Business Technology Strategy

Pietro N. Romano

Services Delivery Executive, Cloud Vantage

Microsoft EMEA

IASA Skills Taxonomy

Fo

un

dati

on

Pilla

rs

Software

Architecture

Infrastructure

Architecture

Information

Architecture

Business

Architecture

Enterprise Architecture

Business Fundamentals

Strategy Rationalization and Development

Industry Analysis

Business Valuation

Investment Prioritization and Planning

Requirements Discovery and Constraints Analysis

Compliance

Business Architecture Methods & Tools

Decision Support

Knowledge Management

Agenda

Business Fundamentals

Business Fundamentals: Strategy

Business Fundamentals: Strategy

Business Fundamentals: Strategy

Year Author Work Description

1946 Peter Drucker Concepts of the Corporation Centralization and Goal Setting. External

Purpose

1962 Alfred Chandler Strategy and Structure Form follows purpose

1965 H. Igor Ansoff Corporate Strategy Detailed planning, positioning, resource

allocation

1973 Henry Mintzberg The Nature of Managerial Work Intuition, Face-To Face, seat-of-the-pants

1980 Michael Porter Competitive strategy: techniques

for analyzing industries…

Structural characteristics of the firm’s

industry. Generic Strategies

1982 Kenichi Ohmae The Mind of the Strategist Analysis, intuition and willpower

1990 Gary Hamel, C.K.

Prahalad

The Core Competence of the

Corporation

Resource view: distinctive skills,

technologies assets, learning ability

1996 Michael Porter What is Strategy? Emphasis on Differentiation

Business Fundamentals: Strategy

Plan

• As-Is

• To-Be

Ploy

• Specific

maneuvers

• Mid-course

Corrections

Pattern

• Consistency

in Behavior

through

Architectural

Styles and

Patterns

Position

• Environment

• Domain

Perspective

• Vision

• Values

• Philosophy:

architectural

principles

“A technology strategy is any plan that uses technology as

it’s central component in accomplishing a goal” IASA

Business Fundamentals: Portfolio Management

• Cash Cow: should they be milked?

• Stars: will turn into cows?

• Dog: put to sleep?

• Problem Child: give pocket money?

Source: Simply Strategy; Koch

Strategy Rationalization and Development

Industry Analysis

Business Fundamentals: Industry Analysis

Source: based

on

Competitive

Strategy,

Porter

Business Valuation

Business Valuation

Business Valuation: ROI

Source: Wikipedia

Business Valuation: The Applications Portfolio

Source: Benefits

Management: Delivering

Value from IS & IT

Investments”; Ward &

Daniel

Business Valuation: Benefits Dependency Networks

Source: Benefits

Management: Delivering

Value from IS & IT

Investments”; Ward &

Daniel

Business Valuation: Benefits Dependency Networks

Source: Benefits

Management: Delivering

Value from IS & IT

Investments”; Ward &

Daniel

• Enabling Technology - Technology or IT service to support the

change. If already known capture the start date, duration, risks, costs.

• Enabling Changes - Description of (temporary) project to implement

change.

• Business Change - Description of (permanent) business capability,

process or function to be created, do differently or stop doing to

achieve the benefit.

• Benefit - Description, type of benefit (financial to observable), value

to be delivered and when by.

• Objectives – where an investment is aimed. They are the agreed-

upon achievement targets that help address the drivers.

• Drivers - explain why an investment is being made. These are the

reasons that senior managers believe will have an impact on the

business , both internal and external

Investment Prioritization and Planning

Requirements Discovery and Constraints Analysis

Compliance

Business Architecture Methods & Tools

Business Architecture Methods & Tools

Source: TOGAF

Business Architecture Methods & Tools

Introductory Viewpoint

Source: Archimate 2

Business Architecture Methods & Tools

Business Process Co-

operation Viewpoint

Source: Archimate 2

Business Architecture Methods & Tools

Business Processes,

Organizations, and

Interactions

Source: Business

Modeling: A Practical

Guide to Realizing

Business Value,

Bridgeland, Zahavi

Decision Support

Decision Support

Decision Support: Risk

The last solutionCopyright Pietro N. Romano, 2009

“Risk management that simply

reacts to yesterday's news is not

risk management at all.”

Source: The Failure of Risk Management: Why It's

Broken and How to Fix It , Douglas W. Hubbard,

John Wiley & Sons © 2009

Decision Support: Risk

Id Condition / Type Consequence

s

Owner

Pro

bab

ilit

y

(0-1

)Im

pact

(1-1

0)

Exp

osu

re

(P x

I)

Mitigation /

Contingency

Plans

T1 Component X Doesn’t

Work…

/(Tech)

Cost and

Effort

increase

Steve 0,3 6 1,8 …

P1 Last time Stakeholder Y

stalled it

/(People)

Miss

deadlines

Julie 0,2 5 1 …

… .. … … … … … …

Key success factors

Begin with established risk categories: checklists from previous projects (own or industry experience)

Must be kept up to date: better something simple you update than complex you don’t keep up to date

Measure impact in something real: Measure expected impact, and real impact: allow us to learn

Prioritize: can’t act on 200 risks

Do something about it: mitigation actions, owners…

Knowledge Management

¿Preguntas? y Respuestas…

References (I)

• “Strategic XML”; Means, W. Scott; Sams, 2001

• “What is Strategy?”; M. Porter, Harvard Business Review (November-December 1996)

• “The Execution Premium, Linking Strategy to Operations for Competitive Advantage”; Robert S. Kaplan and David

P. Norton; Harvard Business Press, 2008

• “The Strategy Concept I: Five Ps For Strategy”; Henry Mintzberg, California Management Review, Fall 1987

• “Benefits Management: Delivering Value from IS & IT Investments”; John L. Ward; Elizabeth Daniel; John Wiley &

Sons; 2006

• “Can You Say What Your Strategy Is?”; D.Collins and M. Rukstad, Harvard Business Review, April 2008

• “The New Strategic Selling: The Unique Sales System Proven Successful by the World's Best Companies"; Miller, R,

Heiman, S. Business Plus, 2005

• “Strategy Maps: Converting Intangible Assets into Tangible Outcomes”; Robert S. Kaplan, David P. Norton; Harvard

Business Press; 2004

• “Enterprise Architecture as Strategy”; Jeanne Ross, Peter Weill, David Robertson; Harvard Business Press; 2006

References (II)

• Business Modeling: A Practical Guide to Realizing Business Value, David M. Bridgeland, Ron Zahavi, 2008

• IT Governance: How Top Performers Manage IT Decision Rights for Superior Results”; Peter Weill and Jeanne Ross;

Harvard Business School Press; 2004

• “Simply Strategy: The shortest route to the best strategy, Richard Koch; Peter Nieuwenhuizen; FT Press; 2009

• “IT Strategy Maps: A Tool For Strategic Alignment”; Craig Symons; Forester, 2005

• “Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant”; W. Chan Kim,

Renée Mauborgne; Harvard Business Press, 2005

• “App Savvy”; Ken Yarmosh; O'Reilly Media, Inc.; 2010

• “Enterprise Strategy: Strategy and Planning for Optimized Desktop”; ARC221@TR11 , Meo, Clayton, Gantenbein

• “A Business-Oriented Foundation for Service Orientation”; Ulrich Homann; http://msdn.microsoft.com/en-

us/library/aa479368.aspx; 2006

• The Failure of Risk Management: Why It's Broken and How to Fix It , Douglas W. Hubbard, John Wiley & Sons ©

2009

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