In an era where organisations are becoming increasingly digital, technology is becoming intrinsic to how they operate.&nbsp;Business leaders, entrusted with shaping the direction of their organisations, are seeking greater clarity on how technology factors into the future of their enterprises and the current priorities of IT vis-a-vis the business. This clarity is typically achieved through a Business-driven <a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/blog/defining-it-strategy">IT Strategy</a>,&nbsp;a collaborative effort between business and IT leaders that outlines how IT facilitates business activities and outcomes. In companies that are leading the digital revolution,&nbsp;the distinction between the two is blurred, as both are seamlessly managed within a unified framework.Yet, IT leaders encounter common and recurring <a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/blog/it-strategy-creation-challenges">challenges </a>in <a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/blog/writing-an-effective-it-strategy">writing an effective IT Strategy</a>, then managing and communicating it to business stakeholders. Given the pace and quantum of change in the business landscape, it’s getting increasingly harder to forge and maintain a long-term technology vision that keeps technology initiatives aligned to ever-changing corporate priorities.<a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/product">See how Xirocco solves these challenges to help CIOs rapidly create and publish a business-linked IT Strategy.</a><o:p></o:p>This series of blogs aims to demystify the essentials of an effective IT Strategy, shedding light on its definition, characteristics of a successful strategy, common hurdles, and <a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/blog/best-practices-in-crafting-an-it-strategy">best practices for crafting a winning IT Strategy</a>. Let’s start by defining what an IT Strategy is and what it is not.<o:p></o:p>An important definition to note: For the remainder of this blog series, we shall use the term “IT Capability” to describe all the individual components required to provision a type of technology-enablement. For example, the term “Analytics Capability” shall include all the talent, products, applications, processes, services, suppliers, and controls required to provision a data analytics capability to those who need it.Follow the link below for our next instalment where we learn some common definitions of IT Strategy.<a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/blog/defining-it-strategy">Defining IT Strategy &gt;&gt;</a>

Introduction to IT Strategy

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So, what exactly is an IT Strategy? At its core, an IT Strategy is a <a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/blog/the-significance-of-it-strategy">vital component</a> of an organisation's overall enterprise strategy. It provides a blueprint for the strategic deployment of technology such as Cloud Computing, Business Intelligence, Internet of Things and Artificial Intelligence to enable the organisation to achieve the ambitions outlined in its Business Strategy. In other words, it defines the IT assets, services, products, and budgets required by the Chief Information Officer (CIO) to support the organisation in protecting market share, enhancing operational efficiency, accelerating growth, and ensuring compliance, resilience, and future readiness.“An IT Strategy is an artefact that explains the role of technology in enabling and empowering the organisation to achieve the ambitions outlined in its Business Strategy.” – XiroccoAn IT Strategy serves as an invaluable tool for decision-makers, including Boards, CEOs, and Investment Committees, as it helps them comprehend:&nbsp;<ul><li>The role of IT in delivering value and achieving business outcomes.</li><li>The drivers underpinning specific technology selections and investments.</li><li>The immediate and future benefits to the business from these technology investments.</li><li>The implications of technology budgets on overall financial planning.</li></ul>Since technology serves as a pervasive enabler across all organisational functions, an IT Strategy underpins not only the line of business strategy but also various enabling strategies such as digital strategy, HR strategy, finance strategy, sourcing strategy, etc., which are collectively referred to as the <a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/blog/it-strategy-in-the-wider-context">Corporate Strategy</a>. Crucially, an IT Strategy is not a mere list of tactical IT infrastructure upgrades, operational improvements, or an endless wish list of application development projects.Diverse perspectives on strategyThe term strategy originally hails from the military context, where it denoted the plan to achieve a single, straightforward objective—victory. In Greek it literally means “to lead an army” (from stratos meaning army + agein meaning to lead). However, when the term strategy is applied to in a modern, wider context of an organisation contemplating its longevity, it becomes imperative to distinguish intent or objective from the plan. Plans are always bound by practicality and available resources. When strategy is defined as a plan, these constraints immediately manifest and constrain the organisation’s ability to think freely.“A strategy is not a plan, it is a framework for decision-making, a set of guiding principles which can be applied as the situation evolves.” – Harvard Business ReviewWhen intentions are sequestered from plans, the art of the possible becomes unbridled. This creates true innovation, new opportunities, pivots, and radical shake-ups of long-accepted norms and business models. The best organisations in the world treat intentions as a separate activity that precedes planning.Similarly, IT Strategy should not be unduly constrained by the notion of return on investment (ROI). Financial gain is not the sole rationale for technology adoption; it also encompasses factors like regulatory compliance, customer satisfaction, corporate social responsibility, sustainability, and employee engagement, where the value lies in safeguarding an organisation's license to operate.Vendor definitions create confusionTechnology vendors are also muddying the waters with their own definitions of IT Strategy that favour the products and services they offer. This land grab practice has led to confusion for IT Leaders looking for clarity. For example:<ul><li>An IT infrastructure vendor has published a definition of IT Strategy that places IT infrastructure as the core, principal component of an IT Strategy, including desktop hardware and anti-virus applications. This definition suits their purpose since they sell IT infrastructure hardware and management services.&nbsp;</li><li>An analytics solutions vendor has published their own definition of an IT Strategy that is heavily centred around analytics.</li><li>A finance ERP vendor has published a definition of IT Strategy that places maximum emphasis on IT budgets and costs, since their core strength is IT Finance.</li></ul>ConclusionUnderstanding IT Strategy is pivotal for organisations seeking to navigate the complexities of the digital age. This blog series will delve deeper into the intricacies of crafting an effective IT Strategy, offering insights and guidance to empower businesses in their technological endeavours. Follow the link below for our next instalment where we explore IT Strategy in a wider organisational context.<a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/blog/it-strategy-in-the-wider-context">IT Strategy in the Wider Context &gt;&gt;</a>

