IT Strategy for business

Afruza Haque
University of Dhaka
 The Importance of IT
 New technologies
co-evolve with new
business strategies
and changes to the
business
environment.
 IT and business
strategies must be
complimentary.
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 The Importance of IT
 A review of the information systems literature
suggests three different ideas of what
information technology is (Chen et al 2010):
 A position: the use of information systems to
support broader organisational strategy.
 A plan: for the information systems assets and
function in the organisation.
 A perspective: a shared view about the role of
information systems in the organisation
 IT as a Senior Management
Issue
 Information technology are increasingly
seen as a senior management issue that
requires planning at a strategic level:
 The growing contribution of information
technology to processes of organisational
change and transformation. These are
strategic processes and, if IT are heavily
involved in strategic change, then it must
be planned strategically.
 IT as a Senior Management
Issue
 Evidence shows 94% of surveyed
managers rate IT‐based systems as
important or very important in the delivery
of their organisational strategy; and this
was the highest‐ranked driver of IS
strategic activity (ITGI 2011).
 Increasing expenditure on IT, sometimes
with few obvious organisational benefits,
makes senior managers wish first to
question and then to control IT budgets.
 IT as a Senior Management
Issue
 This is particularly true when ambitious
information systems have been proposed,
requiring large, long‐term investment
decisions, and as pressures increase to
make senior managers more accountable
for the outcomes of these investment
decisions. Cost management was the
second‐ranked driver of IT strategic
activity (ibid.).
 IT as a Senior Management
Issue
 Information technology failures that create
bad publicity for the organisation, and
may result from internal resource gaps or
internal resistances that only senior
managers have the clout to address.
Avoiding failure was the third‐ranked
driver of IS strategic activity among IT
managers (ibid.).
 IT as a Senior Management
Issue
 The pervasive impacts associated with
new technology, which affects working
practices and procedures; jobs, skills, and
motivation; internal organisational
structures; external relationships with
clients; overall organisational efficiency
and effectiveness; organisational image
and reputation; etc. Given these profound
impacts, senior managers are inevitably
drawn into IT issues.
 Information Systems
Components (TPPSS)

 Technology
 Process
 People
 Strategy
 Society
 Understanding the Needs of the Business,
and Aligning IT Actions to that Strategy

High Provider Relationship Model

Provider researches, recommends

and implements technology to
Enabler enable quantum leap in business
capability

Provider works with others to develop a

Partner service and provide resources/skills
necessary to support the service

Provider of a quality service at a cost equal to or lower

Utility than the competition

Benefit
as IT Provider of an adequate service at a cost lower than the
Value Commodity competition
Driver

Cost High
as IT Value Driver
10
Business and IT Alignment
Framework
Connecting business and IT
strategy
Maturity Model
 Three Levels of business
and IT Alignment

 Functional Management
 Application Development Management
 IT Infrastructure Management
 Three D Framework for
Business and IT Alignment
 Discipline
 Design
 Drive for Result
 How can we achieve
business and IT Alignment?

 Communication School
 Architecture School
 Technology School
 People School
 The Importance of
Communication
 Communication is a key social
element of the organizational
alignment between IT and business.

 One of the most important skills IT

staff needs to develop is how to
communicate effectively with
businesses.
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 The Importance of
Communication
Good communication is essential for:
 Building trust and partnerships between

the business and IT

 Helping IT to manage the business

perceptions of IT
 Understanding the priorities and pressures

of the business
 Conveying the business value of IT
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 Principles of “Good”
Communication

Principle 1: The effectiveness of communication is measured

by its outcomes.

Principle 2: Communication is social behavior.

Principle 3: Shared knowledge improves communication.

Principle 4: Mature organizations have better communication.

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 Principle 1: The effectiveness of communication is measured by

Communication is successful when it

its outcomes

achieves the outcomes we desire.

Communication can get distorted

through filters such as politics, culture,
and personal points of view.

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 Principle 2: Communication is Social Behavior

Communication not only transmits

ideas; it also negotiates relationships.

How you say what you mean is just as

important as what you say.

IT staff and managers need to become

aware of the power of different
linguistic styles in communication
situations. 3-21
 Principle 3: Shared Knowledge Improves Communication
The more IT staff
learns about the
business, the better Shared Knowledge

Increased
communication Communication

becomes. THE VIRTUOUS

COMMUNICATION CYCLE

Mutual Understanding
Shared knowledge is
Implementation
Success and “Common Sense”

the beginning of the

“virtuous circle”.
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 Principle 4: Mature Organizations Have Better
Communication

“You can’t be a partner unless

you’re a mature IT organization”

Strong organizational practices support

and reinforce good interpersonal
communication.

Mature IT organizations embed

appropriate communication at the
operational and strategic level
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 Obstacles To Effective
Communication

The changing nature of IT work:

IT work has become more complex over

time. Multiple cultures, different
political contexts, various times zones,
and virtual contacts make
communication more challenging.

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 Obstacles To Effective
Communication Continued
“IT organizations can no longer support smart,
super-talented but socially disruptive people”

Hiring practices:

IT skills are changing to become more

consultative and collaborative, rather
than focused exclusively on technology.
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 Obstacles To Effective
Communication Continued

Nature and frequency of communication:

Formal interactions improve

communication, but communication
should not exclusively occur in formal
interactions (e.g., through IT governance).

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 Obstacles To Effective
Communication Continued
“We definitely need a ‘we’ attitude in IT,
rather than ‘us-them’ attitude”

Attitude:

Many IT staff are motivated by the desire

to be right rather than good
communicators.

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 “T-Level” Communication Skills for
IT Staff

Translation: a four-step process

Busines IT
s Business
Impact of Technology
Technology Translation Issues
Issues

Business
Translation IT Solutions
Solutions

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 “T-Level” Communication Skills for
IT Staff Continued

Tailoring:

IT staff needs to adapt their

communication to the needs of their
audience by:

-- Understanding needs, agendas, and

politics.

-- Choosing the suitable communication

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 “T-Level” Communication Skills for
IT Staff Continued
Transparency:

The business needs to see what is being

done in IT and what it costs. This means:

-- Communication that is honest,

accurate, ethical, and respectful.

-- Getting the communication process

flowing both ways.
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 “T-Level” Communication Skills for
IT Staff Continued

Thinking, talking, and listening:

IT staff needs to understand how and

where to speak and how to listen to
others.

-- How one reaches a decision is as

important to successful communication
as the actual decision itself.
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 Recommendations to improve
Business-IT communication
Make the importance of effective
communication visible.

Work with HR to develop new skill

expectations and roles.

Develop communication skills both

formally and informally.

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 Recommendations to improve
Business-IT communication
Increase the nature and frequency of
communication.

Spend more time on communication.

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 Conclusions
Effective communication can overcome
misunderstandings, dysfunctional
behavior, and, above all, failures to
deliver IT value.

Good communication has both social

and organizational dimensions.

A “virtuous circle” of communication can

improve IT performance and perceptions
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Thank
You