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Info-Tech Research Group 1Info-Tech Research Group 1
Info-Tech Research Group, Inc. is a global leader in providing IT res...
Info-Tech Research Group 2Info-Tech Research Group 2
Develop a data-driven, fit-for-purpose IT
strategy with a strong link...
Info-Tech Research Group 3Info-Tech Research Group 3
This Research is Designed For: This Research Will Help You:
This Rese...
Info-Tech Research Group 4Info-Tech Research Group 4
Resolution
Situation
Complication
Info-Tech Insight
Executive summary...
Info-Tech Research Group 5Info-Tech Research Group 5
32%
Feel that IT is investing in areas that don't support the
busines...
Info-Tech Research Group 6Info-Tech Research Group 6
CIOs must earn their seat at the table; right now they are not
doing ...
Info-Tech Research Group 7Info-Tech Research Group 7
CIOs and their IT departments are failing to meet business
stakeholde...
Info-Tech Research Group 8Info-Tech Research Group 8
There is a significant link between business satisfaction with IT
and...
Info-Tech Research Group 9Info-Tech Research Group 9
An effective IT strategy will help your organization realize
tangible...
Info-Tech Research Group 10Info-Tech Research Group 10
Reap the benefits of a successful IT strategy (2 of 2)
3. Timely de...
Info-Tech Research Group 11Info-Tech Research Group 11
42% Some improvement necessary.
34% Significant improvement necessa...
Info-Tech Research Group 12Info-Tech Research Group 12
Improve your IT strategy by getting a better grasp on strategic
pla...
Info-Tech Research Group 13Info-Tech Research Group 13
In order to develop an effective business-driven IT strategy, you
m...
Info-Tech Research Group 14Info-Tech Research Group 14
Info-Tech’s approach to IT strategy development builds on the
COBIT...
Info-Tech Research Group 15Info-Tech Research Group 15
Our methodology walks you (and your business) step by step
through ...
Info-Tech Research Group 16Info-Tech Research Group 16
We will help you build the following deliverables
3. Evaluate curre...
Info-Tech Research Group 17Info-Tech Research Group 17
We will help you overcome the typical barriers to successful IT
str...
Info-Tech Research Group 18Info-Tech Research Group 18
Gathered Data
• IT Future Role
• Expected Budget
Change
Participant...
Info-Tech Research Group 19Info-Tech Research Group 19
Organizations of any size can benefit from an IT strategy; we will
...
Info-Tech Research Group 20Info-Tech Research Group 20
Info-Tech’s “Systematic Path” to IT success will help you
transform...
Info-Tech Research Group 21Info-Tech Research Group 21
Track your progress to ensure success – keep these goals and
metric...
Info-Tech Research Group 22Info-Tech Research Group 22
You will realize even greater benefits by partnering with
Info-Tech...
Info-Tech Research Group 23Info-Tech Research Group 23
Consulting
“Our team does not
have the time or the
knowledge to tak...
Info-Tech Research Group 24Info-Tech Research Group 24
Follow a CIO’s journey through IT strategy development using
Info-T...
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Define an IT Strategy and Roadmap

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Develop a data-driven, fit-for-purpose plan with a strong link to execution

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Define an IT Strategy and Roadmap

  1. 1. Info-Tech Research Group 1Info-Tech Research Group 1 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. V4 Define an IT Strategy and Roadmap Develop a data-driven, fit-for-purpose plan with a strong link to execution.
