Developing IT Strategy in the Context of Business Needs

by Jerrold M. Grochow

Deciding the priority and funding for major IT initiatives, such as developing a new system or supporting a new technology, are among the most important functions of the IT governance process. Anyone who has been part of an IT governance committee recognizes that business needs and goals are the key basis for these decisions -- IT strategy must be synchronized with business goals. But organizations sometimes make broad statements about technology strategy without establishing that linkage, saying, for example, "Our goal is to be an innovator in the use of IT." This kind of expansive pronouncement, while no doubt intended to be inspiring, doesn't relate the indicated technology strategy (in this case, being an innovator in the use of IT) to the impact on business operations and goals, and also implies that all parts of the enterprise ought to have the same IT goal.