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Difference between revisions of "IT Strategy (Information Technology Strategy)"

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== What is the Definition and Meaning of IT Strategy? ==
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'''IT strategy''' ('''information technology strategy''') is an organization's plan for turning business goals and objectives into priorities for technology capabilities, investments and action. It defines the role technology will play, the choices that guide its use and development, and the commitments needed to put those choices into practice. This gives business and IT leaders a shared basis for directing resources and reviewing results.
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IT Strategy, or Information Technology strategy, is an approach to creating an information technology capability for maximum and sustainable value for an organization. Simply put, it communicates how technology will be used by an organization to achieve its goals and objectives.
 
  
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An IT strategy bridges the gap between IT capabilities and business objectives, ensuring that technological efforts align with the organization's overall mission and goals. It guides the organization's technology decisions, helping it to create a competitive advantage, achieve operational efficiency, drive innovation, and deliver superior customer experiences.
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A written IT strategic plan records these priorities, choices and commitments. IT strategic planning is the activity of developing and reviewing those choices. Usage varies: a document called an IT strategy may contain both strategic direction and implementation detail.
  
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Setting a strategic direction for IT efforts helps organizations avoid unnecessary or redundant technology investments. It also prepares organizations to be agile, adapting their technology stance in response to market changes, industry trends, or unforeseen circumstances like a global pandemic.
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In practical terms, IT strategy connects what the organization wants to achieve with decisions about systems, data, services, people and investment. Business needs can compete for limited funding, skills and capacity for change, making priorities and tradeoffs central to strategy. Its scope may span an enterprise, a business unit or a technology domain. Public and nonprofit organizations use IT strategy to pursue mission and service objectives as well as operational needs.
  
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An organization’s IT Strategy:
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== Scope and characteristics ==
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*Clarifies the role and use of IT in an organization or business
 
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*Aligns investment in IT with the business’s imperatives/priorities;
 
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*Provides focus and direction to its IT Department or Function
 
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*Helps in better communication and coordination between business functions and lines of business with the IT Organization
 
  
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A comprehensive IT strategy extends beyond the organization's immediate technology needs. It encapsulates a future-focused perspective, providing an idea of where IT should head over the next three to five years. It incorporates current and future IT projects, potential technology advancements, and emerging trends that might shape IT requirements and innovations.
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IT strategy concerns [[IT Capability|IT capabilities]]: the abilities an organization develops or uses through combinations of information, people, processes, services and technology. Examples include coordinating information across business units, providing dependable digital services, or supporting a different way of delivering a product. Hardware, applications and networks contribute to these capabilities, alongside skills, responsibilities and working practices.
  
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A comprehensive IT Strategy should cover key aspects of technology management, planning, and governance, including service management, risk management, cost management, human resource management, hardware and software management, and vendor management.
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A choice becomes strategically significant through its implications for organizational direction and commitments. For example, an organization seeking consistent service across business units may make shared customer information a priority. That choice can affect applications, data responsibilities and subsequent investments across several services. The significance comes from these relationships and consequences; the price or novelty of a technology alone does not establish its strategic role.
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An IT strategy typically includes the following elements:
 
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*High-level overview of the IT department, covering its mission, core values, objectives, and approaches to achieving these objectives.
 
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*Current budgets and spending forecasts for a multi-year timeline.
 
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*Outline of current and future IT projects and initiatives, along with timelines and milestones.
 
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*Catalog of existing enterprise architecture, IT department capabilities, and future needs, including infrastructure, staffing, and other necessary resources.
 
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*Analysis of IT's strengths and weaknesses.
 
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*List of internal and external forces (e.g., market and industry trends) that shape current technology requirements, innovations, and anticipated future forces.
 
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*Identify potential opportunities and vulnerabilities that require technology responses to best position the organization for success.
 
  
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Key Characteristics of an IT Strategy
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Scope can vary along several dimensions. An enterprise strategy may establish common priorities and constraints, while business-unit strategies address particular services or markets. A domain strategy, such as a data or infrastructure strategy, concentrates on a narrower set of capabilities. These scopes can coexist, provided their decisions are reconciled where resources, information or services are shared. They are useful descriptions of scope rather than a universal classification of strategy types.
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*Alignment with Business Goals: A key characteristic of an effective IT strategy is that it is closely aligned with the organization's overall business strategy. It should support and shape the organization's business goals and objectives.
 
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*Future-oriented: An IT strategy should be forward-looking, projecting three to five years into the future. It should be agile and adaptable to accommodate changes in the business environment and technological advancements.
 
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*Comprehensive: A good IT strategy covers all facets of technology management, including cost management, risk management, human capital management, hardware and software management, vendor management, data management, security, and more.
 
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*Stakeholder Involvement: Developing an IT strategy should involve stakeholders from across the organization, including business leaders, IT leaders, and end-users.
 
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*Regular Review and Update: The IT strategy should be reviewed and updated regularly to ensure it remains relevant and effective in light of changing business goals and technology advancements.
 
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*Clear and Understandable: The IT strategy should be written in clear, concise language that can be easily understood by all stakeholders.
 
  
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An IT strategy is a vital component of any organization's business strategy. It not only charts the course for technology use in an organization but also shapes and supports the broader business objectives. Its form, content, and characteristics reflect its role as a comprehensive, forward-looking, and adaptable IT decision-making and investment roadmap.
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Strategic direction also concerns the continued operation of existing capabilities. Decisions to maintain a service, retire a system, retain a supplier relationship or reduce technical complexity can be as consequential as decisions to introduce a new technology. Different commitments can have different time horizons. The duration of a contract, the useful life of an asset, organizational uncertainty and the time needed to develop skills can all affect the period a strategy addresses.
  
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The form of an IT strategy can vary from organization to organization, but it is generally presented as a written document, a balanced scorecard, or a strategy map. It should be clear, concise, and free of technical jargon, as it needs to be understood by various stakeholders within the organization, not just those in IT roles.  
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The distinction between stated intentions and actual behavior is relevant to understanding strategy. In general [[Strategy|strategy]] research, Mintzberg examined strategy through patterns of decisions and distinguished intended from realized strategies.<ref name="mintzberg1978">Mintzberg, H. (1978), [https://pubsonline.informs.org/doi/10.1287/mnsc.24.9.934 'Patterns in Strategy Formation'], ''Management Science'', 24(9), pp. 934–948. Publisher abstract and publication metadata. Accessed 29 October 2026.</ref> Applied to IT, this perspective draws attention to how repeated investment and operating decisions may reinforce or depart from a declared direction. An apparent pattern still needs interpretation; its existence does not establish coherence or effectiveness.
  
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IT strategy should not be seen as a static document but a living plan that evolves with business needs and market dynamics. Therefore, senior IT leaders should expect to reassess and redevelop the technology strategy regularly, ensuring it aligns with the organization's mission and responds appropriately to shifting market dynamics.
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== Terminology and related artifacts ==
  
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An effective IT Strategy must also be flexible to adapt to changes in technology, the business’s external environment, or internal circumstances, including the emergence of promising new technologies, market and industry conditions, business requirements, employee skills, organizational competencies, or budgetary constraints to name just a few.
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=== Related strategy terms ===
  
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An effective IT strategy must also be agile because change cycles are shortening, and so must be the response to them. Remember, there is a lag between formulating an IT strategy and the implementation of initiatives it identifies, and it is the latter that delivers capabilities.
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''Information technology strategy'' is the expanded form of IT strategy. Other labels require attention to context. ''ICT strategy'' explicitly includes communications technology. ''[[Technology strategy]]'' can refer to a wider range of technologies than organizational information systems. The label alone does not determine whether a document covers enterprise capabilities, the IT function, a particular technology domain, or a business offering.
  
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The IT strategy of an organization is not a standalone entity; instead, it should seamlessly align with and support the broader business strategy. This symbiosis ensures that the technology and systems employed by the organization are wholly in service of its strategic business objectives.
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[[IS Strategy|Information systems strategy]] is closely related to IT strategy, although definitions and scope vary. Chen, Mocker, Preston and Teubner's 2010 review identified three conceptions in the literature: using information systems to support business strategy, the IS function's master plan, and a shared organizational view of the role of IS. The authors developed the third perspective in their own conceptualization.<ref name="chen2010">Chen, D., Mocker, M., Preston, D.S. and Teubner, A. (2010), [https://aisel.aisnet.org/misq/vol34/iss2/4/ 'Information Systems Strategy: Reconceptualization, Measurement, and Implications'], ''MIS Quarterly'', 34(2), pp. 233–259. Journal abstract and citation. Accessed 29 October 2026.</ref> These differences help explain why an IS strategy can mean more than a systems-development plan. They also make a rigid, universal separation between IS strategy and IT strategy difficult to sustain.
  