  2. 2. Info-Tech Research Group 2Info-Tech Research Group 2 Develop a data-driven, fit-for-purpose IT strategy with a strong link to execution. Alex Zverintsev Director, CIO Advisory Info-Tech Research Group The business needs IT support to achieve its goals. Are you ready to deliver? ANALYST PERSPECTIVE
  3. 3. Info-Tech Research Group 3Info-Tech Research Group 3 This Research is Designed For: This Research Will Help You: This Research Will Assist: Audience for This Blueprint Blueprint Benefits Blueprint Outcomes CIOs or IT leaders who want to develop an IT strategic plan. IT departments that want a time- and resource-efficient process to carry out IT strategic planning. CIOs or IT leaders who want to ensure the business value of IT and align IT initiatives with overall organizational strategies. Identify the critical steps and key players required to build your strategy. Save time, money, and hassle by using a best- practice methodology that walks you step by step through strategic planning. Improve business-IT relationships by working together to create an IT strategy that will help ensure organizational goals are met. A fit-to-purpose IT strategy that aligns the IT department with the business. A tool to drive internal IT alignment through a common vision and a shared sense of purpose. A holistic analysis of the current state of the business and IT, and IT initiatives designed to optimize business performance and enhance IT maturity. Engage Info-Tech to assist with your strategic planning
  4. 4. Info-Tech Research Group 4Info-Tech Research Group 4 Resolution Situation Complication Info-Tech Insight Executive summary • According to Info-Tech research, 47% of business leaders feel that business goals are unsupported by IT. • If IT fails to support the projects or programs that benefit the organization, then IT is perceived as a strict cost center that delivers very little real value. • Highly effective IT strategies will realign IT with the business, however, a staggering 92% of IT departments surveyed claimed their IT strategies were less than adequate. • Many IT strategies are “too technical” both in wording and content; technical jargon is difficult for the business to understand and there is very little emphasis on people or processes. • Articulating a clear IT strategy that aligns IT with business objectives is the most important activity a CIO can do for the IT department and organization. • The strategic planning exercise requires that the CIO review the business environment, assess the current state of IT, define a target state that is aligned with the organizational priorities, and focus efforts on IT initiatives that bring tangible benefits to the business. • The key is to work with the business when developing your IT strategic plan. A solid understanding of business needs, combined with a mutual understanding of drivers and constraints will help you create a very effective strategy. • Creating and executing a successful IT strategy will help thrust IT into a leadership role, especially if the organization has not yet formulated a formal strategy of its own. 1. Make informed decisions based on data, not just intuition and assumptions. 2. Right-size your IT strategy to address the mandate. 3. Establish a strong commitment to execution.
  5. 5. Info-Tech Research Group 5Info-Tech Research Group 5 32% Feel that IT is investing in areas that don't support the business. 64% Think that IT must better understand business goals. 47% Believe that business goals are going unsupported by IT. Source: Info-Tech Benchmarking and Diagnostic Programs Too often, CIOs focus on operational efficiency and “keeping the lights on.” However, C-level executives need IT to focus on aligning technology with the business. As a CIO, you must view yourself as a business leader who works in IT
  6. 6. Info-Tech Research Group 6Info-Tech Research Group 6 CIOs must earn their seat at the table; right now they are not doing a good enough job 0% 5.58% 12.09% 19.53% 35.81% 22.33% 4.65% 0% 5% 10% 15% 20% 25% 30% 35% 40% 1 2 3 4 5 6 7 Overall C-Level Stakeholder Satisfaction With CIO’s Performance as a Business Partner % of Respondents Low Satisfaction High Satisfaction Source: Info-Tech Benchmarking and Diagnostic Programs More than 70% of business stakeholders rated their CIO as a 5 or lower. The most shocking finding was that only 27% of business stakeholders were very satisfied with their CIO’s performance as a business partner.
  7. 7. Info-Tech Research Group 7Info-Tech Research Group 7 CIOs and their IT departments are failing to meet business stakeholder needs 46.0% 60.0% 62.0% 54.0% 40.0% 38.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Overall Satisfaction With IT Core Services IT's Ability to Deliver Solutions That Meet Business Needs IT's Understanding of Business Needs and Requirements Business Stakeholders’ Satisfaction With IT Dissatisfied Satisfied Source: Info-Tech CIO Business Vision Diagnostic; N=2,369 According to Info-Tech’s Business Vision survey: • Only 53.8% of business leaders are satisfied with IT core services. • Less than 40% are satisfied with IT’s ability to deliver solutions that satisfy business capability needs. Some of these findings can be attributed to the CIO’s inability to: • Effectively manage stakeholder relationships. • Understand the capability needs of business partners. • Enable innovation to help business stakeholders capitalize on technology opportunities.
  8. 8. Info-Tech Research Group 8Info-Tech Research Group 8 There is a significant link between business satisfaction with IT and IT strategy effectiveness Source: Info-Tech Benchmarking and Diagnostic Programs *Note: Effective organizations were classified as those with an IT strategy effectiveness score greater than or equal to 7. Highly satisfied organizations were classified as those with an overall IT satisfaction score greater than or equal to 8. According to Info-Tech research, business stakeholders are 3.5 times more likely to be highly satisfied with IT if there is an effective IT strategy in place.
