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Section I
Developing
Business/Information
Technology Strategies
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Learning Objectives
Discuss the role of planning in the business
use of information technology, using the
scenario approach and planning for
competitive advantage.
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Section I
Planning Fundamentals
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Strategic Planning
Strategic Visioning
Tactical Planning
Operational Planning
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Organizational Planning
The Planning Process
Evaluating organizational
accomplishments
Analyzing the business,
economic, political, and
societal environment
Anticipating and
evaluating the impact of
future developments
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IT Strategy
An I/T Strategy is a set of discrete actionable
interventions which ensure that the firm I/T
capabilities deliver value towards strategic
business objectives in a cost efficient manner
Set of decisions made by IT and senior
management
Deployment of technology infrastructures
Relationship of technology choices to business
choices
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IT Strategy (ctd)
I/T strategy may impact all aspects of the I/T portfolio :
applications, communication, infrastructure, processes,
governance, organization …
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OBJECTIVES
OBJECTIVES IMPLEMENTATION
IMPLEMENTATION INITIATIVES
INITIATIVES DEFINITION
DEFINITION
IDENTIFICATION
IDENTIFICATION METHODS
METHODS
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2 Align IT10
strategy to
business
Planning
Teams participate in a “microworld”
A variety of business scenarios are created
Alternative scenarios are created by teams or
by business simulation software based on..
A variety of developments, trends, and
environmental factors
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2 Align IT11
strategy to
IMPACT ON FIRM
High Priority
Strategy A
FEASIBILITY
MEDIUM
Medium Priority
Strategy B
Strategy C
LOW
Low Priority
Strategy D
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2 Align IT12
strategy to
business
Advantage
Especially important in today’s competitive, complex
environment
Involves an evaluation of potential benefits and risks
May include the competitive forces and competitive
strategies models, as well as a value chain model of
basic business activities
Use a strategic opportunities matrix to evaluate
strategic potential
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2 Align IT13
strategy to
business
within
business
Planning for Competitive Advantage (continued) context
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2 Align IT14
strategy to
business
within
business
Planning for Competitive Advantage (continued) context
SWOT Analysis
Recommend strategies that ensure best alignment
between external and internal environments
S W
Strengths Strategies Strategies
Weaknesses
Opportunities
O T
Threats
Strategies Strategies
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strategy to
business
within
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3 16
Determine the
implementation
strategy
e-Business Planning
3 major
components
Strategy
development
Resource
management
Technology
architecture
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3 17
Determine the
implementation
strategy
e-Business Planning (continued)
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Examples of IT Planning
Process Results
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Define the
IT strategic
initiatives
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Define the
budget to
implement
IT Strategy Implementation
initiatives /
SLAs
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Define the
budget to
implement
Periodic Review
initiatives /
SLAs
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Section II
Implementation Challenges
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Implementation
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Implementing IT
Requires managing the effects of major
changes in key organizational dimensions
such as
business processes
organizational structure
Managerial roles
Employee work assignments
Stakeholder relationships
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Business Requirements Migration Maintain/
to New platforms Improve
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Alignment to Business
• Application A • Application D
• ... • ...
• ...
IT Implications
Change Management
People are a major focus of organizational
change management
Developing innovative ways to measure,
motivate, and reward performance
Designing programs to recruit and train
employees in the core competencies
Also involves analyzing and defining all
changes facing the organization
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Alignment Maturity
Process which evaluates the IT/business
alignment status of a specific organization
Ithas a defined number of levels and
representations (5 levels)
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1. Communications
2. Competency/value measurements
3. Governance
4. Partnerships
5. Scope and Architecture
6. Skills
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Weight
Communication
Understanding of business by IT
Understanding of IT by business
Inter/Intra organization learning / education
Protocol rigidity
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W eigh
Partnership
Discussion Questions
Planning is a useless endeavor, because developments
in e-business and e-commerce, and in the political,
economic, and social environments are moving too
quickly nowadays. Do you agree with this statement?
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