1、IT Strategy,Managing the Information Technology Resource Jerry N. Luftman,Outline,Influence of 21st century business environment Definitions of strategy Role of IT strategy Strategic Alignment concept and model Processes and considerations in development of IT strategy,IT as Architects of Alignment,
2、Knowledgeable about new technologies Privy to tactical and strategical plans Be present in corporate strategy discussions Understand technology strengths and weaknesses,Six Key Enablers to Alignment,Senior executive support for IT IT involved in strategy development IT understands the business Busin
3、ess-IT partnership Well-prioritized IT projects IT demonstrated leadership,Six Inhibitors to Alignment,IT/business lack close relationships IT does not prioritize well IT fails to meet commitments IT does not understand business Senior executives do not support IT IT management lacks leadership,Toda
4、ys Business Environment,Increased globalization Increased competitive pressure Frequent mergers Rapidly changing technology Evolving patterns of consumer demand,Competitive Advantage Today,Unsurpassed relationships with ones customers and suppliers Unique and adaptable business processes Ability to
5、harness information and knowledge of employees Must become “Change Leaders”,Business Strategy Choices,Selection of business goals Choice of products and services to offer Design and configuration of policies Appropriate level of scope and diversity Design and organization structure and administrativ
6、e systems,3 Business Strategy Elements,Vision,Where the company wants to go What the company aspires to be Clear, compelling, exciting Big Hairy Audacious Goals (BHAG),Strategy,How vision will be accomplished over specified time period Use of checkpoints Benchmarks to check strategy effectiveness Al
7、igned with company mission and core values Provides architectural bridge between mission and vision,Mission,Reasons the IT function exists Concise statement of what business the group is in Purpose and function of IT Review to identify for themes and ideas Identify core values,IT Strategy,Set of dec
8、isions made by IT and senior management Deployment of technology infrastructures Relationship of technology choices to business choices,Aligned IT Strategy,Intimate understanding of customers and evolving needs Managing knowledge- and information-based asset management Continuously innovate strategi
9、cally relevant new processes Coordination of activities involving people, procedures, and technology,IT Roles in Strategy,Transformation driver Create and exploit new markets Link customers to firm Define new standards of excellence Enabler of transformation Interconnect people and processes Span or
10、ganization boundaries Bridge geographical distances,IT as Inhibitor,IT strategy not aligned with business strategy Over-emphasis on technology Failure to recognize effective use of IT requires business process change,3 Management Subcultures,Executive Focused on maintaining financial health Engineer
11、ing Focus is outside organization Views humans as source of potential error Operator Based on human interaction Frequently operate at cross-purposes,Strategic Environment,Internal Business Domain,Administrative Structure Functional, matrix, decentralized, process-based, geographic, or hybrid Critica
12、l Business Processes Identification of salient processes Human Resource Skills Acquisition and development of people skills,Strategic Fit,Scope of Firms Business Customers, products, markets, and competitors Distinctive Competencies Core competencies Critical success factors that provide competitive
13、 advantage Governance of the Firm Impact of regulatory agencies,Strategic Alignment Model,Scope of Firms Technology Impact and support business strategy decisions and initiatives Systemic Competencies Technology capabilities IT Governance Pursue relationships and alliances to obtain IT competencies,
14、Internal IT Strategy Domain,IT Architecture Selection of technology and infrastructure Models used to define data, information, networks, applications, and systems IT Organizational Processes Critical to operation of IT organization Systems development, IT operations IT Skills Acquisition and develo
15、pment of people,Strategic Alignment Model,Business Strategy Business Scope Distinctive Competencies Business Governance Organization Infrastructure and Processes Administrative Structure Processes Skills,Strategy Technology Scope Systemic Competencies IT Governance IT Infrastructure and Processes Ar
16、chitecture Processes Skills,Functional Integration,Linkage between the IT strategy domain and business strategy domain Support requirements and expectations of business organizational structure and processes,Planning IT Strategy,Sequence of activities that transforms current alignment state to futur
17、e alignment state Actively involve IT staff in development of vision and strategies Strengthen degree of strategic alignment,Attributes of Champion/Sponsor,Power Pain Vision Resources Long View Sensitivity Scope Public Role,Private Role Consequence Management Techniques Monitoring Plans Willingness
18、to Sacrifice Persistence,Champion vs. Sponsor,Champion Has compelling vision of “To Be” state of affairs Organizational credibility and reputation Communicates vision to all levels of organization,Sponsor Obtain resources needed to implement champions vision Focused on aspects and details of strateg
19、y execution Source of funding,Forming the Team,Senior decision makers from corporate IT, business IT, and senior business management Include systems architect and CIO Establish join understanding Commitment to goals and objectives,“As-Is” State Description,Specify both business strategy and organiza
20、tional infrastructure Baseline for senior management and IT Understand firms strategic positioning in IT marketplace IT governance Facilitated interactive workshop sessions 10-12 participants,SWOT Analysis,Strengths Weaknesses Opportunities Threats Recommend strategies that ensure best alignment bet
21、ween external and internal environments,Strengths,Distinctive Competencies Critical success factors Core competencies Brand, research, manufacturing, product development, cost and pricing structure, sales and distribution channels Systemic Competencies Capabilities and success factors important to s
22、trategies,Weaknesses,Observation of existing business and IT problems Weaknesses will emerge from observation Effect on firms strategic positioning,Opportunities Ansoff Matrix,Ansoff Matrix Positioning Strategies,Delta Model,Threats,Rivalry Between Existing Firms Risk of New Entrants Power of Buyers
23、 Power of Suppliers Threat of Substitutes,Environmental Factors,Political and Legal Environment Macroeconomic Environment Social Environment Technical Environment Demographic Environment,Strategy Alternatives Analysis,Scenario Planning Grid,IT Strategy Implementation,Execute the strategy Commitment
24、and engagement of senior business management Must occur prior to implementation planning Strategic Alignment Maturity Ability to adapt in harmonious fashion Adoption of Measurement Criteria Measure effects in several different dimensions,Periodic Review,Ensure initial assumptions are correct Ensure implementation of plans are on schedule Measurements are captured and reported,
