2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Enterprise ICT (EICT) Strategy How is it related with Business Strategy ?

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Overall Effect of Digitalization Businesses rely more and more on ICT –Automation (efficiency) –Info management (quicker decision making) –Reduced complexity –Rapid innovation –…… Result: Businesses accumulate “Digital Assets” What are these digital assets? –How to manage these digital assets?

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Digital Assets Digital tools & Data –Technology implemented & info gathered Almost common across businesses Digital biz processes –Enabled by easy access to tools & data Workflows may be different even within verticals Digital channels –To connect to stakeholders (employees, investors, partners and customers) Evolving constantly

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Biz needs to manage this asset Can we use ICT to manage it? –Yes That brings us to an interesting ‘recursive’ situation –To manage digital asset we accumulate more digital asset ICTICTManagementManagement

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Design for Management (DfM) So we should create digital assets from the very beginning in such a way as that their management becomes easy and handy with ICT tools –This is DfM It’s a TOP-DOWN approach DfM is the second crux of this course –We shall try to view every article from within this framework Once you understand it, the “trash s” from top management will make sense to you –Or why your brilliant idea was shelved by your team leader

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Design for Management Top down –Not bottom up Design thinking – Ideal: Design effort 90% –Management effort 10% Real life: Design effort 30% –Management effort 70% Little scope for improvement aka innovation !!!

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Design Thinking “A methodology that imbues the full spectrum of innovation activities with a human-centered design ethos” (HBR). “By this I mean that innovation is powered by a thorough understanding, through direct observation, of what people want and need in their lives and what they like or dislike about the way particular products are made, packaged, marketed, sold, and supported.”

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Design for Management (DfM) “A methodology that imbues the full spectrum of innovation activities with a manager (human)-centered design ethos” (HBR). “Innovation is powered by a thorough understanding, through direct observation, of what managers (people) want and need in their companies (lives) and what they like or dislike about the way particular products and/or services are made, packaged, marketed, sold, and supported. But if ICT centre is always thinking about how to manage technology, when can it think about managers?

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Example You – as an ICT manager – have been asked to advise a BU head for the specification of the smart phones to be purchased for its sales force. How would you go about it?

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Design for Management Business Strategy EICT Strategy Enterprise ICT Architecture ICT Infrastructure Business Goals TOP DOWN

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India REFER TO ARTICLE 5 IN THE HANDOUT Business–IT strategic alignment maturity: predicting the impact on transformational strategy and business results, Elby M. Nash, IEEE IT Professional, 2009.

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India ICT Investment & Productivity Higher levels of ICT investment improve business productivity, provided these investments are complemented with changes in operational strategy, management practices or work structures (e.g., organization). harmonizationImpact of these ‘complementary factors’ on business performance can be understood as harmonization of a firm’s business and ICT goals and objectives, i.e., ‘strategic alignment’.

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Biz.-ICT SA MM

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Alignment does matter Strategic alignment maturity model (SAMM) posits that higher overall levels of strategic alignment maturity better enable business transformation. A firm having a higher level of strategic alignment maturity should demonstrate better overall economic performance than its industry peers. Refer to Fig 1 of the article –Did you feel it in your previous organization?

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Model & Criteria

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Symptoms of Poor Alignment Poor understanding and rapport between ICT management and business Ongoing conflicts between business and ICT Continual questions about the value of ICT Lack of vision and strategy (business + ICT) No seat at the business table for ICT Projects not used, canceled or late Declining business productivity

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Findings to note Firm-level sales and level of Strategic Alignment maturity – shown to be positively correlated, –although additional research needs to be done to clarify the direction of causality “Alignment gap” and firm-level “productivity and profitability” – shown to be positively correlated.

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India EICT Strategy: How and What Implementation

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India EICT Strategy High level decisions about the strategic role of EICT in the business –How do the business principles translate to ICT principles that guide ICT decision making? –What is the role of ICT in the business? –What are desirable ICT behaviours? –How will ICT be funded? EICT Strategies are to be decided by CIO along with other CXOs/BU leaders Ref: Davenport, Hammer & Metsisto 1989, Broadbent & Weill 1997

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Features EICT vision and strategy must be in line with the company’s business vision and strategy –Alignment So EICT strategy must be derived from business strategy by senior executives and top ICT management –Top-down The role of CIO and his team is most crucial to ensure the above alignment –ICT leadership

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India EICT Strategy Operationalization Three major domains: –EICT Architecture Enterprise-wide Architectural Control –ICT Infrastructure Technology to be Implemented –ICT Investment Project Prioritization and Funding Once architecture and infrastructure are planned, the budget must be approved by CEO [Ref: MIT Sloan CISR Research]

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Definitions EICT architecture –At the enterprise level, it is the organizing logic for applications, data, infrastructure technologies, as captured in a set of policies and technical choices, intended to enable the firm’s business strategy ICT infrastructure –It is the collection of technology platforms, off- the-shelf or customized, deployed according to the architecture defined at the higher level to best suit the processes intended to run on them

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India Responsibility CEO CIO CIO’s Office Business Strategy EICT Strategy Enterprise ICT Architecture ICT Infrastructure

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India This is not a one-time task Change in Biz. Strategy New technologies Business Strategy EICT Strategy Enterprise ICT Architecture ICT Infrastructure

2015, D. Saha, Indian Institute of Management Calcutta (IIM-C), India What decides EICT strategy? EICT Strategy Business Strategy State-of-art ICT Purview of this course