Reference no: EM132329276
What are the three categories of value drivers?
"Value driver enhances the value of a product or service to consumers, creating value for the company. Advanced IT, reliability, and brand reputation are examples" (Turban, et al., 2017, p. 358).
The categories of a value drivers are:
1. Operational - These are shorter term factors that impact the cash flow and the the ability of the company to generate cash either by boosting growth or efficiency (Turban, et al., 2017, p. 358).
2. Financial - These are medium term factors that help to minimize the cost of capital that a company may incur to finance operations (Turban, et al., 2017, p.358).
3. Sustainability - These are long term factors that give the company the ability to consistently function optimally for a long period of time (Turban, et al., 2017, p. 358).
Why do reactive approaches to IT investments fail?
Reactive approaches to IT Investment fail because IT strategy is not aligned with the business strategy. If it were aligned then companies would know what IT infrastructure they needed and would be proactive in getting it. Being reactive means that that have already failed to get the IT infrastructure you need so further failure is eminent. Being reactive means you are behind and need to play catch-up and with IT changing so often you need to be ahead of instead of behind IT investments.
What is the goal of IT-business alignment?
The goal of IT-business alignment is to achieve the organizational strategic objectives. IT strategy has to be integrated into the business strategy in order to achieve the objectives of the organization.
Why is IT strategic planning revisited on a regular basis?
Organizational goals can change over time, so revisiting the IT strategic plan on a monthly, quarterly or yearly basis helps to ensure that IT stays align with the organization's business strategy.
What are the functions of a steering committee?
A steering committee is a team made up of managers and staff members who provide guidance and set priorities that will meet the needs of the company.
The functions of the steering committee are:
1. Set the direction
2. Allocate scarce resources
3. Make staffing decisions
4. Communicate and provide feedback
5. Set and evaluate performance metrics
Describe the IT strategic planning process.
The IT strategic planning process begins with the creation of the organization's strategic business plan because this is what the long-range or strategic IT plan is based on. This plan looks towards the future and the IT goals that are to be achieved and how they will be achieved. The resources needed for this plan are set for three to five years into the future. Next is the medium-term IT plan which looks at the specific requirements, how they are sourced and the project portfolio. Finally, the tactical plan will look at the budgets and schedules for the short term.
Explain how a good IT strategy can help companies gain a competitive advantage in the marketplace.
Competitive advantage is having that edge over the competition that allows you to perform better to than them in areas that matters to the consumers (Turban, et al., 2017, p. 363). Good IT strategy can help a company to gain a competitive advantage in the market place by allowing the company to be agile, flexible and responsive. When the IT strategy is aligned with the business strategy, the ability to adapt with changes in the market place is better.
Reference:
Turban, E., Pollard, C., & Wood, G. (2017). Information Technology for Management (11 ed.): Wiley.
QUESTION:
Can anyone please provide solid feedback on my above submission and identify additional benefits to IT strategic planning?