Q.1    List and explain the 5 steps required to develop an information technology strategic plan.

There are five main steps in the process of developing an information technology strategic plan:

1.    Develop the business strategy

2.    Identify information technology strategies

3.    Analyze the information technology strategies  

4.    Select the most appropriate information technology strategy

5.    Develop a plan to implement the information technology strategy

1. Develop the business strategy

Strategic business planning is not done solely for information technology planning. Generally a business plan sets the direction of the organization and is relevant to many areas such human resources, production, sales, marketing and of course information technology.

A strategy is a tactic or an approach to the way something is to be done. A business strategy is the way the organization does its business.

A business strategic plan is a statement of how the organization will do its business – that is a statement of the actions that the organization will take to support its goals.

There are several different techniques for business planning. Small organizations as well as large need to plan and can use these techniques.

2. Identify information technology strategies

Using the business plan as a guide, possible information technology approaches may be identified. The information technology strategies should support the business strategies. Both current and emerging technologies should be identified.

3. Analyze the information technology strategies

Each strategy identified should be analyzed in detail. Some of the following issues to be explored are:

How much will the technology cost?

When will the technology be available?

How long will it take to implement the system?

How well will the information technology systems support the business plan?

What effect will change have on the organization?

What effect will the new systems have on existing systems?

Will existing systems have to be changed?

Will policies and procedures have to be changed?

  4. Select the most appropriate information technology strategy

One possible information technology strategies have been identified and analyzed, the organization has to choose the best and most appropriate strategies. The analysis in the previous step will guide this decision. For example, the cost of a particular strategy may exceed the amount the organization is willing to pay.

5. Develop a plan to implement the information technology strategy

A plan is developed to implement the information technology strategy. It may involve some or all of new hardware, software and communications. It may involve purchasing packages or developing the software itself. Other requirements that may be required are specified such as training, procedures and security.