  9. 9. Info-Tech Research Group 9Info-Tech Research Group 9 An effective IT strategy will help your organization realize tangible benefits (1 of 2) 1. Business-IT alignment. A successful IT strategy ensures business-IT alignment on the strategic scale. IT is working on the right things that matter to the business. IT avoids wasting budget on things that do not matter to the business. 2. Informed strategic IT investment decisions. A successful IT strategy provides a clear picture of how each proposed investment supports enterprise objectives by addressing identified gaps between the current state and target state of IT. This helps avoid sporadic investments influenced by the loudest voice. Business objectives IT’s focus IT is focusing on things that do not matter to the business IT is not supporting business objectives IT is supporting business objectives Business objectives IT’s focus IT’s focus is fully aligned with business objectives Value = Avoided spend on misaligned IT initiatives + Value realized from IT supporting previously unsupported business objectives
  10. 10. Info-Tech Research Group 10Info-Tech Research Group 10 Reap the benefits of a successful IT strategy (2 of 2) 3. Timely developed capabilities. A successful IT strategy ensures IT has the required effectiveness and efficiency of people, processes, and technology at the right time to achieve business objectives. The comprehensive assessment of the entire IT organization uncovers gaps, interdependencies, opportunities, and risks that are hard to identify with a narrower tactical focus. Value = Increased joint business-IT efficiency X Spend on IT-enabled initiatives + Value realized from increased joint business-IT effectiveness Value = Realized value enabled by IT having built the capabilities to support strategic business objectives in a timely manner Value = Increased IT efficiency due to elimination and avoidance of redundant roles, processes, and technology components X Addressable IT spend Note, this model doesn’t encompass the value realized from strategic IT initiatives that are identified by the IT strategy and may target specific efficiency, effectiveness, and/or labor arbitrage benefits, other than the elimination and avoidance of redundant roles, processes, and technology components (number five in the list above). 4. Improved IT credibility. A successful IT strategy increases the business' understanding of what IT can do, currently does, and will do to support the achievement of business objectives. As a result, it improves the business' satisfaction with IT, improves IT’s credibility, and enables IT to become a strategic partner with the business. 5. Elimination and avoidance of redundancy. A successful IT strategy looks at IT holistically (i.e. across possibly siloed roles, processes, and technology components) and uncovers and makes plans to eliminate and avoid unnecessary redundancy through centralized, shared IT capabilities, consolidated applications, and infrastructure.
  11. 11. Info-Tech Research Group 11Info-Tech Research Group 11 42% Some improvement necessary. 34% Significant improvement necessary. 25% IT strategy is clearly defined, published, and aligned with business goals. Currently, over 75% of C-level business executives want to see an improved IT strategy Source: Info-Tech Benchmarking and Diagnostic Programs
  12. 12. Info-Tech Research Group 12Info-Tech Research Group 12 Improve your IT strategy by getting a better grasp on strategic planning A typical IT strategy will contain the following: 1. Summary of the current state. • Business • External Environment • Internal IT 2. Summary of the target state. 3. Roadmap to get from current state to target state. 4. Summary of risks, mitigation techniques, and high-level economics. At a minimum, Info-Tech recommends that you review the following, as you build the strategy: • Business Capabilities and Services • IT Sourcing • Technology Landscape • IT Operating Model Communication is paramount. You have to put in the work and the time to hear what the business is saying in order to deliver and meet its expectations. – John Hansknecht, Director of Technology, University of Detroit Jesuit High School & Academy What does it mean to be strategic?  Be forward looking – think about the ramifications of trends and decisions in the long term; do not just focus on tomorrow.  Be proactive – anticipate changes and make moves to suit; do not wait to be forced to react.  Be aligned – commit to an organization-wide vision to create a shared sense of purpose; do not separate IT from the business.  Be aspirational – think big to better your department; do not limit yourself.
  13. 13. Info-Tech Research Group 13Info-Tech Research Group 13 In order to develop an effective business-driven IT strategy, you must engage the business of CXOs feel that they should participate in decision making around IT strategy, with the majority believing that participation should occur quarterly or more frequently. 98% Source: Info-Tech Benchmarking and Diagnostic Programs
  14. 14. Info-Tech Research Group 14Info-Tech Research Group 14 Info-Tech’s approach to IT strategy development builds on the COBIT 5 and TOGAF frameworks Our best-practice approach is grounded in the COBIT 5 framework, enhanced by TOGAF’s enterprise architecture vision, and optimized by the insights and guidance from our analysts, industry experts, and our clients. Research grounded in COBIT 5 (APO02) The most widely used international framework for the management and governance of IT. Optimized through experience Analyst team with over 70+ years of experience, with client-tested processes. The Info-Tech’s Approach Many other resources will tell you what to do but most won’t tell you how. We will tell you: 1 2 3 What to do. We give you the process to build a fit-for- purpose quality management program. Why you’re doing it. We explain why each step is important so you understand the process. How to do it right. We walk you through the process with easy-to-follow, easy-to-do activities. Why Info-Tech Is Different Enhanced by TOGAF ADM A framework for enterprise architecture that describes the method for developing a target- state vision.
