IT STRATEGY

■ The Highest performing IT Organizations are distinguished by Strong Strategy

Practices
A company’s strategy is its action plan for
outperforming its competitors and achieving
superior profitability

Competition

Customer
Value Business Profit
Proposition

External Factors
3
How to Create Value for the Customer and How to Generate
Profit for its Owners …..in a Competitive environment ….. in a
Sustained Manner !

Strategy is all about How:

1. How to attract and please customers.
2. How to compete against rivals.
3. How to position the firm in the Marketplace.
4. How best to respond to changing economic
and market conditions.
5. How to capitalize on attractive opportunities
to grow the business.
6. How to achieve the firm’s performance targets.
P>C for any Profitable and Stable Business !
V>P Then only Customer will Buy !
4
Business has to Compete !
■ Competitive Advantage stems from :

– Giving Buyers what they Perceive as Superior

Value compared to the offerings of the rivals
Or
– Giving the same value as others at lower cost to
the Firm
Heart and Soul of any strategy are the actions and moves
in the marketplace that managers are taking to gain
competitive advantage over rivals

5
The Strategy-Making, Strategy - Executing
Process Strategic Plan
ILLUSTRATION CAPSULE 2.2
Core Values for Amazon
Core Values for Amazon
♦ Customer
We start with the customer and work backward.
Obsession
If you don’t listen to your customers you will fail. But if you
♦ Innovation
only listen to your customers you will also fail.
♦ Bias for We live in a time of unheralded revolution and instrumental
Action opportunity–provided we make every minute count.
Ownership matters when you’re building a great company.
Owners think long – term, plead passionately for their
♦ Ownership
projects and ideas, and are empowered to respectfully
challenge decisions.
When making a hiring decision we ask ourselves: “Will I
♦ High-Hiring
admire this person? Will I learn from this person? Is this
Bar
person a superstar?”
We spend money on the things that really matter and believe
♦ Frugality that frugality breeds resourcefulness, self-sufficiency and
intention.
L&T Infotech
Let’s Solve
■ We believe in a Converging World where Bricks and Bytes are
Connected, pioneering solutions for our clients and preparing them
for the next

■ We are accelerating Digital transformation with LTI Mosaic Platform

■ We go the extra mile for our clients - in their success, we find our
own.

■ We deliver Insightful experience alongside swift execution, Pushing

the frontiers of innovation never satisfied with the status-quo,
always learning, never standing still and using new ways of working

■ We Solve for Society, thinking Big and thinking Global, Pioneering

solutions in a converging world
 A company’s IT strategy is its action plan for outperforming
its competitors and achieving superior profitability
Supporting the Business in realising its Strategy
Strategy is all about How:
1. How to attract and please
Competition customers.
2. How to compete against rivals.
Customer 3. How to position the firm in the
Value Business Profit Marketplace.
Proposition
4. How best to respond to changing
economic and market conditions.
External Factors 5. How to capitalize on attractive
opportunities to grow the business.
IT Itself provides many 6. How to achieve the firm’s
Opportunities
performance
1
targets.
IT Can Transform Business !
… almost any Business or its Parts
■ What is Transformation ?
– Doing something that was Not Possible before !
– Doing something with 100X Less Efforts, 10X Less Cost,
100X Less Time !

Supplier Operations Customer

SCM HR Function R&D, Technology Sales & Marketing CRM

Accounting Corp Planning Etc..

IT’s role in Business

Transform the Each Role may

Strategic Partner Business call for a
(radically)
Grow the
Business Enabler Business
different
Approach and
Run the the Sum-total is
Support Services Business Overall IT
Strategy
IT Strategy – What we routinely come across !
■ CRM Strategy / SCM Strategy / ERP Strategy
■ eBusiness / eCommerce Strategy
■ Web Content strategy
Does all or any of it
■ Data Strategy.. make sense ??
■ Content Marketing Strategy / SEO Strategy
■ Digital Strategy / Digital Marketing Strategy
■ Social Media Strategy
■ Mobile Strategy
■ Cloud Strategy / Data Centre Strategy
■ GO-to-Market Strategy
■ Portfolio / Application Portfolio strategy
■ Outsourcing as Strategy / Outsourcing strategy
■ Business-to-IT Alignment Strategy
■ Automation Strategy
IT Strategy – Translating Business Objectives into IT Objectives !
■ CRM Strategy / SCM Strategy / ERP Strategy • Customer Acquisition & Retention Targets (5% YoY Increase)
■ eBusiness / eCommerce Strategy • Just-in-time from Suppliers / Lower Warehousing cost (10% less)

■ Web Content strategy • More Channels / Direct Channels reaching Customers (20% ^)
• More Wallet-share from customers (5%^)
■ Data Strategy..
• Improve Brand position / Improve catchment area (Rank 5 -> Rank4)
■ Content Marketing Strategy / SEO Strategy
• Improve Customer Journey / Customer experience (CSAT++)
■ Digital Strategy / Digital Marketing Strategy
• Be Responsive company and be seen thus
■ Social Media Strategy • Ensure reach to millennials / New Service offerings (5% more GenX)
■ Mobile Strategy • Lower Operations Cost (5% lower OPS Budget)
■ Cloud Strategy / Data Centre Strategy • Launch new functionality Globally and Quickly (10 New features)
■ GO-to-Market Strategy • IT is Crucial to Business – Over 99.999 Uptime expected
■ Portfolio / Application Portfolio strategy ➢ Focus on Core Businesses. Do only what creates Differentiation !

