Define an IT Strategy and Roadmap

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V4
Define an IT Strategy and Roadmap
Develop a data-driven, fit-for-purpose plan with a strong link to execution.

Develop a data-driven, fit-for-purpose IT
strategy with a strong link to execution.
Alex Zverintsev
Director, CIO Advisory
Info-Tech Research Group
The business needs IT support to achieve its goals. Are you ready to deliver?
ANALYST PERSPECTIVE

This Research is Designed For: This Research Will Help You:
This Research Will Assist:
Audience for This Blueprint Blueprint Benefits
Blueprint Outcomes
CIOs or IT leaders who want to develop an IT
strategic plan.
IT departments that want a time- and
resource-efficient process to carry out IT
strategic planning.
CIOs or IT leaders who want to ensure the
business value of IT and align IT initiatives
with overall organizational strategies.
Identify the critical steps and key players
required to build your strategy.
Save time, money, and hassle by using a best-
practice methodology that walks you step by
step through strategic planning.
Improve business-IT relationships by working
together to create an IT strategy that will help
ensure organizational goals are met.
A fit-to-purpose IT strategy that aligns the IT department with the business.
A tool to drive internal IT alignment through a common vision and a shared sense of purpose.
A holistic analysis of the current state of the business and IT, and IT initiatives designed to optimize
business performance and enhance IT maturity.
Engage Info-Tech to assist with your strategic planning

Resolution
Situation
Complication
Info-Tech Insight
Executive summary
• According to Info-Tech research, 47% of business leaders feel that
business goals are unsupported by IT.
• If IT fails to support the projects or programs that benefit the
organization, then IT is perceived as a strict cost center that delivers
very little real value.
• Highly effective IT strategies will realign IT with the business, however, a
staggering 92% of IT departments surveyed claimed their IT
strategies were less than adequate.
• Many IT strategies are “too technical” both in wording and content;
technical jargon is difficult for the business to understand and there is
very little emphasis on people or processes.
• Articulating a clear IT strategy that aligns IT with business objectives is the most important activity a CIO can do
for the IT department and organization.
• The strategic planning exercise requires that the CIO review the business environment, assess the current state of IT,
define a target state that is aligned with the organizational priorities, and focus efforts on IT initiatives that bring tangible
benefits to the business.
• The key is to work with the business when developing your IT strategic plan. A solid understanding of business
needs, combined with a mutual understanding of drivers and constraints will help you create a very effective strategy.
• Creating and executing a successful IT strategy will help thrust IT into a leadership role, especially if the organization has
not yet formulated a formal strategy of its own.
1. Make informed decisions based
on data, not just intuition and
assumptions.
2. Right-size your IT strategy to
address the mandate.
3. Establish a strong commitment to
execution.

32%
Feel that IT is investing in areas that don't support the
business.
64% Think that IT must better understand business goals.
47% Believe that business goals are going unsupported by IT.
Source: Info-Tech Benchmarking and Diagnostic Programs
Too often, CIOs focus on operational efficiency and “keeping the lights on.” However, C-level
executives need IT to focus on aligning technology with the business.
As a CIO, you must view yourself as a business leader who
works in IT

CIOs must earn their seat at the table; right now they are not
doing a good enough job
0%
5.58%
12.09%
19.53%
35.81%
22.33%
4.65%
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5 6 7
Overall C-Level Stakeholder Satisfaction With CIO’s
Performance as a Business Partner
% of Respondents
Low Satisfaction High Satisfaction
Source: Info-Tech Benchmarking and Diagnostic Programs
More than 70% of business
stakeholders rated their CIO
as a 5 or lower.
The most shocking finding was
that only 27% of business
stakeholders were very
satisfied with their CIO’s
performance as a business
partner.

