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1 IT Strategy – a greyhound or a rocket powered beagle? Rod Clarke.

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Presentation on theme: "1 IT Strategy – a greyhound or a rocket powered beagle? Rod Clarke."— Presentation transcript:

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2 1 IT Strategy – a greyhound or a rocket powered beagle? Rod Clarke

3 2 Greyhounds and rocket powered beagles…. An ill thought out e-commerce strategy is a bit like strapping a beagle to a rocket and entering it in a greyhound race….. Youll get a brilliant start, but things will get really messy when you hit the first corner. Colin Statter, (ex) Internet Services Director, Corporate Express

4 3 An IT Strategy – some key elements Driven by clearly articulated business strategy – the value disciplines plus… Written for real people not techies Focus on: Business processes to deliver business strategy - first Application software to support business processes – and only then… Hardware and networks to support software About a 5 year horizon, but rolling Agreed by, owned by, and monitored by, the business

5 4 Value Disciplines DisciplineFocus of DisciplineFeatures of IT strategy Operational Excellence Manufacture to Least cost Focus on Small range of Products Waste Elimination Cost effective Supply chain systems Simple low cost approach Single Database Financial controls key Customer Intimacy Knowing the customer Responsive to customer Customer Relationship Management systems Good Operational ERP systems Product Leadership Leading the market through product design Quick and first to market Requires strong Project Management systems Good operational systems

6 5 Does it pass the PO test? An IT Strategy – the tests… Is your IT strategy… –Written in Plain language –Focused on the business needs –Understood at Board level –Flexible, yet precise –Affordable –Referred to as decisions are made –Reviewed and updated regularly as business and technology changes

7 6 Evolution of an organisation Connected Technology, People and Processes joined-up. Computerised Highly automated environment Controlled Failures in operations are very rare, being eliminated Controlled Failures in operations are very rare, being eliminated Co-ordinated. Operations and processes perform as expected most but not all of the time. Chaos Manual Environment; lack of processes; informal ; entrepreneurial; constant change of direction. ITIMPORTANTCEITIMPORTANTCE HIGH LOW

8 7 E-enabled Customer and suppliers connected on the web, all processes computer controlled, and well managed. Everywhere Planning, Manufacturing Execution, CRM, Warehouse automation. Much Integrated ERP system, Planning and performance measures Some Production control, and spreadsheets None A coherent systems map Connected Technology, People and Processes joined-up. Computerised Highly automated environment Controlled Failures in operations are very rare, being eliminated Controlled Failures in operations are very rare, being eliminated Co-ordinated. Operations and processes perform as expected most but not all of the time. Chaos Manual Environment; lack of processes; informal ; entrepreneurial; constant change of direction.

9 8 Rules on IT Strategy Do not computerise the uncontrolled Do not use systems and processes one level up for a level further down Do-not e-enable the chaotic Do-not automate before you have control Walk up the steps

10 9 The Delos Model For Business Integration Innovation Innovation Vision Strategy Prioritisation Prioritisation Demand Support Supply

11 10 A IT Systems Map PERT PERT Vision Strategy Optimiser Optimiser CRM/SFDM AP/AR/GL APS/MPS PDM

12 11 The Acronyms CRM SFDM APS MPS PERT PDM Customer Relationship Management Sales Forecasting and Demand Management Advanced Planning System Master Production Scheduling Project Evaluation Technique Product Data Management

13 12 DELIVERING: Technology as the outcome, not as the start pointTechnology as the outcome, not as the start point Clear time phased action plans and prioritiesClear time phased action plans and priorities Ability (and willingness) to payAbility (and willingness) to pay Organisational implicationsOrganisational implicationsDELIVERING: Technology as the outcome, not as the start pointTechnology as the outcome, not as the start point Clear time phased action plans and prioritiesClear time phased action plans and priorities Ability (and willingness) to payAbility (and willingness) to pay Organisational implicationsOrganisational implications Gap Analysis Business/IT Strategy Action Plans Gap Analysis Business/IT Strategy Action Plans Do-wells Strategic Imperatives Do-wells Desired End State Desired End State Business Scenarios Business Scenarios Business Principles Business Principles IT Principles IT Principles How to build an IT Strategy

14 13 DELIVERING: Technological Solution in search of a business problemTechnological Solution in search of a business problem Short-term reaction to IT DevelopmentShort-term reaction to IT Development Insufficient funds to complete technological improvementsInsufficient funds to complete technological improvements Dysfunctional organisationDysfunctional organisationDELIVERING: Technological Solution in search of a business problemTechnological Solution in search of a business problem Short-term reaction to IT DevelopmentShort-term reaction to IT Development Insufficient funds to complete technological improvementsInsufficient funds to complete technological improvements Dysfunctional organisationDysfunctional organisation Business Strategy/ Company direction Business Strategy/ Company direction Gap Analysis/ IT Strategy Gap Analysis/ IT Strategy Undesired End State Undesired End State IT Solution IT Principles IT Principles Business Strategy Business Strategy How not to build an IT Strategy

15 14 Developing an IT Strategy Carry out an independent evaluation of your current state Conduct an up to date view of best practice and latest technology Get an independent review of the market – hardware, software and support Create a planned and controlled process to fit the IT solution correct for Business Establish a business led process to implement

16 15 Sources of help for strategy Strategic consultancy –Accenture –Cap Gemini –IBM Specialist IT consultancy –IBM –CSC Software or Hardware Vendor –IBM –HP –SAP –Oracle

17 16 Rod Clarke 20 years in Life Sciences - ICI Agrochemicals, Zeneca Agrochemicals, Glaxo Wellcome Business, not IT, background Manufacturing and Supply Chain Management focus MRPII Project Lead in ICI UK and USA MRPII Class A at ICI CIO for Global Manufacturing & Supply at Glaxo Wellcome – the SAP decision Founder member of the Delos Partnership Limited January 2003

18 17 Wherever you go…. You need someone who is: –Truly independent –Understands your business issues –Can talk to the business without mention of bits and bytes –Has experience of IT in a Business Excellence environment Rod Clarke The Delos Partnership Limited +44 (0) (0) Rod Clarke The Delos Partnership Limited +44 (0) (0)

19 18 Rod Clarke provides guidance, advice and support to businesses in successfully applying IS/IT in support of their business goals. He brings a pragmatic and business focused approach to the development of IS/IT strategy and the evaluation, selection, implementation and exploitation of information systems that underpin World Class performance. Rod has worked in supply chain management and IS/IT for twenty years. In this time he held senior management, project leadership and operational management roles in the three of the worlds largest chemical and pharmaceutical companies. Rod is a founder member of The Delos Partnership. He co-authored the books Integrated Enterprise Leadership – Managing Uncertainty in the 21st Century and The Chief Executives Guide to Performance Measurement. ROD CLARKE


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