IT STRATEGY CONSIDERATIONS

Ferayanti Boas GAnderson Padita Margareta Dyah RHH

Hitachi Consulting Strategy Business Forum

The Strategic Void

IT Strategy Considerations

• Many companies do not have a vision with actionable strategies reinforced through metrics and rewards systems• Most companies do not integrate IT into strategic thinking and processes

IT Projects are often driven by external requirements, ad hoc business unit demands and external sales pitches without making the proper strategic connections….-- Y2K, SOX, ERM, CRM…….

Strategy:

IT Strategy Considerations

the art of devising or employing plans or stratagems toward a goal (Webster’s Dictionary)

• Successful strategy must fully incorporatePEOPLE, PROCESSES, SYSTEMS

• Successful strategy must create focus – it should also clarify what you won’t do• Many tools work to facilitate the process;for success, all require actionable, measurable targets for which individuals are held accountable

Why IT Strategy Matters:

IT Strategy Considerations

• IT is a key means to make business strategies actionable - Translates data to management information

(key metrics) - Creates the critical transparency• Complexity, cost and time horizons associated with IT projects require strategic focus and disciplined planning

The Sad Truth:

IT Strategy Considerations

Even when IT is incorporated and aligned withbusiness strategy, IT projects typically are …

a) LATEb) OVER BUDGETc) MISSING PROMISED DELIVERABLESd) TWO OR MORE OF THE ABOVE

… due to the collision of good intentions withbad execution.

IT Strategy Considerations

The Magic Button DilemmaThere are significant costs to accommodating all those “nice to haves”There are performance and maintenance implications (more costs) !

The Lure of “Available” Resources

No one is lining up to volunteer and all the best people are too busy

The Fear Factor

Faced with the choice between changing one’s mind and proving that there is no need to do so, almost everybody gets busy on the proof. –

John Kenneth GalbraithIT Strategy Considerations

The Fallacy of Consensus

Sub-optimal solutions (e.g., automation of existing processes) are accepted at project team levelThe Steering Committee and/or executives agree to compromises

IT Strategy Considerations

The Magic Button

Dilemma

The Lure of “Available” Resources

The Fear Factor

The Fallacy of Consensus

Consultant

Educate & get informed

Maintain ownership

Integrated Project

Approach

Success Factor

Ground rules

IT Strategy Considerations

Integrated Project Approach

IT Strategy Considerations

IT Strategy Considerations

Benefits From Strategic Approach to IT• IT becomes a business enabler• Clarity around IT priorities based on defined businessrequirements• Catalyst to streamline business processes, improvingeffectiveness, efficiency and internal controls• Enhanced utilization of selected IT tools• Improved ROI on IT spend

IT Strategy Considerations

IT Project Success Factors• Explicit deliverables connected to business

strategy• Strong executive leadership and on-going support (corporate and business unit)• User driven• A committed, knowledgeable team with broad representation (key personnel must be made available)• Robust project management structure and process• Early escalation and resolution of issues• Active change management process, including strongcommunication and training components• Clear ground rules

IT Strategy Considerations

Tactical Elements to Success• Don’t start a project until executives have explicitlyagreed to key elements• Always manage expectations• Keep change management “front and center” indiscussions and approach• Communicate options and trade-offs whenconfronted with major issues

IT Strategy Considerations

Plans are only good intentions unless they immediately degenerate into hard work.

Peter Drucker

IT Strategy Considerations

THANK YOU