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IT Strategies must support business strategy. In the age of disruptive technologies, IT Strategies can also drive business strategy. For perfect business-IT alignment, an IT strategy must work with business strategy. This is not to say that an IT Strategy cannot be created in the absence of a business strategy. IT Strategies are often created in the absence of clearly articulated business strategies.
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[[Digital Strategy|Digital strategy]] can overlap with both technology direction and business direction. A specific formulation is ''digital business strategy'': Bharadwaj, El Sawy, Pavlou and Venkatraman proposed it in 2013 as a fusion of IT strategy and business strategy.<ref name="bharadwaj2013">Bharadwaj, A., El Sawy, O.A., Pavlou, P.A. and Venkatraman, N. (2013), [https://aisel.aisnet.org/misq/vol37/iss2/10/ 'Digital Business Strategy: Toward a Next Generation of Insights'], ''MIS Quarterly'', 37(2), pp. 471–482. Journal abstract and citation. Accessed 29 October 2026.</ref> This proposal does not establish a universal meaning for digital strategy or imply that separate IT strategies have become unnecessary.
  
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As the leader of the IT Organization, the Chief Information Officer (CIO) is responsible for formulating and implementing the IT Strategy. In doing so, they work closely with other business functions and lines of business or divisions, especially the Chief Operating Officer (COO), Chief Marketing Officer (CMO), and Chief Financial Officer (CFO). Some organizations also have a Chief Technology Officer (CTO) role with or without the CIO role. The CIO and CTO work closely to create an IT Strategy for the organization.
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=== Strategy, planning, plans and roadmaps ===
  
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== The Importance of IT Strategy: Why Every Organization Must Have One? ==
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Distinguishing the overall plan from the activities and documents associated with it makes the organizational roles clearer. A written IT strategic plan records the strategy and can include implementation detail; these distinctions do not require separate documents in every organization.
  
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The relentless march of digital technology has transformed the business landscape. Today, the role of technology extends beyond supporting business operations; it is a driver of business strategy and a key determinant of organizational success. With this shift, a well-crafted Information Technology (IT) strategy has never been more critical. Here's why every organization must have one.
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{| class="wikitable"
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! Concept or artifact
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! Relationship to IT strategy
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|-
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| IT strategy
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| The overall plan, priorities and connected choices for using [[Information Technology (IT)|information technology]] to achieve business goals and objectives.
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|-
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| [[IT Strategy Process|IT strategic planning process]]
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| Activities through which participants investigate conditions, consider alternatives, formulate direction, and revisit their choices.
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|-
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| [[IT Strategic Plan (Information Technology Strategic Plan)|Written IT strategic plan]]
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| The document recording the strategy and associated commitments. It can also specify priorities, responsibilities, resources and implementation arrangements.
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|-
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| [[IT Roadmap|IT roadmap]]
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| A representation of intended changes, their sequence and dependencies. It shows how intended changes relate to one another over time.
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|-
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| [[Operational Plan|Operational plans]]
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| Arrangements for delivering and running services, managing resources, and carrying out work. They put relevant strategic commitments into practice at greater operational detail.
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|}
  
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=== Aligning IT with Business Objectives ===
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A schedule can show when a system will change without explaining why that change matters. Conversely, a stated strategic direction can leave its implementation arrangements unresolved. Reading the strategy alongside its supporting documents helps distinguish the rationale, the commitment, and the work needed to realize it.
  
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A well-articulated IT strategy ensures that technology investments and initiatives align with the organization's business goals and objectives. When IT and business strategies are in sync, it guarantees that every technology-related decision, from software selection to infrastructure upgrades, is made with a clear understanding of how it will help the business achieve its goals. This strategic alignment maximizes the value of IT investments and enhances business performance and competitiveness.
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== Relationship to business strategy and organizational management ==
  
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=== Driving Innovation and Competitive Advantage ===
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=== Business strategy and alignment ===
  
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In the digital age, technology is not just a business enabler but a source of innovation and competitive advantage. With a robust IT strategy, organizations can leverage technology to develop new products and services, create superior customer experiences, streamline operations, and outperform competitors. Moreover, a forward-looking IT strategy can help organizations stay abreast of emerging technologies and trends, seize new opportunities, and respond effectively to disruptive forces.
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[[Business Strategy|Business strategy]] establishes organizational purposes and choices about activities, services, markets or ways of creating value. IT strategy addresses the information and technology implications of those choices. The relationship can also operate in the other direction: an available capability can make a different service or organizational arrangement feasible. The extent to which business and technology direction are developed together depends on the organization and the role technology plays in its activities.
  
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=== Managing Risks and Enhancing Security ===
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[[Business IT Alignment|Business–IT alignment]] concerns the relationships among these strategic and operating domains. MIT's Center for Information Systems Research describes Henderson and Venkatraman's [[Strategic Alignment Model]] in terms of four domains: business strategy, IT strategy, organizational infrastructure and processes, and information-systems infrastructure and processes. Its account identifies strategic fit and integration between business and functional domains as central dimensions.<ref name="mit-alignment">MIT Center for Information Systems Research (n.d.), [https://cisr.mit.edu/content/mit-cisr-50-for-50 'MIT CISR 50th—50 Facts'], Strategic Alignment entry. Institutional account of the model. Accessed 29 October 2026.</ref>
  
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Increasing reliance on digital technology comes with increased risk, including cyber threats, data breaches, and IT failures. An IT strategy plays a crucial role in managing these risks. It defines the organization's approach to IT security, including measures for protecting sensitive data, mitigating cyber threats, and ensuring compliance with relevant laws and regulations. Moreover, an IT strategy includes business continuity and disaster recovery plans, ensuring that critical business functions can continue during and after a significant disruption.
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This relational view helps explain why agreement between two strategy documents can be insufficient. A proposed service may depend on changes to responsibilities, information or working processes as well as technology. Alignment therefore concerns what the organization can do and how its parts work together, alongside the intentions recorded in its plans.
  
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=== Optimizing IT Resources and Investments ===
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=== Governance and responsibility ===
  
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Technology investments can represent a significant portion of an organization's budget. An IT strategy provides a framework for optimizing these investments, ensuring they deliver maximum value. This involves making informed decisions about IT funding and investment priorities, managing IT costs, and ensuring a balanced portfolio supporting operational needs and innovation. By providing a clear roadmap for IT investments, an IT strategy helps prevent wasteful spending and ensures resources are used effectively and efficiently.
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[[IT Governance|IT governance]] concerns direction, accountability and oversight for the organization's use of IT. IT strategy supplies substantive choices that governance arrangements can consider, authorize and monitor. ISO/IEC 38500:2024 addresses governing bodies and those supporting them, and covers governance of both current and future IT use across different organizational types and sizes.<ref name="iso38500">ISO/IEC (2024), [https://www.iso.org/standard/81684.html ''ISO/IEC 38500:2024: Information technology — Governance of IT for the organization''], third edition. Public abstract and publication status. Accessed 29 October 2026.</ref>
  
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=== Facilitating Change and Transformation ===
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The allocation of responsibilities varies. A [[Chief Information Officer (CIO)|chief information officer]] or other technology leader may coordinate formulation and implementation, while business and service leaders contribute objectives, constraints and responsibility for organizational change. Governing bodies or delegated forums exercise authority according to the organization's arrangements. Finance, architecture, security, workforce, sourcing and operating participants contribute information that can affect feasible choices.
  
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Technology is a powerful driver of change and transformation. However, implementing new technologies or systems can be disruptive and challenging. An IT strategy provides a structured approach to managing technology-induced change. It sets out clear plans for implementing new systems, including timelines, milestones, and resources required. It also includes strategies for managing the human side of change, ensuring that staff are adequately trained and supported through the transition.
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Governance frameworks can help organize these relationships. For example, ISACA describes [[COBIT (Control Objectives for Information and Related Technology)|COBIT]]'s governance and management objectives in relation to alignment goals and enterprise goals.<ref name="cobit">ISACA (n.d.), [https://www.isaca.org/resources/cobit 'COBIT'], public description of ''COBIT 2019 Framework: Governance and Management Objectives''. Accessed 29 October 2026.</ref> That framework relationship does not make COBIT a mandatory IT strategy method, and formal oversight alone does not establish that a strategic commitment will succeed.
  
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=== Enhancing Communication and Collaboration ===
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=== Architecture and operating arrangements ===
  
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An IT strategy is not just a document for the IT department. It is a tool for communication and collaboration across the organization. By clearly articulating the organization's IT goals and plans, an IT strategy facilitates understanding and buy-in from various stakeholders, including business leaders, IT staff, and end-users. This enhances collaboration, ensures everyone is working towards the same goals, and promotes a culture where technology is seen as a strategic business tool, not just a technical resource.
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[[Enterprise Architecture|Enterprise architecture]] makes relationships among organizational and technical structures explicit. Architecture descriptions can reveal how a proposed direction depends on existing information, applications, interfaces or organizational arrangements. They can also describe target relationships and transitions. Strategy informs the direction of architectural change, while architecture can expose constraints and options that affect strategy.
  
