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IT Strategy: Assessment & OptimizationCatallysts perspective & approach
IT Strategy Imperativesa reality check…
even with these challenges, co-
creating a business aligned and
technologically robust IT Strategy is
still key to firms’ competitive
performance….as…
an IT Strategy helps in creating
innovative and practical Technology
Portfolio to support the business, and
defining & developing an agile IT
organization necessary to execute that
strategy…
perception differences prohibit an
aligned way forward…
• Business dependent IT vs. IT enabled
Business
• Innovation vs. Consumerization
• Supporting current strategy vs. shaping
future strategy
• Business Value vs. IT Costs
• Business Priorities vs. IT Investments
• Growth vs. Containment
and then there is Business – IT misalignment
74% of business executives feel that IT strategy developed by IT is
not driven by Business goals and is more about technology
adoption and system enhancements…
dynamics that heavily impact firms’
IT strategies today…
• Run the business (RTB) costs have grown
to 80% of total IT costs, leaving remainder
to fund innovation and business growth –
Change the business (CTB)
• Application portfolios are becoming
increasingly complex, driven by M&A
activity and deferring strategic initiatives
• Flat budgets as a percent of revenue are
crowding out application development
• Re-sourcing strategies are still stuck in
the labor arbitrage mode, failing to
leverage global delivery networks
• Competitive pressures to continue
innovating remain intense even as
spending ability is shrinking
• Organizations continue to consolidate
back-office / shared services
Growth
Center
Investment
Center
Profit
Center
Cost
Center
the Ubiquitous IT’s Strategic Positioning dilemma…
Inn
ova
tio
nIm
ple
men
tati
on
Business Technology
Leadership Focus
Str
ate
gic
Fo
cu
s
Why is a Business aligned IT Strategy necessary?
Multi-faceted expectations on IT, driven by firm’s go-to-market strategies,
1) global firm in home market, 2) global firm in emerging market 3) start-up firm in any market
Need for ever so important Business and IT alignment
Optimize investments and allocation of IT budgets
Manage Performance and Measure in the light of Business Performance
Mitigate risk, deliver value and improve control
Optimizing your firm’s IT StrategyCatallysts Way™
1 Assess Business & IT
context
An assessment of Business & IT
organization, business objectives
& strategies, IT landscape, project
portfolio, to identify opportunities
for improvement
2 Co-Create Business & IT
Alignment
Attain optimal alignment between
Business and IT, thereby moving
towards business growth and
higher IT effectiveness
3 Optimize IT Strategy and
Performance measures
Evolve an IT Strategy to deliver
long term growth, addressing key
constituents (operating model)
and a framework for performance
measurements
defining a target operating model with clear financial benefits & optimized performance…
1 Assess Business & IT
context
An assessment of Business & IT
organization, business objectives
& strategies, IT landscape, project
portfolio, to identify opportunities
for improvement
IF: How does Business perceive IT and its Value?first Step in optimizing IT Strategy is to capture IT’s current positioning
6
Benefitas IT
Value
Driver
Costas IT Value Driver
High
High
Business – IT Relationship Maturity Map
IT researches, recommends and implements
technology to enable quantum leap in
business capability
Utility
Commodity
IT works with others to develop a service and provide
resources/skills necessary to support the service
IT provides quality service at a reasonable cost as part of overall cost of
business
IT provides basic IT services to keep business running with no value
acknowledged by the business
Partner
Enabler
1
WHAT: Assess your Business & IT ContextIdentifying the elements of IT Strategy and asking the right questions is key…
1
Key Questions that Catallysts will assist you to answer,
• How does my business leaders see IT as, enabler or service provider?
• Do we have the bests-fit capabilities to meet our business requirements? Does our Operating
model supports an optimal organization structure?
• Can we identify right processes & governance to optimize Business & IT alignment?
• Do we have a solid sourcing strategy with the right internal resource capabilities?
• What is the IT Landing zone that we should target, which is aligned with
Business strategy and supports best-in-class technology footprint?
Catallysts’ IT Strategy Assessment approach includes,
• Experienced business and IT leadership for identifying opportunities, risks, and weaknesses
• Expert prioritization of issues based on the impact to your business or organization
• Development and execution of an IT strategy that aligns technology with your business goals
• Industry knowledge, research and best practice analysis to baseline your company against
your competition
• Technology selection and implementation guidance
IT Strategy Elements
HOW: Assess your Business & IT ContextCatallysts’ IT Strategy Assessment Methodology
1
Review Business
Objectives and
present IT Strategy
IT Strengths and
Weaknesses
(metrics, technology
landscape, architecture)
Need Analysis /
Current Operating
Model
IT Discovery and
AnalysisCurrent State Gap
Analysis & Scorecard
Current Gap
Recommendations
Business Case
Development
IT Strategy Blueprint
& Plan
Future State
Modelling
Business
Stakeholders’
Perspectives
Kick-Off
Quick
Wins
Initiate
Alignment
Aligns
with
Firm’s
Target
State?
