What is IT Strategy?
The term “IT Strategy” is very widely used and most CIOs consider it necessary to have a strategy. Value can be added to this term by borrowing a definition from game theory.
“In game theory, a player’s strategy in a game is a complete plan of action for whatever situation might arise.”
This definition is taken from Wikipedia and implies that a strategy is more than just a plan. If an IT strategy is really a strategy it should include a variety of scenarios and provide responses to varying circumstances. At a very simple level a CIO might determine that different investments would be made depending on economic circumstances. If the economy remains flat IT investments might simply be targeted at reducing costs. On the other hand a buoyant economy might mean more investment in channels to market.
Clearly a CIO needs to understand what the CEO and other senior management have in mind should various scenarios manifest – a strategy cannot be formulated in isolation. As the definition of strategy implies there is a need to consider the organization’s response to a variety of variables, and as such a strategy becomes much more than a plan to implement systems and buy technology.
Each scenario will have a plan associated with it, and each plan is composed of many actions. Filling out the strategy-plan-action hierarchy would result in a complete strategy capable of responding to organizational needs as circumstances changed.