CIOs and their IT departments are failing to meet business
stakeholder needs
46.0%
60.0%
62.0%
54.0%
40.0%
38.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Overall Satisfaction With
IT Core Services
IT's Ability to Deliver
Solutions That Meet
Business Needs
IT's Understanding of
Business Needs and
Requirements
Business Stakeholders’ Satisfaction With IT
Dissatisfied Satisfied
Source: Info-Tech CIO Business Vision Diagnostic; N=2,369
According to Info-Tech’s
Business Vision survey:
• Only 53.8% of business
leaders are satisfied with IT
core services.
• Less than 40% are satisfied
with IT’s ability to deliver
solutions that satisfy business
capability needs.
Some of these findings can be
attributed to the CIO’s inability
to:
• Effectively manage
stakeholder relationships.
• Understand the capability
needs of business partners.
• Enable innovation to help
business stakeholders
capitalize on technology
opportunities.

There is a significant link between business satisfaction with IT
and IT strategy effectiveness
Source: Info-Tech Benchmarking and Diagnostic
Programs
*Note: Effective organizations were classified as those with an IT strategy effectiveness
score greater than or equal to 7. Highly satisfied organizations were classified as those with
an overall IT satisfaction score greater than or equal to 8.
According to Info-Tech research, business stakeholders are 3.5 times
more likely to be highly satisfied with IT if there is an effective IT strategy in place.

An effective IT strategy will help your organization realize
tangible benefits (1 of 2)
1. Business-IT alignment. A successful IT strategy ensures business-IT alignment on the strategic scale. IT is working on
the right things that matter to the business. IT avoids wasting budget on things that do not matter to the business.
2. Informed strategic IT investment decisions. A successful IT strategy provides a clear picture of how each proposed
investment supports enterprise objectives by addressing identified gaps between the current state and target state of IT.
This helps avoid sporadic investments influenced by the loudest voice.
Business objectives
IT’s focus
IT is focusing on things that
do not matter to the business
IT is not supporting
business objectives
IT is supporting
business objectives
Business objectives
IT’s focus
IT’s focus is fully aligned
with business objectives
Value =
Avoided spend on misaligned IT
initiatives +
Value realized from IT
supporting previously
unsupported business
objectives

Reap the benefits of a successful IT strategy (2 of 2)
3. Timely developed capabilities. A successful IT strategy ensures IT has the required effectiveness and efficiency of
people, processes, and technology at the right time to achieve business objectives. The comprehensive assessment of
the entire IT organization uncovers gaps, interdependencies, opportunities, and risks that are hard to identify with a
narrower tactical focus.
Value =
Increased joint
business-IT efficiency
X
Spend on IT-enabled
initiatives +
Value realized from increased
joint business-IT effectiveness
Value =
Realized value enabled by IT having built the capabilities to
support strategic business objectives in a timely manner
Value =
Increased IT efficiency due to elimination and
avoidance of redundant roles, processes, and
technology components
X Addressable IT spend
Note, this model doesn’t encompass the value realized from strategic IT initiatives that are identified by the IT strategy and
may target specific efficiency, effectiveness, and/or labor arbitrage benefits, other than the elimination and avoidance of
redundant roles, processes, and technology components (number five in the list above).
4. Improved IT credibility. A successful IT strategy increases the business' understanding of what IT can do, currently
does, and will do to support the achievement of business objectives. As a result, it improves the business' satisfaction
with IT, improves IT’s credibility, and enables IT to become a strategic partner with the business.
5. Elimination and avoidance of redundancy. A successful IT strategy looks at IT holistically (i.e. across possibly
siloed roles, processes, and technology components) and uncovers and makes plans to eliminate and avoid
unnecessary redundancy through centralized, shared IT capabilities, consolidated applications, and infrastructure.

