This IDC Perspective emphasizes the critical role of CIOs in aligning IT strategy with business goals, especially given the varied backgrounds of many CIOs. It outlines a six-stage framework to guide the development of a business-aligned IT strategy, starting with understanding the business strategy and goals, followed by a thorough competitive analysis and an evaluation of the current IT landscape. The framework then moves on to defining the IT strategy, conducting a gap analysis, and creating a strategic IT road map. Each stage is designed to ensure that IT initiatives directly support the organization's strategic objectives, enabling CIOs to enhance competitiveness and drive long-term success through technology. "CIOs must move beyond viewing IT as a support function and instead focus the IT organization on transforming the business by enabling the business strategy," says Gerald Johnston, adjunct research advisor for IDC's IT Executive Programs (IEP).
Executive Snapshot
Situation Overview
Framework
Stage 1: Understanding the Business: Strategy, Goals and Objectives, and Guiding Principles
Importance of Alignment
Stage 2: Understanding Competitors and How Their Strategy Fits in the Landscape
Competitive Analysis
Why Do IT Leaders Need to Know the Competitive Position of the Business?
Stage 3: Current State Analysis of IT and How It Fits the Business Strategy
IT Landscape Assessment
Alignment with Business Goals
SWOT Analysis
Why Perform the Current State Analysis
Stage 4: Definition of the IT Strategy
Key Steps in Defining and Refining the IT Strategy
Develop the Initial IT Strategy (Straw Man)
Stage 5: Gap Analysis
Identify Gaps
Implementation
Prioritize Gaps
Implementation
Root Cause Analysis
Implementation
Example Scenario
Identifying Gaps
Prioritizing Gaps
Root Cause Analysis
Action Plans
Stage 6: Strategic IT Road Map
IT Strategic Road Map
Governance and Metrics
Implementation
Importance of Governance, Metrics, and Communication