Technology and IT Strategy

In an IT organization, people are focused on doing their day to day tasks and many are unaware of their contribution to the enterprise. Their task maybe to deliver a tool, SSO functionality, integrate data, web page or write an application functionality.  Although, they may know the value of what they are delivering. People often don't realize the value proposition to the enterprise or don't care. Even leaders (sometimes) don't know what real business value they are creating for the enterprise value chain (or not creating). All they know is to get some work done as they have tight timelines or is just part of their job. And then there are many folks, who are just shy of asking even if they are thinking about it.

So coming back to the topic - technology strategy vs. IT strategy. Is it the same or different? Are you delivering on IT Strategy or technology strategy?

In the big picture - there is a business value chain delivering single products/services or diverse products/services in different regions. These days technology is becoming part of not just enabling the business but as a part of the business model.

Depending on the industry, the technology strategy is different. In financial services, blockchain is changing the industry. New product development that leverage these technologies will change how the business services are delivered and the customer value propositions are created. For example, New services/products that maybe created through cognitive learning (i.e. Microsoft predictive learning or IBM - Watson) - Perhaps we won't need a real financial advisor at all. In health-care, the evolution of EHR and the changing business model will create new ways of delivering business services through technology. Perhaps in the future, the cognitive learning becomes doctors for basic illnesses as the robotics performs complex procedures. These are some examples of technology strategies. These will require a new mix of business and technology skillsets to create new value propositions. 

On the other hand - the IT strategy is more focused on how IT will enable the business strategies. This can be similar or different depending on how the CEO sees IT leadership/IT function in the organization. Most of the IT leaders are stuck on keeping the lights on or as a cost function. Once they are stuck with this label, it is difficult to change the business perception OR even the business culture of seeking IT's help on new business services that are powered by new technology trends.

The IT strategy often focuses on:

• IT Directions - Key focus areas where technology organization needs to focus on (i.e. CRM, integration, M&A, infrastructure, etc.). Balancing the capital vs. operation expenses on key business priorities.
• Guiding Principles - Key principles through which IT makes investment decisions
• Governance - What structure, processes need to be in place to make effective decisions 
• Sourcing - Decisions around functions that are in-sourced/out-sourced. Planning around what skills to build in house vs. what to outsource. 
• Architecture - Future architecture direction affecting program life-cycle, software life-cycle, devOps and the technology landscape.
• Roadmap - Develop roadmaps for different types of audiences (i.e. business architecture roadmaps for business audience, application roadmap for business and technology leadership, information roadmaps for business and technology stakholders, infrastructure roadmap for foundational technology capabilities)

These are key elements of IT strategy, which focuses on IT as a business Vs. technology strategy, which is focused on building new business capabilities.