Strategic IT Planning for Public Organizations: A Toolkit - UNU-IIST ...

Strategic IT Planning Toolkit – Section 1: Introduction
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The IT environment for public organizations typically includes [3] [4]:
o ICT infrastructure – hardware and networking infrastructure and system software at the
agency
o Supporting systems – consists of productivity tools and applications supporting core support
services (or processes) such as human resource management, knowledge management,
planning, project management, help desk management, etc.
o Back office applications – PMIS supporting business processes and operational activities
o Electronic service delivery technologies – technologies deployed for the delivery of electronic
services to the public through channels such as web, kiosk, phone and mobile devices
1.2 What is Strategic IT Planning?
For any organization to derive strategic values in the short-term, mid-term and long-term from its IT
investment, a sound IT strategy is required. Such IT strategies are outputs of strategic IT planning.
Unlike tactical or project plans which focus on detailed operational, day-to-day actions; strategic
planning in an organization involves making decisions about desired future outcomes, how the
outcomes will be achieved and how success will be measured and evaluated [16]. Strategic planning
is an overall planning process which essentially provides answers to questions related to: the identity
of the organization, the existing capacity, the current situation and the problems to be addressed, the
critical issues requiring response and how resources should be prioritized and allocated [13]. Strategic
planning horizons are typically between 3 to 5 years, with the possibility of periodic (usually annual)
reviews.
Strategic IT planning establishes a clear vision and measurable objectives for the use of IT in an
organization, prescribes strategies to achieve this vision with the knowledge of the available IT
capabilities and opportunities, provide measures for success and possibly suggests concrete initiatives
for implementing the developed strategies. It improves key stakeholders’ understanding of IT
opportunities and limitations, assesses current performance, identifies human resource requirements,
and clarifies the level of investment required. Strategic IT planning generally serves as a mechanism
for managing and directing all IT resources in line with organizational strategies and priorities [22].
The need for strategic IT planning in a public organization could be triggered by an anticipation of, or
reaction to major strategic initiatives - such as reforms or reorganization programs. It may also be a
response to doubts about the return on IT investments, perception of poor IT organization or unclear
direction for IT by users and core business units of the public organization.
1.3 IT and Organizational Strategy
Implicit in qualities of an effective strategic IT plan is the direct support it provides for organization’s
mission, strategies and activities [12]. In general, IT strategies must be aligned with organizational
strategies. Strategic IT alignment enables IT to support business strategies, and business strategies to
leverage opportunities generated by IT strategies [9]. Strategic IT alignment is an organizational
learning process that combines business and IT knowledge to support business objectives [10].
Senior management in private organizations generally considers investment in IT as potentially
strategic to business success [21]. This position is supported by research results in Information
Systems which suggest that achieving strategic alignment between business and IT is essential to
improving organizational performance [15].
Report No. 417, May 2009
UNU-IIST, P. O. Box 3058, Macao