■ Outsourcing as Strategy / Outsourcing strategy ➢ All Financial and Strategic, Long-term and Short-term Objectives are
co-owned by Business as well as IT
■ Business-to-IT Alignment Strategy ➢ Strive to look for continuous improvement in Business Processes
including touchless systems
■ Automation Strategy

Demand Side
IT Strategy – Translating Business Objectives into IT Objectives !
■ CRM Strategy / SCM Strategy / ERP Strategy • Customer Acquisition & Retention Targets (5% YoY Increase)
■ eBusiness / eCommerce Strategy • Just-in-time from Suppliers / Lower Warehousing cost (10% less)

■ Web Content strategy • More Channels / Direct Channels reaching Customers (20% ^)
• More Wallet-share from customers (5%^)
■ Data Strategy..
• Improve Brand position / Improve catchment area (Rank 5 -> Rank4)
■ Content Marketing Strategy / SEO Strategy
• Improve Customer Journey / Customer experience (CSAT++)
■ Digital Strategy / Digital Marketing Strategy
• Be Responsive company and be seen thus
■ Social Media Strategy • Ensure reach to millennials / New Service offerings (5% more GenX)
■ Mobile Strategy • Lower Operations Cost (5% lower OPS Budget)
■ Cloud Strategy / Data Centre Strategy • Launch new functionality Globally and Quickly (10 New features)
■ GO-to-Market Strategy • IT is Crucial to Business – Over 99.999 Uptime expected
■ Portfolio / Application Portfolio strategy ➢ Focus on Core Businesses. Do only what creates Differentiation !

■ Outsourcing as Strategy / Outsourcing strategy ➢ All Financial and Strategic, Long-term and Short-term Objectives are
co-owned by Business as well as IT
■ Business-to-IT Alignment Strategy ➢ Strive to look for continuous improvement in Business Processes
including touchless systems
■ Automation Strategy
 How will we Win
How will we Ensure Strategic How will we Evolve IT Supply
And
Decisions and Behaviours ? and Capabilities ?
How will IT Help ?

Demand Control Supply

Business Context IT Principles IT Services (Service Catalogue)

Business Success IT Governance Architecture
Business Capabilities IT. Financial Management People
IT Contribution Metrics Sourcing
Take aways …
■ Strategy and Plans are very different entities with different life-cycles. Plans change
and change often while strategy might stay the same
■ While Wallmart focues on Operational Efficiencies and cares less for Customer
Intimacy or Product Superiority, 7-11 focuses on Customer Intimacy. Both are
basically in same business although 7-11 is more of a convenience store with
35000 outlets world over with 12000 in Japan alone.
■ Mapping high-level 3 Core dimensions in Tracy-Wieserama framework to
understandable terms is important – Cycle time, Transparency, Agile, Up-time, etc.
■ Governance or Decision Making process, has to be according to type of decision.
Just one Governance board for everything does not work !
■ Most IT Strategy focuses on Applications and Infrastructure side of things and do
little on Demand Side. [ It is because IT people make it and Applications are life-
blood of Business ]
Replication Unification
• Shared Customers, Partners
• Few Shared Customers, Partners, etc
• Transactions can Impact Cross Business Units
• Independent Transactions
• Operationally Similar Business Units
• Operationally Similar Business Units • Centralized Management
• Largely Autonomous Business Unit Management • Organization Wide Process Owners with Control over Business
Process Design
• Central Control over Business Process Design
• Shared Customer, Supplied, Product, Partner Data
• Shared Data Standards across Business Units
• Central Funding of All IT Investments
• Centrally Controlled IT Investment decisions
• Mandated Shared Services

Diversification Co-ordination
• Shared Customers, Products, Supplier or Partners across
• Few Shared Customers, Partners, etc
across Business Units
• Independent Transactions • Transactions can Impact across Business Units
• Operationally Unique Business Units • Operationally Unique Business Units
• Largely Autonomous Business Unit Management • Largely Autonomous Business Unit Management
• Business Unit Control over Business Process Design
• Individual Business Unit Control over Business • Shared Customers, Products, Supplier or Partners Data
Process Design • Cross Business Unit Design and funding of IT Shared Services
• Few Shared Data Standards across Business Units and Infrastructure (eg. Customer Services)
• Most IT Investment decisions within Business Units • Remainder of IT investments decisions are made within
Business Units
Replication

• Few Shared Customers, Partners, etc

• Independent Transactions
• Operationally Similar Business Units
• Largely Autonomous Business Unit Management
• Central Control over Business Process Design
• Shared Data Standards across Business Units
• Centrally Controlled IT Investment decisions
Unification
• Shared Customers, Partners

• Transactions can Impact Cross Business Units

• Operationally Similar Business Units

• Centralized Management

• Organization Wide Process Owners with Control over Business Process

Design

• Shared Customer, Supplied, Product, Partner Data

• Central Funding of All IT Investments

Diversification
• Few Shared Customers, Partners, etc

• Independent Transactions

• Operationally Unique Business Units

• Largely Autonomous Business Unit Management

• Individual Business Unit Control over Business Process Design

• Few Shared Data Standards across Business Units

• Most IT Investment decisions within Business Units

Diversification
• Few Shared Customers, Partners, etc

• Independent Transactions

• Operationally Unique Business Units

• Largely Autonomous Business Unit Management

• Individual Business Unit Control over Business Process Design

• Few Shared Data Standards across Business Units

• Most IT Investment decisions within Business Units