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In the digital era, an IT strategy is not a nice-to-have but a must-have. It aligns technology with business objectives, drives innovation and competitive advantage, manages risks, optimizes resources, facilitates change, and enhances communication and collaboration. Regardless of size or industry, every organization needs an IT strategy to navigate the digital landscape successfully, seize the opportunities presented by technology, and avoid potential pitfalls. Remember, a strong IT strategy is synonymous with a strong business strategy in today's business world.
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The [[IT Operating Model|IT operating model]] concerns how people, responsibilities, processes and resources are organized to provide IT capabilities and services. A strategic commitment to shared services, for example, has implications for decision authority and service ownership as well as technical integration. Architecture and operating arrangements contribute to realizing the direction, but their descriptions are distinct from the work of implementation and the outcomes it produces.
  
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Organizations that do not have an IT strategy are akin to clueless organizations adrift in the sea of the 21st-century marketplace, rudderless and directionless. Moreover, with technology becoming the norm rather than the exception, organizations cannot afford to have a basic IT strategy and, instead, must actualize a comprehensive IT strategy aligned with their business and corporate strategies. With the rapid spread of IT (Information Technology) and the increasing interconnection and connectivity in the contemporary world, having an IT strategy is no longer a luxury for organizations; indeed, it has become necessary for survival. This means that organizations need a robust, coherent, and proactive IT strategy to harness the power of IT, leverage the synergies between their business processes, and capitalize on the efficiencies of the economies of scale. Further, with IT becoming ubiquitous, it is no longer the case that business strategy alone is enough, and the alignment of the business strategy with that of the IT strategy has become paramount. A typical IT strategy, like a corporate strategy, must first perform an internal and external analysis, providing a guideline on aligning its strengths and opportunities and weaknesses and threats. The primary reason why organizations go in for an IT strategy is to reduce operational bottlenecks, actualize economies of scale, and derive value from technology.  A good IT strategy can ensure a successful outcome for all these objectives. Thus, it could successfully meet external challenges, such as increased competition in these markets. A well-thought-out IT strategy can be a source of sustainable advantage as well. <ref>[https://managementstudyguide.com/information-technology-strategy.htm Why is important to have an IT Strategy?]</ref>
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Routine operations and strategic direction interact. Operations supply evidence about service needs, costs, weaknesses and dependencies. Strategic choices can change which services are provided, how they are supported, and where responsibilities sit. Operational continuity remains a consideration during change; a strategy can include decisions about maintaining and simplifying existing capabilities.
  
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IT Strategy is implemented using an [[IT Strategic Plan (Information Technology Strategic Plan)|IT Strategic Plan]], which documents specific steps, initiatives, deliverables, and timelines.
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== What does an IT strategy cover? ==
  
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*IT Strategy creates IT Capability.
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An IT strategy connects [[Business Goals|business goals]] and [[Business Objective|objectives]] with priorities for technology capabilities, investment and change. Its content depends on scope, but it can identify the capabilities to retain or develop and the principles guiding consequential choices. These priorities inform decisions about resources and action across the organization.
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**The product of an IT Strategy is [[IT Capability]]. IT Strategy creates - modifies, aligns, and changes IT Capability, not just "technologies" or "systems," as some have implied
 
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**However, this IT Capability is a means to an end: value
 
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* IT Strategy's objective is value creation
 
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**The end or objective of an IT Strategy is to create value - shareholder, stakeholder, or business value
 
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**This objective is not met unless we "maximize" value, i.e., use the least amount of resources and risk to create the most returns
 
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**This objective also requires that this value is "sustainable" - short-term or "ephemeral" value is not the objective of a Strategy. On the contrary, it symbolizes a failure of strategy
 
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**Often, the term competitive advantage is used instead of value. Competitive advantage does create value, but it does not encompass all means of business value - new market entry, process efficiencies, etc. deliver value without competitive advantage
 
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* IT Strategy exists by definition, i.e., it may not be documented in the actions of an organization
 
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**IT Strategy uses an iterative process to create and align IT capability with business requirements:
 
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**It is a process, not a point-in-time event
 
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* It is iterative - success comes after multiple - do and learn - cycles
 
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* The key is the alignment of business and IT capability rather than designing IT to address business requirements
 
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**The former assumes that both capabilities drive each other
 
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**The latter assumes that business drives IT and not vice versa
 
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* IT Strategy sets the direction for the IT function in an organization
 
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**Ensures that maximum IT dollars are spent on value-creation activities for the business
 
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**Ensures that these dollars create the maximum value
 
  
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The following areas illustrate the range of choices that a strategy can address. They are explanatory categories, rather than a mandatory outline or an exhaustive component standard.
  
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== Creating an IT Strategy is an iterative process that aligns IT capability with business requirements ==
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{| class="wikitable"
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* It is a process, not a point-in-time event
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! Area
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* It is iterative - success comes after multiple - do and learn - cycles
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! Strategic considerations
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* The key is the alignment of business and IT capability rather than designing IT to address business requirements
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|-
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* The former assumes that both capabilities drive each other
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| Information and applications
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* The latter assumes that business drives IT and not vice versa
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| The information the organization depends on; where it needs shared or specialized applications; and how information quality, access and interoperability affect its activities.
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* IT Strategy sets the direction for IT to function in an organization
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|-
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* Ensures that maximum IT dollars are spent on value-creation activities for the business
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| Infrastructure and technical architecture
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* Ensures that these dollars create the maximum value
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| The platforms and integration arrangements needed to support capabilities; choices about reliability, flexibility, standardization and existing technical constraints.
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|-
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| Services and operating arrangements
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| Which services are provided, how they are organized, and how responsibility is distributed across central teams, business units and external providers.
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|-
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| People, skills and sourcing
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| Capabilities to retain, develop or obtain externally; the skills and organizational knowledge required; and dependencies created by supplier or partnership arrangements.
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|-
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| Investment and change
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| Commitments needed to maintain or develop capabilities, interactions among initiatives, capacity for change, and the implications of selecting or deferring work.
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|-
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| [[IT Risk Management|Risk management]] and resilience
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| Exposure associated with the chosen direction, the services or information that require protection, and the continuity and recovery capabilities relevant to organizational needs.
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|}
  
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These areas interact. Greater standardization can simplify shared services while reducing local discretion. [[IT Sourcing (Information Technology Sourcing)|External sourcing]] can provide access to capabilities while creating dependencies on a provider and its contractual arrangements. A strategy gives those choices an organizational context; it cannot determine their suitability from a technology label alone.
  
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== The Five (5) Components of a Good IT Strategy <ref>[https://cioindex.com/toolkit/crafting-a-winning-it-strategy-the-14-essential-components-for-success/ IT Strategy Components]</ref> ==
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Strategic principles can express a preferred approach, such as the use of shared capabilities where there is a common need. Their meaning depends on scope, rationale and the treatment of exceptions. A principle that leaves every consequential choice open provides little direction; one applied without regard to context can impose avoidable constraints.
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* '''IT Vision''': Where are you headed?
 
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* '''Current IT Capability''': What people, processes, and technology do you currently have, and how are they operating together?
 
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* '''Future IT Capability''': What people, processes, and technology do you need, and how should they operate together?
 
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* '''IT Capability Gaps''': What are the gaps in people, processes, and technology between current and future IT Capability?
 
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* '''Migration Plan''': What are the steps to fill these gaps? Who is responsible? What are the deliverables and timelines?
 
  
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An IT Strategic Plan must also include an estimate of the business value derived, the cost of implementing it, and the means to pay for it.
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An [[IT Strategy Framework|IT strategy framework]] can organize concepts and relationships used in formulation or explanation. Its function differs from that of a valuation technique, a project-sizing method, an architecture description or a prioritization tool. Such techniques can inform particular decisions without constituting a complete strategy or prescribing its content.
  
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== How IT strategy is developed, implemented and reviewed ==
  
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== 10 Important Factors to Consider When Developing Your IT Strategy ==
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IT strategy is developed by relating business goals and objectives to existing capabilities, constraints and opportunities. Implementation puts the resulting commitments into action, while review uses evidence to reconsider the direction and its execution. Participants can consider business priorities, service experience, architecture, resources, risks, external developments and lessons from previous commitments. These inputs can influence one another: a technical constraint may change a proposed business option, while a revised business priority may change which technical constraint deserves attention.
  
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#Developing a comprehensive IT strategy is essential for organizations that want to remain competitive in today's digital landscape.
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The direction can be articulated through a written IT strategic plan, principles, investment decisions and related roadmaps. The chosen form depends on how an organization makes and communicates decisions. A written plan provides a record that can be discussed and revisited, but its existence is separate from whether participants share its interpretation or act consistently with it.
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#Implementing an effective IT strategy requires careful planning and coordination between different departments and stakeholders.
 
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#Aligning IT strategy with business objectives can help to ensure that technology investments are focused on driving value and achieving strategic goals.
 
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#Optimizing IT infrastructure is a critical component of any IT strategy, as it can help to improve efficiency, reduce costs, and enhance security.
 
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#Integrating emerging technologies such as AI and blockchain into an IT strategy can help organizations to stay ahead of the curve and gain a competitive advantage.
 
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#Evaluating the performance of IT systems and processes on a regular basis is important to ensure that they are meeting business needs and delivering value.
 
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#Investing in employee training and development is a key aspect of any IT strategy, as it can help to build a skilled and capable workforce that can drive innovation and growth.
 
