IT Strategy is a consistent set of plans and guidelines on how IT supports business strategy and objectives. As IT includes many relatively long-term elements such as architecture and enterprise applications, the IT Strategy typically looks ahead three to five years in order to give sufficient perspective on changes. The IT Strategy is complemented by an Annual Execution Plan that gives a short-term perspective on strategy and business objectives.
The IT Operating Model defines how IT creates value for the business all the way from decision-making to user experience. It illustrates how the decision-making in Enterprise Development drives solution and service development, and results in efficient services with a superb user experience. The key is to design business-focused “value streams” that operate according to the best practices and controls set by Strategy and Governance. Centralized service operations promotes efficiency and cost savings.
The dynamics of the IT Operating Model are
Figure 3.4.1 The IT Operating Model increases digitalization and reduces operating costs.
The IT Operating Model splits value creation into four management areas. Governance and Sourcing are led by the CIO Office. Demand brings the business orientation and is managed by Business Relationship Managers. Development is carried out under the control of the Development Management Office (DMO). The Service Owners are responsible for the user experience by managing the overall service delivery. In shared services and consolidated operations, the emphasis is on cost-efficiency, while in solution development, the focus is on maintaining a fit to the business purpose.