Develop an IT Strategy to Maximize Business Value

Businesses must develop a written Business Plan toyour business, and also incorporates the overall
succeed in today's competitive business environment.network infrastructure and architecture to support
A Business Plan defines the strategies and tactics forthe business software.
the business and provides a roadmap to success.The people element consists of all internal IT staff
The same concept also applies to your Informationand external IT resources you utilize. In addition, you
Technology (IT). If your business does not have amust include all resources that contribute time and
documented IT plan - or strategy, your technologyeffort to IT functions. All direct and indirect costs are
investments are likely considered a necessary cost ofincluded.
doing business instead of an investment thatProcesses must include all business processes
provides optimum business value.supported by IT - or that could be supported by IT.
Developing an IT strategy is a vital requirement forIT processes include all operational activities such as
any size business. An effective IT Strategy definesprocurement, configuration management, change
the technology, people and processes necessary tomanagement, service and support.
meet business requirements.There are several questions to consider in the early
More importantly, an IT strategy directly connects ITstages of evaluating and formulating a plan to
services with business processes, providing adevelop an IT strategy:
framework that enables effective metric-based• Is your technology meeting current business
technology decisions in support of business goals andneeds?
objectives.• Can your technology scale to meet the changing
In a previous article, I discussed key elements ITdemands of the business?
must provide to recognize value from your business• What are the key integration points and will they
investment:adapt and grow effectively?
• Align IT with business goals• What is the most effective sourcing strategy for
• Provide critical business functions at high qualitypeople and technology?
• Deliver specified and measurable service levels• What is the most cost effective means to
• Provide recommended risk mitigation tacticsdeliver the quality and service levels required by the
• Maintain cost effectiveness.business?
Align IT with business goals. This is the most• Are your processes fine tuned in all areas of IT
important element and becomes an impetus for anoperations?
IT strategy that directly supports the business• Are all technology and IT Governance risks
strategy.accounted for?
An effective IT strategy clearly defines how all ITOnce you provide preliminary answers to these
services and processes to deliver the services alignquestions, you are better prepared to begin the
with business goals. It also outlines a future statestrategy development process.
where your IT services directly contribute to theIT strategy development can be accomplished
business sustainability and growth.through the use of a four-step process:
The strategy sets the foundation for aligning IT with1. Discovery - document the current state of
the business, addresses the delivery of technologytechnology, people and processes - including business
services and describes the costs associated with theprocesses
delivery of those services. In summary, it provides a2. Assessment - assess technology, people and IT
roadmap or blueprint for direct contribution to theprocesses, establish and map out if/how each
success of the business.enables the business processes
There are several key issues to recognize and3. Analysis - analyze the current state and potential
questions to address when considering a well defineddesired future states
IT strategy:4. Formulation - develop solutions to reach desired
• How do we know if our IT services are alignedfuture state
with the business?Implementation of the IT strategy requires
• If IT is not aligned with the business, what is itsubstantial planning and depends on the size of the
costing us?business, urgency and costs. The strategy is generally
• How do we align our IT plans so that theyimplemented over long periods of time on a priority
directly support business objectives?benefit basis.
• How much will it cost?The goal is to recognize incremental improvement. It
• How will the IT strategy contribute to revenueis recommended to use a standard project delivery
goals?methodology to develop a plan and to manage the
• How do we know when our IT is aligned?implementation of the IT strategy.
• How will we maintain alignment?Developing and implementing an IT strategy will
To develop an IT strategy, a comprehensive view ofprovide substantial business benefits. Maintaining a
technology, people and processes will provide thedynamic plan will help ensure your IT stays aligned
greatest benefit.with your business as your business grows.
Technology includes all business software required for