  15. 15. Info-Tech Research Group 15Info-Tech Research Group 15 Our methodology walks you (and your business) step by step through the development of an IT strategy 3. Evaluate current state of IT 2. Assess drivers and constraints 4. Develop a target state vision 5. Define initiatives 6. Build a roadmap Business capabilities Business SWOTs Business initiatives PESTLE factors Success measures 7.Execute Industry trends End-user profile Business imperatives High-level economics Organizational change Risks Business-driven priorities Strategic goals Target-state vision Objectives and measures IT guiding principles IT vision statement Business / internal IT initiatives IT budget and spend Performance data Assessments External Implications for IT Opportunities to innovate Risk appetite Transition options Gaps 8.Revamp IT SWOTs Holistic Focus-area specific Initiatives Target-state options Execution schedule Approval IT strategy map Focus areas Business capabilities and services IT sourcing Technology landscape IT operating model IT mission statement Appetite for IT spend 1. Determine mandate and scope Mandate Project charter Scope According to Info-Tech research, 92% of our clients have less than effective IT strategies. Let us help you build your strategy the right way.
  16. 16. Info-Tech Research Group 16Info-Tech Research Group 16 We will help you build the following deliverables 3. Evaluate current state of IT 2. Assess drivers and constraints 4. Develop a target state vision 5. Define initiatives 6. Build a roadmap IT strategy document (with appendices) 1. Determine mandate and scope 7.Execute8.Revamp Project charter Execution & comm. plan List of implications for IT List of external drivers IT guiding principles List of business drivers List of innovation opps. Summary of IT current state assessment Strategic goals Target-state vision List of target-state options IT mission and vision List of transition options Initiatives IT roadmap Organizational readiness assessment results High-level economics summary Strategy map (aka goals cascade) Summary of risk appetite Risk management plan Objectives and measures
  17. 17. Info-Tech Research Group 17Info-Tech Research Group 17 We will help you overcome the typical barriers to successful IT strategy development Often strategic development projects generate severe pains. We will help you break down the barriers to an effective IT strategy by addressing key development obstacles right away. Limited interaction with the business Our methodology takes a business-focus approach, forcing you to engage the business throughout your strategy. Limited upfront planning The first phase of this blueprint, Determine mandate and scope, walks you step by step through the pre-planning phase to ensure you right-size your efforts. Limited access to critical data Our diagnostic programs provide you with the data and information you need to make key strategic decisions. Lack of executive buy-in Our executive brief explains the benefit of a business-driven IT strategy. Use the brief to make your case. Key Challenges Info-Tech Aided Solutions Lack of strategy know-how Throughout this blueprint we provide easy-to-follow activities and several adaptable, easy-to-use templates that you can modify to meet your needs.
  18. 18. Info-Tech Research Group 18Info-Tech Research Group 18 Gathered Data • IT Future Role • Expected Budget Change Participants • CEO • CIO1 2 3 Gathered Data • Core Service Satisfaction • Core Service Feedback Participants • Business Leaders • Business Employees Gathered Data • Process Importance • Process Effectiveness Participants • IT Leaders • IT Employees Info-Tech’s diagnostic programs will deliver the data that you need to make informed decisions
  19. 19. Info-Tech Research Group 19Info-Tech Research Group 19 Organizations of any size can benefit from an IT strategy; we will help you adjust the project to suit your needs Who You Are • 1-10 IT staff • 10-100 IT staff • More than 100 IT staff CIO’s or IT Leader’s Role • You will be accountable and largely responsible for leading the development of the IT strategy. • Do not waste time on formalities – figure out what the business needs are and be innovative in how IT can drive business value. • You will be accountable for the IT strategy development effort and you will benefit from delegating the project work to your team. • You will benefit from a formal strategy development process. • You will be accountable for the IT strategy development effort. • The majority of the development responsibility will lie with your internal team and third-party consultants. • Your primary responsibility will be to market the IT strategy to your executive peers. Key Challenges • Your time/effort availability may affect your ability to develop a strategy. • You may not have a well- defined business strategy. Work with the business to identify priorities. • Strategy development can quickly become overwhelming and unmanageable. • You will have to find a balance between operational excellence and strategic aspirations. • Getting business stakeholders on the same page and working towards the same goals may be difficult. • IT strategic development will take a long time to complete properly – beware of losing focus as you progress. Although the basic components are the same, every CIO or IT leader will have to approach IT strategy development in a slightly different manner. Large EnterpriseSmall Enterprise Medium Enterprise
