1. 1 Integrating Business & IT Strategy Mona Gabriel-Seow 12 August 2004

2. 2 Presentation Reference: Michael J Earl, Integrating Business & IT Strategy in Luftman (ed) Competing in the Information Age 2003 Purpose: Review of Article Supporting case studies

3. 3 Outline Summary Major Points Model Fit of Model to case studies Conclusion

4. 4 Summary Business strategy & IT thinking must align Strategy must: Support present day business activities (today) Shape future business direction (tomorrow) Proposes a model, T-Portfolio for both planning and audit T-Portfolio balances today and tomorrow’s needs Virtual Case Study of British Air

5. 5 Introduction Supporting & Shaping Business Integration of business and IT Business competing in two timeframes: Daily battle for survival Competitive initiatives for present Long-term initiatives Future vision

6. 6 Competing for Today Today – Current Needs Tomorrow – Future Needs Strategy Types” Top down (today) Bottom up (today) Middle out / inside out (today & tomorrow) Strategy Focus More today oriented than tomorrow Natural result of alignment of business & IT “Short-term survival is precondition of longer-term”

7. 7 T-Portfolio

8. 8 Investments for Today Quick Wins or “low hanging fruit” Valued by CIO/CEOs Result from bottom-up strategies Killer Applications Needed for competitive strategies Result from top-down strategies

9. 9 Competing for Tomorrow Two types of strategies New technologies allow repositioning of business in market “Learn by doing” good strategy for unknown future

10. 10 Tomorrow’s Investments Experiments: May be innovative and may shape tomorrow’s business Max 2-3 Visions: Bold moves Create new strategies / positions Max 1-2

11. 11 Earl’s IT-Portfolio Model

12. 12 British Air

13. 13 Amended T-Portfolio Model LowHigh Low High Present Future Shaping Business Supporting Business Experimental VisionaryCompetitiveness Basics E-ticketing & Self-Service Check In Based on Earl’s (2003) T-Portfolio Model

14. 14 WA Government Trends

15. 15 WA Government Strategies Focused mainly on Today’s strategies Focus of government mainly on efficiency and cost reduction not on competitiveness Heavily focused on supporting & shaping today’s business process

16. 16 Conclusion Business and IT Strategies must be aligned for business success Basic and Competitive Strategies support today’s business activities Visionary and Experimental strategies shape tomorrow’s business A slight misalignment provides for business leadership