Significance of IT Strategy

Why should organizations have an IT Strategy?

IT strategy plays a key role in the growth and success of an organization. Information technology can not only transform your business many times over, but it can be seen as a driving force that improves the efficiency and productivity of every process, section and department. Efficiency can be realized in terms of cost, time and personnel. The timely introduction of new technologies helps organizations remain competitive in the market. While some organizations find it difficult to embrace rapid technological advances, such companies could face high levels of uncertainty in their industry, often leading to complete collapse. This leads to On the other hand, companies that act quickly and in a timely fashion capture technological advances, capture large market shares, and stay ahead of their competition. These companies not only have early financial gains, but also take the lead in technology development. Their technical capabilities have evolved over time, employing the latest innovative approaches such as artificial intelligence, machine learning, natural language processing applications and chatbots. These technologies have gained a huge market base with very little effort compared to manual processes and systems. It also helps us provide online services using web services technology.

Key benefits of digital transformation strategy

The IT strategy of an organization is required to be aligned with its vision. This, in turn, provides an opportunity to re-visit, analyze and update the vision with respect to recent trends and market demands. The short-term and long-term goals, targets, milestones, and responsibilities can be invigorated and overcome the shortcomings if any. Thus, an IT strategy can help in improving the existing resource of the organization also.

• The IT strategy of an organization is required to be aligned with its vision. This, in turn, provides an opportunity to re-visit, analyze and update the vision with respect to recent trends and market demands. The short-term and long-term goals, targets, milestones, and responsibilities can be invigorated and overcome the shortcomings if any. Thus, an IT strategy can help in improving the existing resource of the organization also.
• During the analysis phase, it provides an opportunity to compare the organization’s strengths and weaknesses with the market competitors.
• IT strategy helps an organization to create new business avenues in terms of collaborations and finding a new customer base.
• The internal processes and structure of the organization can be modernized and made more efficient by adopting the latest technologies. Even the existing resources can be better utilized for business growth. For example, the employees can share hardware and software resources by adopting cloud or other similar technologies.
• The IT strategy and its implementation also increase transparency in an organization’s operations and management. This is important to gain the trust of employees, customers, and partner businesses.
• The IT strategy helps to leverage B2B opportunities. It has been observed in the recent past that most businesses are now offering their services and operations online, particularly during and after the COVID-19 pandemic period.
• It helps in differentiating your company from other competitors.
• The IT strategy is achieved by digital transformation which eventually digitizes the processes and operations.

Benefits of digital transformation

It has been observed in recent years that data analysis plays a major role in the achievements of leading companies. The records and data generated from digitization can be used for the analysis of the following:

1. Better understand your customers: The data can be analyzed to find the need, requirements, and preferences of the customers using data mining techniques. This will increase the customer base and companies can provide more tailored services according to precise demands.
2. Lower cost: As digital transformation automates most of the processes, it will reduce operational costs and increase productivity.
3. Improve reachability: when a company provides more services in a specific business domain it will have greater visibility on the internet and reachability will be improved automatically.
4. Quality of service: Because of comparatively lower cost and better productivity the quality of service will improve. Furthermore, companies will try their best to improve their services to stay in the competition.
5. Digital marketing: Companies can exploit the digital platform and take full advantage of digital marketing categories like Targeted Marketing, Social-Media Marketing, Search Engine Optimization, Content-based Marketing, Email Marketing, Mobile Marketing, Marketing Analytics, and Affiliate Marketing.
6. Planning budgets and ROI: By properly analyzing the company’s data, yearly and quarterly budgets and ROI can be efficiently planned. Similarly, better strategic plans can be developed as accurate data will be available.
7. Analysis can be used to keep track of the progress of the organization and its IT strategy. Subsequently, the strategic plan can be adjusted, if required.
8. Digital Transformation improves the technology IQ of the employees.
9. Data Analysis can be used for risk analysis with more accurate predictions.