42% Some improvement necessary.
34% Significant improvement necessary.
25%
IT strategy is clearly defined, published, and aligned with
business goals.
Currently, over 75% of C-level business executives want to see
an improved IT strategy
Programs

Improve your IT strategy by getting a better grasp on strategic
planning
A typical IT strategy will contain the following:
1. Summary of the current state.
• Business
• External Environment
• Internal IT
2. Summary of the target state.
3. Roadmap to get from current state to target
state.
4. Summary of risks, mitigation techniques, and
high-level economics.
At a minimum, Info-Tech recommends that you
review the following, as you build the strategy:
• Business Capabilities and Services
• IT Sourcing
• Technology Landscape
• IT Operating Model
Communication is paramount. You have to put in the work and the time to hear what the business
is saying in order to deliver and meet its expectations.
– John Hansknecht, Director of Technology, University of Detroit Jesuit High School & Academy
What does it mean to be
strategic?
 Be forward looking – think about the
ramifications of trends and decisions in the
long term; do not just focus on tomorrow.
 Be proactive – anticipate changes and make
moves to suit; do not wait to be forced to react.
 Be aligned – commit to an organization-wide
vision to create a shared sense of purpose; do
not separate IT from the business.
 Be aspirational – think big to better your
department; do not limit yourself.

In order to develop an effective business-driven IT strategy, you
must engage the business
of CXOs feel that they should participate in decision making
around IT strategy, with the majority believing that
participation should occur quarterly or more frequently.
98%
Programs

Info-Tech’s approach to IT strategy development builds on the
COBIT 5 and TOGAF frameworks
Our best-practice approach is grounded in the COBIT 5 framework, enhanced by TOGAF’s enterprise
architecture vision, and optimized by the insights and guidance from our analysts, industry experts, and
our clients.
Research grounded in COBIT 5
(APO02)
The most widely used international
framework for the management
and governance of IT.
Optimized through experience
Analyst team with over 70+ years
of experience, with client-tested
processes.
The Info-Tech’s Approach
Many other resources will tell you what to do but
most won’t tell you how. We will tell you:
1
2
3
What to do.
We give you the process to build a fit-for-
purpose quality management program.
Why you’re doing it.
We explain why each step is important so
you understand the process.
How to do it right.
We walk you through the process with
easy-to-follow, easy-to-do activities.
Why Info-Tech Is Different
Enhanced by TOGAF ADM
A framework for enterprise
architecture that describes the
method for developing a target-
state vision.

Our methodology walks you (and your business) step by step
through the development of an IT strategy
3. Evaluate current
state of IT
2. Assess drivers and
constraints
4. Develop a target
state vision
5. Define initiatives 6. Build a roadmap
Business capabilities
Business SWOTs
Business initiatives
PESTLE factors
Success measures
7.Execute
Industry trends
End-user profile
Business imperatives
High-level economics
Organizational change
Risks
Business-driven priorities
Strategic goals
Target-state vision
Objectives and measures
IT guiding principles
IT vision statement
Business / internal
IT initiatives
IT budget and spend
Performance data
Assessments
External
Implications for IT
Opportunities to innovate
Risk appetite
Transition options
Gaps
8.Revamp
IT SWOTs
Holistic
Focus-area specific
Initiatives
Target-state options Execution schedule
Approval
IT strategy map
Focus areas
Business capabilities and services
IT sourcing
Technology landscape
IT operating model
IT mission statement
Appetite for IT spend
1. Determine mandate
and scope
Mandate
Project charter
Scope
According to Info-Tech research, 92% of our clients have less than effective IT strategies. Let us help
you build your strategy the right way.

