The average small company spends 6.9% of revenue on IT, mid-sized companies spend 4.1%, and larger companies spend 3.2%. These percentages have steadily increased over the last few years and all signs point to that trend continuing. Despite these spending numbers, organizations aren’t strategically planning for IT and how it is affected by future planned growth of the business as well as future products and services delivered. As your organization heads into budget season, you should be thinking about how IT aligns with your overall business objectives and how to position 2020 so that it sets you up for 2021, 2022, 2023, and so on.
For those who are strategically planning, the ROI is paying off. According to Architecture and Governance Magazine, some Fortune 500 companies and government agencies have validated returns on investment as high as 700% as a result of their investment in IT strategic planning. Even smaller companies are seeing results through more scalable growth capabilities and smoother new employee onboarding.
The accountability and strength of your IT strategy can have an incredible impact on your organization. A good IT plan establishes the correct parameters and illustrates exactly what needs to happen during at least two, and ideally three years. Furthermore, it provides a framework for how IT is to be managed and includes aspects such as structure, capability, and competencies.
Below are 10 questions you should be asking, internally, to help you begin developing an IT strategy plan.
- Do you have a 3-year technology strategy?
- Does your organization have the funding for a technology strategy?
- What is your current strategy planning process?
- Are you comfortable with your current and future technology strategy?
- Do you understand your business drivers and how they align to your strategy?
- Is there something happening in your industry that would make you want to have a strategy developed?
- Are you satisfied with your current ability to be nimble, get ahead of the market and be more responsive than your competitors?
- Do you know what your clients are looking for from you?
- Are you monitoring for technology disruptors in your industry?
- Do you understand the unique requirements of technology presented by your industry?
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