  20. 20. Info-Tech Research Group 20Info-Tech Research Group 20 Info-Tech’s “Systematic Path” to IT success will help you transform the way your business views IT 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 Unstable – Struggles to Support Inability to Provide Reliable Business Services
  21. 21. Info-Tech Research Group 21Info-Tech Research Group 21 Track your progress to ensure success – keep these goals and metrics in mind as you develop your strategy Goal of IT Strategy Key Metric All aspects of the IT strategy are aligned with the business strategy. • Percent of objectives in the IT strategy that support the business strategy. • Percent of business objectives addressed in the IT strategy. The IT strategy is cost-effective, appropriate, realistic, achievable, business-focused, and balanced. • Percent of initiatives in the IT strategy that are self-funding (financial benefits in excess of costs). • Trends in ROI of initiatives included in the IT strategy. • Level of business stakeholder satisfaction survey feedback on the IT strategy. Clear and concrete short-term goals can be derived from, and traced back to, specific long-term initiatives, and can be translated into operational plans. • Percent of projects in the IT project portfolio that can be directly traced back to the IT strategy. IT is a value driver for the business. • Percent of strategy business objectives achieved as a result of strategic IT initiatives. • Number of new enterprise opportunities realized as a direct result of IT developments. • Percent of IT initiatives/projects championed by business owners. There is awareness of the IT strategy and a clear assignment of accountability for execution. • Achievement of measureable IT strategy outcomes as part of staff performance goals. • Frequency of updates to the IT strategy communication plan. • Percent of strategic initiatives with accountability assigned. Start tracking these metrics now to see how well you’ve improved later. Source: COBIT 5, APO02
  22. 22. Info-Tech Research Group 22Info-Tech Research Group 22 You will realize even greater benefits by partnering with Info-Tech Reduce Investment Reduce Effort Reduce Risk Info-Tech’s Measured Value Reduce the total cost of developing an IT strategy on your own by using Info-Tech’s methodology. Capitalize on nine months of research and over 300 years of experience…improve the quality of your IT strategy and a realize a savings of one to four months of strategic planning effort with this blueprint. Reduce your effort by using our pre-populated tools and templates in every phase of your strategy development project. Reduce the risk of developing your strategy on your own. Our methodology was developed through extensive research, validation exercises, and practice. Improve the quality of your output by focusing on what really matters. We have done all the pre-work for you, you just need to fill in the details. Improve Quality
  23. 23. Info-Tech Research Group 23Info-Tech Research Group 23 Consulting “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.” Guided Implementation “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.” DIY Toolkit “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.” Workshop “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.” Diagnostics and consistent frameworks used throughout all four options Info-Tech offers various levels of support to best suit your needs
  24. 24. Info-Tech Research Group 24Info-Tech Research Group 24 Follow a CIO’s journey through IT strategy development using Info-Tech’s methodology United Telecom Company* The United Telecom Company (UTC), is the primary telecommunications provider for a small tropical country. It has over 500,000 customers using mobile, landline, and broadband services. The company is partly government owned. Situation UTC re-vamped its corporate strategy upon the threat of new competition into the small local market. This corporate shift required a re-alignment between the IT department and the new UTC direction. The CIO determined that a new IT strategy was required and that he would engage Info-Tech in a five-day IT strategy workshop. Solution During the workshop, the project team and Info-Tech analysts worked together to gather and analyze data regarding the business, IT, and the greater business environment. Over the course of the week the team was able to develop a strategic document rather than the “wish lists” that had been created in previous years. * Names and some details have been changed for client privacy. CASE STUDY Industry Source Telecommunications Info-Tech Research Group Follow UTC’s journey through IT strategy development by looking for this symbol throughout the blueprint: To read the case study in its entirety, see Appendix A. CASE STUDY Results: Following the workshop, UTC received sign-off approval from the business. After implementing the new business-driven strategic initiatives and executing the IT strategy, UTC saw a 9% increase in stakeholder satisfaction and a 10% increase in perceived value of IT. As well, UTC saw a significant improvement in overall IT maturity.

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