
• Expand LTE.

List of Opportunities to Innovate and Implications for IT
Implications for
Implications for Implications
Business Implications for IT
Technology for IT Operating
Capabilities and Sourcing
Landscape Model
Services
• Review sourcing • Right-size the IT
strategy to ensure organization to
optimal mix and optimize costs.
Business costs.
Imperatives
• Online shopping on • In-store mobile credit

UTC website. card swipe.
• Self-care (kiosks).
High-Priority • Online fault
Business Initiatives management on UTC
website.
• Customer Care Chat
with video on mobile.
• Enhance Wi-Fi • Enable mobility at
offerings for home point-of-sale
use to allow for easier terminals to
PESTLE Factors and faster streaming modernize selling for
of television shows younger
and movies. demographic.

List of Opportunities to Innovate and Implications for IT
Implications for
Implications for Implications
Business Implications for IT
Technology for IT Operating
Capabilities and Sourcing
Landscape Model
Services
• Improve IT skills to
mitigate hiring issues
on small island.
Business SWOT

Summary of Risk and IT Spend Appetite
Risk Event Appetite Risk Response

Compromise data security after moving
Low Educate business and accept the risk.
to the cloud.
Lose ownership of proprietary IT Educate business and accept the risk.
Low
knowledge after moving to the cloud.
Become vulnerable to new security Mobile device management platform,
threats as a result of introducing Medium monitoring solutions, solid security
BYOD. strategy.
Face reputational risk of negative social
Social monitoring program in place for
sentiment with enhanced online Medium
proactive customer service actions.
presence.
Based on preliminary discussions, Capital Spend

the overall IT budget will remain
the same as the IT budget from
this fiscal year. However, there will
be an emphasis on decreasing
operating costs and increasing Operational Spend
capital costs. The diagram
demonstrates the ideal state of the
IT budget.
Fiscal 20xx Fiscal 20xx

IT Strategy
Summary of the Current State of IT
Company X
The CIO Business Vision survey provides a detailed report
card on the organization’s satisfaction with IT’s core services
Overall Satisfaction Overall Value Importance
Core Service Satisfaction
Ranking
IT Policies 75% 8th
61% 63% Devices 73% 12th
Service Desk 65% 6th
Network & Comm. Infrastructure 65% 1st

We conducted a survey of all executive Business Apps 64% 2nd
stakeholders to determine the current level of
satisfaction with IT. Data Quality 64% 3rd
Overall, satisfaction and value were around Service Desk 63% 11th
60%, which is considered low when compared Requirements Gathering 62% 9th
to our peers who see an average score of
74%. Client-Facing Technology 61% 4th
Analytical Capability and Reports 59% 5th

Based on this survey, we have highlighted
issues around Network & Communication Projects 58% 10th
Infrastructure, Business Apps, Data Quality,
IT Innovation Leadership 58% 7th
and Client-Facing Technology.

The CEO-CIO Alignment Program survey provides detailed
information about executive priorities for IT
We also conducted a survey that determined

executive priorities for IT.
The results of the survey highlight a
misalignment between IT and UTC
leadership. We will work with UTC leadership
to realign and communicate on a more
frequent basis.
This survey highlighted the ideal target state
for IT, which was used as input for discussion
when determining a target-state vision.

Summary of IT Current State Assessment
During the course of IT strategic planning, the IT department conducted several current state
assessments. From these assessments, we determined the current state of IT maturity.
Innovator - Transforms the Business

Reliable Technology Innovation
Business Partner - Expands the Business

Effective Execution on Business Projects, Strategic Use
of Analytics and Customer Technology
Trusted Operator - Optimizes the Business

Effective Fulfillment of Work Orders, Functional
Business Applications, and Reliable Data Quality
Firefighter - Supports the Business

Reliable Infrastructure and IT Service Desk
IT is here
Unstable - Struggles to Support
Inability to Provide Reliable Business Services

IT Strategy
Summary of the Target State of IT
Company X
Summary of IT Target State
Innovator - Transforms the Business

Reliable Technology Innovation
IT needs
to be here
Business Partner - Expands the Business
Effective Execution on Business Projects, Strategic Use
of Analytics, and Customer Technology
Trusted Operator - Optimizes the Business

Effective Fulfillment of Work Orders, Functional
Business Applications, and Reliable Data Quality
Firefighter - Supports the Business

Reliable Infrastructure and IT Service Desk
Unstable - Struggles to Support

Inability to Provide Reliable Business Services

IT Mission and Vision Statements
IT MISSION STATEMENT
The IT department consistently meets the needs of our business through best-practice
delivery of projects and services.
IT VISION STATEMENT
The mission of the IT department is to adopt world-class IT management practices to boost
our responsiveness to the needs of our business, while maintaining a highly available IT
environment that provides valuable business insights and a compelling customer experience.