No
Yes
2 Co-Create Business & IT
Alignment
Attain optimal alignment between
Business and IT, thereby moving
towards business growth and
higher IT effectiveness
IF: Is Business & IT Alignment feasible?Yes…an aligned IT strategy and strong governance can deliver value to varying degrees
2
Application PortfolioOrganizational
Capabilities
IT Process and
Governance
Technology
Infrastructure
Business and IT
Alignment
Impact on Bottom line
Time-to-Market
Quality
(First Time Right)
Customer Satisfaction
IT enabled Business
Governance
IT Strategy Elements
Bu
sin
ess
Dri
vers
Very High Impact High Impact
Catallysts interventions will assist you in explicitly capturing IT strategy elements for high-impact alignment…
Alignment and Impact will vary and unique for different IT organizations
WHAT: Co-Creating Business & IT Alignmentfor high-impact alignment, IT Strategy Optimization should be strongly linked to Business drivers
Organization’s
Purpose and
Business Objectives
Business strategies are
derived and confirmed
leading based on business
scope
Analysis and impact of business strategies drive
changes and priorities of external business
perspectives and internal business structure
Analysis of the business changes and
priorities drive the IT principles and the
characteristics of the IT portfolio,
Operating model and required capabilities
and competencies
External Business Dynamics
• Changes in Products and services
offered
• Changes in market place constituents
and relationships
Internal Business Dynamics
and Structures
• Changes in business scope/ processes
• Changes in governance and
organization structure
IT Strategy
IT Direction & Target State
(Technology & Functional
scope)
Business Strategies
• Product
• Marketing
• Operational
• Regulatory
Business
Environment
Drives the
Elements
of IT
Strategy
IT Operating Model
(Governance, Structure,
Metrics)
IT Capabilities
(Systemic and Functional
competencies)
IT Infrastructure &
Processes
(Technology landscape)
2
1 2 3
HOW: Through Learning Intervention & Workshopsalign human elements: prepare required mind-set to take on IT Strategy Optimization
Desired
Outcomes
Participants
Identification
Delivery
Methodology
• Developing aligned IT Strategy with strong execution capability
• Aligned Technology landscape with Business priorities
Gap Analysis Designing Interventions (Coaching & workshops)
• Business Leaders
• IT Leadership team
• Subject Matter
experts
• Other departments
• Vendors
Survey to analyse
Business – IT
Relationship Maturity
• Perception Gaps
• Vision Alignment
Gaps
• Competency Gaps
• Orientation Gaps
• Behavioural Gaps
Capture human
element based
roadblocks to
Business / IT
alignment
Driving IT
Strategy
Case studies on
Business / IT
alignment and IT
Strategy Optimization
Experiential Learning
Business Simulations
• Identify the cause and symptoms of
the misalignment between Business
and IT
• To understand how IT initiatives can
create more impact to the
organization
• Capability building for IT leadership
in Strategic management of IT and
for non-IT decision-makers to
understand the value accrual by IT
• Initiate co-creation of IT Strategy for
the firm
Linking classroom learning to
current challenges
Functional Capability
Reth
ink
ing
Bu
sin
ess
Developing Organizational CapabilitiesGlobal
Academicians
IT Strategists &
Experts
Capability building workshops
Interactive Sessions
Personal Mentoring
(through-out engagement)
Kick-off
IT Strategy Optimization
2
3 Optimize IT Strategy and
Performance measures
Evolve an IT Strategy to deliver
long term growth, addressing key
constituents (operating model)
and a framework for performance
measurements
WHAT: Address all Critical Elements of IT StrategyCatallysts leverages expertise and solutions to co-create a holistic IT Strategy
• Business driven IT strategy
• Consolidation and standardization
• Strategic Planning and Budgeting
• Strategic sourcing & Vendor management
• Strategic Alignment of IT with business
• Co-evolution of IT and Business
Strategy &
Planning
• Approval and Prioritization
• Portfolio and program management
• Project Analysis and Design documents
• Resource & demand management
Managing
Technology
Investment
• Application Portfolio management
• Asset Rationalization
• Business Architecture
• Enterprise Architecture standards
• Technology Architecture
Strategic
Enterprise
Architecture
• Communication Strategy and management
• Compliance & Risk management
• OD & change management
• Strategic & Tactical Governance
Governance and
Organization
3
Driv
es
En
ab
les
Business / IT
Alignment
3HOW: Co-Creating an Optimized IT Strategya highly engaging and comprehensive intervention approach by Catallysts
IT Strategy Optimization Goals
• To provide cohesive blueprint for IT organization
• To document strategies and priorities in a ready-to-execute state, enabling dialog with business stakeholders
• To ensure alignment of IT Strategy with overall organization’s business strategy and needs
Strategies
(Business, IT,
Innovation)
Interactions
(Stakeholder
Perspective
and Needs)
Technology
Review
(IT Footprint,
portfolio,
processes)
Ap
pro
ach
En
gag
em
en
t
Workshop 1
• Vision, Mission,
Goals
• Opportunities
• Primary Choices
Workshop 2
• Architecture
(Enterprise,
Application,
Technology)
Workshop 3
• Services
• Resources
• Governance
Workshop 4
• IT Strategy Map
• IT Roadmap
(3-5 years)
Strategic Alignment
(Business + IT)
• Select Business
Initiatives
• Define Governance
Gap Fitment &
Prioritization
• Analyze IT
Characteristics (Gap)
• Prioritize Actions
Capability
Building
• Strategic
Management of IT
• Portfolio Mgmt.
