Saturday 14 September 2013

Why An IT Strategy Is Essential For The Modern Company

By Dawson Flemming


IT strategy encompasses several different aspects of technology management. The most important facets are cost management, risk management and human capital management. Robust leadership is needed from the Chief Technology Officer to implement these facets, as is the ability to work with the heads of the legal, budget and other departments.

It's essential that a company put all their plans in writing. Putting them down on paper makes them seem that much more real, plus it gives staff something tangible to focus on, because words are not always enough. The crucial things is to make sure that all plans have a degree of flexibility to them. In business things like budgets and business priorities change. A plan that can be adapted is therefore a must.

Part of an information technology strategy should embrace business technology management. This term covers services that assist other firms, ones that may not have information technology departments of their own. The services provided include network management, document services and database services. Implementing a BTM plan helps you run these efficiently.

One of the most important facets to any IT plan is human capital management(HCM). The theory of HCM is that people are not employees, they are assets and their value can appreciate if they are invested in. The firm that buys into HCM should be committed to supplying staff with individual performance goals and ongoing training. The idea is that by constantly giving them feedback, employees will know what is expected of them.

An aspect of information technology planning that is often underrated is ERM, also known as enterprise risk management. It involves controlling, organizing and planning the finances in order to avoid future losses. This includes not only those risks connected to accidental losses, but to those connected to operational and strategic losses. The idea is to balance risk-taking with sound financial decisions that make money.

The way a firm identifies and minimizes business uncertainty, as well as legal liabilities, is called vendor risk management(VRM). Risk management dictates that a company adopts VRM policies that apply to external contractors. When a firm buys IT products and hires vendors to run their information technology services, it's essential they can trust the outside firm, especially when sensitive data is involved.

A vital part of any planning is cost management. Firms will often apply this to certain projects as well as to their entire business. Projects are often easier because the numbers are usually smaller than the overall budget of the firm. The actual costs of the project are monitored against the projections, which should help keep costs down and provide an indication of how to keep costs of future projects down.

A successful IT strategy involves constant monitoring of staff, contractors, budgets and investments. Each facet needs to have its own goals, which should be communicated to the heads of department. If you're stuck for how to devise a plan then you'll find concrete strategies for an information technology plan on the internet.




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