Transcript GCON4 - A8 - 127

Creating and Using Effective IT
Strategic Plans
Louis Boyle
Vice President
Gartner Executive Programs
Notes accompany this presentation. Please select Notes Page view.
These materials can be reproduced only with written approval from Gartner.
Such approvals must be requested via e-mail: [email protected].
Gartner is a registered trademark of Gartner, Inc. or its affiliates.
Most Organizations Have IT Strategies
That Look Like This
APPLICATIONS
DATA
Intrnet Cust
A28 - Store Msgs
Lofty Goal 1
CNN/fn site
A8 - Comm System
Investor
Relations
Or they
can look
like
this……
A10 - Order Routing
Email Systems
A49 - Hitlist
Corp User
Group 1
Srvc Cntr Tbls
Dealer
Settlement
RMAC DR
Model/Qty
Sears Pymt
System
DB2 Mkt Info
Credit Card
System
Service Center
POS
Or they look
Lofty Goal 2
likemost
this…
IT
We use the IT
A24 RS.COM
Cust Support
A26 - Answers Online
S
T
O
R
E
Our IT clients say we’re
perfectly aligned
A22 - Web Store
Locator
A23 - Service Center
Web Locator
A29 - Corp Elec Msg
A4 - Store File Sys
A57 - Cust Trk Load
A15 - RadioShack
Replenishment
A50 - Customer Load
Retail Str POS
A39 - Srvc Pln Rnwl
Telecom Dept
A52 - Profiler Report
RS Invt Sumry
A53 - Name & Addr
Hygiene
Retail Store
A58 - Customer Mnt
Equifax, Martel,
Checkfast or
Input of Texas
A48 - Flyer Selection
(3rd Party)
A33 - RS Srv Pln
Srv Cntr Cust Mnt
RSTS DSA
Tbls
A1 -Credit Card Apps
Email Server
A60 - Economic
Census
Rebuy Dept
Advertise/
Ad Support
Strategic
Operational to
advanced
technology
Plan
Plan
meet our needs
C
U
S
T
O
M
E
R
A38 - Srvc Pln Cnfrm
Letter
Ad Circulation
Real Estate
Promo Dist
A12 - Model Quantity
Order Routing
A30 - RS One-Each
Customer
A13 - Srvc Cntr Phy
Inv & On-line Recaps
TPS History
Experion
A2 - Credit Plan Mnt
Cellular Act
A5 - Prepaid Cellular
Daily Reports
System
Intern’l
A9 - RS Store
Perpetual Inventory
Stores
A37 - Srvc Pln
Display
Loss Prev
A32 - New Bus SVP
Mail
Store Systems
Python
A25 Price Lookup
POS Support
A17 - Stock Mnt
Replenishment
System
A19 - Merch Promo
Pln
Merch Adj
DC Order Mgt
System
A31, A45 - Service
Plan Price Cntrl &
Tranmt
DC Billing
A27 -Srv Pln Rpt/Mnt
Printer
Financial Sys
A46 - Srvc Pln Sales
Entry
DB2 Load
A18 - Merch Pricing
Corp Stk File
Intrnl Audit
Distribution
System
Lofty Goal 3
P
R
O
D
U
C
T
A34- Srv Plns
Amercican Bankers
Jan 2006
ID
A11 - RS Inventory &
Sales Month End
Reporting
Contract Srvc
RSU Central
POS Rcv Invc
Warehouse
Billing
NAILS
WinLook
Invent Merch
POS Sales Rpt
A47 EBIS ODS
Web Dev
Service Center
RS Merch
(RSMS)
RSTS System
Acct/Bookkeep
Stock Mnt
Have a fully open,
modern, reliable
IT infrastructure
Comm System
A62 - Flash Sales
A40 - RS Validation
and DB2 Load
A43 - TRACE
A59 - LOOK!
