IT Strategy – a greyhound or a rocket powered beagle?
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1 IT Strategy IT Strategy – a greyhound or a rocket – a greyhound or a rocket powered beagle? powered beagle? Rod Clarke
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IT Strategy – a greyhound or a rocket powered beagle?. Rod Clarke. Greyhounds and rocket powered beagles…. An ill thought out e-commerce strategy is a bit like strapping a beagle to a rocket and entering it in a greyhound race….. - PowerPoint PPT Presentation
Transcript of IT Strategy – a greyhound or a rocket powered beagle?
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IT Strategy IT Strategy – a greyhound or a rocket – a greyhound or a rocket
powered beagle?powered beagle?
Rod Clarke
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Greyhounds and rocket Greyhounds and rocket powered beagles….powered beagles….An ill thought out e-commerce strategy is a bit like strapping a
beagle to a rocket and entering it in a greyhound race…..
You’ll get a brilliant start, but things will get really messy when you hit the first corner.
Colin Statter,
(ex) Internet Services Director, Corporate Express
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An IT Strategy – some key An IT Strategy – some key elementselements• Driven by clearly articulated business
strategy – the value disciplines plus…• Written for real people not techies• Focus on:
• Business processes to deliver business strategy - first• Application software to support business processes –
and only then…• Hardware and networks to support software
• About a 5 year horizon, but “rolling”• Agreed by, owned by, and monitored by, the
business
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Value DisciplinesValue DisciplinesDiscipline Focus of Discipline Features of IT strategy
Operational Excellence
•Manufacture to Least cost•Focus on Small range of Products•Waste Elimination
•Cost effective Supply chain systems•Simple low cost approach•Single Database•Financial controls key
Customer Intimacy
•Knowing the customer•Responsive to customer
•Customer Relationship Management systems•Good Operational ERP systems
Product Leadership
•Leading the market through product design•Quick and first to market
•Requires strong Project Management systems•Good operational systems
5Does it pass the “PO” test?Does it pass the “PO” test?
An IT Strategy – the tests…An IT Strategy – the tests…
• Is your IT strategy…– Written in Plain language– Focused on the business needs– Understood at Board level– Flexible, yet precise– Affordable– Referred to as decisions are made– Reviewed and updated regularly as
business and technology changes
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Evolution of an Evolution of an organisationorganisation
Connected Technology, People
and Processes joined-up.
Connected Technology, People
and Processes joined-up.
“Computerised” Highly automated
environment
“Computerised” Highly automated
environment
Controlled Failures in operations are very
rare, being eliminated
Controlled Failures in operations are very
rare, being eliminated
Co-ordinated. Operations and processes perform as expected
most but not all of the time.
Co-ordinated. Operations and processes perform as expected
most but not all of the time.
Chaos Manual Environment; lack of processes; informal ;
“entrepreneurial”; constant change of direction.
Chaos Manual Environment; lack of processes; informal ;
“entrepreneurial”; constant change of direction.
IT
IMPORTANTCE
HIGH
LOWLOW
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“E-enabled” Customer and suppliers connected on
the web, all processes computer controlled, and well managed.
“E-enabled” Customer and suppliers connected on
the web, all processes computer controlled, and well managed.
Everywhere Planning, Manufacturing
Execution, CRM, Warehouse automation.
Everywhere Planning, Manufacturing
Execution, CRM, Warehouse automation.
Much Integrated ERP system,
Planning and performance measures
Much Integrated ERP system,
Planning and performance measures
Some Production
control, and spreadsheets
Some Production
control, and spreadsheets
NoneNone
A coherent systems mapA coherent systems map
Connected Technology, People
and Processes joined-up.
Connected Technology, People
and Processes joined-up.
“Computerised” Highly automated
environment
“Computerised” Highly automated
environment
Controlled Failures in operations are very
rare, being eliminated
Controlled Failures in operations are very
rare, being eliminated
Co-ordinated. Operations and processes perform as expected
most but not all of the time.
Co-ordinated. Operations and processes perform as expected
most but not all of the time.
Chaos Manual Environment; lack of processes; informal ;
“entrepreneurial”; constant change of direction.
Chaos Manual Environment; lack of processes; informal ;
“entrepreneurial”; constant change of direction.
