IT Strategy: Making IT Fit for the Digital Transformation

Description

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 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