A14 - POS
Sales Processing
A3 - Return Check
Apps
A6 - BANCTEC
A20 - RS Buyer Sales
Planning /Proj Sys
A61 - Sales Reporting
A64 - Fran DR Entry
A42 - Online Inquiry
Sys
Store File
Task Name
Start
Finish
Duration
S
A
L
E
S
IT
Vision
1 Install PMO
1/16/2006
1/30/2006
2w 1d
2 Upgrade LAN
1/16/2006
2/16/2006
4w 4d
3 Upgrade Desktops
2/17/2006
3/30/2006
6w
4 Install ERP System
1/31/2006
6/19/2006
20w
5 Install SCM System
6/20/2006
7/31/2006
6w
6 Install CRM System
8/1/2006
9/11/2006
6w
7 Implement Customer Self-Service
9/12/2006
10/23/2006
6w
8 Implement HR System
6/20/2006
7/31/2006
6w
9 Institute Employee Self Service
8/1/2006
8/18/2006
2w 4d
10 Institute Rewards System
10/24/2006
11/20/2006
4w
11 Implement BPM System
9/12/2006
10/23/2006
6w
12 Implement other BPM System
10/24/2006
11/13/2006
3w
13 Implement BAM System
11/14/2006
11/27/2006
2w
14 Implement Enterprise DW
11/28/2006
12/18/2006
3w
15 Execute Mobility Strategy
12/19/2006
12/25/2006
1w
Multi-Mkt Price
A51 - Geostore
Analysis
Census
Bureau
A44 - Mkt Incremtal
Rpts
American
Banker Assoc
A16 - Service Center
Reporting
Promo Order
A&A Import/
Export
Journaling
System
POS Invt Tran
National Parts
VSAM Stock,
Store or
Control Files
Stock File Eff
Pricing
Legend
Facility
Product
Party
Activity
Feb 2006
Mar 2006
Apr 2006
May 2006
Jun 2006
Jul 2006
Aug 2006
Sep 2006
Oct 2006
Nov 2006
Dec 2006
We have the best
IT workforce
- it does what needs
to be done
1/15 1/22 1/29 2/5 2/12 2/19 2/26 3/5 3/12 3/19 3/26 4/2 4/9 4/16 4/23 4/30 5/7 5/14 5/21 5/28 6/4 6/11 6/18 6/25 7/2 7/9 7/16 7/23 7/30 8/6 8/13 8/20 8/27 9/3 9/10 9/17 9/24 10/1 10/8 10/15 10/22 10/29 11/5 11/12 11/19 11/26 12/3 12/10 12/17
Fran Store
Payroll/HRMS
Perp Inventory
Testimonial
(Magnifying glasses
are at the back
of the room)
Key Issues
1. What are the primary steps
in establishing a good IT
strategic plan?
2. What are critical questions
that an IT strategic plan
should answer?
3. How should organizations
use IT strategic plans in
their governance
processes?
Key Issues
1. What are the primary
steps in establishing a
good IT strategic plan?
2. What are critical questions
that an IT strategic plan
should answer?
3. How should organizations
use IT strategic plans in
their governance
processes?
Plan Definitions: Strategic or Tactical
• Strategic
- A plan or technique for achieving some
end; distinguished from tactical, short
term
• Longer-term (> 1 year) objectives and goals
• Significant impact on the business
• Tactical / Operational
- Adroit maneuvering to gain an objective
• Short-term (<1 year) activities and operations
• Plan
- Method for the attainment of objectives
• Planning
- Ongoing process to develop the method
for attainment of objectives
“I don’t believe in plans, but planning is invaluable”
The Perception of IT Value
Enlightened
Management
Deploying
bleeding
Consolidation
edge
Transformational
commercial
technology
Aggressiveness
of change Evolutionary
agenda
Financedriven
enterprise
Status quo
Focus on
reducing
IT costs
Customerdriven
enterprise
change
Deploying Departmentmature
based
commercial change and
applications
IT focus
Use IT to
speed up
existing
processes
Improve
Efficiency
marginally
Cost Center Modernization Innovation
Acceptance of IT as
an enabler of change
Administrative Process Map:
IT Governance Aligns these Processes
Political Agenda
Business Strategic Plan
Business Case Inputs
• Organizational Capacity
• Cost
• Time
• Risk
• Procurement
• Portfolio Performance
Desires
IT Strategic Plan
Cross-Agency
Budget Cutting
Investment Prioritization
Budget
Decisions
Strategic Sourcing
Human Resources
Acquisition
Project Management
Corporate
Performance
Management
Service Delivery
Tactical
Execution
Strategic Plan Development: Road Map
Develop Target
Architecture
Plan
Business
Strategy
Solutions
Strategy
(Business View)
Summarize
Strategic
Business
Direction
Technology
Trends
Develop IT
Direction
Conduct IT
Assessment
and Gap
Analysis
Develop Target
Service
Delivery Model
Develop
Management &
Governance
Processes
Develop
Migration
Approach &
Road Map
Delivery
Strategy
(IT View)
Use a Self-Assessment: How Do You Rate?
