Category Archives: IT Strategy

A CEO’s guide to Digital Transformation by Mckinsey

By | IT Strategy | No Comments

The seven decisions that matter in a digital transformation: A CEO’s guide to reinvention

By Peter Dahlström, Driek Desmet, and Marc Singer (Mckinsey)

Often the case, when it comes to the digital transformation, it was left solely for the CIO/CDO/Head of IT to think, strategize and implement them.

However, in many successful stories of digital transformation, it was the CEO who is propelling the overall program, supporting the decisions made on the capacities, capabilities and investment made on the overall digital transformation ecosystem.

Article on Mckinsey shared A CEO’s guide to reinvention: 7 decisions that matter in a digital transformation.

http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/the-seven-decisions-that-matter-in-a-digital-transformation

 

How to reduce IT Complexity

By | IT Operations, IT Strategy | No Comments

Excessive complexity in the IT Environment can drive up IT costs and reduce the IT organization’s flexibility, agility and overall ability to support the company’s objectives.

Reducing this complexity is difficult, however, as it typically builds gradually and stems from multiple causes.

There are four must haves in design and implementation of a successful IT simplification effort:

  1. Blueprint for the target end state and a roadmap for getting there;
  2. A program management office that helps to drive progress and track results;
  3. Simplification principles that are embedded into the company’s governance structures;
  4. Buy -in from senior management

In the article by Boston Consulting Group, there are 6 drivers and high-level approach that are served as basis for reducing IT complexity. The approach is shared as per diagram can be pursued simultaneously, sequentially or an isolation.

BCG Analysis - Reduce IT Complexity

You can read the full article here:  Simplify IT – 6 Ways to Reduce Complexity.

Raising IT’s Strategic Orientation

By | IT Management, IT Strategy | No Comments

Behind every successful CIO/ IT manager is an effective IT Business Model, Strategy and Road Map (and yes, probably 35,000 other factors).

Unfortunately most organisations have not ventured into developing a well-planned IT Business Model, Strategy Roadmap – the typical point of failure being that of not having the most appropriate vision, and/or not aligning IT to the business objectives. In fact, when they have a good IT Business Model, Strategy and Roadmap, they fail to implement and monitor the associated benefits. Hence the two (the most appropriate IT Business Model, as well as focused disciplined execution of the IT strategic plan) must go together. The success or failure of any IT organization is a reflection of:

a. How well efficient IT is being operated (operational impact)

b. How much is IT helping make the rest of the organization become more effective productive (tactical impact)

c. How IT helps transform the way businesses are done (strategic impact)

Studies have shown that the presence of an effective IT Business Model, Strategy & Road Map (we call it IT Strategic Orientation) would have easily brought the following business value to organizations:

• Increase operational efficiency by 35%
• Increase productivity by 57%
• Increase resources utilization by 20%
• Reduce operating cost by 10% – 25%
• Exceeding services standards & services levels
• Upwards increase in revenue generation

Unfortunately most IT divsions continue to “keep the lights up”, and develop & consume a so-called business plan that has operational impact only. Each organization is unique, when it comes to developing their IT Strategic Orientation – it is not a plug and play solution. It requires IT to enable the mainstream business objectives. While there is no one size fits all template, having the necessary skills to develop this “canvas” is crucial to enable the CIO/ IT Manager to likely steer & drive IT Operations successfully, enabling high impact circumstances.

IT Heads, IT Managers, IT Planners, IT Technopreneurs must be equipped with this single most essential skill – ability to develop an effective IT Strategic Orientation for the organization – and consistently learn how to:
 position IT to align with business goals, supporting the achievement of business objectives;
 develop the most appropriate IT business model and IT roadmap to support strategic objectives;
 develop business centric IT performance management & performance metrics;
 develop the supporting IT Service Management imperatives;
 consistenly drive not only operational impacts, but also tactical & strategic impacts;
 make IT important to the mainstream business.

How ready are your company to adopt new practices in both business and IT

By | IT Strategy | No Comments

If you are in the midst of transforming business processes in you organization, ask yourself these essential eight (8)  key questions for your preparation. (Excerptions from the book : The New IT  by Jill Diche)

  1. Strategy – Can company leaders connect strategy with the work being done across business units? Strategy is an enterprisewide practice that executives participate in and support.
  2. Operational Planning - How formal is operational planning in IT? There are structured processess for linking corporate strategy, business unit planning and IT resources.
  3. Collaboration – Do people work together easily? Are departments encouraged to share talent and ideas? Corporate goals determine which departments and skills should come together to achieve results. Cross functional teams are rewarded uniquely for driving business value.
  4. Prioritization – Is there a clear process for prioritizing work efforts both with in business units and across the company? Governance informs delivery priorities and there is a steering committee in place.
  5. Organization Structure – Does the organizational structure reflect the company’s strategy priorities and focus areas? The organizational structure will change occasionally to accomodate evolving corporate goals.
  6. Support for new ideas – Are employees at all levels encouraged to make suggestions for improvement? Structures are in place to support both strategic and tactical innovations.
  7. Partnering – Does your company reach out to partners to enrich its products and services expand its reach? The company forms partnerships based on a combination of strategic direction and gaps in own capabilities.
  8. Openness to change – Does your company’s culture support changes when they’re necessary? Is change seen as positive force for moving things forward? Both employees and leaders are results oriented, and they are rewarded for being part of new outcomes.


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