Business Driven Technology Considerations

Dominic Lumsdenwww.lumsdenconsulting.ie

Lumsden Business Consultancy Ltd.

A discussion based approach that marries the academic theory of IT with 35 years practical experience.

Achieved through answering some Key Questions about the IT role in Organisations with “how it is/was done” in practice.

Comments or Questions as we go through would be GOOD !


Historically , I.T. functions were established to implement a systems

strategy that was characterised by transactional line of business

applications – Account Administration ; General Ledgers. This mirrored

the Silo-based hierarchy of business. Business has now evolved into flatter, horizontal structures where

Information Management, collaboration and business processes that

extend beyond the company are the norm. The are currently undergoing significant change – establishing new,

relevant Operating Models ; agreeing business objectives ; establishing

resource plans and identifying current & future information needs. Investment in technology has not kept pace with the changing

business landscape. Important to note that a Technology Architecture is only One of Three

Architectures normally present in a business – an Information and a

Business Architecture being the others.


The IT Enterprise Architecture Model is a standard , industry-wide framework that is used to identify the key technology architectural components and how they support the Organisation.

Business Architecture –

The functional setup & organisation of the business.

Information Architecture –

How we exploit our Information assets for business gain.

Technology Architecture –

The supporting Technology components.


Application Technology - The Tools used to develop application solutions

Collaboration - Technologies & Tools that enable users access, share & communicate information effectively & efficiently with peers, customers and stakeholders.

Data Technology - Tools for the storage, retrieval, analyses and management of data.

Integration Technology-The tools & technologies that enable inter-applications communication while preserving data integrity.

Networks- The technical elements that enable data & internet communications between sites as well as other stakeholders

Platforms- The Underlying hardware & software .

Security -The standards & products that maintain data integrity, confidentiality and availability.

Systems Management-The tools that monitor and collect data on system performance to enable better availability & reliability.



“A body continues at rest or in motion unless it is compelled to change by forces on it.

The change is proportional to the force and in the direction of the force.To every action, there is always opposed an equal reaction.”

Isaac Newton, 1687

“Change is not so much about doing new things – that is usually quite easy. The real challenge is stopping doing the old things.”

“If you think the cost of changing is high, you should think about the cost of not changing.”

John F Kennedy, 1960


• HOW IT has changed the competitive landscape of Banking and hence the strategic decisions that Banks make.

• WHY Banks need to link IT investments to corporate strategy through business-driven technology strategies.

• The strategic options created by IT to deal with rapidly changing Financial Services landscape


• Which - Bleeding / Leading or Following ?– Factors to be considered – High / Medium / Low

• Risk Tolerance• Technology Spend• Service interruption• Differentiation• Impact on Sourcing• Industry dependency on technology

• Achieving a Business – driven Technology Strategy• IT members of strategy development board• Bottom-up input• Top-down direction• Strategic technology vision and plan• Tactical implementation plan


The underlying Infrastructure Architecture Applications Networks Security

HOW these diverse elements fit together

The Managerial / Business Challenges they pose.

Understanding leads to Informed Decisions


• What is an E-Business Strategy?– Focus on Customer value and differentiated

relationships– Focus on critical partners and suppliers to

optimise value chain– Deliver operational efficiencies that improve

profitability.• Integrates around Core Competencies

“ Bricks & Clicks”


• HOW has IT impacted on– Structure– Culture & People– Stakeholder Relationship– Knowledge Management

• The internal IT Organisation– Alignment ; Influence ; Measurement System

• Which is more important – Business Process or Technology?

• Project Implementation methods


• High Performance Management Practices– Self-managed cross functional teams– Decentralised decision making– Performance-based compensation– ++ investment in employee training & education– Widely shared information– Reduced status differences

• Organisational cultural assessment prior to Technology implementation


• Work Out• Which is more important – Business

Process or Technology?– Is the process a differentiator or not?

• Project Implementation Methods• A proven Methodology is in place• Clear objectives• R & R defined and executed• Active oversight by sponsor & steering board• Cross-functional co-operation• Contingency plans in place


• HOW much to spend on IT– Industry Norm– Business strategy– Banking typically 10% of Revenue per annum

• HOW to chose between projects– Control ; Cost or Value creating?– Focus on Benefits– Key Filters:

• Strategic Alignment• Financial value• Technical risks & risks to benefits

– Select only those that best fit these filters

• HOW to measure/manage benefits– Define ; Track ; Review

• BUILD or BUY or Application Service Provider(ASP)?

• Mandatory V Discretionary Investments