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Rules on IT StrategyRules on IT Strategy
• Do not computerise the uncontrolled
• Do not use systems and processes one level up for a level further down
• Do-not e-enable the “chaotic”
• Do-not automate before you have control
• Walk up the steps
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The Delos ModelThe Delos ModelFor Business Integration For Business Integration
InnovationInnovation
VisionVision
StrategyStrategy
PrioritisationPrioritisation
DemandDemand
SupportSupport
SupplySupply
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A IT Systems Map A IT Systems Map
PERTPERT
VisionVision
StrategyStrategy
OptimiserOptimiser
CRM/SFDMCRM/SFDM
AP/AR/GLAP/AR/GL
APS/MPSAPS/MPS
PDM
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The AcronymsThe Acronyms• CRM
• SFDM
• APS• MPS
• PERT• PDM
• Customer Relationship Management• Sales Forecasting and Demand Management• Advanced Planning System • Master Production Scheduling• Project Evaluation Technique•Product Data Management
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DELIVERING:DELIVERING:
• Technology as the outcome, not as the start pointTechnology as the outcome, not as the start point
• Clear time phased action plans and prioritiesClear time phased action plans and priorities
• Ability (and willingness) to payAbility (and willingness) to pay
• Organisational implicationsOrganisational implications
DELIVERING:DELIVERING:
• Technology as the outcome, not as the start pointTechnology as the outcome, not as the start point
• Clear time phased action plans and prioritiesClear time phased action plans and priorities
• Ability (and willingness) to payAbility (and willingness) to pay
• Organisational implicationsOrganisational implications
Gap AnalysisGap AnalysisBusiness/IT StrategyBusiness/IT Strategy
Action PlansAction Plans
Gap AnalysisGap AnalysisBusiness/IT StrategyBusiness/IT Strategy
Action PlansAction Plans
Do-wellsDo-wells
Strategic ImperativesStrategic Imperatives
Do-wellsDo-wells
Strategic ImperativesStrategic Imperatives
Desired End State
Desired End State
BusinessScenarios
BusinessScenarios
BusinessPrinciples
BusinessPrinciples
ITPrinciples
ITPrinciples
How to build an IT StrategyHow to build an IT Strategy
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DELIVERING:DELIVERING:
• Technological Solution in search of a business problemTechnological Solution in search of a business problem
• Short-term reaction to IT DevelopmentShort-term reaction to IT Development
• Insufficient funds to complete technological Insufficient funds to complete technological improvementsimprovements
• Dysfunctional organisationDysfunctional organisation
DELIVERING:DELIVERING:
• Technological Solution in search of a business problemTechnological Solution in search of a business problem
• Short-term reaction to IT DevelopmentShort-term reaction to IT Development
• Insufficient funds to complete technological Insufficient funds to complete technological improvementsimprovements
• Dysfunctional organisationDysfunctional organisation
Business Strategy/Business Strategy/Company directionCompany direction
Business Strategy/Business Strategy/Company directionCompany direction
Gap Analysis/Gap Analysis/IT StrategyIT Strategy
Gap Analysis/Gap Analysis/IT StrategyIT Strategy
Undesired End State
Undesired End StateIT SolutionIT Solution IT
Principles
IT Principles
BusinessStrategy
BusinessStrategy
How not to build an IT StrategyHow not to build an IT Strategy
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Developing an IT StrategyDeveloping an IT Strategy
• Carry out an independent evaluation of your current state
• Conduct an up to date view of best practice and latest technology
• Get an independent review of the market – hardware, software and support
• Create a planned and controlled process to fit the IT solution correct for Business
• Establish a business led process to implement
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Sources of help for Sources of help for strategystrategy“Strategic” consultancy
– Accenture– Cap Gemini– IBM
“Specialist IT” consultancy– IBM– CSC
Software or Hardware Vendor– IBM– HP– SAP– Oracle
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Rod ClarkeRod Clarke
• 20 years in Life Sciences - ICI Agrochemicals, Zeneca Agrochemicals, Glaxo Wellcome
• Business, not IT, background• Manufacturing and Supply Chain Management focus• MRPII Project Lead in ICI UK and USA • MRPII Class A at ICI • CIO for Global Manufacturing & Supply at Glaxo
Wellcome – the SAP decision• Founder member of the Delos Partnership Limited
January 2003
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Wherever you go….Wherever you go….
You need someone who is:– Truly independent
– Understands your business issues
– Can talk to the business without mention of bits and bytes
– Has experience of IT in a Business Excellence environment
Rod Clarke
The Delos Partnership Limited
+44 (0)1473 414512
+44 (0)7801 063006
Rod Clarke
The Delos Partnership Limited
+44 (0)1473 414512
+44 (0)7801 063006