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#Adopting a cloud-first approach as part of an IT strategy can help organizations to improve scalability, flexibility, and agility.
 
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#Emphasizing cybersecurity as a key priority in an IT strategy is essential in today's threat landscape, as it can help to protect sensitive data and mitigate risks.
 
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#Creating a roadmap that outlines the key initiatives and milestones of an IT strategy can help to ensure that everyone is aligned and working towards common goals.
 
  
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Implementation connects commitments with changes in systems, services, responsibilities and working practices. Depending on the strategy, this can involve programmes, projects, ongoing product development or changes to service operation. Technical delivery may need complementary changes in training, processes, data stewardship or business responsibilities. Deploying a system establishes a delivery result; its use and organizational contribution remain separate questions.
  
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=== Alternative Names for IT Strategy ===
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Formulation and implementation can overlap. Experience during delivery or operation can reveal that an assumption was incomplete, a dependency was missed, or an alternative is more suitable. A strategy can retain a stable organizational purpose while changing the means used to pursue it. Reconsideration can concern the direction itself, the sequence of changes, or the implementation arrangements, with different consequences in each case.
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IT Strategy is also known by these names:
 
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*Information Technology Strategy
 
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*Technology Strategy
 
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*ICT Strategy (Information and Communications Technology Strategy)
 
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*IS Strategy
 
  
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Review uses evidence to interpret those consequences. Information about delivery, service use, costs, risk and organizational results can support continuation, adjustment or withdrawal of a commitment. A favorable result does not by itself establish that the strategy caused it; other changes may contribute. Equally, a delivery delay can arise from implementation conditions without invalidating the underlying direction. The appropriate review arrangements depend on the commitments, uncertainty and governance context.
  
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== IT Strategy vs. Corporate or Business Strategy ==
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== Benefits and limitations of IT strategy ==
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An IT strategy is typically a long-term action plan for achieving a goal set in the context of a rapidly changing technology environment. For any IT strategy to be effective, it must have measurable links to a business strategy - and it is here that many IT strategies fail.  The most effective IT strategies are those which not only link to a business strategy but also combine tactics and logistics.<ref>[http://www.oakleigh.co.uk/page/121/Services/Technology/Articles/IT-strategy-definition-and-review Definition of IT Strategy]</ref>
 
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IT Strategy is analogous to business strategy or corporate strategy - from the objective to the process, these two share a common logical framework, with the differences manifesting themselves in the specifics of implementation. Business IT Alignment, in part, aligns business strategy with IT strategy or vice versa. As discussed, business technology alignment is more than that as it is the alignment of business capability with IT Capability. IT Strategy is often included as part of the business strategy. Before IT strategy developed as a discipline, the business strategy process was extended to include technology implications, and the business strategy document became the de-facto home of the IT strategic plan as well. Today, however, the CIO prefers to create their own IT strategy team, follow their own IT strategy process, and communicate the strategic plan for their organization through a separate IT strategic plan document. Given the complexity of modern-day business, technology, and the IT organization, this arrangement does provide optimal value for both the business and IT. However, an IT strategy cannot be developed in isolation, so the IT strategy development team must comprise business and IT people. The initiative must have both business and IT sponsorship. The recommendations must be bought into by both sides of the aisle. Business strategy and IT strategy processes must be closely coordinated. Generally, there is a single logical process, organization, and communication document for business and IT strategy. The boundaries are a way of splitting work, not responsibility. The delineation is simply done to facilitate delivery and nothing else.
 
  
 +
IT strategy can support coordination by giving participants a common account of priorities and the intended role of information and technology. It can make competing resource commitments visible and help relate decisions made in different parts of an organization. These contributions depend on communication, decision authority and behavior, and do not follow automatically from producing a document.
  
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== IT Strategy vs. Business IT Alignment ==
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Its intended contribution also depends on organizational purpose. A commercial enterprise may emphasize revenue, differentiation or cost; a public body may emphasize service outcomes, accessibility or stewardship. Reliability, continuity and the responsible use of information can matter alongside innovation. The presence of a strategy does not establish that these outcomes have been achieved or that every objective can be maximized simultaneously.
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IT Strategy aligns IT Capability with Business Capability or vice versa. Also known as Business IT Alignment or aligning business with IT (information technology) or business technology alignment, this process is often misconstrued as: "align business strategy with IT strategy." Strategy is a component of both business capability and IT capability. However, there are other equally important components, such as organization and process. A focus on strategy alone loses the critical impact of the other components on business value. Consequently,  we must consider ALL the components of business and IT capability, not just strategy. The order of these words causes confusion as well. Business drives IT - so business IT alignment makes sense. However, increasingly, technology drives business, and that meaning gets lost with this order of words.
 
  
 +
Several limitations follow from the nature of strategic commitments. Evidence about future conditions is incomplete. Objectives can conflict, and resources committed to one capability are unavailable for another use. Choices can create dependencies that are expensive to change. Different participants can interpret the same direction differently, especially when responsibilities and constraints remain implicit.
  
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== IT Strategy Process ==
+
A strategy can also become disconnected from the organization that must act on it. A target capability may require skills that have not been developed, information that is unreliable, or business changes that no participant is able to authorize. Repeated revision can create disruption, while refusing to revisit assumptions can preserve an unsuitable direction. The issue is the relationship between commitments, operating conditions and evidence, rather than the mere frequency of change.
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IT Strategy does not have to follow a specified series of steps and often does not. Different situations demand different starting and ending points and the steps in between. However, a well-defined process can help you create an effective IT strategic plan. The critical elements of an IT Strategy process are:
 
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* Business Drivers: what is prompting a change in business and/or IT capability? (and, by definition, IT Drivers)
 
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* Business Imperatives: what must be done to address or respond to these business drivers? (and, by definition, IT Imperatives)
 
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* Business Capability Implications: what does the implementation of these imperatives do to the business capability (and, by definition, IT Capability)
 
  
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[[File:Business it alignment.gif|600px|IT Strategy Process]]<br />
+
These limits distinguish intended contribution from demonstrated effectiveness. They also explain why strategy, governance, architecture, operating arrangements and implementation remain related areas of management rather than interchangeable labels for a guaranteed outcome.
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source: CIO Index [https://cioindex.com/reference/7-steps-to-business-and-it-alignment/ Business IT Alignment Process]
 
  
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Of course, the IT strategic plan won’t be static. Changes in business goals and objectives will impact strategic IT implementations. Other factors, such as changes in the economy and new technology, could also require adjustments to your strategy. Your plan needs to be fluid to accommodate changing conditions.
+
== Development of the concept ==
  
 +
Selected publications show how researchers have examined the strategic role of information and technology from different perspectives.
  
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== IT Strategy Framework Helps Create a Structured IT Strategy ==
+
In 1985, Porter and Millar's ''How Information Gives You Competitive Advantage'' examined information technology in relation to the value chain. The publisher's account treats IT as encompassing information and the technologies used to process it, extending the discussion beyond computers as equipment.<ref name="porter1985">Porter, M.E. and Millar, V.E. (1985), [https://store.hbr.org/product/how-information-gives-you-competitive-advantage/85415 'How Information Gives You Competitive Advantage'], ''Harvard Business Review'', July 1985. Public publisher catalogue description, dated 1 July 1985. Accessed 29 October 2026.</ref>
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The creation of an IT Strategy is facilitated using a framework or methodology. IT Strategy Framework (Information Technology Strategy Framework) is a formal definition of the essential elements or components of IT Strategy and their inter-relationship. An IT Strategy Framework can define the strategic IT concept(s) in general or relate to a specific IT Strategy solution.
 
−
Listed below are some of the known IT Strategy frameworks:
 
−
*IT Value Mapping: It is a business-focused IT Strategy Framework.
 
−
*EFQM Excellence Model
 
−
*Applied Information Economics (AIE)
 
−
*Function Point Analysis (FPA)
 
−
*Analytic Hierarchy Process (AHP) Framework
 
−
*Gartner Business Value Model
 
  
 +
Henderson and Venkatraman's 1993 ''IBM Systems Journal'' article addressed strategic alignment and organizational transformation through IT.<ref name="venkat-publication">Venkatraman, N. (2020), [https://questromapps.bu.edu/faculty/uploadFiles/cvUploadsProfile/IS_Venkatraman_N_CV.pdf ''Academic Vita''], June, p. 3. Publication record for 'Strategic Alignment: Leveraging Information Technology for Transforming Organizations', ''IBM Systems Journal'', 32(1), 1993. Accessed 29 October 2026.</ref> The model's relationships, summarized above, placed strategic direction alongside organizational and information-systems structures and processes.<ref name="mit-alignment" />
  
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== Drivers that Influence IT Strategy <ref>[http://www.advance2000.com/10-drivers-that-influence-it-strategy/ What are the drivers that influence  Information Technology Strategy]</ref> ==
+
The 2010 study by Chen and colleagues examined the different meanings attached to IS strategy and proposed a shared-perspective formulation.<ref name="chen2010" /> In 2013, Bharadwaj and colleagues proposed the digital-business-strategy formulation described above, bringing IT and business strategy together in a single research perspective.<ref name="bharadwaj2013" /> Together, these contributions illustrate continuing questions about the scope of strategy, its organizational role, and its relationship to technology-enabled business activity.
−
*Rapid Change: Technology is constantly changing and changing quickly. Your response to these changes must be in near real-time to be effective.  You can’t ignore change; you must continually respond to changes in technology. To stand still is to lose ground.
 
