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www.pwc.com
IT Strategy vs.
Business Strategy
Are we aligned?
What is an IT strategy?
An IT strategy sets the direction for the IT function in an organisation. It outlines the vision of how the organisation’s demand for information and systems will be supported by technology, including hardware, software, telecommunications and services such as IT operations, systems development and user support.
An IT strategy contains the following basic components:
1. Business context and requirements
2. IT as-is state
3. IT to-be vision and state
4. Performance measures- TCO
5. Projects and implementation roadmap
2
August 2013 IT Strategy
PwC Israel
PwC’s Annual Digital IQ Survey Digital Conversations and the C-suite
• Strong C-suite relationships key to Digital IQ
• Strong Collaborators think together
• Strong Collaborators more aligned on strategy
• Shared understanding of opportunities and risks
• Strong Collaborators’ roadmap links business and IT efforts
3
Why is an IT strategy needed?
Why is an IT strategy needed?
• An IT strategy sets the context for decision making, provides a roadmap for IT value delivery and is a communication vehicle with the business that describes the activities IT is undertaking to enable business goals and objectives
• Benefits include:
- IT investments better aligned with changing business needs
- Optimised allocation of capital
- Increased ability to execute
- Better utilisation of resource assets
- Increased employees satisfaction
• An IT strategy is a continuously updated “living” document that provides ongoing business and IT alignment
What happens if an IT strategy is missing?
• The following shows the difference between an organisation with a non-existent/poor IT strategy vs. an organisation with a good IT strategy in place to guide its IT function
Good IT Strategy Missing / Poor IT
Strategy
Business-IT alignment
IT value
Innovation
Organisation effectiveness
IT ROI
Disparate
Poorly understood
Not innovative
Slow and passive
Sub-optimal
Integrated
Mapped and managed
Business focused
Agile and responsive
Maximised
Poor return on
investment
Capability bottlenecks
Out-of-date IT priorities
Unplanned events
Negative impacts to the
business
IT value for money
Ready access to skills
Business-aligned IT
Few surprises
Adverse impact
mitigation
4
August 2013 IT Strategy
PwC Israel
Challenges Implications
• IT strategies lack linkages with business strategies due to:
- Business strategies not well formulated
- Limited engagement with the business
• Benefits to be achieved unclear and/or not explicitly stated
• Some IT strategies contain only a list of initiatives
• Short-sighted (e.g., annual) plans instead of longer term strategies
• Lack of focus and unclear direction
• Unstructured decision making process and rationale
• Misalignment between business needs and IT investment
• Reactive approach to delivering individual business needs
• Stretched delivery capacity
Root Causes To address, need to understand
• Lack of understanding of what is an IT strategy and what makes a good IT strategy
• “What makes a good IT strategy?”
• Lack of knowledge and capability in the IT strategy development process
• “How do I develop a good IT strategy?”
• Ineffective engagement of the business • “What are common pitfalls and approaches to mitigate?”
IT strategy challenges, implications and root causes
5
August 2013 IT Strategy
What are the dimensions of an IT strategy? An IT strategy should cover the following dimensions that includes the services provided and the manner of that provision:
What is the business context to the IT strategy?
• MF business strategy and objectives
What is the portfolio of projects that enable the IT strategy and business capabilities?
• IT projects and how each is aligned to the business
• Ongoing support
• Required finances – How to maximise value for money while minimising risk
What is the structure of internal IT and how services are delivered?
• Globally delivered
• Outsourced
• Contract staff
• 3rd party vendor
What is the strategic direction on the architecture layers?
• Business processes
• Data architecture
• Application
• Infrastructure
What is the IT governance?
• Structure
• Processes (e.g., portfolio planning, projects approval)
Management &
Governance
Portfolio & Financial
Enterprise Architecture
Organisation & Supply
IT Strategy Dimensions
6
IT Strategy
What are the characteristics of a good IT strategy?
• Clear purpose and use by clearly addressing how key challenges to the business are addressed
• Aligns with “the Rest of the Business”, including territory and global business strategy and global IT strategy
• Fiscally responsible by addressing IT costs and business benefits to be achieved
• Strikes a financial balance between IT spending (asset and investment) and business needs for growth and productivity improvement
• Focuses on business and enterprise value in decision-making criteria
• Addresses the “How” in addition to the “What” and “Why”
• Communicates effectively
• Measures progress with targeted performance measures
• Considers competitive analysis
• Pragmatic directions and recommendations
7
IT Strategy
PwC Israel
What are the key steps in developing an IT strategy?
