Course: 0624M / Information

Technology Valuation

IT Planning for Right Results

Week 09

Learning Outcome

LO7: explain and apply IT Value Planning Practices

Session 9 Plan for The Right Results
Benson et al; Chapter 9 pp. 167-197

Bina Nusantara

Plan for the right result

Topics to be discussed

Two planning process

The strategic demand/supply planning practice
The innovation planning practice
Plan for the right results

Bina Nusantara

Introduction
After we do prioritization and alignment, we
need a new approach to effective planning that
creates realistic IT plans (producing new
projects and renewed portfolios) strongly
connected to and driven from real business
requirements.
Let see exhibit 9.1.

Bina Nusantara

Bina Nusantara

Introduction
2 problems immediately confront us:
a. Connected business/IT planning has 2 very
different aspects:
Strategic Demand/Supply Planning and
Innovation Planning

b. Business and IT planning are often disconnected

in companies.

Bina Nusantara

Two planning process

Let see exhibit 9.2
There are 2 planning relationship between
business strategic intentions and IT;
1. where we want IT strategies, plans and actions
to carry out the businesss strategic intentions, to
enable them and the required business changes
to achieve the outcomes needed.
2. where IT can innovate and contribute new
business strategic intentions, as well as new
means for achieving the business strategic
intentions.
Bina Nusantara

Bina Nusantara

The business /IT Planning disconnect

Planning disconnect exhibit several symptoms:
1. IT is not directly engaged in the business planning process
2. IT and business strategic planning is essential shelfware,
reflected by the fact that annual plans and budgets are
not specifically linked to or driven by the startegic plans.
3. IT and business planning are done separately, with weak
or no interaction or linked.
4. IT planning it self is highly siloed, with little or no planning
across silos and with few company wide initiatives.
Technical (applications, infrastructures, IT services often
planned indipendently) and organitational (multiple
business units plan IT seperately)

Bina Nusantara

Connecting IT and Business Planning

The IT organization often doesnt help build
connections to business planning by manner in
which it conducts its own planning.
Often, the term IT strategic plan conveys a highly
technical perspective, focusing on the infrastructure
and technical application developments thought to
be needed.
The business/IT planning disconnect is complicated
by the common idea that business users are
responsible for doing something about the business
plan, and IT is reduced to planning its own
infrastructure requirements and positioning itself to
work through the business users.
Bina Nusantara

Connecting IT and Business Planning

Solving the disconnect starts by properly stating some
objectives to be addressed by an IT plan.
A clear statement of the strategic requirements for IT for
the company as a whole, and for each business units
A basis for prioritizing those strategic requirements
based on support of business strategic intentions
Strategic direction for the IT organization for
creating and maintaining the necessary infrastructures,
and the capabilities for deleping, delivering, and
supporting the companys applications.
Clear direction for effectively controlling the IT spend,
at the same time as improving, or maximizing, ITs
bottom-line impact.
Bina Nusantara

Connecting
planning to Mission and Right
Decisions

Let see exhibit 9.3. Mission to Planning to Right

Decision

Bina Nusantara

The strategic demand/supply

planning practice
Typically, corporate strategic planning process fail
to explicitly account for IT activities and
strategies, either on the front end as drivers for
new business strategies or on the back end as
enablers of strategic intentions.
Let see exhibit 9.4.

Bina Nusantara

Bina Nusantara

What does a Strategic D/S look like?

Properly establishing the IT strategic plan requires a
clear definition of the business strategies, as
expressed through its strategic intentions, and the
relationship between those strategies and what we
expect IT to do about them.
The ideal planning process, shown in exhibit 9.5, deals
with these elements:
- inputs ( strategic intention, portfolio strategic management,
performance management)

- outputs ( strategic agenda for the use of IT, IT strategic plan,

Strategic IT requirement)

- connections between the plan and the process

The business and IT processes for projects
The business and IT annual Planning
The companys and IT annual budget
Bina Nusantara

Bina Nusantara

The strategic agenda for the use

of IT
A critical middle step is required between
business strategy (as a resources of demand) and
IT strategies and actions (as the supplies)
Let see exhibit 9.6

Bina Nusantara

Bina Nusantara

Strategic Demand/Supply Plan

The strategic Demand/Supply is a specific
example of what we mean by cause and effect.
Let see exhibit 9.7
McFarlan has said that deciding what to do is
15% of the CIOs job; the rest is managing the
transformation
Let see exhibit 9.8; 9.9 and 9.10 (important table)
Bina Nusantara

Bina Nusantara

Bina Nusantara

Bina Nusantara

Bina Nusantara

The strategic D/S planning process

overview
The key elements of the process are:
1. establish business drivers the companys
Strategic Intentions
2. define the role of IT in reaching those business
drivers the companys strategy agenda
3. define what IT is to do the companys IT
strategic plan.
Let see exhibit 9.11
Bina Nusantara

Bina Nusantara

Management issues and Process

Description
The 2 outcomes we look for in Strategic D/S
planning are:
1. IT resources have a direct and important
impact on achieving the companys strategic
intentions
2. IT resources are most effectively allocated to
meet the companys needs.
Let see exhibit 9.12. and look to answer 3
fundamental questions!
Bina Nusantara

Bina Nusantara

Bina Nusantara

CSF: Right Decisions/Right Results in

Strategic D/S Planning
Let see exhibit 9.14

Bina Nusantara

The innovation planning practice

Let see exhibit 9.15 and 9.16
Alignment Culture
Innovation Culture
The NIE Innovation Planning process practice has 4
components:
1. Business and Technology monitoring
2. Innovation Visioning
3. Business Context and Choices
4. Actionable Innovation
Bina Nusantara

Bina Nusantara

Bina Nusantara

Plan for the right results

Where is Strategic D/S planning applied?
What outcomes does strategic D/S planning
produce?
Where is the Innovation Planning practice
applied?
What outcomes does the innovation planning
practice produce?

Bina Nusantara

Bina Nusantara

Bina Nusantara

Bina Nusantara

Bina Nusantara

The end of session 09

Bina Nusantara