This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/business-document/it-strategy-209 This is a comprehensive document on Information Technology (IT) / Management Information Systems (MIS) Strategy. This document includes IT strategy frameworks, critical success factors, detailed project approach and organizational structure, sample deliverables, and more.

1. Business Framework
IT Strategy
This is a comprehensive document on IT
Strategy, including IT strategy frameworks,
critical success factors, detailed project
approach and organizational structure,
sample deliverables, and more
Strategy Structure
Execution
IT Delivery
IT Management
Provide IT CapabilitiesInputs
Business
Strategy
Technology
Trends
Business
Environment
Output
Int/ExtCustomers
ITSystems&Services
Technology
Landscape
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2. 3
“Provide IT Capabilities” is the overall process for deploying and managing
Information Technology Assets in the Enterprise
Provide IT Capabilities is the mega-process associated with providing the enterprise with information
technology systems and services
• Strategy sets the direction while;
• Structure defines the roadmaps required to support the strategy and guides;
• Execution which is the implementation of the strategy
Strategy
Structure
Defined by the
architectures:
Technology
Application
Information
Execution
IT Delivery
IT Management
ITSystems&Services
Internal/ExternalCustomers
Provide IT Capabilities
Technology Landscape
Represents the technology capabilities
available in the marketplace to be leveraged
by the enterprise
Inputs
Business
Strategy
Technology
Trends
Business
Environment
Output

3. 5
Business Strategy
IT Strategy
IT Operating Model
An IT Strategy Drives the IT Investments Choices
Ecosystem
IT Systems &
Services
IT CapabilitiesCompany
Integrated
Business &
Technology
Plan
Clusters of tech-enabled
business capability
--------------
Provide decision making
framework
Skills and capability that
enable System & Service
delivery
--------------
Sourcing strategy is critical
Rules of engagement for
decision making
-------------------------
Coordinates complex
relationships, orchestrating
and brokering
A plan for leveraging the IT capabilities of the company
and the ecosystem to deliver business success

4. 7
IT Strategy
Business
Strategy
Business
Environment
Systems and
Services
IT Operating Model
Capabilities and
Sourcing
Principles
IT Architectures
Infrastructure Architecture
Application Architecture
Information Architecture
IT Initiative Portfolio
Infrastructure Initiatives
Application Initiatives
Data Initiatives
IT Management Initiatives
IT Management
Environment
IT
Portfolios
Processes
Tools Applications
Resources
Information
Repositories
Infrastructure
Measures
IT Current State
IT Management
Environment
IT
Portfolios
Processes
Tools Applications
Resources
Information
Repositories
Infrastructure
IT Future State
Technology
Environment
What How
IT Strategy drives the overall IT planning process

5. 9
Strong bi-directional
alignment and clear
linkage between IT
investments and the
business strategy
Critical Success Factor IT Strategy Component Characteristics
 Explicit linkage between product
& services capabilities and the
business strategy
 All IT initiatives are integrated
with IT environment rather than
separated in enterprise and
business unit activities
 A “business oriented” view of
the IT environment rather than a
“technology oriented” view
 The definition of the portfolio
drives the IT investments
required to support the business
strategies
 The portfolio provides a
framework for defining a
resource allocation model that
shows where IT expenditures
are going
 Definition of the domain and
usage for each system / service
Portfolio of IT
Systems &
Services
Development of the Portfolio of IT Systems and Services defines what
should be done

6. 11
IT operating (governance)
model that balances the IT
roles & responsibilities not
only within the enterprise
but leverages external
resources as well
 Identification of all the internal
constituents that participate in
the planning, managing and
deploying of IT
 Identification of the external
suppliers and partners that
provide products & services as
part of the enterprise IT
environment
 Identifies the roles &
responsibilities of all the major
constituents that influence and
manage IT
IT Operating
Model
Critical Success Factor IT Strategy Component Characteristics
The IT Operating Model defines how IT will be managed