This is an informal assessment. For each area, rate these factors, where 1 means you have
not started or have a largely ad hoc approach and 5 means you have reached leading practice.
SCORE
A1. Business strategy
- Clearly defined business strategy
_____
A2. IT strategy
- Strategy clear to all and contribution recognized
_____
B1. Business applications
- Major systems support the business strategy explicitly
_____
B2. Personal productivity
- Right tools are in place to get the job done
_____
B3. Information management
- Timely information is available and of the right quality
_____
C1. Service management
- Internal IT processes conform to quality framework; e.g., ITIL
_____
C2. Technology environment
- Reliable and cost-effective IT service delivery
_____
C3. Asset management
- Resources are well managed
_____
D1. Architecture framework
- Well-defined and stable architectural plan
_____
D2. Progress achieved
- Getting progressively closer to desired architecture each year
_____
E1. Human resources
- Right skills and teams in place
_____
E2. Organization
- Structure best to deliver IT services
_____
E3. Client relationships
- Strong relationships exist with our clients
_____
F1. IT governance
- Clarity about who makes decisions
_____
F2. Performance metrics
- Scorecards highlight critical success factors
_____
F3. Budgets
- Quality of budget processes and charges for services
_____
Source: "How to Run an IT Strategy Self-Assessment Workshop" (G00129417)
Consider a Workshop Approach –
Deliverables-driven Teach, Coach & Critique
• Create a game plan:
- Gain a common understanding of what needs to be done
to create your information technology plan
- Plan outline
- Level of detail
• Prioritize and scope plan activities based on
deliverables
• Develop plan via workshops-based, facilitated
approach
- Teach, coach & critique
• Assign ownership and establish timetables
Creating the Future State:
Use a Common Requirements Vision
• Audience: Senior management
• Scope: Environmental trends, enterprise
business strategies, business change
requirements, business information
requirements, information technology
requirements, solution requirements
• Matrix: Relationship between environmental
trends, enterprise business strategies,
business change requirements, business
information requirements, information
technology requirements, solution requirements
• Goals
- Obtain senior executive sign-off on requirements
via governance process
- Gain support of architecture process
20 Pages
What Is A “Common Requirements Vision”
• A process for discussing,
capturing and documenting:
CRV Hierarchy
Environmental
Trends
- Set of enterprise
business strategies
- Set of common strategic
requirements derived
from ENTERPRISE
business strategies
- Position on the impact of
environmental trends to
the enterprise
• The resulting document
Enterprise
Business
Strategies
Business
Change
Requirements
Business
Information
Requirements
EBA
EIA
Information
Technology
Requirements
ETA
The CRV document is an articulation of what
will drive the enterprise's future state
Business
Solutions
Requirements
ESA
Why Does the CRV Help With the Problem?
• Identify, discuss and
document strategies
- Question the meaning and
implications of each
Intended Outcomes
1.
2.
- Analyze the compatibility
- Highlight the inconsistencies
- Clarify the confusion
• Go deeper than the
strategies
3.
4.
• Articulate what is NEEDED!
5.
