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2022 | Book

Introduction to the Topic Read chapter Read first chapter

IT Strategy

Making IT Fit for the Digital Transformation

Author: Volker Johanning

Publisher: Springer Fachmedien Wiesbaden

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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About this book

Create an IT strategy for your company with this book.In seven consecutive steps, this book presents the development of an IT strategy for manufacturing companies with the possibility of practical implementation using ready-made worksheets. It looks at all the issues relevant to an IT strategy, from deriving the IT strategy from the corporate strategy to creating the application and sourcing strategy. The role of IT in the company and the role of the CIO are examined in detail, and the demand/supply model is presented in detail as a structural organisation. In this book, the reader learns how to transfer the IT strategy into a roadmap for implementation, how to use a portfolio to control the projects and how to implement and control the goals of the IT strategy with a specially developed IT strategy cockpit.
The second edition takes greater account of digitalisationThis second edition focuses on manufacturing companies in order to take into account the industry focus of any IT strategy. It also considers the distinction from digitalisation and digitalisation strategies and contains additional explanations on agile methods, DevOps as well as bi-modal IT structures. As a result, the existing 7-step concept for developing an IT strategy has become more focused and has taken on the current issues of IT and digitalisation, which continue to develop at a rapid pace.
In terms of content, the book on creating IT strategies focuses on the following areas:
- Fundamentals of IT strategy as well as differentiation from a digitalisation strategy.
- Reasons for an IT strategy
- As-is analysis of IT
- Analysis of the corporate strategy
- IT application strategy
- Sourcing strategy
- IT organisation and IT governance
- Practical implementation: budgeting, IT roadmap and IT project portfolio
- Monitoring and control of the IT strategy with the IT strategy cockpit

The author primarily addresses CIOs and IT managers of medium-sized to large companies and groups in the manufacturing industry. In addition, the book is suitable for the following target groups:
- IT staff, IT controlling and IT management level employees.
- IT management consultants
- CFOs, CEOs, managing directors and board members of manufacturing companies

Table of Contents

Frontmatter

Introduction and Basic Information on IT Strategy

Frontmatter
Introduction to the Topic
Abstract
The first chapter consists of an introduction to the world of IT strategy and clarifies basic questions: “What is an IT strategy, when and why is it needed, how does science and practice see the subject of IT strategy? What is the relationship between corporate and IT strategy? ‘Chapter 1 concludes with the topic’ Strategic Planning and Management of IT”.
Volker Johanning
Six Good Reasons for an IT Strategy
Abstract
In this chapter, the current and burning questions of IT organisations that can be answered with the help of IT strategies are elaborated.
Volker Johanning
The Approach Model for Developing the IT Strategy
Abstract
This chapter is intended to prepare and understand the model for the development of the IT strategy. It presents the 7 steps with their respective contents. Finally, the example company is presented with its most important data, which in each step serves as a practical example to illustrate the building blocks on the way to the IT strategy.
Volker Johanning

7 Steps to a Sustainable IT Strategy

Frontmatter
Preparations: Setting up the Development of the IT Strategy as a Project
Abstract
Before starting the IT strategy project, some questions naturally arise: “How do I develop the IT strategy best: alone or as a team? How long does it take and how much effort does it mean for me and/or my team? How long will it take me to develop and implement the IT strategy? Or is this an ongoing development process that constantly accompanies me?”
Volker Johanning
Step 1: IT Status Quo Analysis
Abstract
If you want to improve something, you have to know the starting point. This is step 1, an internal analysis of IT processes, organization, technology maturity and financial situation. The result of the first step shows the current state of all areas of IT in a clear network diagram and provides first indications of possible areas of action in the development of the IT strategy.
Volker Johanning
Step 2: Analysis of the Corporate Strategy and Derivation of Challenges for IT
Abstract
After an overview of the current maturity of the IT organization and IT processes has been created in the first step, the derivation of concrete action plans for IT from the corporate strategy and departmental bottlenecks follows.
First, the corporate strategy is examined in more detail. As a result, possible innovation potentials for IT are identified together with corporate management. This results in the formulation of an IT vision that roughly defines the action plans for IT, i.e. the direction of travel for IT is roughly outlined.
In this second step, things are getting a little more concrete by examining the bottlenecks and problems of the departments together with the department heads with a view to optimizing them through IT systems.
Volker Johanning
Step 3: The IT Applications Strategy
Abstract
After the derivation of the still coarse action strands for IT from the corporate strategy and the business processes carried out in step 2, the application strategy is now created. For this purpose, the already known portfolio and life cycle theories are used as aids. Together with the management and the specialist departments, analyses and evaluations of the current application landscape are carried out, which are then condensed into a target application portfolio.
The aim of this third step is to show which services and services the IT has to offer in order to optimally support the corporate and departmental goals. The creation of the application roadmap serves this purpose at the end of this chapter.
Volker Johanning
Step 4: The Sourcing Strategy
Abstract
After the roadmap for the new application landscape has been created, it must now be decided who operates these applications and the IT infrastructure required for this. The answer is given with the development of a sourcing strategy. It is a central part of the IT strategy, but also of the IT organization, as it is decided here which resources are needed internally and which are outsourced externally.
Volker Johanning
Step 5: IT Organization and IT Governance
Abstract
After the determination made in step 4, which resources will be outsourced to third parties or supported internally on the basis of a make-or-buy decision, this fifth step involves a possible adaptation of the IT organization and the IT governance structure. In other words, what you need to optimally support the internally retained IT services. Considerations are made regarding roles and responsibilities, interfaces, departments and within IT, between demand and supply, and suppliers.
Volker Johanning
Step 6: Implementation—The IT Roadmap, Determination of the IT Budget and the IT Project Portfolio
Abstract
In this sixth step, the implementation of the IT strategy begins. After the application strategy has been defined and it has been decided which IT services will be provided internally or externally by providers, the IT organization has been reviewed, put on new legs and the corresponding governance structures have been set up. Now the implementation of the IT strategy takes place in three stages:
1.
Creating a roadmap that, based on the time horizon of approx. 2–3 years, shows which projects in IT have to be carried out in the long term in order to implement the IT strategy.
 
2.
Determining the necessary budget and approval.
 
3.
In addition, the creation or adaptation of an IT project portfolio is necessary in order to be able to check at any time during the implementation whether all projects are economically sensible and meet the goals of the IT strategy.
 
Volker Johanning
Step 7: Monitoring and Control of the IT Strategy with the IT Strategy Cockpit
Abstract
In addition to the measures determined from the first five steps and the incorporation into an IT roadmap as well as the evaluation of IT projects in the portfolio, an IT strategy cockpit is now designed on the basis of a Balanced Scorecard, with which the control of the measures from the roadmap always succeeds.
Volker Johanning
Conclusion and Outlook
Abstract
What stays behind? What were the key points on the way to the IT strategy? Which measures could already be implemented and which ones are difficult and why? Answering these questions is the final chord of this book in the form of a summary and outlook.
Volker Johanning
Backmatter
Metadata
Title
IT Strategy
Author
Volker Johanning
Copyright Year
2022
Electronic ISBN
978-3-658-38772-3
Print ISBN
978-3-658-38771-6
DOI
https://doi.org/10.1007/978-3-658-38772-3

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