Basic Strategy In Business Use Of

Information Technology

Presented To:
Dr. Ali Hassan

Presented By:
Bilal  Khan      (226)
Azher Waqar    (218)
Usama Sohail   (202)
Abdul Ghafoor (264)
Usama Aslam   (251)
Zain  Qaisar     (209)
 Introduction

IT strategy (information technology strategy) is a comprehensive plan that outlines how technology
should be used to meet IT and business goals. An IT strategy is a written document that details the
multiple factors that affect the organization's investment in and use of technology. Ideally, this strategy
should support and shape an organization's overall business strategy.

IT strategies should cover all facets of technology management, including cost management, human
capital management, hardware and software management, vendor management and risk management.

Organizations formalize their IT strategy in a written document or balanced scorecard strategy map.
The plan and its documentation should be flexible enough to change in response to new organizational
circumstances, market and industry conditions, business priorities and objectives, budgetary
constraints, available skill sets and core competencies, technology advances, and user needs.
 Why every company needs one

An IT strategy has become a critical element for organizational leadership in recent decades. Its
growing importance mirrors the rise of technology as a critical element for business success. The
importance of an IT strategy has been amplified as organizations focus on digital transformation.

Technology is essential for creating new business models, products and services; enhancing
customer service and customer experience; increasing sales; enabling workers and improving
productivity; and supporting interactions with vendors and other business partners. As such,
organizations must make a technology strategy to accomplish these as well as compete against
other organizations with the same objectives.

Some organizations may decide to forgo a separate IT strategy, particularly platform companies and
other businesses whose product is based on technology offerings. Instead, these organizations may
fold IT strategies into the overall business strategy to create a single unified document.
 Basics of an IT strategy
The strategy should offer a look at the organization's current technology posture and provide an
idea of where IT should head over the next three to five years.

There are different models that can help executives construct an IT strategy. Most contain certain
key elements including:

• A high-level overview of the IT department that covers its mission, core values, objectives and
approaches to accomplishing its goals.
• Current budgets and spending forecasts for a multi-year timeline.
• An outline of current and future IT projects and initiatives with timelines and milestones.
• A catalog of existing enterprise architecture; IT department capabilities and capacities; and
future needs and requirements with details about infrastructure, staffing and other necessary
resources.
• An analysis of IT's strengths and weaknesses.
• A list of the internal and external forces (such as market and industry trends) that shape current
technology requirements and innovations. This includes the future forces expected to shape IT.
• A prediction of the potential opportunities and vulnerabilities that will necessitate technology
responses to best position the organization for success.
 How to create an IT strategy
Just as there are varying models for the document itself, there are multiple ways to approach
creating an IT strategy. Commonalities do exist, however. For example, an initial review of the
organization's existing strategic IT plan and related documents is a good first step in any IT
strategy.

This first step should be followed by an assessment of how the organization is meeting established
objectives, milestones, benchmarks and relevant key performance indicators. The assessment
should identify the technology currently in use and the gaps that exist between these current IT
operations and the objectives and strategic goals outlined in the ongoing strategic plans.

Senior IT leaders then need to collaborate with their business-side counterparts to develop the IT
strategy further. Resources such as research reports should be looked for in order to understand the
business and technology trends that will impact the organization's market.

This creates a groundwork for IT executives to develop short and long-term objectives, budget
projections, technology predictions, the perceived future opportunities and vulnerabilities that go
into the technology strategy. At this point, an organization should have the corresponding
summaries needed for the final document.
 Implementation

A strong IT strategy relies not just on creating the plan, but also on proper implementation of it.
These documents won't do any good if they're ignored after completion.

The documents should be used to guide tactical technology decisions, thereby helping the IT
department align its day-to-day operations with the overall business model and mission.

However, adherence to the IT strategy should not be overly rigid. The potential fast pace of
technology advancements and innovation would require organizations to be agile if they want to
seize unforeseen developments. This will help an organization be more competitive and better
serve its market.

The technology strategy needs to be flexible. CIOs, CTOs and other executives must also be
nimble, and they should expect to reassess and redevelop the technology strategy at least annually
and possibly revisit it even more frequently. Revisits of IT strategies should be done to verify
tactical plans align with the technology strategy, and to verify the technology strategy remains
aligned with the overall organizational mission -- as it changes in response to shifting dynamics.