If you are in business leadership role and working on business planning this week, you are not alone. Most business leaders work on business strategy and planning during this time of the year.
IT has become a critical part of almost every department. As a result, businesses have high expectations of their technical investment. New technologies must now reduce costs, increase security, enhance productivity or improve workflows and communications
Why every company needs one
Multiple studies have shown that IT strategy and IT process aligned with business goals enable organization to control cost (Hard and Soft Cost) and deliver predictable business results while reducing business risks and improving performance. These results directly impact both payroll and revenue.
“In Gartner’s 2018 CIO Survey, only 23% of respondents rated their organization as effective or very effective at business strategy and planning, and only 29% rated their organization as effective or very effective at IT strategy and planning”
Here’s 3 items that should help you while building business and IT strategy:
Review 2019 Outstanding Tasks and Projects: Before taking on initiative to work on IT Strategy, review your results from 2019 strategy and outstanding items. This review should provide details on your starting point and current status of your IT roadmap. Review and analyze outstanding tasks in IT department, are they related to skill set, workload, lack of process and automation etc. Detailed review will provide an opportunity to make sure that you don’t have the same results end of 2020.
Business and Technology Alignment: Modern business processes are all technology dependent, from shipping to accounting, purchasing, manufacturing, customer services and so on. There’s always process hand off or process flow connection. For example, shipping may start their process as soon as accounting department completes their process or customer service completes their purchase order process. In each case, these processes are dependent on technology. Building IT Strategy and aligning with business process required coordination and collaboration from all business units, however if it’s done right, it will deliver greater financial results in terms of business soft cost and profit margins.
Operational Requirements and Roadmap: The essence of modern IT strategy is that it’s so tightly integrated with business strategy to the point that it is simply a continuation of business strategy. However, organization are challenge with striking a balance between operational requirements and IT strategy execution. Consider following operational tasks while updating IT strategy
- Technology Life Cycle
- Business Process Change
- Compliance or Certification Requirement
- Operational Improvement
- Process Improvement
Over the years, IT strategy has become a critical element for organizational leadership. Its growing importance mirrors the rise of technology itself as a critical element for business success since it impacts on payroll efficiencies and revenue growth.
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