−
*Competitive Landscape: The economy and competition force you to take a closer look at how you run your IT operations. You must be as efficient as possible to remain competitive. All new technology provides a competitive advantage at first.  Eventually, it becomes a competitive necessity and, finally, a competitive disadvantage as it ages out and needs to be replaced.  Do you still use older technology that no longer provides a competitive advantage?  Consider replacing it.
 
−
*Social Media and Networking: Social Media and networking have emerged as a way of providing person-to-person connections and sharing information. Both are critical; customers are changing how they research and find solutions to their business problems.  Don’t write off Social Media as “something kids do”; it is much more than that.  Take the time to learn and integrate Social Media into your process.
 
−
*Smart spending / Cost containment: You need to be smart about technology spending. Some companies use open-source hardware and software to cut costs. But it is not enough to simply cut costs; the money saved should be targeted to other revenue-generating initiatives. There is a smart way to spend your IT dollars; ensure you get the most for your IT spend.  Stop thinking that IT is just an expense or a commodity; hardware and software might be commodities, BUT HOW YOU USE IT defines your strategic advantage.  IT is more than buying stuff.
 
−
*Green IT: Green IT, using less energy, leads to immediate cost savings. Being green uses fewer resources, enables you to produce more with fewer resources and saves money. In addition, it demonstrates to your clients that you are committed to running your business in a responsible way.  Additionally, ensure your vendors participate and are part of your IT Green Team.
 
−
*Virtualization: The virtualization of servers drives down business costs. It lowers the total cost of ownership, reduces support costs, increases hardware utilization, and stretches your IT dollar. Many companies have already taken advantage of server virtualization.  The next logical step is to virtualize your desktops (VDI); you can realize the same benefits for your desktops as you did for your servers.
 
−
*Mobility: As users become more tech-savvy, they request (demanding) the capability to work anywhere, anytime. Many employees personally own newer and better technology than you have in your office. Your technology strategy should support employees to be as productive and efficient as possible. In addition to increased mobility, employees are also working flex hours and working from home as well. As an employer, you must provide the most flexibility without losing control.  This flexibility will also help with staff recruitment and retention.
 
−
*Cloud: Cloud solutions and web-hosted applications make it easier to collaborate and work together virtually. While there are some security concerns, if well managed, the risk is minimal, and the benefits are excellent. The cloud is also much more scalable.  The cloud is not only scalable up but also scalable down. Your business is not always in a growth mode.  When you need to cut back, the cloud makes that easier as well.
 
−
*Knowledge Management / Data: Knowledge Management is critical in today’s global economy. Knowledge management leverages your most important assets – your people and your information. Your people take information, add knowledge and create value for your business.  You can support them by implementing the systems and policies to enable knowledge creation and foster innovation. Also, plan how to capture, store and share institutional knowledge once it is created. Make sure Knowledge Management is integrated into your work processes.
 
−
*Security: You can spend an infinite amount of money on security. New threats to your company are appearing daily. You must decide which to guard against and how much to spend to stay safe. Often the biggest security threat is uninformed employees. Educate your people on the basic ways to keep your business safe and guard your intellectual property. It will be the best investment you can make in your business.  Ransomware is the latest security threat.
 
−
*Putting it all together: Your IT Strategy should reflect an understanding of your practice and support the goals and values of your organization. This cannot be an individual effort. You must ENGAGE and ENCOURAGE participation by your entire staff. Clearly communicate your commitments and expectations, carefully manage change and reward excellence, and address failure. Take extra time to gain buy-in for your ideas and work with your company leaders to ensure you have met as many needs as possible.
 
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As an IT leader, you must understand your business, build consensus and synergy among factions, break down the information silos, and prioritize IT initiatives to benefit the entire organization. You must align IT Strategy with your business’s core values, guiding principles, and goals. To succeed with technology, you must have the support and commitment of company leadership and the financial resources to make these changes. There is a definite cost to implementing a successful IT Strategy. But the real question you need to ask is “What is the cost to your company if you don’t?” You must weigh and balance many factors that drive your IT decisions. An IT Assessment is an excellent way to identify and prioritize technology initiatives.
 
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== IT Strategy Components and Enablers <ref>[http://www.sussex.ac.uk/its/pdfs/IT_Strategy_2015.pdf IT Strategy Elements: Components and Enablers]</ref> ==
 
−
*Strategy Components
 
−
**Service Strategy: deliver better and cost-effective services to the business and customers
 
−
**Information/Data Strategy: maintain integrity, availability, and accuracy of business data across business processes
 
−
**Platform/Application Strategy: deliver the required business functionality with lower TCO, easy maintainability, and reduced delivery time
 
−
**Infrastructure Strategy: provide a high-performing, reliable, energy and cost-efficient environment to run IT services
 
−
**Security Strategy: protect confidentiality, integrity, and availability of information by establishing physical and logical controls
 
−
**Sourcing Strategy: procure services with the right quality, at the right price, and with the right controls
 
−
*Strategy Enablers
 
−
**Governance: processes, structures, and mechanisms to control and manage the strategy and ensure the realization of IT strategic objectives
 
−
**Operating_Model|Operating Model: functional alignment of business and IT structures and IT supplier groups
 
−
**Architecture: business process and technology map to enable effective change delivery, business continuity, and strategic decision making
 
−
**Processes: Industry frameworks and models (e.g., ITIL for service delivery) to ensure consistent delivery, reduced rework, and greater productivity
 
−
**Skills and Capabilities: Expertise and proficiency in aligning IT with the business, managing the business relationship, understanding business strategy and plans, delivering solutions and services, and enabling continuous improvement
 
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== Implementing IT Strategy <ref>[https://pdfs.semanticscholar.org/e089/1eb05cbb934494d930a812e47e21d00d3c99.pdf Process Model for Implementing IT Strategy]</ref> ==
 
−
*As part of the first phase Pre-Implementation, the analysis of the IT strategy (as the result of all IT strategy development-related activities) and the implementation environment (e.g., organization structure) depicts how profound the desired change will be. Implementation complexity, quality of the IT strategy as well as a feasibility study will lead to agreed implementation objectives. This step allows for the identification of important implementation carriers and responsibilities throughout the organization. The objective is to install a first anchor regarding content and human resources needed to implement the IT strategy.
 
−
*The purpose of the second phase of Implementation planning is to first derive and agree on specific implementation goals and initiatives by taking all stakeholders into regard. The IT Balanced Scorecard (IT-BSC) can be used as a technique within this activity. To fulfill the given goals within a set timeframe, it becomes necessary to define and evaluate an implementation plan. This plan consists of a number of different projects to be detailed and bundled into programs. Resource requirements and business cases need to be defined for every project. Hence, a comparison and prioritization create the basis for a detailed implementation plan. According to the plan, an adequate coordination structure and an adequate implementation tactic need to be determined. Finally, the project teams need to be brought together. It is of high importance to remediate existing conflicts and prevent new ones.
 
−
*According to the results of the previous phases, the phase Implementation execution puts emphasis on the enforcement of the implementation plan. Initially, the focus is on soft facts, which the implementation's success depends on. To avoid the fear of change, potential behavioral resistances, and divergence in objectives, all impacted personnel must be treated according to their situation and interest. Therefore, the audience is to be identified and divided up into target groups. A comprehensive communication plan comprising target group appropriate information details must be developed and maintained centrally. A structured and systematically conducted communication can help to avoid implementation problems concerning human resources.
 
−
*The phase Completion of implementation comprises all actions necessary to establish the results within the organization. First, there is the need to agree on the dimensions of IT strategy implementation: the time dimension and the detail dimension. The time dimension differentiates between installed, completed, and benefits, whereas installed marks a simple installation (e.g., without user training). Benefits can be considered as the effect of the change (difference between the current and proposed way of work is done). The detail dimension refers to the implementation content, which may be the whole plan, one or more projects, or even one or more systems in one project. In our definition, the whole plan needs to be completed. Hence, training for future users needs to be prepared and executed; lessons learned need to be documented. Additionally, according projects need to be dissolved to allow for a new resource allocation.
 
−
*The last phase, Implementation control, is about setting up appropriate qualitative and quantitative control measures to allow for continuous implementation control and navigation. Measurement of the actual implementation state at any time during the implementation allows for early identification of discrepancies. Therefore, possible causes can be identified, and corrective actions can be taken. Implementation control acts as the central component in our process model and can therefore influence activities within previous and following phases.
 
