2. Agenda
Introduction
The Current State of IT
Strategic Alignment
From Strategy to Execution
Open Forum
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3. Alignment
Today’s economic climate, perhaps more than ever, prompts us
to re-evaluate IT’s alignment with the Business. The current
business challenges present an OPPORTUNITY to pro-
actively evaluate IT’s role and contribution to top-level
business objectives and engage in proper adjustments (i.e.
alignment).
The CIO’s alignment with the CEO is largely a “battle” at two
fronts:
• Actionable/measurable Initiatives (direct control)
• Perception (in-direct influence)
4. Alignment
How to become aligned?
How to develop a strategy in alignment?
How to get agreement between CEO and CIO?
What is the best way to get a statement of direction?
How to document/record alignment?
… the current economic context makes IT alignment with
CEO/Business very challenging, but very necessary!
5. Alignment – What is “alignment”?
• Established,
repeatable process
Process
• Methodology &
Tools
• Top-down
Perception
• Bottom-up
• How to assess
Measure alignment/progress
• Benchmarking
Alignment is the continuous process of implementing and adjusting
Technology-based solutions and processes in DIRECT support of ever
evolving and changing prioritized business requirements.
6. Repercussions of “poor” Alignment
IT is viewed a “Cost Center” or infrastructure
only, not a business enabler
Executive-level discussions of IT focus
mostly on cost reduction
IT is designated “Scapegoat” for business
performance issues
IT has an inward focus (i.e. operations), is not
externally focused on customers
7. Business & IT – Strategic Alignment
Business Strategy
• Growth & Customers
• Market & Competition
• Operational Efficiency
• Performance Analysis & Decision Support
IT Strategy
• Platforms
• Budget & TCO
• Vendors
• Initiatives & Projects
• Resources & Skills
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9. IT Strategy - Drivers
IT Strategy is primarily driven and impacted by:
Business Strategy, imperatives, goals, targets
and business initiatives
Market & Customer requirements
Technology enhancements & capabilities
Software/Hardware vendor release strategy
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10. Alignment – Business Strategy
Strategy Customers Operations
• Growth • Acquisition • Process
• Acquisitions • Service • Flexibility
• Products • Proc. Integration • Cost
• Service • Self-Service • Visibility
• Markets / • Pricing • Performance
Channels • Retention • Etc.
• Etc. • Etc.
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11. Alignment – Shift to “outward” focus
Customers (Sales & Product)
What are our real business drivers?
? Change in customer behavior/expectations -> shift to WEB
? Improved self-service / customer service
? Process Automation / Lower transaction costs
? Pressure by competitors
? Growth opportunity (channel sales)
? Customer experience & loyalty
? Account Management capabilities
? Direct tie-in with Marketing and Advertising
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16. Alignment – From Strategy to Execution
CEO VPs
IT
1-on-1: Top strategic
objectives
Understand objectives
& requirements
Understand priorities &
timeframes
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17. Alignment – From Strategy to Execution
CEO VPs
IT
Breakdown of objectives &
Initiatives/Project Definition
Partnering & Collaboration
(Ownership/Stake)
Joint Execution
(Responsibility &
Resources)
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18. Alignment – From Strategy to Execution
CEO VPs
IT
Develop a thorough
understanding of the
business objectives
Develop & evaluate solution
options that support the
business objectives
Develop detail plans &
designs and execute
projects
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19. Alignment – Outcome (CEO)
CEO VPs
IT
Input, feedback and validation
sessions:
2x per Year
Company updates: 4x per year
Company newsletter: frequent
updates & articles
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20. Alignment – Outcome (Executives - VP)
CEO VPs
IT
Input, feedback and validation
sessions:
2x per Year
Company updates: 4x per year
IT Vision updates: 2x per year
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21. Alignment – Outcome (IT Organization)
CEO VPs
IT
IT Vision updates:
2x per Year
Business/IT Translation:
project prep, kickoffs &
reviews
Staffing & Education:
2x per year
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22. Alignment - Outcome
Re-active Pro-active
organization organization
Perception- Tangible
based (Activities)
Inward focus Outward focus
Business
Cost Center
Enabler
Business
“Scapegoat”
Partner
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23. Alignment – Documentation
IT Strategy Presentation
The Master Plan
Project Estimates
Project Plans
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24. Alignment – Breakdown & Translation (EXAMPLE)
No. Strategic Business Goals IT Initiative / Solution
Objective
1 Profitable Growth Increased Market Share CRM – Pre-Sales, Marketing & Sales Analytics
* Awareness
* Coverage
Increased Profitability CRM – Gross Profit Confirmation for incentives
Reduce Errors via CRM product configurator rules
Business Performance Enhanced analysis & reporting capabilities
Transparency (BI / Pro-forma reporting prior to quote approval)
2 Cost Reduction Business Transaction SAP Dealer Portal:
Efficiency * Order & Vehicle Mgmt. life-cycle
CRM: Streamlined quoting and transition to order
management
* DBMS Integration
* Offline Productivity
* TMQS
* CRMToday
Shared Services IT Shared Services
Utilize Global Licensing
Balanced IT Resource Model (in-house vs.
consulting)
Standard IT Application Consolidation of customer and partner websites onto
Platform single Enterprise Portal platform
3 Mergers & Acquisitions Standardized Processes & Expandable and open (integration) technology
24 Flexible IT Platform platform
26. Pre-requisites of Alignment – Are you ready?
IT Operational
Organization Excellence
Information is an
asset
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27. Alignment – Current State & Evolution
Kaizen –
Optimization and
support of
External changing
Integration: business
Customer, Vendor, environments
and Sales Channel Rapid
Business Integration (i.e. Response
Intelligence: external process
integration)
Performance
transparency The “connected”
enterprise
Management by
exception
Operational
Excellence: Decision support
Internally Information worker
focused
Process
efficiency
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28. Alignment – Key Takeaways
You must take the initiative in the alignment process
You must meet crucial pre-requisites for successful alignment
The most challenging step of alignment is the translation of high-level
business strategy/objectives into actionable initiatives & solutions
Document all agreements and outcome of the alignment process
(Visibility of Alignment)
Successful alignment involves all levels of the organization
Alignment is a continuous, repeatable process
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