ict vision and strategy development
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ICT Vision and Strategy Development
Alan McSweeney
April 11, 2023 2
Objectives
• To describe a view of and approach to developing an ICT strategy
April 11, 2023 3
Agenda
• IT Vision• IT Challenges and Trends• View of IT Strategy• Approach to Developing IT Strategy
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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
Business
Information Technology
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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
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IT Challenges and Trends
• General challenges and trends in information technology1. Information Security Management2. Identity and Access Management3. Conforming to Assurance and Compliance Standards4. Privacy Management5. Disaster Recovery Planning (DRP) and Business Continuity Management (BCM)6. IT Governance7. 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 Awareness12.Business Process Improvement, Workflow and Process Exception Alerts13.Improved Application and Data Integration14.Web Deployed Applications15.Enterprise System Management16.Business Intelligence (BI)17.Customer Relationship Management (CRM)18.Information Portals19.Environmental Concerns20.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
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IT Demands
Mitigate Risk• Ensure security and
continuity of internal business operations, while minimising exposure to external risk factors
Maximise Return• Improve business results;
grow revenue and earnings, cash flow, and reduced cost of operations
Improve Performance• Improve business
operations performance end-to-end across the enterprise
• Increase customer and employee satisfaction
Increase Agility• Enable the business
organisation and operations to adapt to changing business needs
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Balancing Act
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IT Demands
• Internal stakeholders:− Business uniits− IT
• External stakeholders− Partners− Regulators− Vendors and
suppliers
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IT and Strategy
• Strongly believe that information technology is only a tool− 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
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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 IT2. Supply issues relate to how the IT business area has to
operate in order to satisfy business demand
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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 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
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Contexts and Perspectives on Change and Impact
• Business-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
• Technology-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
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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
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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
• 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
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Organisational and IT Strategy
• Starting point of IT strategic plan• IT strategic plan must align with organisational
strategy• IT architecture influences organisational
strategy (and vice versa)• Organisational strategy helps set initial IT
strategic planning priorities
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Business Vision and Strategy
April 11, 2023 18
Business Vision and Strategy
April 11, 2023 19
Business and IT Strategy
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IT Strategy Realisation Issues
• The strategy is unrealistic with regard to resources and investment
• The strategy is not consistent with the maturity of the business
• The strategy is not aligned with the strategic imperatives of the business
• The strategy contradicts the business culture
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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
April 11, 2023 22
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
April 11, 2023 23
Vision, Strategy, Architecture and Implementation
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IT Vision
• Designed to meet challenges, both now and in the future
• Balancing the need to control costs, provide flexibility, reduce and manage risk and provide service and performance
• Develop an integrated IT framework• Defined and costed a customised programme
of work to achieve vision incrementally
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IT Architecture Framework
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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
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IT Process and Service Management Framework
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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
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Sample Work Programme - Develop Future ICT Vision and Strategy
• 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
April 11, 2023 30
Approach
• Business requirements drive strategy and architecture
• Capturing business requirements is essential• Define key principles/policies/critical success
factors for IT
Requirements Strategy ArchitectureImplementati
on
Business
Functional
Technical
Implementation
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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
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Project Phasing
FeasibilityLow
Low
High
High
Deliverable 1Deliverable 2
Deliverable 3
Deliverable 4
Business Value
April 11, 2023 33
Strategy Realisation Programme
• Identify project sequencing and dependencies
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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
April 11, 2023 35
Business Case Preparation
Strategic Fit Options Evaluation and Identification
Procurement and Implementation
Whole-Life Costs Plan for Achievement
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.
Cost/benefit analysis of realistic options for meeting the business need Statement of possible soft benefits that cannot be quantified in financial terms Identify preferred option and any trade-offs
Proposed sourcing option with reasons Key features of proposed commercial arrangements Procurement approach/strategy with supporting details
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 achieving the desired outcome with key milestones and dependencies Contingency plans Risks identified and mitigation plan External supplier plans Resources, skills and experience required
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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
April 11, 2023 37
More Information
Alan McSweeneyalan@alanmcsweeney.com
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