ITDDS Data: PO1 Define a Strategic IT Plan

IT strategic planning is required to manage and direct all IT resources in line with the business strategy and priorities. The IT function and business stakeholders are responsible for ensuring that optimal value is realized from project and service portfolios. The strategic plan improves key stakeholders’ understanding of IT opportunities and limitations, assesses current performance, identifies capacity and human resource requirements, and clarifies the level of investment required. The business strategy and priorities are to be reflected in portfolios and executed by the IT tactical plan(s), which specifies concise objectives, action plans and tasks that are understood and accepted by both business and IT.

Control over the IT process of Define a Strategic IT Plan that satisfies the business requirement for IT of

sustaining or extending the business strategy and governance requirements while being transparent about benefits, costs and risks

focuses on

incorporating IT and business management in the translation of business requirements into service offerings and developing strategies to deliver these services in a transparent and effective manner

is achieved by

Engaging with business and senior management in aligning IT strategic planning with current and future business needs
Understanding current IT capabilities
Providing for a prioritization scheme for the business objectives that quantifies the business requirements

is measured by

Percent of IT objectives in the IT strategic plan that support the strategic business plan
Percent of IT projects in the IT project portfolio that can be directly traced back to the IT tactical plans
Delay between updates of IT strategic plan and updates of IT tactical plans

Management of the process of Define a Strategic IT Plan that satisfies the business requirement for IT of sustaining or extending the business strategy and governance requirements whilst being transparent about benefits, costs and risks is:

1 Non-existent
2 Initial/Ad Hoc
3 Repeatable but Intuitive
4 Defined
5 Managed and Measurable
6 Optimized

Benchmarks/Guidelines for Scoring

1 Non-existent when
IT strategic planning is not performed. There is no management awareness that IT strategic planning is needed to support business goals.
2 Initial/Ad Hoc when
The need for IT strategic planning is known by IT management. IT planning is performed on an as-needed basis in response to a specific business requirement. IT strategic planning is occasionally discussed at IT management meetings. The alignment of business requirements, applications and technology takes place reactively rather than by an organization-wide strategy. The strategic risk position is identified informally on a project-by-project basis.
3 Repeatable but Intuitive when
IT strategic planning is shared with business management on an as-needed basis. Updating of the IT plans occurs in response to requests by management. Strategic decisions are driven on a project-by-project basis without consistency with an overall organization strategy. The risks and user benefits of major strategic decisions are recognized in an intuitive way.
4 Defined when
A policy defines when and how to perform IT strategic planning. IT strategic planning follows a structured approach that is documented and known to all staff. The IT planning process is reasonably sound and ensures that appropriate planning is likely to be performed. However, discretion is given to individual managers with respect to implementation of the process, and there are no procedures to examine the process. The overall IT strategy includes a consistent definition of risks that the organization is willing to take as an innovator or follower. The IT financial, technical and human resources strategies increasingly influence the acquisition of new products and technologies. IT strategic planning is discussed at business management meetings.
5 Managed and Measurable when
IT strategic planning is standard practice and exceptions would be noticed by management. IT strategic planning is a defined management function with senior-level responsibilities. Management is able to monitor the IT strategic planning process, make informed decisions based on it and measure its effectiveness. Both short-range and long-range IT planning occurs and is cascaded down into the organization, with updates done as needed. The IT strategy and organization-wide strategy are increasingly becoming more coordinated by addressing business processes and value-added capabilities and leveraging the use of applications and technologies through business process re-engineering. There is a well-defined process for determining the usage of internal and external resources required in system development and operations.
6 Optimized when
IT strategic planning is a documented, living process; is continuously considered in business goal setting; and results in discernible business value through investments in IT. Risk and value-added considerations are continuously updated in the IT strategic planning process. Realistic long-range IT plans are developed and constantly updated to reflect changing technology and business-related developments. Benchmarking against well-understood and reliable industry norms takes place and is integrated with the strategy formulation process. The strategic plan includes how new technology developments can drive the creation of new business capabilities and improve the competitive advantage of the organization.