Business and IT leadership
collaborate on business and IT
planning
IT is planned and executed
holistically, end-to-end, to support
business needs and application
changes
Infrastructure and application life
cycles are tightly linked with business
process life cycles
We save time and money and reduce
risk through repeatable, reusable
solutions that are developed and
applied to similar problems
Business value takes precedence
over product centricity
Create a common forum of discussion
on matters of strategic alignment
Business Solution Requirements
EBS 1: Due to longer sales cycles and smaller contract amounts,
increase market penetration by increasing product proposals to
qualified prospects by 35%, growing from 1,000 to 1,350 per month by
mid-2004
BCR 1: Reduce “opportunity to proposal”
conversion time by 60%, from 10 to 4 business
days
BCR 3: Implement lead and opportunity
management process
BCR 8: Automate sales proposal generation
capability, including appropriate approvals and
workflow to reduce opportunity-to-proposal
conversion time
BIR 1: Sales/sales administration requires details of product/offering
information in real time
BIR 3: Marketing, channel partners, and sales require knowledge of
customers, prospects, proposals, leads, marketing programs and
campaigns, value generated for customers (customer satisfaction),
support delivery metrics on demand
BIR 10: Sales/marketing/product planning must have detailed
knowledge of all successful consulting engagements to evaluate as
standard products upon completion from consulting team
ITR 2: Provide access and support for operational systems 24x7
ITR 4: Provide real-time access to operational information sources from
offices, customer locations, and while traveling
ITR 5: Provide a real-time accessible integrated view of customer and product
information and consulting engagements
ITR 7: Provide a mechanism for sharing documents in a collaborative
environment across the enterprise
ITR 8: Provide cross-enterprise workflow management capabilities
BSR 1: Implement an integrated prospect lead management, forecasting/customer repository solution
BSR 6: Implement a coordinated, enterprisewide proposal factory to be utilized by product planning, customer fulfillment, sales,
development, and consulting
Going From CRV to Future State
Transformation steps:
• CRV-level requirements suggest potential initiatives to be
considered for project portfolio
• CRV-level requirements are NOT current project-level
requirements, but they should be compared to current and
planned projects to incorporate/accommodate future needs in
current implementations
• CRV should be revisited periodically (as new strategic plans
are developed) and when major environmental trends or
business factors indicate significant change (such as a
merger/acquisition)
• Maintain linkages among trends, strategies and requirements
• Use CRV to help give future context to all planning activities
Create the Migratory Road Map
IT Investments IT Program
LOB
Service
Improv.
Projects
Customer
Service
Facing
Projects
IT Cost
Saving
Projects
2006/07
2007/08
2008/09
2009/10
Most Strategic IT
Plans Have 3-to-5
Year Planning
Horizons
Rather than have
a laundry list of
initiatives, make sure
you demonstrate how
the plan will be
implemented over time.
This will indicate
priorities, synergies
and set proper
expectations
(especially support for priority
business-side needs)
Key Issues
1. What are the primary
steps in establishing a
good IT strategic plan?
2. What are critical questions
that an IT strategic plan
should answer?
3. How should organizations
use IT strategic plans in
their governance
processes?
Core Ingredients of IT Strategy
Core Building Blocks


Business Strategy
Application
Strategy

Infrastructure
Strategy



Architecture
Essential Ingredients
to Address the Building
Blocks of IT Strategies
• Direct Link Between Business
and IT Strategy
• Sound IT Governance
• Definition of the IT
Environment
People/Sourcing
• Major Initiatives
Financial
• People/Resources
• Risks
• Measures of Success
Source: "A Primer for Strategic IT Plans" (G00144281)
Strategic Plans: Seven Key Questions
1. Does the IT strategy substantiate mutually owned
expectations developed by all stakeholders?
2. Are critical drivers influencing the direction of the IT strategy
accounted for?
3. Is the IT investment direction and alignment with
business/mission needs and priorities made explicitly clear?
4. Is the IT strategic plan client-centric?
5. Does the IT plan contain performance measures that can
gauge progress and success?
6. Does the plan outline the governance process to execute
the strategic planning process and approved IT investment
decisions?
7. Does it market the business value of IT effectively?
Source: "Key Questions That Government IT Strategic Plans Should Address" (G00144046)
Strategy as a Continuous Process
External:
Political
Budget
Clients
Partners
Technologies
Vision
Challenges
Scenarios
Opportunities
Strategies
Best practices
Analyze/synthesize
Scan and sense
Internal:
Resources
Processes
Staffing
Management
Build
Learn
Innovate and adapt
Faster cycle times
Better results
Execute
Processes
Metrics
Plan
Build
Execute
Processes
Resources
BU/IT
Offerings
Channels
Communication
Policies
Technologies
Key Issues
1. What are the primary
steps in establishing a
good IT strategic plan?
2. What are critical questions
that an IT strategic plan
should answer?
3. How should organizations
use IT strategic plans in
their governance
processes?
Sample Measurement Areas by Profile
Focus of IT
Doer
Service Provider
Counselor
Value Seeker
Cost
Responsiveness
Relationship
Alignment/Vision
Efficiency Profile
Process Profile
Transformation Profile
• Total cost of ownership
• Program/project impact
• Governance
• Standards/economies of scale
• Relationship management
• IT portfolio management
• IT core processes (ITIL,
COBIT, CMM-I, etc.)
