How do you align business with IT? Many companies don\'t do this - to their detriment. IT that is focused on solving business solutions is the only effective IT.

2. Techs and Execs: Aligning Business and IT Craig F. Mathews, MBA Director of Strategic Technologies, McKim & Creed, P.A. CEO, Toolkits, Inc.

8. What do You Want?

10. 1. Business Strategy Creation

11. Three Factors for Firm Growth

12. Three Factors for Firm Growth Plan People Profit Strategic intention, processes, goals, accountability, alignment Raw material, critical resource Profit=Revenues-Expenses You can only reduce expenses so far You can increase revenues infinitely

13. Three Factors - Scenarios Plan People Profit A good PLAN without the people or profits to execute it will fail Profit People Plan Good PEOPLE will fix the plan and grow the profits if supported Profit Plan People Good PROFIT without good planning or people is luck -and will pass

15. Functional Fanaticism Typical Business Strategy Development Accounting and Finance IT HR Firm Leadership Production/ Operations Marketing

17. Integrated Strategy Development Integrated Ongoing strategy discussion IT Production/ Operations Marketing Accounting and Finance HR Firm Leadership Business Strategy Development

18. The Value Net

20. Sample Value Net

21. Thomas A. Stewart, Intellectual Capital Company’s Capital

22. “ Success in the marketplace today is directly proportional to the knowledge that an organization can bring to bear, how fast it can bring that knowledge to bear, and the rate at which it accumulates knowledge.” Tom Peters My Hero!

23. What business are you in?

24. What do clients pay you for?

30. 2. IT Strategy

34. IT Must Know Business IT should support the business – to add value or increase profit, not suck the life out of the organization through constant upgrades, misaligned priorities, and useless activities.

35. Strategic Planning vs. Digital Strategy Downes and Mui, Unleashing the Killer App Strategic Planning Digital Strategy Nature Static Dynamic Environment Physical Virtual Discipline Analytical Intuitive Time Frame 3-5 Years 12-18 Months Key Pressure Point Five Forces New Forces Key Technique Value chain leverage Value chain destruction Participants Strategists, Sr. Mgt. Everyone (incl. Bus. Partners) Technology’s Role Enabler Disrupter Output Plan Killer Apps

36. The New Forces Model Traditional Sources Of Competitive Leverage From Downes and Mui, Unleashing the Killer App The New Forces Deregulation Globalization Digitization New Entrants Substitutes Competitors Suppliers Buyers You

37. IT and the Three Factors IT Supports Feeds Feeds Supports Create Creates Plan People Profit Plan People Profit Process Automation Creates

38. IT Building Blocks

39. Generic Competency Map IT Supports, Enhances, and Extends

43. IT Capabilities Business Strategy Support

44. 3. Aligning Business and IT

50. Bridging the Gap Business IT Sounds easy, doesn’t it? Big Wall Communication

58. Planning Horizons Planning starts outside and goes in

59. Planning Horizons Coordinate Business and IT Strategies at least at the One Year and greater levels, if not further in

63. Difference Between Planning and Pursuing Opportunities Planning Opportunism Timing Advance Just in Time Timeframe Long Short to long Coordination Coordinate infrastructure, apps, processes Coordinate application of capabilities (projects) Management Foresight and defined structure Foresight and flexible control People Senior management Whoever it takes to get it done – ideas come from everywhere

64. Alignment Exercise

66. Process: List each business strategy, then the IT capabilities needed to support the strategy. Assign priority % to each of the Business Strategies. Then assign priority % (not to exceed B.S. % above) to each of the IT Capabilities. Highest % is highest priority, etc. Copyright © Toolkits, Inc. 2003 Business/IT Alignment Tool Business/IT Alignment IT Capabilities Business Strategy B u s i n e s s S t r a t e g y I T C a p a b i l i t i e s

70. IT Priorities Infrastructure Stability Business Support Differentiation Relationship Support

73. 4. Metrics

79. Example: Joe & Jane Engineering

83. Sample Scorecard Factor Goal Score YTD Time to Deploy New Machines 2 hrs ea. 95% 89% IT Customer Satisfaction Rating 85% 91% 90% Good backups 97% 94% 92% End User Training Time 40 hrs/mo 120% 105% Server Unplanned Downtime 10 hrs/yr 0 hrs 0 hrs IT Projects at or under budget 100% 100% 100% IT Projects meet objectives 100% 95% 97% Business/IT Alignment Score 90% 91% 87%