−
 
 
−
 
 
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== Process model for implementing IT strategy ==
 
−
[[File:IT_Strategy.png|500px|IT Strategy (Information Technology Strategy)]]<br />
 
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source:  [https://pdfs.semanticscholar.org/e089/1eb05cbb934494d930a812e47e21d00d3c99.pdf Jens Bartenschlager]
 
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== Traditional Approach vs. Agile Approach to IT Strategy <ref>[http://deloitte.wsj.com/cio/2012/05/24/an-agile-approach-to-it-strategy/ An Agile Approach to IT Strategy ]</ref> ==
 
−
*Under the traditional approach, the IT strategy team—whether an internal team or an external consultancy—spends 12 to 24 weeks interviewing business leaders and gaining an understanding of the business, the organization, and its capabilities. Next, working with IT leadership, the team develops a vision of the IT environment three or sometimes five years out. The working group then determines the discrete project list that will enable the company to achieve that vision. Finally, the initiatives are set out in a “roadmap” and delivered to the Chief Information Officer (CIO) - and the team disbands. The traditional approach produces a new vision every three years - probably delivered by a different team to a different CIO - with a new list of goals and initiatives.
 
−
*With an Agile Approach (Agile Strategy Program (ASP)), a team also determines the baseline and develops a three-year strategy and a roadmap; however, after the initial work is complete, the team reconvenes for two weeks every quarter or perhaps semi-annually to review not only progress against the roadmap but to discuss technology changes and industry trends and adjust the roadmap accordingly. As a result, the end state of the program is less precisely defined upfront; the strategy provides a general direction but not a final destination. This method delivers a fresh course correction every three to six months, along with an actionable “report card” delivered by a consistent team that is familiar with the business. Moreover, using a consistent team improves the potential for ongoing collaboration on technology trends. And if those advantages weren’t enough, the cost of maintaining an agile model for IT strategy can actually be comparable to the traditional approach in the long run.
 
−
 
 
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The figure below show's how the approaches compare across the major attributes:
 
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[[File:IT_Strategy1.png|500px|IT Strategy]]<br />
 
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source: [http://deloitte.wsj.com/cio/2012/05/24/an-agile-approach-to-it-strategy/ Wall Street Journal]
 
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== IT Strategy Best Practices <ref>[https://blog.milestonepowered.com/5-practices-for-an-effective-it-strategy Best Practices for an Effective IT Strategy]</ref> ==
 
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The rapid advancement of technology is placing IT at the forefront of industry leaders. Executives and stakeholders are increasingly turning to IT for innovative solutions that not only lower costs but also increase efficiency and add competitive value. Given the wide range of business expectations, successfully implementing an IT strategy can be challenging. But following these five practices can position IT departments to better understand and deliver on strategic goals.
 
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*Align with Executive Expectations: A growing number of executives consider business alignment to be the primary concern for IT leaders. Thus understanding and exceeding executive expectations should be a top priority for every IT team. As key decision-makers, executives are responsible for establishing and directing organization-wide initiatives that reinforce business goals. The onus is on IT leaders to develop tailored strategies that align with the executive director, forging a supportive relationship between the enterprise and IT. Having executive support is helpful for multiple reasons. A mutual partnership between IT and management can be beneficial for securing crucial resources. When IT and executive teams are unified, stakeholders are more likely to accept transitions to new systems and processes that may disrupt the status quo. Finally, working with organizational decision-makers ensures that all IT projects serve a business purpose and support overarching objectives, for example, increasing market share or outperforming competitors.
 
−
*Listen to Enterprise Needs: All functional enterprise departments rely on IT to enable and drive day-to-day operations. So driving a successful IT strategy is highly reliant on an open dialogue between departmental and IT leaders. When asked to evaluate the pace of technological change in the workplace, 63 percent of managers found progress to be slow, due mainly to poor communication regarding the strategic benefits of new tools. It’s important, therefore, for IT leaders to be mindful of how they communicate technical concepts with department heads by using language that emphasizes potential benefits – improved customer service or smoother business operations, for example. As tech experts, IT leaders should address and define operational objectives with department heads and then design solutions for achieving those objectives with the rest of the IT department. On the other hand, when IT is delegated tasks from other departments without considering alternative approaches, businesses risk missing opportunities for improvement. One way to ensure that IT initiatives are aligned with stakeholder expectations is to create a framework for defining enterprise-wide strategies. In some businesses, this could be a SWOT (strengths, weaknesses, opportunities, and threats) analysis or the OGTM (objectives, goals, tactics, and measurements) method. Frameworks like this also enable IT departments to compare departmental plans to find common objectives and suggest consolidated solutions.
 
−
*Examine Different Solutions: IT solutions are critical for driving innovation, value, and cross-functional business operations. After partnering with upper and departmental management on defining strategic initiatives, IT departments should consider which technologies and processes are best suited for meeting the needs of the enterprise. For example, if a business is having challenges tracking devices, how can IT facilitate effective asset management? A small organization might only require basic tagging and inventory documentation. However, for expanding organizations, implementing a comprehensive Configuration Management Database (CMDB) provides device lifecycle visibility and automated inventory alerts, enabling scalability and longevity for future expansion. Similarly, if a ring a smooth flow of information across departments? In order to avoid chaos and boost confidence, IT and HR departments should create a detailed communication plan to clearly address all of these questions before introducing new technology to the workplace.
 
−
*Analyze and Revise: No IT strategy is flawless. But in order to evolve, IT departments must be diligent about leveraging analytics to facilitate data-driven improvements and revisions. Outcomes of major IT programs should be evaluated against benchmarks defined by business stakeholders early on, such as the number of employees transitioning to new technology or the amount of reduction in system-wide interruptions. If there is a discrepancy between results and expectations, is there a key functionality that IT has overlooked? Network Operations Centers or IT Service Management tools are effective mechanisms for gaining insight into fluctuations in business performance. Even by following basic practices such as tracking IT contracts or using standard terminology for components, IT departments can consolidate equipment, reduce spending, and achieve deeper technical knowledge.
 
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== Challenges of IT Strategy <ref>[http://deloitte.wsj.com/cio/2012/05/24/understanding-the-challenges-of-it-strategy/Understanding the Challenges of IT Strategy]</ref> ==
 
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IT strategy projects seem to have a higher chance of failure than almost any other business pursuit. Indeed, it’s a rare organization that has developed an IT strategy, followed it for a few years, and lauded it as successful, all under the leadership of the same CIO. The challenge in crafting and executing IT strategy essentially boils down to this: IT is still a relatively new field that is rapidly evolving and requires increasingly larger and more complex projects to meet the needs of the business.  These three challenges don’t operate independently: they compound one another and work against the success of an IT strategy. 
 
−
*Computers are New. Computers are a relatively recent invention. Many of us have seen the mainframe, the mini, the PC, the laptop, and now the mobile device each take its turn as the crucial computer of the decade. After only 50 or 60 years, it is difficult to imagine life without computers. Yet the discipline of IT strategy has not matured as quickly as the technology itself. (Were cloud computing and social business on your agenda three years ago?) 
 
−
*Technology is Continually and Rapidly Changing. This is the fundamental challenge. The power and storage capacity of devices seems to be increasing exponentially. Some of us can remember thinking, “Who could possibly ever need a 10 MB hard drive”? These days, your phone may have close to 1000 times that amount of storage. Not only is technology changing more rapidly, but mass adoption rates are speeding up. Consider this:  it took one year for Apple to sell the first million iPods—and one month to sell the first million iPads, just 10 years later.
 
−
*Technology Projects are Getting Bigger. There was a time when a “major” application developed for a Fortune 100 client took only a month or so to get up and running. Consider an example, circa 1982, of an application written in Basic that estimated the time and resources needed to clean and inspect offshore oil rigs. It took two weeks to develop the algorithm (based on 50 or so previous inspections); one week to design the screens and reports; one week to program and test; and two days to write a manual—and then it went live.  Compare that with the projects we see today. One company is implementing a worldwide ERP system across its 25 process-manufacturing locations. The project has a multimillion-dollar budget and an eight-year plan. Admittedly, the client is unusually methodical and conservative, but the contrast is striking. 
 
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== IT Strategy and IT Governance Connection ==
 
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IT Strategy makes a promise, while IT Governance ensures delivery against it.
 
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== IT Strategy and Enterprise Architecture Planning ==
 
−
Enterprise Architecture Planning transforms an IT Strategy into IT Implementation. In other words, Enterprise Architecture converts the logical (vision, strategy, goals, objectives) into its physical manifestation (business applications, networks, databases, etc.).
 
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−
== IT Strategy Training and Certification ==
 
−
Listed below are [https://cioindex.com/cio-training/it-strategy-training/ IT Strategy training] courses offered through the American Institute of Management and Information Technology (AIMIT)
 
−
*[https://cioindex.com/cio-training/courses/it-strategy-101/ IT Strategy 101 Online course]
 
−
*[https://cioindex.com/cio-training/courses/it-strategy/ IT Strategy Online Course]
 
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== See Also ==
 
−
*[[IT Roadmap]]
 
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*[[E-Strategy]]
 
−
*[[IT Value]]
 
  
 +
== See also ==
 +
* [[IT Operating Model|IT operating model]] — how people, responsibilities, processes and resources are organized to deliver IT capabilities.
 +
* [[IT Value|IT value]] — the contribution of information technology to organizational outcomes.
  
