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Integrating Business & IT Strategy

Mona Gabriel-Seow12 August 2004

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Presentation

Reference:Michael J Earl, Integrating Business & IT

Strategy in Luftman (ed) Competing in the Information Age 2003

Purpose:Review of ArticleSupporting case studies

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Outline

SummaryMajor PointsModelFit of Model to case studiesConclusion

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Summary

Business strategy & IT thinking must align Strategy must:

Support present day business activities (today) Shape future business direction (tomorrow)

Proposes a model, T-Portfolio for both planning and audit

T-Portfolio balances today and tomorrow’s needs

Virtual Case Study of British Air

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Introduction

Supporting & Shaping BusinessIntegration of business and ITBusiness competing in two timeframes:

Daily battle for survivalCompetitive initiatives for presentLong-term initiativesFuture vision

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Competing for Today

Today – Current Needs Tomorrow – Future Needs Strategy Types”

Top down (today)

Bottom up (today)

Middle out / inside out (today & tomorrow)

Strategy Focus More today oriented than tomorrow Natural result of alignment of business & IT “Short-term survival is precondition of longer-term”

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T-Portfolio

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Investments for Today

Quick Wins or “low hanging fruit”Valued by CIO/CEOsResult from bottom-up strategies

Killer ApplicationsNeeded for competitive strategiesResult from top-down strategies

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Competing for Tomorrow

Two types of strategiesNew technologies allow repositioning of

business in market “Learn by doing” good strategy for unknown

future

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Tomorrow’s Investments

Experiments: May be innovative and may shape

tomorrow’s businessMax 2-3

Visions:Bold movesCreate new strategies / positionsMax 1-2

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Earl’s IT-Portfolio Model

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British Air

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Amended T-Portfolio Model

Low High

Lo

wH

igh

Present Future

Shaping Business

Su

pp

ort

ing

Bu

sin

ess

Experimental

VisionaryCompetitiveness

Basics E-ticketing & Self-Service Check In

Based on Earl’s (2003) T-Portfolio Model

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WA Government Trends

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WA Government Strategies

Focused mainly on Today’s strategiesFocus of government mainly on

efficiency and cost reduction not on competitiveness

Heavily focused on supporting & shaping today’s business process

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Conclusion

Business and IT Strategies must be aligned for business success

Basic and Competitive Strategies support today’s business activities

Visionary and Experimental strategies shape tomorrow’s business

A slight misalignment provides for business leadership