The Next Big Thing
Posts about next generation technologies and their effect on business.

Strategy, Execution and IT

strategic thinking.pngRecently, I was looking at a video about business strategy and execution from the Strategy+Business blog. It talked about the five major questions a business strategy needs to answer:

  1. What businesses should we be in?

  2. How will we add value to that business?

  3. What is our target customer?

  4. What’s the value proposition for those customers?

  5. What are the capabilities we need to be distinctive for those customers?

It also discussed how easy it can be to confuse what it takes to execute a strategy with the strategy itself (e.g., a plan).

 

The video made me think about the role of IT today and how it may be perceived. Do we look at our various investments from the perspective of answering these kinds of questions or do we just look to cut costs. That difference in behavior is one of the greatest differences between an IT organization that is crucial to the business and one that is just an enabler of the business.

 

Many times I’ve mentioned the need for portfolio management within the applications of an enterprise and the fact that it may be as important what you turn off as what you turn on. In a recent discussion with an analyst about Enterprise Architecture they really downplayed the role of the current situation analysis and listening to this video just reinforced how much this value added assessment of the current portfolio can be, since by turning off those systems you free up resources to actually be strategic.

 

The business should be able to relate to a decision based on this strategic perspective, since that’s likely how they think about what they deliver to the market.

 

When planning for the future it can often require an active decision to totally break from the past approach and try a new one. This can be very risky, but there are also risks hanging on to changes that are long overdue – because we’ve always done it that way.

 

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