How to Develop an IT Strategic Plan

Benchmark the Current Landscape

Get Stakeholders Involved

Identify Gaps in Current Strategy

An IT Strategic Plan Requires Good Communication with all Stakeholders

 

Planning your IT Strategy

If you are in a CIO position at some point you are going to be given the task of developing an IT strategic plan.  This is a far reaching responsibility, and you will need to draw on information from the entire business.  Often this coincides with a major upgrade of core systems.

A good strategic plan will take into account the need for change and facilitate managing and expanding the plan as necessary.  Effectively, future-proofing the IT structure.

Step 1 – Collate opinions

In the first instance gather input from the CEO/Managing director, and his or her immediate executive staff such as heads of departments.  The idea here is to ascertain SWOT.  Strengths, weaknesses, opportunities, and threats of the current strategy.  To do this:

·         Interview CEO/Managing director and executive staff

·         Interview selected personnel  such as Business Information Managers, Application owners, Data owners, Information Security Managers, Compliance Managers, Strategic Sourcing Manager, Global and local Process Owners,  and ascertain business processes

·         Record the information in a spreadsheet and look for trends and themes

Step 2 – Benchmark the Current Landscape (IST)

Benchmarking the Enterprise Architecture is never straight forward.  How IT is viewed varies from company to company especially in relation to processes, applications, data and technology.  Some see it as costs to the business, while others see it as an enabler of business.

Where aspects become particularly murky is in relation to costs and outsourcing.  I would advise that if you feel like you are wading through the mud, you should call in outside help.

When you put your benchmarking report together consider:

• Business strategy, sourcing strategy and IT Strategy.

• Governance and Management Sourcing and Compliance.

• Your position in the multi vendor environment.

• Organisation and process Maturity level.

• Enterprise Architecture.

•Size and scope of the current organization.

• Business and IT spending.

• Are projects funded based on proactive or reactive thinking?

• Are information systems fit for purpose? Is there a multi-year plan for improvement?

• Do you include IT and Data leadership on the organization’s Executive team?

• How are new corporate directives and goals communicated to Business and IT?

• Would outsourcing some or all of IT for your organisation lower IT and even business expenditures?

Step 3 - Process, Application, Data and Technology Review

After you have answered the questions above, the next phase is to determine which elements are up to speed and which need to be replaced by innovative solutions.  Cost vs. Need will see your strategic decision making tested to the limit.

I suggest reviewing each process, application, data, technology elements and comparing it to the users’ needs.  Ask yourself:

·         Who are the “owners” and/or Business Information Managers?

·         What are the needs of the current “owners” and/or Business Information Managers?

·         Review the current elements and identify where the current information system is meeting or not meeting the needs of the Business.

·         Determine when the information system could be considered for replacement or enhancements.  This should be based on not meeting needs, purchase date, security, law, and regulatory requirements.

 Once you have this information you should then be able to formulate an action plan.  It will probably look something like this:

• Identify the current and anticipated needs by interviewing and working with the key stakeholders and related business processes and/or departments

• Speak to the main contractors and determine if the existing information system could or could not meet the needs identified in the steps above

• Perform the same process with alternative vendors, particularly if the current vendor could not meet the required needs sufficiently

Step 4 – Strategic Goals vs. Gaps in Current Plan

With all of this information the shortfall between the current plan and the strategic goals of your organisation will become apparent.  You should list what these are, as you will then have a basis to put your strategic plan to remedy gaps.

You might find:

• Growth goals for the organisation may not be in line with current business and IT investment

• Business and IT staff may be improperly sized to support growth or meet the current needs

• Information systems may be identified for replacement sooner than expected

• End-users lack sufficient training to maximize the use of existing information systems

 Step 5 – The Strategic Plan

It is best practice to create a multiyear plan to address the gaps you have identified, based on immediate needs first.  The plan should try and look to the future, and factor in the fact that some IT services and projects would be dependent upon gaps being filled in the plan. 

It is also a good idea to encourage the management team to give IT a ‘seat at the table’ if it is not already, to help facilitate changes as needed.

Good luck