7. 13
IT Systems &
Services
Element
The IT systems and services that are provided to support the business
processes and enable the implementation of the business strategy. Includes
definitions of:
Key capabilities - business functionality required to support business
strategies
Key characteristics - operational functionality necessary to support business
operations (e.g. user types, availability requirements, access requirements
Domain – at what level the system / service is deployed
Usage – is the system a shared, common or point resource
Description
IT Capabilities
& Sourcing
– Definition of capabilities (operations, development, management, planning)
required to deliver the systems and services
– Identification of where the capabilities will be sourced (internally or externally)
and strategic importance vs. ability to meet the need
IT Operating
Model
– A definition of the processes for managing IT and making decisions about IT
investments
– Specification of the roles and responsibilities of all the IT stakeholders
(business and IT people) in managing and executing the processes
IT Principles
Statements about the IT environment, how it will be architected and developed,
how it will be managed and how it will operate
IT Strategy Outputs
IT Investment
Model (Optional)
Resource allocation model organizing the IT spend by systems and services
defined above. Identifies where IT spend is going : new business capabilities,
ongoing operations, support and maintenance

8. 15
The IT Strategy development process is accelerated, phased, and iterative
PHASE I
Project Initiation
PHASE II
IT Strategy Development &
Information Gathering
PHASE III
IT Strategy Refinement
Workshop
PHASE IV
Documentation and
Next Steps
Week 1 Weeks 2-5 Weeks 6-8 Weeks 9-10
Prepare
Project Materials
Establish
And Kick-off
Project Team
Determine Business
Strategy and Identify
IT Enablers
Create, Review,
and Update Initial
IT Strategy
Document
IT Strategy
Document
Implications and
Next Steps
Update and
Refine IT
Strategy
WORKSHOP
Validate IT Strategy
with Key Business
Executives
Review IT Strategy
with IT Management

9. 17
Project Phases III & IV
PHASE III
IT Strategy
Refinement Workshop
PHASE IV
Documentation and
Next Steps
KEY ACTIVITIES
 Develop workshop “seed” material
 Conduct IT strategy workshop
 Refine set of IT systems and services, characteristics,
sourcing opportunities
 Define IT operating model and roles & responsibilities
 Summarize required IT capabilities and appropriate
sourcing model
 Develop IT investment model
KEY ACTIVITIES
 Updated list of IT Products & Services
–Capabilities
–Characteristics
–Domain
–Usage
 Governance model
 Competency model
 IT Investment model
DELIVERABLES
 Compile and present results
 Determine action steps for execution
DELIVERABLES
 Final IT Strategy document

10. 19
Our approach focuses on speed and reusability
 Process Focus
– An iterative, process oriented approach to strategy development that enables establishment of a
continuous IT strategy process to be integrated with existing business and IT planning activities
 Collaborative Effort
– Leverages our experience in strategy development across many different clients in many
different industries with your business and applied technology knowledge for your enterprise
 Acceleration
– Use of parallel tasking wherever possible
– Leveraging our IT Strategy templates
– Facilitated sessions to gain agreement by all stakeholders quickly and leverage our Subject
Matter Experts at the appropriate time
 Knowledge Transfer
– Provides for knowledge transfer of our tools and methods for ongoing management of the IT
Strategy by your IT planning group
 Practical and Usable Outputs
– Provides an IT strategy guidebook that serves as a practical tool for both IT and business
people to use for ongoing management of IT investments






11. 21
Documenting Enterprise Business Strategies - Sample
 Increase Volume
 Expand Market Share of
Worldwide Widget Sales
 Maximize Long Term Cash
Flows
 Improve Economic Profit and
Create Economic Value Add
 Transform consumer information into actionable
marketing knowledge
 Be the preferred partner with our customers
 Strengthen our worldwide distribution (& other
business partner) system
 Increase sales force effectiveness
Company Objectives
Sales & Marketing Strategies
• Build brand preference and value
• Aggressively place our products “within an arm’s
reach” of consumer demand
• Increase our human capability & capacity for
value producing action
• Leverage financial fundamentals to create
sustainable results
Product Portfolio Strategies
Operating Strategies

