IT Strategy

IT transformation challenges

Digitalization keeps the IT department busy

IT decision-makers are under pressure to create the greatest possible added value for the business units at the lowest possible cost. As part of the ongoing digital transformation, IT must further increase agility, customer orientation and efficiency. Business units require support in the provision and operation of various new technological solutions, as well as in the consolidation and utilization of rapidly increasing data volumes. At the same time, IT must not lose sight of the harmonization of the IT landscape and increasing compliance and security requirements, while dealing with the shortage of IT skills.

To navigate through the conflicting priorities of these numerous challenges, the development of a clear target for the IT and the consistent implementation of corresponding measures is crucial.

The IT department needs a new profile

Innovation & integration instead of operation

IT is increasingly embedded in products, services and business processes. As a result, the role of the IT department is expanding and is playing a key role in the development of new business strategies. Where corporate IT used to be responsible for supporting business processes, it is now expected to be a driver of new business models.

Traditional IT

IT today

  • Own & manage IT services
  • Manage vendors of Corporate IT

  • Business sets Strategy that IT supports
  • IT reacts cooperatively to requests for IT capabilities

  • Manage overall IT performance, uptime, and security metrics
  • Holds trusted partners responsible for managing IT infrastructure

  • Proactively setting companies digital strategy to grow the business
  • Equal Partner of business divisions as advisor on how to use digital technology most effectively for business growth

The need for long-term objectives

DEFINE A CLEAR STRATEGY

No strategy survives the contact with reality, meaning that even the most well-defined plans might need adjustments. However, this should not be taken as an opportunity to use the unpredictability of the future as a reason for only making corporate decisions spontaneously. Without a coherent strategy, your IT department will lack identifiable objectives. If you do not know the goals your business is aiming for, how will you know when you have accomplished them? Successful IT strategies depend on experience, flexibility, the use of the right methodologies and the right execution.

Keep in mind

SUCCESS FACTORS FOR IT STRATEGY DEVELOPMENT AND EXECUTION

Starting point in the definition of a new strategy is not what is best for the IT department, but what is best for the client. A new strategy requires a deep understanding of the client journey. Therefore, business objectives must be identified where the greatest value can be created.

Any transformation program needs to be based on achieving profitable client journeys. Once this (financial) value is set and prioritized, it is essential to ensure that the budget is aligned respectively, and that value is continuously tracked. This also helps minimizing risks in the transformation process and maximizing the chance of success.

Any change effort requires active communication of the vision and an explanation of why it’s necessary. For this reason, the leadership team needs to inspire and coach their employees. IT needs to decide not only what to say but also how and with whom to communicate. Stakeholders need to be involved and to support the strategy. The focus should be on winning over influencers both inside and outside the IT department, then on propagating the change to their networks.

As Peter Drucker once said ”Culture eats strategy for breakfast“. No matter how strong your strategic plan is, its success will be held back by team members if they don’t believe in the set goals. It is therefore crucial that employees are engaged and actively support cultural change.

Executives need to figure out which capabilities and technologies are available within the organization and where they can benefit from using external partners. How to rely on these relationships and how to structure them is a crucial decision. It requires a clear sense of how best to secure the company’s most valuable assets and where IT commodities can be better provided from external partners.

When the strategy is set, it is important to empower employees to find own ways to innovate and solve problems and hence contributing to the vision. Therefore, autonomy mechanisms should be put in place to ensure that teams use their expertise to decide for themselves how to effectively achieve agreed-upon goals.

Navisco AG

YOUR PARTNER FOR IT STRATEGY DEFINITION AND EXECUTION

Advising companies in strategic IT management for over 20 years, we will support you with the following:

  • Experience from more than 100 IT strategy projects

  • Fully independent from technology & vendors

  • 20 years of best-practices based on a strong research base

  • Client reference base across the industry

  • Always knowing state-of-the-art service delivery models from clients and service providers

  • Overview of market technologies & prices (Key Metrics & Benchmarks)

  • Focus on maximizing value and minimizing risks through an efficient & pragmatic approach