We will help you build the following deliverables
3. Evaluate current
state of IT
2. Assess drivers and
constraints
4. Develop a target
state vision
5. Define initiatives 6. Build a roadmap
IT strategy document (with appendices)
1. Determine mandate
and scope
7.Execute8.Revamp
Project charter
Execution & comm. plan
List of implications for IT
List of external drivers IT guiding principles
List of business drivers
List of innovation opps.
Summary of IT current
state assessment
Strategic goals
Target-state vision
List of target-state options
IT mission and vision
List of transition options
Initiatives
IT roadmap
Organizational readiness
assessment results
High-level economics
summary
Strategy map (aka goals cascade)
Summary of risk appetite
Risk management plan
Objectives and measures

We will help you overcome the typical barriers to successful IT
strategy development
Often strategic development projects generate severe pains. We will help you break down the
barriers to an effective IT strategy by addressing key development obstacles right away.
Limited interaction
with the business
Our methodology takes a business-focus approach, forcing you to engage the
business throughout your strategy.
Limited upfront
planning
The first phase of this blueprint, Determine mandate and scope, walks you step by
step through the pre-planning phase to ensure you right-size your efforts.
Limited access to
critical data
Our diagnostic programs provide you with the data and information you need to
make key strategic decisions.
Lack of executive
buy-in
Our executive brief explains the benefit of a business-driven IT strategy. Use the
brief to make your case.
Key Challenges Info-Tech Aided Solutions
Lack of strategy
know-how
Throughout this blueprint we provide easy-to-follow activities and several
adaptable, easy-to-use templates that you can modify to meet your needs.

Gathered Data
• IT Future Role
• Expected Budget
Change
Participants
• CEO
• CIO1
2
3
Gathered Data
• Core Service
Satisfaction
• Core Service
Feedback
Participants
• Business
Leaders
• Business
Employees
Gathered Data
• Process
Importance
• Process
Effectiveness
Participants
• IT Leaders
• IT Employees
Info-Tech’s diagnostic programs will deliver the data that you
need to make informed decisions

Organizations of any size can benefit from an IT strategy; we will
help you adjust the project to suit your needs
Who You Are • 1-10 IT staff • 10-100 IT staff • More than 100 IT staff
CIO’s or
IT Leader’s
Role
• You will be accountable and
largely responsible for leading
the development of the IT
strategy.
• Do not waste time on
formalities – figure out what
the business needs are and
be innovative in how IT can
drive business value.
• You will be accountable for
the IT strategy development
effort and you will benefit from
delegating the project work to
your team.
• You will benefit from a formal
strategy development
process.
• You will be accountable for
the IT strategy development
effort.
• The majority of the
development responsibility will
lie with your internal team and
third-party consultants.
• Your primary responsibility will
be to market the IT strategy to
your executive peers.
Key
Challenges
• Your time/effort availability
may affect your ability to
develop a strategy.
• You may not have a well-
defined business strategy.
Work with the business to
identify priorities.
• Strategy development can
quickly become overwhelming
and unmanageable.
• You will have to find a balance
between operational
excellence and strategic
aspirations.
• Getting business stakeholders
on the same page and
working towards the same
goals may be difficult.
• IT strategic development will
take a long time to complete
properly – beware of losing
focus as you progress.
Although the basic components are the same, every CIO or IT leader will have to approach IT
strategy development in a slightly different manner.
Large EnterpriseSmall Enterprise
Medium
Enterprise

Info-Tech’s “Systematic Path” to IT success will help you
transform the way your business views IT
Innovator – Transforms the Business
Reliable Technology Innovation
Business Partner – Expands the Business
Effective Execution on Business Projects, Strategic Use
of Analytics and Customer Technology
Trusted Operator – Optimizes the Business
Effective Fulfillment of Work Orders, Functional
Business Applications, and Reliable Data Quality
Firefighter – Supports the Business
Reliable Infrastructure and IT Service Desk
Unstable – Struggles to Support
Inability to Provide Reliable Business Services

