Create an IT strategy for your company with this book.In seven consecutive steps, this book presents the development of an IT strategy for manufacturing companies with the possibility of practical implementation using ready-made worksheets. It looks at all the issues relevant to an IT strategy, from deriving the IT strategy from the corporate strategy to creating the application and sourcing strategy. The role of IT in the company and the role of the CIO are examined in detail, and the demand/supply model is presented in detail as a structural organisation. In this book, the reader learns how to transfer the IT strategy into a roadmap for implementation, how to use a portfolio to control the projects and how to implement and control the goals of the IT strategy with a specially developed IT strategy cockpit.
The second edition takes greater account of digitalisationThis second edition focuses on manufacturing companies in order to take into account the industry focus of any IT strategy. It also considers the distinction from digitalisation and digitalisation strategies and contains additional explanations on agile methods, DevOps as well as bi-modal IT structures. As a result, the existing 7-step concept for developing an IT strategy has become more focused and has taken on the current issues of IT and digitalisation, which continue to develop at a rapid pace.
In terms of content, the book on creating IT strategies focuses on the following areas:
- Fundamentals of IT strategy as well as differentiation from a digitalisation strategy.
- Reasons for an IT strategy
- As-is analysis of IT
- Analysis of the corporate strategy
- IT application strategy
- Sourcing strategy
- IT organisation and IT governance
- Practical implementation: budgeting, IT roadmap and IT project portfolio
- Monitoring and control of the IT strategy with the IT strategy cockpit
The author primarily addresses CIOs and IT managers of medium-sized to large companies and groups in the manufacturing industry. In addition, the book is suitable for the following target groups:
- IT staff, IT controlling and IT management level employees.
- IT management consultants
- CFOs, CEOs, managing directors and board members of manufacturing companies
Author(s): Volker Johanning
Publisher: Springer
Year: 2022
Language: English
Pages: 314
City: Cham
Preface
Contents
List of Figures
About the Author
Part I Introduction and Basic Information on IT Strategy
Introduction to the Topic
Abstract
IT Strategy: Definitions
How Can this be Successfully Realized?
Areas of Application, Benefits and Target Group of an IT Strategy
Strategic Planning and Management of IT
Delimitation of IT Strategy to Digitalization Strategy
Working Questions for Chapter 1
Six Good Reasons for an IT Strategy
Abstract
Organizational Challenges
The Role of IT in the Company
The Role of the CIO in the Company
Business-IT Alignment and Improvement of Customer Benefits
Dealing with Globalization
Sourcing Problems: Management of the Supplier Portfolio
What does IT Cost?
Project Management Skills and Better Time-to-Market
Compliance and Risk and IT Security Management
Mergers & Acquisitions
IT as an Enabler for Digitization and Industry 4.0 in the Manufacturing Industry
Working questions for Chapter 2
Reference
The Approach Model for Developing the IT Strategy
Abstract
The 7 Steps to the IT Strategy at a Glance
Preparations: Developing the IT Strategy as a Project
Step 1: Status Analysis
Step 2: Analysis of the Company Strategy and Derivation of Challenges for IT
Step 3: The Application Strategy
Step 4: The Sourcing Strategy
Step 5: The IT Organization and IT Governance
Step 6: Implementation—The IT Roadmap, Determination of the IT Budget and the IT Project Portfolio
Step 7: The IT Strategy Cockpit
Methodical Structure of the 7 Steps to IT Strategy
Theoretical Part with Practical Examples
Working Questions and Implementation
Conclusion
Introduction to the Example Company
Part II 7 Steps to a Sustainable IT Strategy
Preparations: Setting up the Development of the IT Strategy as a Project
Abstract
Goals of the IT Strategy
The IT Strategy as a Project
Scope and Scope (Scope) of the IT Strategy Project
Size of the Strategy Project Team
Responsibility and Leadership of the IT Strategy Project
The Project Organizational Chart
Definition of Work Packages Including Cost Estimation and Scheduling for an IT Strategy Project
Costs and Budget for an IT Strategy
Stakeholder Analysis for the IT Strategy
Procedure for Creating a Stakeholder analysis
Phase 1: Identification of All Relevant Stakeholders
Phase 2.1: Evaluation of the Influence
Phase 2.2: Evaluation of Interest
Phase 2.3: Evaluation of the Setting
Phase 3: Derivation of Measures
Time Horizon of the IT Strategy
The Economic Efficiency of an IT Strategy
Possible Problems on the Way to the IT Strategy
Working Questions for Setting up the IT Strategy Project
Step 1: IT Status Quo Analysis
Abstract
IT Processes
IT Governance, IT Organization and IT Employees
Technology
Finances
Working Questions and Implementation Step 1
What is Required for Step 1
Involved Step 1
Notes on Evaluating the Results
Examples for Step 1
IT Processes Questionnaire
Questionnaire “IT Governance, IT Organization and IT Employees“
Technology Questionnaire
Questionnaire “Finance and Compliance“
Evaluation of the Questionnaires: Creation of the as-is Maturity Model
Worksheet: Derivation of the Areas of Action from the Status Quo Analysis
Conclusion Step 1
Step 2: Analysis of the Corporate Strategy and Derivation of Challenges for IT
Abstract
The Starting Situation
Internal and External Influencing Factors
The Corporate Strategy
The Boston Consulting Group Matrix
Competitive Strategy (Michael E. Porter)
The Business Processes
Requirements from the Departments
Deriving Challenges for IT
The IT Vision
Working Questions and Implementation Step 2
Involved Step 2
Determine the Starting Situation
The Corporate Strategy
The Business Processes
Requirements from the Departments
Derivation of the Action Strands for IT
The IT Vision: Where Do We Want to Go?