IT Strategy and
Execution Roadmap
• Create IT Roadmaps
• Identify initiatives
for quick wins
Operational Excellence Technology Maturity IT Principles & Standards Brand Support
OUTCOME: Optimized IT Strategy Map (Representative) 3
Strategic Initiatives
Fin
an
cia
l
Pers
pecti
ve
Cu
sto
mer
Pers
pecti
ve
Inte
rnal
Pers
pecti
ve
Peo
ple
Pers
pecti
ve
Long Term
Business Value
Improve
Cost
Structure
Enhance
Brand Value
Improve
ROI / ROC
Reduce IT
Spend
Cost BrandQualitySecurity
Service ConnectConsistencyPerformance
Culture Leadership Alignment Coordination
Human Capital Information Capital Organization Capital
Operations Mgmt.
• Vendor Management
• Business Continuity
• Service Levels
Technology Mgmt.
• Architecture
• Innovation
• IT Rationalization
Process Mgmt.
• Program Management
• Risk Management
• Quality Processes
Brand Mgmt.
• Digital Strategy
• Business Process Design
• User Experience
Vision*
A performance
oriented, operationally
excellent, and customer
centric set of business
systems.
Mission*
Be the trusted advisor
for enabling business
strategies by designing
effective processes and
building innovative
solutions.
* Representative only
Serv
ice
Man
ag
em
en
t
Go
vern
an
ce
Sta
keh
old
er
Man
ag
em
en
t
1 Assess Business & IT
context
An assessment of Business & IT
organization, business objectives
& strategies, IT landscape, project
portfolio, to identify opportunities
for improvement
2 Co-Create Business & IT
Alignment
Attain optimal alignment between
Business and IT, thereby moving
towards business growth and
higher IT effectiveness
3 Optimize IT Strategy and
Performance measures
Evolve an IT Strategy to deliver
long term growth, addressing key
constituents (operating model)
and a framework for performance
measurements
Catallysts Advantage: Co-Creating Optimized IT StrategyIntegrated Services to deliver Transformational IT
• Business Process Transformation
• Business & IT Alignment
• Portfolio & Account Management
• Sourcing Strategies and Vendor Management
• Post – M&A IT Integration
• Result based Program Management Unit
• Digital Strategy (Social, Cloud, Mobility)
• Technology & Application Landing Zone Definition
About Catallysts
Catallysts is a next generation business advisory and management education firm with deep commitment to partner with organizations at
strategic & functional levels, to co-create the Next Practices, thus enabling their short term and future-ready states; Catallysts brings deep
vertical (industry) and horizontal (subject matter) expertise from around the globe, as part of its unique Catallysts Cube™ model.
Catallyst Constellations (Catallysts) was established
by a core team of management academicians and
industry professionals with cutting-edge analytics,
management practices and technology at its core, and
provides best-in-class capabilities throughout the
engagement life-cycle.
Today, our clients engage with Catallysts for its unique
business insights and best-fit interventions by
leveraging a matrix of vertical and horizontal acumen,
with years of experience in management research, public
policy, executive coaching, consulting and advisory
services.
Spread across the globe, Catallysts has engagement
capabilities in APAC (incl. Australia), Europe, Middle East
and Africa with local presence in more than half a dozen
countries.