IT Guiding Principles
IT Guiding Principle Name IT Guiding Principle Statement

We aim to provide maximum long-term benefits to the enterprise as a whole, while
1. Enterprise value focus
optimizing total costs of ownership and risks.
We maintain capability levels and create solutions that are fit for purpose without over-
2. Fit for purpose
engineering them.
We choose the simplest solutions and aim to reduce operational complexity of the
3. Simplicity
enterprise.
We maximize reuse of existing assets. If we can’t reuse, we procure externally. As a
4. Reuse > buy > build
last resort, we build custom solutions.
We handle data creation, modification, and use enterprise-wide in compliance with our
5. Managed data
data governance policy.
6. Controlled technical
We control the variety of technology platforms we use.
diversity
7. Managed security We manage security enterprise-wide in compliance with our security governance policy.
8. Compliance to laws and

We operate in compliance with all applicable laws and regulations.
regulations
9. Innovation We seek innovative ways to use technology for business advantage.
10. Customer-centricity We deliver the best experiences to our customers with our services and products.

IT Strategic Goals
GOAL #1: Enable customer care digitalization

UTC IT will enhance customer-facing technologies and improve digital touchpoints to support
the business goal of improving customer experience.
GOAL #2: Boost IT team productivity

UTC IT will strive for best-practice process improvements to boost IT productivity to optimize
operating costs.
GOAL #3: Improve business continuity

UTC IT will strive for improved business continuity to address growing concerns of the effect
of hurricanes and other natural disasters on UTC.
GOAL #4: Develop business intelligence

UTC IT will improve the ability to use internal data to make informed decisions, review internal
trends, and analyze UTC’s success.

Target-State Vision
Target-state vision of application/technology environment

Objectives and Measures
Objective Measure
• Sustain an end-user satisfaction rating of 90% by next • Lead: % of open help desk tickets still open 24 hours after
year. receiving ticket.
• Lag: % of end users who rate their satisfaction with IT to
be 90% or higher.
• 90% of projects in next fiscal year will meet budget, • Lead: % of staff working overtime on projects.
scope, and schedule commitments. • Lag: % or projects completed within budget, scope, and
schedule.
• 80% of services will meet their SLA requirements by next • Lead: % of services beyond their SLA requirements.
quarter. • Lag: % of services within SLA requirements.

IT Strategy
IT Strategic Initiatives
Company X
IT Strategic Initiatives
Initiative Repatriation of the help desk – IT Sourcing/Infrastructure

Owner John Smith
Description This initiative is aimed at bringing the delivery of help desk back in-house from the external service
provider.
Benefits Better end-user satisfaction, more control over procedures, more diligent incident and problem
resolution and tracking, lower total cost to deliver.
Beneficiaries End users, business stakeholders, internal customers, and the internal IT team.
Key Stages 1) Vendor negotiation – transfer of knowledge

2) Build team (anticipated 4 FTEs)
3) Beginning of team operations – physical infrastructure
4) Transfer of knowledge completed
5) Beginning of full team operations
Timing Start date: Q2 of Fiscal 2016
Anticipated duration: 6 months
Risks and Mitigation 1. Lack of vendor co-operation – continue paying vendor on a month-to-month basis for support.
2. Building the team might take longer – augment on-premise staff with contractors until the team is
fully built.
Dependencies None
Resourcing CIO (5%), Director of Vendor Management (15%), and Director of Operations (50%)
Metrics 1. End-user satisfaction

2. Number of tickets received and number of tickets closed
3. Number of incidents resolved and number of problems addressed
Governance The Director of Operations will be responsible for the initiative and the CIO will be accountable. There
will be a meeting two times per month to discuss project progress.

