IT STRATEGY

CONSIDERATIONS
Hitachi Consulting Strategy
Business Forum
Ferayanti Boas G
Anderson Padita
Margareta Dyah RHH

The Strategic Void

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.
IT Strategy
Considerations
-- Y2K, SOX,
ERM, CRM.

Strategy:
the art of devising or employing plans or
stratagems toward a goal (Websters
Dictionary)
Successful strategy must fully incorporate
PEOPLE, PROCESSES, SYSTEMS
Successful strategy must create focus it
should also clarify what you wont do
Many tools work to facilitate the process;
for
success,
all
require
actionable,
measurable targets for which individuals are
held accountable
IT Strategy Considerations

Why IT Strategy
Matters:
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
IT Strategy Considerations

The Sad Truth:

Even when IT is incorporated and
aligned with
business strategy, IT projects typically
are
a) LATE
b) OVER BUDGET
c)
MISSING
PROMISED
DELIVERABLES
d) TWO OR MORE OF THE ABOVE
due ITto
the Considerations
collision of good
Strategy

The Magic Button

Dilemma

There are significant

costs to
accommodating all
those nice to haves
There are performance and
maintenance implications
(more costs) !
IT Strategy Considerations

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 ones
mind and proving that there
is no need to do so, almost
everybody gets busy on the
proof.
John Kenneth Galbraith
IT Strategy Considerations

The Fallacy of
Consensus

Sub-optimal solutions (e.g.,

automation of existing
processes) are accepted at
project
team
level
The 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

Consulta
nt

Educate & get

informed
Maintain
ownership
Integrated
Project
Approach
Success Factor

Ground rules

IT Strategy Considerations

Integrated Project Approach

IT Strategy Considerations

Benefits From Strategic

Approach to IT
IT becomes a business enabler
Clarity around IT priorities based on defined
business
requirements
Catalyst to streamline business processes,
improving
effectiveness, 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,
IT Strategy Considerations
including strong

Tactical Elements to
Success
Dont start a project until executives

have

explicitly
agreed to key elements
Always manage expectations
Keep change management front and
center in
discussions and approach
Communicate options and trade-offs when
confronted 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

IT Strategy Considerations