• Optimized sourcing
• Innovation delivery
• Benchmarking, TCO
• Resource management
• Business process expertise
• Business/financial
management (ROI)
• Process automation
• Performance-based human
capital practices
• Service-based
chargeback/pricing
• Performance contracts (SLAs)
• Competitive assessments
• IT architecture
• High-performance workplace
Goals, Objectives, Strategies
and Measures*
Objective 1.1
Provide the infrastructure needed to support
service delivery
Strategies:
• Build and maintain Michigan's infrastructure
• Implement an asset management process statewide.
• Bridge the digital divide
• Improve ease of use
Objective 1.2
Provide reliable, responsible stewardship of data,
information, and increase the number of online
services
Strategies:
• Continue to expand Michigan.gov by adding services
• Protect data and citizen privacy through a
comprehensive security strategy
• Deliver business continuity and disaster recovery plans
*A CRV derivative
Goals, Programs and Target Measures
Activities
Goal
Objective
Desired
Results and
Measures
IT Scorecards Linked to Strategic Plans
Can Assist in Governance
Strategic
Service-Level
Customer
IT
Operations
Performance
Satisfaction
IT
Performance Overview
Contribution
• Performance against budget
Business & Public
Value of IT
Contribution
Business
Value
Management
of
IT
Investments
• IT contribution to performance
goals/outcomes
• Value contributions in
Staff Capability
time/quality/cost impact
& Effectiveness
Customer •Security/EA
Partnership
assessments
Orientation
Application
Vision
and
Strategy
Business
Customer
Satisfaction
Innovation
Architecture
• Help desk performance
Evolution
Improvement
• Problem resolution cycle times
Knowledge
Management
• Choice of vendor satisfaction
Emerging
Service Capability Technologies
Improvement
Research
IT Organization
Performance
Delivery
• Quarterly/annual
Performanceassessment surveys
• Benchmarks and trends
Process
Excellence
Major program/project
Responsiveness
performance
IT
Internal
• System/application reliability
Business
•Business
risk reduction
Business/IT
External
•SLA performance
Effective
• Benchmarks
Alignment
Operational
Internal Cost of
schedule
and benefit realization
Excellence • Cost/
Quality
Measures
performance (variances)
Information
• Contribution
to PMA, PART, High Risk
Assurance
List reduction, etc. assessments
Asset Retirement and Disposition
IT Governance ≠ IT Management
They Are Not the Same
What IT Governance Is:
Collective decisions and guidance about:
 How
IT should be used in the
business (policies, principles)
 Who
makes What decisions How
(clear accountabilities)
 Business
cases and investments
(priorities, ownership and benefits
realization)
IT Performance Scorecards
Can Report on Progress
Business & Public
Value of IT
Management of
IT Investments
Staff Capability
& Effectiveness
Business
Architecture
Evolution
Knowledge
Management
Service Capability
Improvement
Business
Contribution
Customer
Orientation
Vision
and
Strategy
Innovation
Improvement
Emerging
Technologies
Research
Operational
Excellence
Customer
Satisfaction
Business/IT
Partnership
Application
Delivery
Performance
External
Effective
Alignment
Service-Level
Performance
IT
Process
Excellence
Responsiveness
Internal Cost of
Quality Measures
Information
Assurance
Asset Retirement and Disposition
Internal
Strategic
Contribution
IT Strategy for Your Organization
• Apply this to your context
• Quick self-assessment
• Develop your game plan
- Approach
- Scope (especially what’s NOT in it), TOC
- Major milestones
- Deliverables based, outcomes oriented
- Make it an active, working tool
Recommendations
 Follow a process in creating your strategic
IT plan; it is not about producing a document.
 Strategic IT planning is not self-directed
or self-implementing – use EA for planning
and portfolio management to implement.
 Make sure your completed process can answer the six
basic questions.
 Use your strategic plan by populating it with
performance measures to demonstrate progress,
success, and areas for change.
 Having planned the work, work the plan
(NO SHELF DOCUMENT!)
Creating and Using Effective IT
Strategic Plans
Louis Boyle
Vice President
Gartner Executive Programs
Notes accompany this presentation. Please select Notes Page view.
These materials can be reproduced only with written approval from Gartner.
Such approvals must be requested via e-mail: [email protected].
Gartner is a registered trademark of Gartner, Inc. or its affiliates.