Strategic planning in Information Technology: Research Design and Methods
Information Technology Strategic Plan Development Methodology
Governing from the Perspectives of Enterprise Architecture
Richardus Eko Indrajit Faculty of Information Technology
ABFI Institute Perbanas Jakarta, Indonesia
indrajit@post.harvard.edu
Abstract—Information Technology Strategic Plan (ITSP) has been considered as the most significant document for information technology development within enterprise. Its existence helps Chief Information Officer to strategise the construction and implementation of enterprise information technology – and at the same time avoiding from unnecessary risks and failures. The introduction of enterprise architecture concept in the last decade has altered the development methodology of ITSP. One of the strong reason to adopt such approach is to ensure agility behavior of information technology system. This paper proposes the development of ITSP by adopting the concept of enterprise architecture.
Keywords—information technology strategic plan; enterprise architecture; chief information officer; agility
I. INTRODUCTION Information System Audit and Control Association
(ISACA) states that ITSP is required to help the executives in governing and managing all IT resources inline with the business strategy and priorities [1]. All business and information technology stakeholders bare the responsibilities to ensure the optimal value delivered from information technology projects and service portfolios [2]. Example of potential risks faced by the corporation in the absence of ITSP as guidance in conducting information technology initiatives and implementation are: redundant cost, project overrun, low performance infrastructure, silos applications, complex architecture, and unaligned development scenario [3].
II. ITSP AND ENTERPRISE ARCHITECTURE Control Objectives for Information and Related
Technology (COBIT) suggest that six control objectives should be taken into consideration, which are: IT value management, business-IT alignment, assessment of current IT capability and performance, IT strategic plan, IT tactical plans, and IT portfolio management [1]. This approach brings serious issues since there is no illustrations or diagrams showing existing and targeted states of information technology ecosystem. It brings tendency that all IT projects determined based on gap analysis are being conducted in isolation with each others [3]. The
common result is the islands of unintegrated silos system and technology that jeoperdising enterprise in the long run [3][4].
The Open Group Architectural Framework (TOGAF) suggests that in ITSP, there should include the “As-Is” and “To-Be” designs of information technology architecture [5]. Within the ecosystem of enterprise architecture, there are at least four sub-systems should be well described, designed, and illustrated, which are: business architecture, application architecture, information architecture, and technology architecture [6]. “As-Is” architecture represents the existing condition of information technology while “To-Be” architecture shows target state that should be realised in a particular time [5][6][7].
III. ACTION RESEARCH This proposed methodology is developed through a series
of action research conducted by researcher in five year period. The first year focused on collecting a good number of ITSP development methodologes existed in the market. Most of the methodologies found were developed by global consultant firms such as Price-Waterhouse Coopers, Accenture Consulting, Ernst and Young, Booz Allen, McKenzie, Boston Consulting Group, and KPMG. There were also several academic papers addressing the issues from different perspectives that were gathered for the study. In second year, the researcher was conducting meta analysis to produce baseline methodology as guidance to develop ITSP. Several validation techniques were used to challenge the methodology through one-to-one discussion with experts and industry practitioners. During the third year of research, the revised methodology was field tested in a good dumber of medium size enterprises. A major revision to the methodology has been undergone based on this field study. In the fourth year, the researcher was given opportunity by several corporations to apply the ITSP methodology in various industry, which are: oil and gas, healthcare, manufacturing, banking and finance, transportation, and education. Finally in the last year, this methodology is utilised to develop ITSP for government agencies and non-for-profit organisations.
IV. THE ITSP DEVELOPMENT METHODOLOGY This methodology consists of seven stages. Each stage
represents several artifacts that should be produced as part of ITSP formal and official document.
A. Stage 1: Understanding Enterprise Environment Every company operates within industrial ecosystem that
has unique characteristics. Assesing the posture and characteristics of such environment will help management to understand how the enterprise should position itself inside the system [8]. Understanding enterprise’s vision, mission, values, products/services, market segments, customers, and partners is core for developing ITSP [9]. Furthermore, investigating other factors such as industry landscape, competitor profiles, business models, revenue stream, and internal-external forces
will help ITSP developers to comprehend the dynamic nature of business environment where the enterprise operates. This information is very crucial to be collected as strategic inputs for any further decision in defining and determing many components in ITSP.
B. Stage 2: Defining Business Requirements Based on the results of previous stage, business
requirements are defined. There are many instruments that can be used to help ITSP developers in defining enterprise needs, such as: value proposition, pain points, business opportunities, industry trend, cost-benefit analysis, benchmarking, and best practices [10][11]. By undergoing this activity, enterprise special needs that should be supported by information technology can be clearly mapped.
C. Stage 3: Determining IT Target Capabilities By taking into consideration the business requirements that
have been defined, a holistic and systemic enterprise architecture should be developed. The activity is started by developing business architecture, followed by information system architecture – which consists of data architecture and application architecture [5][6]. After these three architectures have been determined, a technology architecture should be designed. As several practitioners suggest, two more types of architecture can be developed, which are: people architecture and governance architecture [12][13]. This enterprise architecture is developed after ITSP developer study about information technology trend, cost-benefit analysis, and capability measurement.
D. Stage 4: Assessing Existing IT Performance Knowing the current information technology capability and
performance is significantly important to help identifying the issues and real problems faced by the enterprise. It is also mandatory for ITSP developer to picturise the whole technoology facilities and installation in the form of enterprise architecture as mention earlier in the previous stage. Conducting information technology audit is one effective approach that can be undergone by the enterprise to get detail information about existing information technology performance [4][14].
E. Stage 5: Conducting Gap Analysis Gap between enterprise expectation (future state) and
existing information technology performance (current state) which are described in Stage 3 and Stage 4 should be well analysed. All components of business, data/information, application, technology, people, and policy/governance should be compared side-by-side to show the gap exposure between “To-Be” and “As-Is” environment [3]. Based on these gaps, various business and information technology initiatives are being defined and proposed. For every gap, IT developer should select and decide an optimum solution scenario to be undergone.
F. Stage 6: Developing IT Initiatives and Projects In this stage, all initiatives that have been defined and
proposed in earlier Stage 5 are clustered based on its nature and relationshiops [15]. A projects portfolio of application development, database construction, network infrastructure installation, organisation structure formation, and policy development is determined. For every project, a detail charter should be developed, consisting the information of project title, scope, objectives, duration/time, estimated cost, people involved, risk, quality, and procurement method [16][17].
G. Stage 7: Communicating the Development Roadmap This last stage is proposed to be conducted to ensure key
stakeholders buy-in with regards to the ITSP being developed [18]. It starts by forming special task force who has main responsible to communicate the plan throughout enterprsie. This group of people will create marketing tools and determine campaign strategy to be implemented for the purpose of
communicating the roadmap of information technology development [19].
V. CONCLUSION As an official document, ITSP is being developed in-line
with business needs. Every information technology should be considered as business project, because both concepts are aligned to each other. Adopting enterprise architecture approach within ITSP will help the business and information technology practitioners to picturise the demand and the supply of information technology ecosystem that are expected (To-Be) and existed (As-Is). It supports the principle stating that “something that can not be described, can not be developed”. Understanding that ITSP is a living document required to be revised periodically is also important to ensure that such plan is still relevant and contextual with dynamic change.
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