CUSTOMatrix™ Insights Newsletter

IT Strategic Planning Factors

Bruce Maches, Principal, CIO Services, CUSTOMatrix, Inc.

To effectively manage any corporate function, especially IT, requires a thoughtful and comprehensive planning process. There are many factors to be considered when creating a long range IT plan. Of course, ITs primary objective is to keep the inner workings of the business flowing smoothly while also performing long range planning amid a sea of technology, regulatory, and business changes. Summarized below are a number of factors that should be considered and incorporated into any IT strategic planning exercise.

Immediate Needs

The primary criteria by which most IT organizations are judged is how well they support their users IT needs. If an IT group is dealing with issues delivering basic services regarding network availability, email, applications, and desktop support then it must focus initially on projects supporting operational aspects in its planning process before spending significant time on long term planning efforts.

Corporate & Strategic Goals:                    For IT to properly plan its long term projects and activities it is imperative that the goals and objectives of the IT organization are in alignment with those of the business overall. The IT organization should be able to take all of its projects and activities and be able to articulate how those activities support a major objective of the business. This requires that the IT organization be involved at the beginning of the corporate planning exercise instead of as an afterthought. Unfortunately not all organizations give IT a place at the table during when setting corporate strategy.

Business Drivers:            All businesses deal with changes in the competitive landscape. New products, competitors, pressure to reduce costs, off shoring, and the advent of new technologies can have tremendous impact on an organization. Understanding possible threats and opportunities can shape the overall strategic planning process.

Corporate Culture:          How an organization manages change and the level of risk it is willing to undertake are both factors that influence the strategic planning process. Organizations that are resistant to change will be slow in adopting new technologies same as those that are averse to taking risks. An adept CIO will take these factors into account when defining a long term project portfolio.

Technology Changes:                    This is an area that a CIO has very little control over. Vendors are always going to upgrading and enhancing their offerings and letting older versions fall off of support. CIO’s need to understand vendors product maps and also be aware of new technologies on the horizon that could have a potential impact on the organizations IT environment.

Company Management:              Another factor to consider is company management. Are they progressive in their thinking? Do they understand how technology can impact their business? Do they have a tolerance for risk and are willing to take chances? These items all need to be considered as part of the planning process.

Financial Constraints:                    Any plan must take into account budgetary realities when formulating project plans addressing immediate needs and long term strategies. IT departments are always dealing with high user demands for applications and services, shifting budget priorities, technology obsolescence and maintaining a reliable technology infrastructure for the business. Most IT groups are not in a position to satisfy all of the use demands and must be able to prioritize projects based on value delivery to the business.  

Regulatory Environment:             Years ago this was an area of little concern to IT management. Some industries such as pharmaceuticals were already adapted to significant regulatory oversight. As issues around data protection, privacy, personal information, CIO’s are having to spend more time and money responding to regulatory requirements such as HIPAA, and SOX while complying with regulations promulgated by agencies such as the FDA, EPA, and SEC. Requirements and evolution of the regulatory environment is a key factor as CIO’s lay out their long term strategies.

Competitors:       It is also important that an IT group is aware of what the companies competitors are doing, what technologies they are using and how they are leveraging technology in their business.

Authored by Bruce Maches, IT consultant with over 30 years experience in IT management, systems selection, design, and implementation. He has worked with or consulted with such firms as IBM, SAIC, EDS, Pfizer, Lilly and Lucent.  Bruce Maches currently serves as the lead for the CIO Services practice for CUSTOMatrix.

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