 
== References ==
 
== References ==
 
<references />
 
<references />
  
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+
== Further reading ==
−
== Further Reading ==
+
* [https://cioindex.com/reference/what-is-it-strategy/ IT strategy: an executive guide to strategic choices and evaluation]
−
*[https://cioindex.com/reference/it-strategy-template/ IT Strategy Template]
+
* [https://cioindex.com/references/it-strategy-examples/ IT strategy examples and sample plans]
−
*[https://cioindex.com/reference/it-strategy-example/ IT Strategy Example]
+
* [https://cioindex.com/toolkit/how-to-create-it-strategy/ How to create an IT strategy]
−
*[http://www.bus.umich.edu/KresgePublic/Journals/Gartner/research/112000/112043/112043.pdf Six Building Blocks for Creating Real IT Strategies]
+
* [https://cioindex.com/reference/it-strategy-template/ IT strategy template]
−
*[https://www.lsc.gov/sites/default/files/TIG/pdfs/IT%20Strategy%20-%20A%20Business-Driven%20Perspective.pdf IT Strategy - A Business Driven Perspective]
 
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*[https://www.amazon.com/gp/product/111863411X/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=111863411X&linkCode=as2&tag=mestll-20&linkId=RJX3XZ6A2ODJIMHK Implementing World Class IT Strategy: How IT Can Drive Organizational Innovation]
 
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*[https://www.cio.com/article/3048440/it-strategy/why-your-it-strategy-may-not-help-translate-business-strategy.html Why your IT strategy may not help translate business strategy]
 
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*[http://er.educause.edu/articles/2016/11/modeling-an-it-strategy-for-student-success Modeling an IT Strategy for Student Success]
 
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*[https://www.forbes.com/sites/peterhigh/2016/11/07/five-steps-to-a-better-it-strategy/#561fc0b95d5f Five Steps To A Better IT Strategy]
 
−
*[http://www.cio.co.uk/it-strategy/developing-right-it-strategy-how-support-business-strategy-with-technology-3430400/ Developing the right IT strategy - How to support business strategy with technology]
 
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*[https://dupress.deloitte.com/content/dam/dup-us-en/articles/digital-transformation-strategy-digitally-mature/15-MIT-DD-Strategy_small.pdf Strategy, not Technology, Drives Digital Transformation]
 
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*[https://www.forbes.com/sites/peterhigh/2014/09/22/does-it-strategy-matter/#457f9c873d45 Does IT Strategy Matter?]
 
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*[https://ssir.org/articles/entry/the_strategic_plan_is_dead._long_live_strategy The Strategic Plan is Dead. Long Live Strategy]
 
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__NOTOC__
 

Latest revision as of 21:00, 29 October 2026

IT strategy (information technology strategy) is an organization's plan for turning business goals and objectives into priorities for technology capabilities, investments and action. It defines the role technology will play, the choices that guide its use and development, and the commitments needed to put those choices into practice. This gives business and IT leaders a shared basis for directing resources and reviewing results.

A written IT strategic plan records these priorities, choices and commitments. IT strategic planning is the activity of developing and reviewing those choices. Usage varies: a document called an IT strategy may contain both strategic direction and implementation detail.

In practical terms, IT strategy connects what the organization wants to achieve with decisions about systems, data, services, people and investment. Business needs can compete for limited funding, skills and capacity for change, making priorities and tradeoffs central to strategy. Its scope may span an enterprise, a business unit or a technology domain. Public and nonprofit organizations use IT strategy to pursue mission and service objectives as well as operational needs.

Scope and characteristics

IT strategy concerns IT capabilities: the abilities an organization develops or uses through combinations of information, people, processes, services and technology. Examples include coordinating information across business units, providing dependable digital services, or supporting a different way of delivering a product. Hardware, applications and networks contribute to these capabilities, alongside skills, responsibilities and working practices.

A choice becomes strategically significant through its implications for organizational direction and commitments. For example, an organization seeking consistent service across business units may make shared customer information a priority. That choice can affect applications, data responsibilities and subsequent investments across several services. The significance comes from these relationships and consequences; the price or novelty of a technology alone does not establish its strategic role.

Scope can vary along several dimensions. An enterprise strategy may establish common priorities and constraints, while business-unit strategies address particular services or markets. A domain strategy, such as a data or infrastructure strategy, concentrates on a narrower set of capabilities. These scopes can coexist, provided their decisions are reconciled where resources, information or services are shared. They are useful descriptions of scope rather than a universal classification of strategy types.

Strategic direction also concerns the continued operation of existing capabilities. Decisions to maintain a service, retire a system, retain a supplier relationship or reduce technical complexity can be as consequential as decisions to introduce a new technology. Different commitments can have different time horizons. The duration of a contract, the useful life of an asset, organizational uncertainty and the time needed to develop skills can all affect the period a strategy addresses.

The distinction between stated intentions and actual behavior is relevant to understanding strategy. In general strategy research, Mintzberg examined strategy through patterns of decisions and distinguished intended from realized strategies.[1] Applied to IT, this perspective draws attention to how repeated investment and operating decisions may reinforce or depart from a declared direction. An apparent pattern still needs interpretation; its existence does not establish coherence or effectiveness.

Terminology and related artifacts

Related strategy terms

Information technology strategy is the expanded form of IT strategy. Other labels require attention to context. ICT strategy explicitly includes communications technology. Technology strategy can refer to a wider range of technologies than organizational information systems. The label alone does not determine whether a document covers enterprise capabilities, the IT function, a particular technology domain, or a business offering.

Information systems strategy is closely related to IT strategy, although definitions and scope vary. Chen, Mocker, Preston and Teubner's 2010 review identified three conceptions in the literature: using information systems to support business strategy, the IS function's master plan, and a shared organizational view of the role of IS. The authors developed the third perspective in their own conceptualization.[2] These differences help explain why an IS strategy can mean more than a systems-development plan. They also make a rigid, universal separation between IS strategy and IT strategy difficult to sustain.

Digital strategy can overlap with both technology direction and business direction. A specific formulation is digital business strategy: Bharadwaj, El Sawy, Pavlou and Venkatraman proposed it in 2013 as a fusion of IT strategy and business strategy.[3] This proposal does not establish a universal meaning for digital strategy or imply that separate IT strategies have become unnecessary.

Strategy, planning, plans and roadmaps

Distinguishing the overall plan from the activities and documents associated with it makes the organizational roles clearer. A written IT strategic plan records the strategy and can include implementation detail; these distinctions do not require separate documents in every organization.

Concept or artifact Relationship to IT strategy
IT strategy The overall plan, priorities and connected choices for using information technology to achieve business goals and objectives.
IT strategic planning process Activities through which participants investigate conditions, consider alternatives, formulate direction, and revisit their choices.
Written IT strategic plan The document recording the strategy and associated commitments. It can also specify priorities, responsibilities, resources and implementation arrangements.
IT roadmap A representation of intended changes, their sequence and dependencies. It shows how intended changes relate to one another over time.
Operational plans Arrangements for delivering and running services, managing resources, and carrying out work. They put relevant strategic commitments into practice at greater operational detail.

A schedule can show when a system will change without explaining why that change matters. Conversely, a stated strategic direction can leave its implementation arrangements unresolved. Reading the strategy alongside its supporting documents helps distinguish the rationale, the commitment, and the work needed to realize it.

Relationship to business strategy and organizational management

Business strategy and alignment

Business strategy establishes organizational purposes and choices about activities, services, markets or ways of creating value. IT strategy addresses the information and technology implications of those choices. The relationship can also operate in the other direction: an available capability can make a different service or organizational arrangement feasible. The extent to which business and technology direction are developed together depends on the organization and the role technology plays in its activities.

Business–IT alignment concerns the relationships among these strategic and operating domains. MIT's Center for Information Systems Research describes Henderson and Venkatraman's Strategic Alignment Model in terms of four domains: business strategy, IT strategy, organizational infrastructure and processes, and information-systems infrastructure and processes. Its account identifies strategic fit and integration between business and functional domains as central dimensions.[4]

This relational view helps explain why agreement between two strategy documents can be insufficient. A proposed service may depend on changes to responsibilities, information or working processes as well as technology. Alignment therefore concerns what the organization can do and how its parts work together, alongside the intentions recorded in its plans.

Governance and responsibility

IT governance concerns direction, accountability and oversight for the organization's use of IT. IT strategy supplies substantive choices that governance arrangements can consider, authorize and monitor. ISO/IEC 38500:2024 addresses governing bodies and those supporting them, and covers governance of both current and future IT use across different organizational types and sizes.[5]

The allocation of responsibilities varies. A chief information officer or other technology leader may coordinate formulation and implementation, while business and service leaders contribute objectives, constraints and responsibility for organizational change. Governing bodies or delegated forums exercise authority according to the organization's arrangements. Finance, architecture, security, workforce, sourcing and operating participants contribute information that can affect feasible choices.

