IT Strategic Planning

Does it make sense to design technology expenditure & systems in light of the business strategic plan??

Technology consumes an ever growing portion of funds within business today.  Businesses need therefore to plan the expenditure as much as possible so that the effects of expenditure on cashflow and potential for disruption to business operations are minimzed.  Like any business asset, technology needs to be considered an investment rather than a cost.  The doomsters will cry that no matter what a business does, technology will always be a cost!!  The more rational heads will see that proper planning and integration of technology direction can lead to an enrichment of the bottom line of may business.

All businesses need to perform some navel gazing at some stage.  All businesses need to plan the expected future direction of the business at some stage.  Whether the planning actually results in a written document in most instances will depend largely on to what extent the banks and accountants control the business.  The greater the extent the more likely some tome will exist setting out the Grand Plan (proposed business strategy) for the business over some period of time.  Many will argue this is a waste of time but all will agree that not many businesses grow where there is no VISION.  

What is IT Strategc Planning??

Strategic planning involves taking a snapshot of the current position and placing a marker out there somewhere as the point that the technology systems are expected to be required a specified time in the future.  Decisions are need about many aspects of technology so that a firm framework is described within which decisions on technology expenditure can be made secure in the knowledge that other disparate decisions will be compatible.  The framework set out in the IT Strategic Plan is designed to provide the necessary technology base for the business to meet the business strategic plan.  The two cannot be set in isolation.  Consequently, the business strategic plan must exist prior to completing the IT strategic plan.

The plan sets out such things as:-

• Hardware requirements
• Software needs
• Timing of upgrades & enhancements
• Database directions
• Communication structure and proposed upgrades
• Estimates of costs and timetable for system upgrades and replacement

It provides a clear plan for what, where & when technology expenditure should be made & what broad criteria it should meet in order to ensure that the Business meets its strategic objectives.

It is not set in concrete like all goals BUT it provides the FRAMEWORK within which decisions can be made.

Should Your Business Prepare an IT Strategic Plan??

If you are asking this question, then the likely answer is an emphatic YES as it is unlikely that one has been prepared.

When Should an IT STrategic Plan be Updated??

It should be pretty much an on-going exercise within reason, of course.  In particular, it should be updated when the business has moved away from the business strategic plan in instances such as major divestment of operations, major unplanned acquisitiion, unforeseen new technology that offers a major competitive advantage or, simply, when aspects of the plan do not seem relevant or have not produced the expected results.