Fall 2011 issue of Horizons

Individually, none of these are strategic to an organization. If they were not in place, it would be inconvenient, but would arguably not present a significant impact to the business. One test to determine if your organization views technology strategically would be to evaluate what would happen if a disaster occurred and the systems in place were unavailable. How long could your business operate without the technology? Could you last a week, a day, or even hours? The longer your business could function without technology, the more of a commodity it is to your organization. Another test is to look how organizationally the technology function is structured. If we look at the IT function, to whom does the top IT individual report? Is the top IT person part of the executive team? Are they involved in strategy discussions and business planning activities? In most organizations where technology is viewed more of a commodity, the top IT person will report to the CFO. They will not be included in strategic discussions other than to provide answers to specific questions and they are not viewed as a member of the executive team. So why don’t companies use technology strategically? Many times it is because the business does not understand how to use technology strategically. There are also perceptions that to use technology strategically is costly, too complex, or even risky. While there are many cases where all of these things are true, the right solution will balance all of these with the corresponding benefits. The end result will be the optimal use of technology to meet the needs of the business at the maximum value. Strategic

Cost

Benefit

Infrastructure Applications

Efficiency Time to Market Competitive Advantage

Using technology as a commodity is a perfectly acceptable business practice. However, the business must realize that this strategy will provide the least benefit to the organization and in the long run, not necessarily the lowest cost.

Time without Technology Access

Commodity

Using Technology Strategically How does an organization begin to think about using technology strategically? What are the steps in the process? How do you start? Like most aspects of your business, it all revolves around where the business is going. The process begins with an overall business assessment. If the business does not have a strategy, it will be difficult to determine how technology, or anything else for that matter, can be strategic to the organization. If we assume that a business strategy exists, then the first step in the process is to assess the technology as it exists today and how it enables the strategic needs of the business. During this assessment, the organization should determine: • Where they are now as it relates to technology • What do they currently have • Where do they want or need to go

• What are the issues and risks • What are the opportunities

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