Conclusion Step 2
Step 3: The IT Applications Strategy
Abstract
Creating the Application Portfolio
The Application Life Cycle
Evaluation of Applications and Derivation of Action Options
The Application Roadmap
Working Questions and Implementation Step 3
Preparations for Step 3
Creating the Application Portfolio
Creating the Application Portfolio
Dividing the Applications into the Life Cycle
Evaluation of Applications and Derivation of Action Options
Creating an Application Roadmap
Conclusion Step 3
Step 4: The Sourcing Strategy
Abstract
Basic Questions on Sourcing
Motives for a Sourcing Strategy
Opportunities and Risks of Outsourcing
The Economic Feasibility of IT Outsourcing Projects
The Type of Sourcing: Which IT Services can be Outsourced?
IT Infrastructure Outsourcing
Application Outsourcing
Business Process Outsourcing
Cloud Computing
Sourcing Strategies at a Glance
Determination of the General Manufacturing Depth of the IT Organization: Degree of Outsourcing
Number of Providers: Single Sourcing vs. Multi-sourcing
Location of Service Delivery
The Sourcing Governance
Before the Sourcing Decision (On the Way to the Right Provider)
After the Sourcing Decision (Control of the Provider)
Example: The Sourcing Strategy for the Produktio weltweit GmbH
Excursus: Tender for an IT Sourcing Project in 5 Phases
Phase 1: Project Management and Scope
Phase 2: The Tendering Phase
Phase 3: Selecting the Provider
Phase 4: Contract Negotiations
Phase 5: The Transition Phase
Work Questions and Implementation Step 4
Preparations for Step 4
Current Situation Assessment Sourcing
Creating the Sourcing Strategy
Sourcing-Governance
Conclusion Step 4
Step 5: IT Organization and IT Governance
Abstract
The IT Organization Model
Overview of Different IT Organizational Forms
The “Plan-Build-Run” model
Shared Service Models
Three Speeds in IT Organizational Models
The IT Organization of Produktio weltweit GmbH (An example)
The Demand/Supply Organizational Model
Goals of the Demand/Supply Model
Integration of Demand/Supply into the Department or Business Area of the Company
The Roles and Interfaces between the Department, Demand and Supply
The Supply-IT
Introduction of the Demand/Supply Organization at Produktio weltweit GmbH (Example)
IT Governance: Role of IT and Guidelines and Rules for IT in the Company
The Role of IT in the Company
The Role of IT in the Produktio weltweit GmbH
The Role of the CIO in the Company
Committees in IT
Responsibility for Process Management in IT or in the Department?
Local versus Central Tasks of IT
Line versus Project
Developing a Personnel Strategy for the IT Organization
Necessary Decisions
Needs Planning with the “gap analysis”
Phase 1: What are the Most Important Positions?
Phase 2: Who are the Best Employees in the Company?
Phase 3: Fit-/Gap-Analyse between Job Requirements and Employee Performance Level: Are the High Performers in the Right Positions?
Work Questions and Implementation Step 5
Preparations for Step 5
Make Basic Assumptions for the IT Organization
Build a Demand/Supply Organization
Questions on IT Governance/the Rules of the Game
Role of IT in the Company
Role and main tasks of the CIO
Committees in IT
Development of the Personnel Strategy with the “gap analysis”
Conclusion Step 5
Step 6: Implementation—The IT Roadmap, Determination of the IT Budget and the IT Project Portfolio
Abstract
Creating an IT Roadmap
Summarizing the Results in Measure Packages
Measures for Step 1: Current Analysis
Measures for Step 2: Derivation of Challenges for IT/IT Vision
Measures for Step 3: IT Application Strategy/application roadmap
Measures for Step 4: IT Sourcing
Measures for Step 5: IT Organization/IT Governance
Deriving Measures into an IT Roadmap
Determining the Necessary IT Budget
IT Investment Overview
Identify Potentials and Synergies of Measures
The IT Project Portfolio
Definitions and Delimitations
Areas of Application of IT Project Portfolios
Goals and Tasks of Project Portfolio Management
The Approach Model for Creating and Monitoring a Project Portfolio
Excursus: Project Life Cycle
Phase 1: The Inclusion and Evaluation Process
Phase 2: The Portfolio Creation Process
The Benefit and Strategy-oriented IT Portfolio
The Use- and Risk-oriented IT Portfolio
Phase 3: The Portfolio Monitoring Process
Phase 4: Project End: Acceptance and Evaluation
Organizational Involvement
Working Questions and Implementation Step 6
Preparations for Step 6
The Roadmap for the IT Strategy
Determining the IT Budget
The Project Portfolio
Conclusion Step 6
Step 7: Monitoring and Control of the IT Strategy with the IT Strategy Cockpit
Abstract
Basics of the IT Strategy Cockpit
The Foundation of the IT Strategy Cockpit: The Balanced Scorecard
Goals of the Balanced Scorecard
The 4 Perspectives of the Balanced Scorecard
The Structure of the IT Strategy Cockpit in 4 Phases
Phase 1: Identifying the Right Key Figures (KPIs) Per Perspective
Phase 2: Determination of Target Corridors or Target Values per Key Figure
Phase 3: Determine Responsible Persons for the Key Figures
Phase 4: Deviation Analysis: Derive Measures in Case of Deviations
Implementation Possibilities of an IT Strategy Cockpit
List of Key Figures with Excel
A Simple Isolated Solution
Implementation of the Strategy
Change Management: Organizational Adjustments
Involving Stakeholders
Strategy Implementation as a Leadership Task
Communication of the IT Strategy
Working Questions Step 7
Preparations for Step 7
Creating the IT Strategy Cockpit
Checklist Implementation of Strategy
Conclusion and Outlook
Abstract
References