Track your progress to ensure success – keep these goals and
metrics in mind as you develop your strategy
Goal of IT Strategy Key Metric
All aspects of the IT strategy are
aligned with the business strategy.
• Percent of objectives in the IT strategy that support the business strategy.
• Percent of business objectives addressed in the IT strategy.
The IT strategy is cost-effective,
appropriate, realistic, achievable,
business-focused, and balanced.
• Percent of initiatives in the IT strategy that are self-funding (financial benefits in
excess of costs).
• Trends in ROI of initiatives included in the IT strategy.
• Level of business stakeholder satisfaction survey feedback on the IT strategy.
Clear and concrete short-term goals
can be derived from, and traced
back to, specific long-term
initiatives, and can be translated
into operational plans.
• Percent of projects in the IT project portfolio that can be directly traced back to the
IT strategy.
IT is a value driver for the business. • Percent of strategy business objectives achieved as a result of strategic IT
initiatives.
• Number of new enterprise opportunities realized as a direct result of IT
developments.
• Percent of IT initiatives/projects championed by business owners.
There is awareness of the IT
strategy and a clear assignment of
accountability for execution.
• Achievement of measureable IT strategy outcomes as part of staff performance
goals.
• Frequency of updates to the IT strategy communication plan.
• Percent of strategic initiatives with accountability assigned.
Start tracking these metrics now to see how well you’ve improved later.
Source: COBIT 5, APO02

You will realize even greater benefits by partnering with
Info-Tech
Reduce
Investment
Reduce
Effort
Reduce Risk
Info-Tech’s Measured Value
Reduce the total cost of
developing an IT strategy on
your own by using Info-Tech’s
methodology.
Capitalize on nine months of research
and over 300 years of
experience…improve the quality of
your IT strategy and a realize a
savings of one to four months of
strategic planning effort with this
blueprint.
Reduce your effort by using our
pre-populated tools and
templates in every phase of your
strategy development project.
Reduce the risk of developing
your strategy on your own. Our
methodology was developed
through extensive research,
validation exercises, and
practice.
Improve the quality of your output
by focusing on what really
matters. We have done all the
pre-work for you, you just need
to fill in the details.
Improve
Quality

Consulting
“Our team does not
have the time or the
knowledge to take this
project on. We need
assistance through the
entirety of this project.”
Guided
Implementation
“Our team knows that
we need to fix a
process, but we need
assistance to
determine where to
focus. Some check-ins
along the way would
help keep us on track.”
DIY Toolkit
“Our team has already
made this critical
project a priority, and
we have the time and
capability, but some
guidance along the
way would be helpful.”
Workshop
“We need to hit the
ground running and
get this project kicked
off immediately. Our
team has the ability to
take this over once we
get a framework and
strategy in place.”
Diagnostics and consistent frameworks used throughout all four options
Info-Tech offers various levels of support to best suit your needs

Follow a CIO’s journey through IT strategy development using
Info-Tech’s methodology
United Telecom Company*
The United Telecom Company (UTC), is the primary
telecommunications provider for a small tropical country. It has
over 500,000 customers using mobile, landline, and broadband
services. The company is partly government owned.
Situation
UTC re-vamped its corporate strategy upon the threat of new
competition into the small local market. This corporate shift
required a re-alignment between the IT department and the new
UTC direction. The CIO determined that a new IT strategy was
required and that he would engage Info-Tech in a five-day IT
strategy workshop.
Solution
During the workshop, the project team and Info-Tech analysts
worked together to gather and analyze data regarding the
business, IT, and the greater business environment. Over the
course of the week the team was able to develop a strategic
document rather than the “wish lists” that had been created in
previous years.
* Names and some details have been changed for client privacy.
CASE STUDY
Industry
Source
Telecommunications
Info-Tech Research Group
Follow UTC’s journey through IT strategy
development by looking for this symbol
throughout the blueprint:
To read the case study in its entirety, see
Appendix A.
CASE STUDY
Results:
Following the workshop, UTC received
sign-off approval from the business. After
implementing the new business-driven
strategic initiatives and executing the IT
strategy, UTC saw a 9% increase in
stakeholder satisfaction and a 10%
increase in perceived value of IT. As well,
UTC saw a significant improvement in
overall IT maturity.

Define an IT Strategy and Roadmap

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