IT Strategy
IT Strategic Roadmap
Company X
Summary of High-Level Economics
Expected ROI Ease of implementation

Initiative Expected duration
(1 = low to 5 = high) (1 = low to 5 = high)
1. Data cleansing 5 months 4 3
2. Provide analytical CRM

6 months 4 2
functionality
3. Prepaid and postpaid
3 months 2 5
Integration
4. Introduce e-commerce
3 months 2 4
functionality
5. Introduce customer self
6 months 2 2
registration and tracking
6. Right-size the IT organization 3 months 4 2
7. Develop critical IT skills 12 months 5 2
8. Improve strategy
3 months 3 4
management
9. Cloud migration 1 month 5 4
10. Integration of mobile

6 months 3 3
customer care devices

Risk Management
Risk Risk
Risk
Initiative Risk Likelihood Severity Mitigation Action(s)
Exposure
(%) (1 to 5)
Not obtaining executive buy-in Pilot project with a small
1. Data cleansing and funding for customer data 60% 4 2.4 set of customers to prove
cleansing value
Review the business
2. Provide Not having clear objectives and
objectives and
analytical CRM requirements for customer 10% 2 0.2
requirements with
functionality opportunity identification
marketing
3. Prepaid and Better revenue allocation
Prepaid-postpaid integration
postpaid 30% 2 0.6 and tight project
not completing on time
integration management control
4. Introduce e-
E-commerce initiative not Create a comprehensive
commerce 20% 1 0.2
obtaining appropriate funding business case
functionality
5. Introduce Integration of proprietary app Investigate use of a
customer self with self-service falling short in different vendor for the
70% 1 0.7
registration and funding because of over budget mobile app
tracking cost
Try to achieve some of
6. Right-size the Not achieving the objectives of
20% 3 0.6 the objectives through
IT organization organizational restructuring
job rotation instead

IT Strategic Roadmap
FY 14/15 FY 15/16
Initiative J F M A M J J A S O N D J F M A M J J A S O N D
IT Goal: Enable Customer Care
Digitalization
1. Enable customer insight analytics
2. Develop a customer care dashboard
3. Roll out new mediation platform
4. Integrate mobile customer care devices
5. Introduce e-commerce functionality
6. Develop customer self-service platform
7. Improve stakeholder management

IT Strategy Illustrative Example

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

IT Strategy Illustrative Example

Uploaded by

Copyright:

Available Formats

IT Strategy Illustrative Example

United Telecom Company

The goal of this template is to produce a succinct

Info-Tech Research Group 2

Info-Tech Research Group is the world’s fastest growing

Info-Tech Research Group 3

Info-Tech Research Group 4

Info-Tech Research Group 5

Business Objectives High-Priority Business Initiatives

• Accelerate revenue generation • Accelerate revenue generation

Info-Tech Research Group 7

Info-Tech Research Group 8

Strengths (Internal) Weaknesses (Internal)

Opportunities (External) Threats (External)

Info-Tech Research Group 9

• Online shopping on • In-store mobile credit

Info-Tech Research Group 10

Info-Tech Research Group 11

Risk Event Appetite Risk Response

Based on preliminary discussions, Capital Spend

Info-Tech Research Group 12

IT Policies 75% 8th

61% 63% Devices 73% 12th

Service Desk 65% 6th

Network & Comm. Infrastructure 65% 1st

Analytical Capability and Reports 59% 5th

Info-Tech Research Group 14

We also conducted a survey that determined

Info-Tech Research Group 15

Innovator - Transforms the Business

Business Partner - Expands the Business

Trusted Operator - Optimizes the Business

Firefighter - Supports the Business

Info-Tech Research Group 16

Innovator - Transforms the Business

Trusted Operator - Optimizes the Business

Firefighter - Supports the Business

Unstable - Struggles to Support

Info-Tech Research Group 18

Info-Tech Research Group 19

IT Guiding Principle Name IT Guiding Principle Statement

8. Compliance to laws and

9. Innovation We seek innovative ways to use technology for business advantage.

Info-Tech Research Group 20

GOAL #1: Enable customer care digitalization

GOAL #2: Boost IT team productivity

GOAL #3: Improve business continuity

GOAL #4: Develop business intelligence

Info-Tech Research Group 21

Target-state vision of application/technology environment

Info-Tech Research Group 22

Info-Tech Research Group 23

Initiative Repatriation of the help desk – IT Sourcing/Infrastructure

Key Stages 1) Vendor negotiation – transfer of knowledge

Metrics 1. End-user satisfaction

Info-Tech Research Group 25

Expected ROI Ease of implementation

1. Data cleansing 5 months 4 3

2. Provide analytical CRM

6. Right-size the IT organization 3 months 4 2

7. Develop critical IT skills 12 months 5 2

9. Cloud migration 1 month 5 4

10. Integration of mobile

Info-Tech Research Group 27