IT Strategy from the inside out

What is information technology Strategy?

An IT strategy is a long-term plan designed to achieve an organization’s goals. It is always aligned with the organization’s vision and other strategies. An effective IT strategy ensures that information technology is best used to support the organization’s overall vision in the given circumstances. Different organizations use different terms for strategies such as digital strategy, information technology strategy, information systems strategy, and information and communication technology strategy. An IT strategy is developed by identifying and analyzing all the ways IT can improve by replacing or introducing an entirely new IT-based approach to one of its existing processes.

What is Digital Transformation?

Adopting information technology or IT-based approaches to processes within an organization is commonly referred to as digital transformation. A key driver of IT transformation requires a critical analysis of available resources and market trends within an organization. Stakeholders play a key role in the success of any transformation, so the expected impact of the transformation on all stakeholders should be considered. Futuristic technologies such as artificial intelligence, data science, cloud computing, cybersecurity, and high-speed communication networks are obvious candidates for IT transformation that many companies should consider. These techniques are already proven in all areas of life. Digital transformation decisions in all areas of an organization rely on a gap analysis. Digital transformation is the most challenging task for organizations in terms of cost and implementation, but promises promising results in the future.

Key Pillars for strategy success

1. The strategy has to be clearly communicated to all stakeholders inside and outside the organization.
2. The IT strategy should have realistic goals and should be aligned with the vision of the organization.
3. The involvement of all stakeholders is essential for the success of a strategy. It has to be ensured that all stakeholders own and consider themselves part of the organization’s IT strategy.
4. The commitment from the top-level management of the organization is a crucial factor as they lead from the front.
5. Any achievement towards the strategy should be appreciated and encouraged to motivate the employees. This factor is usually overlooked by most organizations but according to a study published by the Canadian Institute of International Business, “Seventy-one percent of employees whose companies have weak execution don’t trust their business’s strategic decisions”.
6. The IT strategy should also be aligned with the culture and practices of an organization. The employee should be actively involved in the whole process of any transformation in the organization.
7. Quantifiable objectives, clear targets, and plans with timelines and responsibilities always produce good results.
8. Regular monitoring can avoid major distractions or failure of a strategy. Monthly, quarterly, or yearly monitoring mechanisms can be considered according to the targets which are set in the implementation plan.
9. The right people at the right place and at the right time are always helpful in achieving any sort of goal. The organization should provide the required resources in terms of hardware, software, and training.
10. A Data Analysis mechanism should be in place to effectively analyze market trends, customer expectations, and assessments of internal processes. Similarly, a review mechanism should also be in place to suggest changes or adjustments in the goals or even in the strategy. These suggestions are usually based on the organization’s data and analysis.

Implementation Planning:

Implementation planning means thinking about the actions that are essential for implementation and follow-up. After the gap analysis is completed, candidate technologies are again evaluated based on organizational strengths and weaknesses. The next step is to set long-term and short-term goals for proper implementation. In order to follow the IT strategy and achieve these goals, a strategic plan is typically developed along with the organization’s annual plans. Your action plan will depend on your organization’s goals, type, and size. Action plans work like to-do lists, but are typically evaluated and monitored annually. A short-term or long-term IT strategic plan consists of quantifiable, well-defined goals with assigned responsibilities to relevant shareholders. Renowned analysts, including Daniel-Newman, have identified several key factors influencing digital transformation. According to these factors, organizational stakeholders play an important role in an organization’s digital transformation. Therefore, their skills, expectations, concerns, experience, and motivation should be carefully considered before deciding to make changes within the organization.