Governance frameworks can help organize these relationships. For example, ISACA describes COBIT's governance and management objectives in relation to alignment goals and enterprise goals.[6] That framework relationship does not make COBIT a mandatory IT strategy method, and formal oversight alone does not establish that a strategic commitment will succeed.

Architecture and operating arrangements

Enterprise architecture makes relationships among organizational and technical structures explicit. Architecture descriptions can reveal how a proposed direction depends on existing information, applications, interfaces or organizational arrangements. They can also describe target relationships and transitions. Strategy informs the direction of architectural change, while architecture can expose constraints and options that affect strategy.

The IT operating model concerns how people, responsibilities, processes and resources are organized to provide IT capabilities and services. A strategic commitment to shared services, for example, has implications for decision authority and service ownership as well as technical integration. Architecture and operating arrangements contribute to realizing the direction, but their descriptions are distinct from the work of implementation and the outcomes it produces.

Routine operations and strategic direction interact. Operations supply evidence about service needs, costs, weaknesses and dependencies. Strategic choices can change which services are provided, how they are supported, and where responsibilities sit. Operational continuity remains a consideration during change; a strategy can include decisions about maintaining and simplifying existing capabilities.

What does an IT strategy cover?

An IT strategy connects business goals and objectives with priorities for technology capabilities, investment and change. Its content depends on scope, but it can identify the capabilities to retain or develop and the principles guiding consequential choices. These priorities inform decisions about resources and action across the organization.

The following areas illustrate the range of choices that a strategy can address. They are explanatory categories, rather than a mandatory outline or an exhaustive component standard.

Area Strategic considerations
Information and applications The information the organization depends on; where it needs shared or specialized applications; and how information quality, access and interoperability affect its activities.
Infrastructure and technical architecture The platforms and integration arrangements needed to support capabilities; choices about reliability, flexibility, standardization and existing technical constraints.
Services and operating arrangements Which services are provided, how they are organized, and how responsibility is distributed across central teams, business units and external providers.
People, skills and sourcing Capabilities to retain, develop or obtain externally; the skills and organizational knowledge required; and dependencies created by supplier or partnership arrangements.
Investment and change Commitments needed to maintain or develop capabilities, interactions among initiatives, capacity for change, and the implications of selecting or deferring work.
Risk management and resilience Exposure associated with the chosen direction, the services or information that require protection, and the continuity and recovery capabilities relevant to organizational needs.

These areas interact. Greater standardization can simplify shared services while reducing local discretion. External sourcing can provide access to capabilities while creating dependencies on a provider and its contractual arrangements. A strategy gives those choices an organizational context; it cannot determine their suitability from a technology label alone.

Strategic principles can express a preferred approach, such as the use of shared capabilities where there is a common need. Their meaning depends on scope, rationale and the treatment of exceptions. A principle that leaves every consequential choice open provides little direction; one applied without regard to context can impose avoidable constraints.

An IT strategy framework can organize concepts and relationships used in formulation or explanation. Its function differs from that of a valuation technique, a project-sizing method, an architecture description or a prioritization tool. Such techniques can inform particular decisions without constituting a complete strategy or prescribing its content.

How IT strategy is developed, implemented and reviewed

IT strategy is developed by relating business goals and objectives to existing capabilities, constraints and opportunities. Implementation puts the resulting commitments into action, while review uses evidence to reconsider the direction and its execution. Participants can consider business priorities, service experience, architecture, resources, risks, external developments and lessons from previous commitments. These inputs can influence one another: a technical constraint may change a proposed business option, while a revised business priority may change which technical constraint deserves attention.

The direction can be articulated through a written IT strategic plan, principles, investment decisions and related roadmaps. The chosen form depends on how an organization makes and communicates decisions. A written plan provides a record that can be discussed and revisited, but its existence is separate from whether participants share its interpretation or act consistently with it.

Implementation connects commitments with changes in systems, services, responsibilities and working practices. Depending on the strategy, this can involve programmes, projects, ongoing product development or changes to service operation. Technical delivery may need complementary changes in training, processes, data stewardship or business responsibilities. Deploying a system establishes a delivery result; its use and organizational contribution remain separate questions.

Formulation and implementation can overlap. Experience during delivery or operation can reveal that an assumption was incomplete, a dependency was missed, or an alternative is more suitable. A strategy can retain a stable organizational purpose while changing the means used to pursue it. Reconsideration can concern the direction itself, the sequence of changes, or the implementation arrangements, with different consequences in each case.

Review uses evidence to interpret those consequences. Information about delivery, service use, costs, risk and organizational results can support continuation, adjustment or withdrawal of a commitment. A favorable result does not by itself establish that the strategy caused it; other changes may contribute. Equally, a delivery delay can arise from implementation conditions without invalidating the underlying direction. The appropriate review arrangements depend on the commitments, uncertainty and governance context.

Benefits and limitations of IT strategy

IT strategy can support coordination by giving participants a common account of priorities and the intended role of information and technology. It can make competing resource commitments visible and help relate decisions made in different parts of an organization. These contributions depend on communication, decision authority and behavior, and do not follow automatically from producing a document.

Its intended contribution also depends on organizational purpose. A commercial enterprise may emphasize revenue, differentiation or cost; a public body may emphasize service outcomes, accessibility or stewardship. Reliability, continuity and the responsible use of information can matter alongside innovation. The presence of a strategy does not establish that these outcomes have been achieved or that every objective can be maximized simultaneously.

Several limitations follow from the nature of strategic commitments. Evidence about future conditions is incomplete. Objectives can conflict, and resources committed to one capability are unavailable for another use. Choices can create dependencies that are expensive to change. Different participants can interpret the same direction differently, especially when responsibilities and constraints remain implicit.

A strategy can also become disconnected from the organization that must act on it. A target capability may require skills that have not been developed, information that is unreliable, or business changes that no participant is able to authorize. Repeated revision can create disruption, while refusing to revisit assumptions can preserve an unsuitable direction. The issue is the relationship between commitments, operating conditions and evidence, rather than the mere frequency of change.

These limits distinguish intended contribution from demonstrated effectiveness. They also explain why strategy, governance, architecture, operating arrangements and implementation remain related areas of management rather than interchangeable labels for a guaranteed outcome.

Development of the concept

Selected publications show how researchers have examined the strategic role of information and technology from different perspectives.

In 1985, Porter and Millar's How Information Gives You Competitive Advantage examined information technology in relation to the value chain. The publisher's account treats IT as encompassing information and the technologies used to process it, extending the discussion beyond computers as equipment.[7]

Henderson and Venkatraman's 1993 IBM Systems Journal article addressed strategic alignment and organizational transformation through IT.[8] The model's relationships, summarized above, placed strategic direction alongside organizational and information-systems structures and processes.[4]

The 2010 study by Chen and colleagues examined the different meanings attached to IS strategy and proposed a shared-perspective formulation.[2] In 2013, Bharadwaj and colleagues proposed the digital-business-strategy formulation described above, bringing IT and business strategy together in a single research perspective.[3] Together, these contributions illustrate continuing questions about the scope of strategy, its organizational role, and its relationship to technology-enabled business activity.

See also

  • IT operating model — how people, responsibilities, processes and resources are organized to deliver IT capabilities.
  • IT value — the contribution of information technology to organizational outcomes.

References

  1. ↑ Mintzberg, H. (1978), 'Patterns in Strategy Formation', Management Science, 24(9), pp. 934–948. Publisher abstract and publication metadata. Accessed 29 October 2026.
  2. ↑ 2.0 2.1 Chen, D., Mocker, M., Preston, D.S. and Teubner, A. (2010), 'Information Systems Strategy: Reconceptualization, Measurement, and Implications', MIS Quarterly, 34(2), pp. 233–259. Journal abstract and citation. Accessed 29 October 2026.
  3. ↑ 3.0 3.1 Bharadwaj, A., El Sawy, O.A., Pavlou, P.A. and Venkatraman, N. (2013), 'Digital Business Strategy: Toward a Next Generation of Insights', MIS Quarterly, 37(2), pp. 471–482. Journal abstract and citation. Accessed 29 October 2026.
  4. ↑ 4.0 4.1 MIT Center for Information Systems Research (n.d.), 'MIT CISR 50th—50 Facts', Strategic Alignment entry. Institutional account of the model. Accessed 29 October 2026.
  5. ↑ ISO/IEC (2024), ISO/IEC 38500:2024: Information technology — Governance of IT for the organization, third edition. Public abstract and publication status. Accessed 29 October 2026.
  6. ↑ ISACA (n.d.), 'COBIT', public description of COBIT 2019 Framework: Governance and Management Objectives. Accessed 29 October 2026.
  7. ↑ Porter, M.E. and Millar, V.E. (1985), 'How Information Gives You Competitive Advantage', Harvard Business Review, July 1985. Public publisher catalogue description, dated 1 July 1985. Accessed 29 October 2026.
  8. ↑ Venkatraman, N. (2020), Academic Vita, June, p. 3. Publication record for 'Strategic Alignment: Leveraging Information Technology for Transforming Organizations', IBM Systems Journal, 32(1), 1993. Accessed 29 October 2026.

Further reading

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