Developing IT strategy

In previous issues of Smart Business,
members of MIS Group, one of the
nation’s premier software and technology service providers, have discussed the
importance of developing an intentional
approach to the integration of business
and technology. They also covered the
need for every company to develop a
superior business strategy. Last month,
Chuck Reeves, MIS Group’s vice president of Technical Services, described the
strategic roles of IT: automation, empowerment, control and transformation.

Smart Business followed up with
Reeves to get more specific about how to
align business strategy and IT strategy.

What are the effects of having a business
strategy and IT strategy that is not aligned?

They are sometimes subtle and sometimes obvious, but always costly. A business leader may think all the right systems are in place, but just can’t quite
seem to get accurate information to the
right people when necessary. There
always seems to be a logical explanation
but never a different result. The business
executive may imagine that things are so
close to being right that months or years
can pass while the organization limps
along.

Why is it difficult for small and midsize businesses to integrate strategies?

For years, there has been a lot of talk
about getting the chief information officer a seat in the boardroom; however,
small or midsize businesses don’t always
have a board or a CIO.

Typically, the smaller the organization,
the more narrowly focused IT strategy
becomes. The IT adviser is often the person focused on infrastructure. Then, one
day, he or she trades the off-the-shelf
application for something more robust
and specific to the company’s needs. Now
there are two IT advisers, one focused on
infrastructure and the other focused on
the application. In some cases, there are
multiple applications with multiple advisers who see the world through their narrow specialty. Continuing this train of
thought, the organization adds more technical dimensions, such as work force
automation or process improvement, and
eventually it realizes a lot of money and
energy has been spent implementing disparate systems without a strategy.

What should a business without a CIO do to
ensure harmony between IT and business
strategy?

Someone at the top must recognize the
need for a different approach and must
have access to someone that is qualified
to provide comprehensive, supportive IT
strategy. Finding this person is no simple
task. Many IT professionals think that
because they are experts in their specialized field of IT that they are qualified IT
strategists. Being a good IT strategist
requires more than knowing IT.

How do you recognize a good IT adviser?

Four things serve as a starting point:

  • Know the business — its mission,
    strategies, activities, core competencies,
    critical success factors and the internal
    value chain.

  • Know the marketplace — the external forces that impact the business strategy, the industry, critical success factors,
    the business’s position in the market and
    relationships with key buyers and vendors.

  • Know the internal IT environment,
    including current or planned applications, budgets, and the skills and attitudes
    of the staff.

  • Stay a couple of years ahead of current needs according to the business
    vision. Get to a point where they are
    ahead of the curve, looking to the future.
    Playing catch up is always more costly
    and frustrating.

Where do you find good IT advisers?

There are firms that provide these services. We suggest an interview process
based on the four criteria I just mentioned. It is important to identify someone that has the ability to understand
each of these four points and has the
enthusiasm to appreciate each point.
Attitude should play a significant role in
the selection. While many firms no doubt
want to use this practice to sell other
products or services, it should be clear
that their motivation is to first understand
the business environment and that benefiting the client supersedes their motive
to sell more of their own products and
services.

Finally, patience is required. The senior
management should understand that it
takes time for someone to understand the
business objectives, the internal and
external dynamics, the state of existing
technology, the politics, the culture, etc.
It also takes time to develop a plan, begin
implementation, maintain progress and
begin looking to the future. This is a collaborative effort, not a quick fix.

CHUCK REEVES is vice president of Technical Services for MIS Group. Reach him at [email protected] or
(866) 467-4181.