1. Understand the strategic business objectives and key priorities that need to be addressed
2. Understand the IT current state (people, process, technology), current capabilities and external trends
3. Develop a future state for how IT should meet the current and future needs of the organisation
4. Define performance measures to know when results are achieved
5. Translate strategies into actionable rolling plans to support business needs
8
August 2013 IT Strategy
What is the IT strategy development framework? Key steps in developing an IT strategy:
Bu
sin
ess
IT
Iden
tify
1. Understand the strategic
business objectives and key priorities that need to be addressed
3. Develop a future state for how IT should meet the current and future needs of the organisation
5. Translate strategies into actionable rolling plans to support business needs
2.Understand the IT current state (people, process, technology), current capabilities, and external trends
Iden
tify
& D
efi
ne
4.Define performance measures to know when results are achieved
IT Strategic Direction
Business Strategy
Business Requirements
Implications Implications
IT Industry Trends & Best Practices
IT Requirements Assessment of Current IT
Implications
Roadmap
Rolling plans
Performance Measures
Disruptive Technologies
Constraints
9
PwC
:לדוגמא
10
PwC Israel
ITגישות בפיתוח אסטרטגיית
11
?
?
פיתוח עצמי
פתרונות מדף
ERP
Best of Breed
Hybrid
PwC Israel
י גוף מערכות המידע מכפיל "בעבר נהוג היה לראות בפתרונות ובשירות שניתן ע
הוקצבו , בהתאם לכך. כוח שיוצר יתרון תחרותי ומייעל תהליכים ארגוניים רבים
.הארגוניים השוניםלשירות התהליכים סכומי עתק לפיתוח מערכות מותאמות
גבוהותעלויות 7
התאמת פתרונות מצריכה זמן7
נקודתייםפתרונות לצרכים 7
מפתחלהיווצר תלות בעלולה 7
Fraud -את הסיכון למעלה 7
את הארגון" לאבד"עלול 7
לתהליכים מלאה התאמה3
העסקיים
תלות ללא עצמאית התנהלות3
בספקים
ITגישות בפיתוח אסטרטגיית
פיתוח עצמי
12
PwC Israel
פתרונות . הארגוןמוחלט של צרכי פתרונות מדף הנותנים מענה לרוב הקיימים
סטנדרטיים Best Practicesאלה מבוססים על
כספי חיסכון3
תהליכית התייעלות3
טכנולוגית התייעלות3
מבוסס תכנה בית של תמיכה3
הארגון צריך להתאים עצמו7
לפתרון ולהראות גמישות
(מחשבתית ותהליכית)
ITגישות בפיתוח אסטרטגיית
פתרונות מדף
13
PwC Israel
יחידה על מנת לתת מענה לכל התהליכים בארגון ERPהטמעת מערכת
אינטגרטיבי פתרון3
אחד פרויקט / אחד ספק3
אחת מערכת של תחזוקה3
יעילים עבודה בתהליכי תומך3
עלול לדרוש התאמות לתמיכה7
בכל התהליכים בארגון
עלויות הטמעה גבוהות7
תלות בגוף היישום7
ביקורת/ סיכוני בקרה 7
מצריך שינויים בדרכי העבודה7
ITגישות בפיתוח אסטרטגיית
ERP מלא
14
PwC Israel
הטמעת מספר פתרונות שונים ייעודיים המותאמים לכל אחד מהתהליכים
העסקיים בארגון
לתהליכים יותר מדויקת התאמה3
להשקיע היכן להחליט ניתן3
ולהשתמש להמשיך ניתן3
הקיימות מהמערכות בחלק
מסוים בספק התלות מפחית3
תהליך הטמעה מרובה שחקנים7
מצריך ניהול ההתאמות של7
המערכות השונות
מודל תמיכה מורכב יותר7
ממשקים בין המערכות7
דרישות שונות של תשתיות7
ITגישות בפיתוח אסטרטגיית
Best of Breed
15
PwC Israel
היכן שאלה נותנות BoBלתהליכי הליבה ושילוב מערכות ERPשימוש במערכת
(או בלעדי)מענה טוב יותר
הליבה תהליכי של סטנדרטיזציה3
אחיד מידע מקור על שמירה3
מתאימים ייעודיים פתרונות שילוב3
בהמשך מערכות להוספת גמישות3
תתכן שונות בדרישות התשתית7
י מספר ספקים"תהליך הטמעה ע7
מהיש להחליט בתחילת הדרך 7
לאומה ERP -ייכלל ב
ITגישות בפיתוח אסטרטגיית
Hybrid
16
©2013 Kesselman & Kesselman. All rights reserved.
In this document, “PwC Israel” refers to Kesselman & Kesselman, which is a member firm of
PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. Please
see www.pwc.com/structure for further details.
PwC Israel helps organisations and individuals create the value they’re looking for. We’re a member of the
PwC network of in 158 countries with more than 180,000 people. We’re committed to delivering quality in
assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at
www.pwc.com/il
This content is for general information purposes only, and should not be used as a substitute for consultation
with professional advisors.
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ח ירון חדוות"רו
PricewaterhouseCoopers Advisory Ltd.
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