IT STRATEGIC PLANNING FOUNDATION

IT STRATEGIC PLANNING FOUNDATION

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621ee1cee67b7f5dc5016ca5762406c5 L 3cb5eStrategic planning is the process of translating the enterprise's vision and mission into how resources, including IT's capabilities, are deployed to generate maximum value for stakeholders. Strategy refers to a global level of thinking about IS (information systems) organization and its integration with the rest of enterprise. IT strategy helps guide the business strategy based on IT capabilities and opportunities, and determines IT's contribution to delivering on the business strategy. A great IT strategy focuses on how IT will help the business achieve its goals, and includes three sections. The demand section clarifies the business context, how the business will win, what business capabilities are needed and IT's contribution to that success. The control section outlines how decisions will be made and how behaviors will be monitored to align with demand.
The supply section details the services that will be provided, and the enterprise architecture migration to support the business capabilities, the IT human capital development to meet business needs, and the strategic approach to sourcing.
The discipline of strategic planning focuses on developing strategies to help the business win. Consider these points before beginning a strategic planning discipline initiative:
  • First, determine how the IT organization should clarify the purpose and scope of the IT strategy in light of the business's vision, mission and value proposition.
  • Clarify the demand side. What will make the business win, what business capabilities are needed, and how will IT contribute.
  • Consider how to plan for uncertainty, and the degree and types of flexibility that could potentially be required.
  • Determine how best to create a group-level strategy, including how you will address and engage the similar and differing needs of the enterprise and all business units.
There are six major phases in their strategic planning discipline initiatives. These phases may vary, depending on the organization and the extent of the planning initiative:
  • Strategize and plan: Develop the change, tactical and communications plans for creating your IT strategy and plan. Set the scope, and establish resources, budget and governance systems. Integrate your IT strategic planning with other planning, budgeting and change initiatives.
  • Assess current state: Assess the enterprise's history, best practices, competencies and approach to strategic planning. Identify and seek feedback from key stakeholders and related roles about the current state, what works and what does not. Identify risks.
  • Assess competencies: Use feedback from key stakeholders and from external sources of advice to develop best practices for the discipline. Identify competencies that are necessary to carry out the discipline.
  • Gain approval: Draft an implementation proposal for your strategic planning process. Seek feedback and buy-in from stakeholders and related roles. Revise based on feedback from stakeholders, and present the final strategic planning process to senior leaders for approval.
  • Implement: Staff and manage the implementation of the discipline. Seek feedback from users. Monitor risks.
  • Operate and evolve: Use governance systems to track progress and success with strategic planning. Adjust the discipline approach based on operational results and changing business needs.
 A strategy must be coherent, consistent and directional. Coherent means it is clear to both the business and IS Organization. Consistent means that it is constructed to fit together. Directional means it direct change of some kind. The develop of developing a plan for the use of information systems within an organization which is both cost effective and aligned with the prioritized management and operation need of the organization.
There are several objectives of IS/IT Strategy formulation and planning:
  • Identify current and future information needs for organization that reflect close alignments of business and IS/IT strategies, objectives and functions.
  • Recognize that the need of business will evolve, and the long term needs are likely to change.
  • Equip the IS function to be responsive to fast changing to business needs, and to be able to meet urgent requirement.
  • Determine policies for the management, creation, maintenance, control and accessibility of the corporate information resource.
  • Reposition IS function is more centrally the business, with representation at top management level.
  • Ensure that a sound information systems architecture is created so that high quality systems can built and maintenance.
  • Identify a portfolio of skill that will required over the lifetime of the plans and develop migration plans to overcome weaknesses and exploit the skill in the IS function.
  • Determine an effective and achievable organization structure for the IS function.
  • Ensure that the IS function is outward looking and not focused internally on technology issues, and that the aims of the function are not clearly linked to business needs but also widely communicated.
  • Ensure that there is an acceptance of shared responsibility between IS/IT and business people for the successful exploitation of information and technology.
Basic term of IS Strategic planning:
  • Strategy
  • Strategic
  • Planning
  • Strategic Planning
  • Information
  • Information System (IS)
  • Information Technology (IT)
Strategy is all about:
· Where is the business trying to get to in the long-term (direction)
  • Which markets should a business compete in and what kind of activities is involved in such markets (market, scope)
  • How can the business perform better than the competition in those markets (How or advantage)
  • What resources (skill, assets, finance, relationships, technical competence, facilities) are required in order to be able to compete (resources)
  • What external, environmental factors affect the businesses ability to compete (environment)
  • What are the values and expectations of those who power in and around the business (stakeholders)
Strategy at different level of a Business:
  • Corporate Strategy is concerns with overall purpose of business.
  • Business Unit Strategy is concern with particular market or product.
  • Operational Strategy is focus on issues such as resources, processes, people and etc.
In practice a thorough strategic management process has three main components:
  • Strategic Analysis
  • Strategic Implementation
  • Strategic Choices
In generic Strategic Planning has process like this:
  • Strategic Formulation – Creating Strategies
    • Identify and analyze current (Mission, Objectives, Strategies)
    • Analyze internal and external environments (Organizational Resources and capabilities – Strengths and Weaknesses, Industry and external environment – Opportunities and Threats)
    • Revise mission and objectives – Select new strategies for corporate, business or functional
  • Strategy Implementation – Putting Strategies Into Action
    • v Implement Strategies (Corporate Governance, Management Systems and Practices, Strategic Leadership)
    • v Evaluate Results (Strategic Control, Renew Strategic Management Process)
Information System is responsible to make value to the business in all area:
  • IS strategic planning
  • Prioritization
  • Portfolio Management
  • Program Management
  • Project Management
  • Business Process Reengineering
  • Analysis and Design
  • Technical Design
  • System Development
  • Maintenance
  • Support
  • Testing
  • Operations
Benefit of IS Planning:
  • Effective management of an expensive and critical asset of the organization
  • Improving communication and relationship between the business and IS organization
  • Aligning the IS direction and priorities to the business direction and priorities
  • Identifying opportunities to use technology for a competitive advantage and increase the value to the business
  • Planning the flow of information and processes
  • Efficiently and effectively allocating IS resources
  • Reducing the effort and money required throughout the life cycle of systems.

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