it strategic planning. 2 2 the role of it in the enterprise technology has no value unless there is...
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The Role of IT in the Enterprise
Technology has no value unless there is a business contextTechnology must provide a stable foundation upon which the business can predictably operateTechnology must facilitate innovation that allows enterprises to be competitive in their market space.
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Why do a Strategic Plan?Expectation Setting • Business and IT are on the same page!
Creditability• IT consumes between 6 and 10% on average as a
percentage of total revenue*Establishes a policy for decision making• Priorities are set according to alignment with strategy• Focuses resources on key priorities
IT is at risk of failure without it!!!• Short-term, quick fix solutions become the norm• “You are the architect of your fortune.”
3*Source: Forrester Research, Inc.
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Business and IT AlignmentAs a partner/enabler to the business• Shared strategies are key
• Objectives that align to enterprise strategies• Shared accountability for results
• Measurable performance indicators that show contribution to company goals
• Communication of IT objectives, strategies and measures must be in business terms
Information Technology is a strategic asset to the enterprise
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Aligning Capabilities with Business Strategy
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Business Environment
BusinessMission
BusinessIdentity
BusinessStrategy
DetermineIT
CapabilitiesTo
Meet BusinessObjectives
DefineIT
Needs
DevelopRequirements
For Capabilities
ITStrategy
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IT As a Business Operation:Managing the IT Portfolio
Document and track costs and business benefitsConsider both new investments ongoing operationsIntegrate technology life cycle managementAppoint IT and business process owner responsible for realizing planned results
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IT as a Business Operation:Driving Stability
Considerations include:• Architecture• Security• Risk (DR, Change Management, Compliance)
Standards and process methodologies are employed
• ITIL/CobIT• CMMI• Six Sigma/ISO 20000
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IT as a Business Operation:Measuring Performance
Tracking and measuring “services”• Performance and availability
Tracking and measuring delivery• Project milestones, quality, cost
Tracking and communicating continuous improvement
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The Plan
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Breakthrough Planning (d)“What are the Breakthroughs required to
achieve the results we need?”
Breakthrough Planning (d)“What are the Breakthroughs required to
achieve the results we need?”
Business Enablers (b)“What Business enablers do we need to strengthen in order to achieve Business Excellence”
Business Enablers (b)“What Business enablers do we need to strengthen in order to achieve Business Excellence”Strategic Direction (a)Strategic Direction (a)
Mission Statement“Why do we exist?”
Mission Statement“Why do we exist?”
Strategic Objectives “How will we measure our
progress?”
Strategic Objectives “How will we measure our
progress?”
Vision“What will our future look like?”
Vision“What will our future look like?”
Strategy “How will we achieve the mission?”
Strategy “How will we achieve the mission?”
Start here
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Planning Process: Micro Level
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Develop Break-through Plan / Prioritization
Develop Break-through Plan / Prioritization
Execute the PlanExecute the Plan
Review PlanReview Plan
Revise the PlanRevise the Plan
Achieve your objectiveAchieve your objective
Breakthrough EstimationBreakthrough Estimation
Plan Finalization Plan Finalization
Innovation Requirements
Plan execution (metrics, G&O’s, Ownership)
Assure the Stable Foundation“Keeping the ship afloat”
Breakthroughs, Budgeting, Plan Finalization
Changes needed?Changes needed?
Changes needed?Changes needed?
Revise the PlanRevise the Plan
Sustain / Enhance EstimationSustain / Enhance Estimation
Develop Sustain / Enhance Plan
Develop Sustain / Enhance Plan
Changes needed?Changes needed? Revise the PlanRevise the Plan
Review SustainingInitiatives
Review BreakthroughInitiatives
Communicate the PlanCommunicate the Plan
Develop a Communications Plan“What does this mean to me?” Job descriptions/personal performance
objectives
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Executing the Plan
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ITStrategic
PlanPortfolio Management
IT Governance Process
IT Investment Process(Technology, Process, Training)
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Measuring the Results
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Record the action that will be taken to get the item back on target
Record the action that will be taken to get the item back on target
Explain why the item has deviated from its targeted value
Explain why the item has deviated from its targeted value
Status: = Above target = On target = Slightly below target = Well below targetTrend: = Improving = Declining = SteadyConcern:L = LowM = MediumH = High
Status: = Above target = On target = Slightly below target = Well below targetTrend: = Improving = Declining = SteadyConcern:L = LowM = MediumH = High
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Not a One Size Fits all Model
Characteristics that Drive Planning• Role of Technology in Product and Service Offerings
• John Deere versus Microsoft • Business Volatility
• Pharma versus Manufacturing• Competitive Pressure
• Highly competitive versus stable• Organizational Structure
• Centralized versus decentralized• Geographic Scope
• Local versus international
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When and How Often to Plan?When Should Strategic Planning Be Done?
• Volatile Marketplace with Rapidly Changing Products and Services • Detailed, comprehensive plan once or twice a year
• mission, vision, values, environmental scan, issues, goals, strategies, objectives, responsibilities, time lines, budgets, etc
• Stable Marketplace • Planning might be carried out once a year and only certain parts of the planning process, for
example, action planning • objectives, responsibilities, time lines, budgets, etc are updated each year
• Other Guidelines• When an organization is just getting started. (The strategic plan is usually part of an overall
business plan, along with a marketing plan, financial plan and operational/management plan.) • In preparation for a new major venture, for example, developing a new department, division,
major new product or line of products, etc.
• Strategic planning should also be conducted at least once a year in order to be ready for the coming fiscal year (the financial management of an organization is usually based on a year-to-year, or fiscal year, basis).
Copyright 2006. InteQ Corporation 14
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When to Review the Plan
Stable Marketplace• Quarterly
Volatile Marketplace• Monthly – or as necessary
Copyright 2006. InteQ Corporation 15
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Contact Information
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Compliance Process Partners
Phone: 888-718-1708
www.cppit.com
Valerie [email protected]