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IT STRATEGY DEVELOPMENT

Most businesses agree that it makes sense to have a well thought out strategy that shows how Information Systems and Information Technology (the applications and hardware) will support the business objectives over the next few years.  This is particularly important in any fast changing environment - which means just about any business these days.

But in practice, few businesses get round to developing the strategy.  Even where they do, it is often remote from the real business needs and the document invariably ends up in a cupboard gathering dust.


The Route to Success:

By building a proper business case for ebusiness investments, you will ensure that developments are not driven by the hype of the Internet and new technologies, but fully involve those who will need to develop and manage the new work processes.

Given below are ten lessons that we have learned. They centre on developing a series of conversations that allow the strategy to evolve and ensure that there is a broad endorsement of it.

1. Don’t rush into developing the strategy until you understand what is going on in the company.

> take time to talk to business and IT managers.

> understand the current company organisation and personalities.  Find out who the thought leaders are (you might be surprised who these people are!).  

> understand the company decision-making processes (both formal and informal).

> understand the company strategy and tactical plans - and not just from the written documents because they may just have been dredged out of the same dusty cupboard referred to above.  Find out what is really going on, and the range of possibilities about what may happen in the future.

> understand the current IT environment, and its strengths and weaknesses.


2. Understand the key decision points that are likely to occur as the business moves forward.  All of these decision points will have an impact upon the strategy, and you need to ensure that you allow for this possible impact.


3. Understand the business and IT environment that surrounds the company.  For example, who else is operating in the same sphere; what are they doing, and what are their plans?  What opportunities for the future does all this offer?


4. Prepare a first cut of the requirements for IT as the business moves forward.  What can you see as innovative uses for IT?  Be bold - you are moving towards a straw-man strategy and you should be seeking to include as many ideas as possible.  For example, what are the opportunities for sharing commodity IT with other companies?  Challenge how much competitive advantage is really gained from most use of IT.


5. Develop a straw-man of the ebusiness strategy, overlaid on the key business decision points.  This should show the alternative usage of IT depending on the outcome of these key decision points.


6. For each IT alternative contained in your straw-man prepare an estimate of costs, manpower implications and risks.


7. Draw up a road-map (or a series of road-maps) that shows how the ebusiness strategy would unfold according to a variety of business decisions.  This will test the robustness of the strategy, and will clearly show some of the risks associated with key business decisions.


8. This tends to be a good time to formally present the ebusiness strategy to the rest of the business board.  Get them to contribute and decide which road-maps do not need to be included in the documented version.


9. Agree on who has ownership for the implementation of the strategy, and for ensuring that it stays in line with the evolving business needs.  Agree the process by which the implementation of the strategy will be regularly reviewed.


10. Taking the feedback from the Board, complete the documentation of the ebusiness strategy and share it with all stakeholders.



There are plenty of good articles and books that will tell you how to develop an ebusiness strategy, or how to get the maximum advantage from your investment.  This outline is not meant to supplant any of these sources, but is meant to capture a few simple lessons from our experience.

Further Actions:

You can download a copy of this article from the 10-Minute Library.

Contact us if you need help setting a strategy: info@ebusiness-gateway.co.uk

 





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