12. 23
Specialty Retailer - IT Systems & Services Model - Sample
Info. Mgmt.
Repositories
Corporate
Support Apps
Store Mgmt
& Ops Apps
Merchandising
Apps
Supply Chain
Apps
Infrastructure Services
• Product Info Rep.
• Customer Info
Rep.
• Vendor Info Rep.
• Store Info Rep.
• Pricing, Promo-
tions, Markdown
Rep.
• Operations/
Process Info Rep.
• Merchandising
Info Rep.
• Purchasing
Mgmt Sys
• Allocation Mgmt
Sys
• Pricing Mgmt
Sys
• Replenishment
Modeling Sys
• Returns
Modeling Sys
• Distribution and
Inv. Planning &
Forecasting Sys
• Purchase Order
Mgmt Sys
• Warehouse
Mgmt Sys
• Order &
Fulfillment
Processing Sys
• Point of Sale Sys
• Prod Master Sys
• Store Labor Sys
• Self-Service Sys
• Customer Loyalty
Mgmt Sys
• Gift Certificate
Mgmt Sys
• Institutional
Accounts Sys
• Human
Resource Mgmt
Sys
• Financial Mgmt
Sys
• Financial
Reporting Sys
• Sales Mgmt Sys
• Communications Infrastructure
• Productivity Tools
• Collaboration Environment

13. 25
A brief description of this IT system / service
Description
Current State Future State
 Variety of systems in use
 ACT!, Rainmaker
 Single, shared or uniform system serving enterprise
 Internal users only, primarily office-based with
limited mobile workforce
 Connected and mobile/disconnected users
 External access for customers and partners
 Requires manual intervention to sync up personal
and corporate data
 Problems with remote access of data
 Marketing - Business day availability (hours of outage)
 Synchronization for disconnected users
 In many cases, data is not shared between
departments/users
 Limited direct feed interfaces between systems
 Interface to customer information database to facilitate
sharing between business groups
 Ability to receive external data feeds such as marketing
data
Portfolio/
Usage
Users
Availability/
Performance
Integration
/
Interfacing
 Basic contact management
 Some systems are too sales-oriented, and do not
have sufficient focus on customer relationships
 Users are concerned about sharing their private
contacts in a corporate database
 Implement web front end to access application logic,
and tiered (privilege-based) access to product data
 Keyed to customer information
 Facilitate front-to-back integration of ordering,
manufacturing and delivery processes
 Provide ability to track transaction status
Capabilities
IT System & Service – Current / Future State DefinitionCharacteristics

14. 27
Investment
Council
ITBusiness
SteeringComm
(orGroup
Pres/StaffHead)
Relationship
Managers
Application
Delivery
Managers
ProjectOffice
TPI
XXX
YYY
OtherExternal
Resources
Outsourcing
Mgmt
CIO
IT Delivery Processes - Infrastructure – Sample Roles / Responsibilities
Matrix
Design
Develop
Deploy
Operate
Support
Maintain
AP2 A AP1 I
I4
I4
I4
I4
I4
I A,E3
I4 E3
I4 I
I4 I
I4 I
I4 I
A,E,I
AP,E
AP,E
AP
AP
AP
ITDeliveryProcesses
Influencers &
Decision Makers
Service Providers
I
E5
E5
E5
E5
I
E5
E5
E5
E5
E5
E
E5
E5
E5
E5
E5
I
A
A
A
A
A
E5
Notes:
1 - Business Units approve up to $50,000 threshold for Point Infrastructure Products
2 - Investment Council approves > $50,000 threshold
3 - Project Office manages selected enterprise-wide projects
4 - Relationship Managers and Application Delivery Managers are not required to
provide input for Point Infrastructure unless their business units or applications are
affected
5 - In the design phase, the SOW will specify the actual responsibilities to resolve
issues regarding execution, responsibility and approval
AP- Approves (input as well)
A - Accepts responsibility (input as well)
I - Provides input
E - Executes (input as well)
Future State Roles & Responsibilities Matrix

15. 29
• Package/service selection
• Package implementation and
integration
• Application development and
maintenance
• Systems management
• Operations
• Capacity planning
• Change mgmt.
• Fault mgmt.
• Configuration mgmt.
• Performance mgmt.
• Asset mgmt.
• Planning and design
• Implementation
• Architecture design and refresh
Technology Infrastructure Applications Environment
Knowledge and Information
Management
Common Capabilities
• Project management
• Security administration
• Relationship management (consulting,
interpersonal skills, managerial skills,
people management)
• Strategic planning (includes leveraging
emerging technologies)
• Lifecycle management
• Change management
• Information management
• Knowledge management
• Data analysis
• Supplier/vendor management
• Partner management
• Value management (business cases, metrics)
• Help desk
• Testing, Quality Assurance
• Business analysis
• Training
• Technical documentation
Sample Capabilities Matrix