Defining IT Strategy

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In the contemporary business landscape, the interplay between technology and strategy has reached unprecedented levels. This blog explores the various components of Enterprise Strategy, shedding light on how Business-linked IT Strategy, Digital Strategy, and Digital Transformation play distinct yet interconnected roles in shaping an organization's direction. Understanding the nuances of these components is essential for any modern business leader.Business StrategyA business strategy is a holistic and comprehensive statement of intentions that define and set the course for success. It includes key components that collectively define the organisation's direction and approach. At its core, a business strategy begins with a clear vision and mission, articulating the company's overarching purpose and values. It also includes specific goals and objectives (each further comprising of actionable projects and plans) that will bring the vision to fruition through execution. A typical business strategy will also include an examination of market conditions, industry trends, competitive dynamics, and customer insights (called a market analysis). This informs strategic decisions and helps the organisation identify opportunities and threats.A well-crafted business strategy serves as a guiding framework for decision-making, resource allocation, and adaptation to changing market dynamics, enabling the organisation to navigate complexities and seize opportunities effectively to further its purpose.Linking IT Strategy to Business StrategyThe new mantra says, “The best IT Strategy is a Business Strategy”. It exemplifies the growing synergy between technology and business. As technological innovation and disruption accelerate exponentially, technology's influence on business strategy, choices, direction, and value models has never been more pronounced. A contemporary IT Strategy is not a separate entity; rather, it is tightly integrated with Business Strategy to the extent that it often appears as a natural extension of the latter.In leading companies, Corporate, Business, and IT Strategies are managed concurrently, not in isolation. This ensures that technology's disruptive potential is harnessed in every business opportunity, rather than relegated as an afterthought for tactical problem-solving.“You don’t want a strategy for digital, IT, finance, HR, or anything else – just a strategy for the business. &nbsp;So don’t imagine you can develop a strategy for the digital part of your business and leave the rest alone.” – Harvard Business ReviewWith lines between business and technology blurring, IT Strategy is singularly joining and aligning the enterprise to realise organisational ambitions more effectively. In the best companies, leaders and strategists are managing Corporate, Business and IT Strategies concurrently and in isolation. This ensures the technology’s disruptive potential is harnessed in every business opportunity, rather than relegated as an afterthought to a back-office function, often at the last minute.Digital StrategyThe term Digital Strategy has risen to prominence in recent years, yet confusion reigns regarding its distinction from IT Strategy. This confusion has been exacerbated by technology vendors and consultancies who have simply replaced "IT" with "Digital" in pursuit of modernity without adequately elucidating the differences. The introduction of terms like Digitalisation Strategy has further clouded the waters.&nbsp;Xirocco provides a clear distinction - A Digital Strategy enhances specific products or services within a business by leveraging technology innovations to transform their value proposition or the way they deliver value. It primarily impacts capabilities directly related to the transformation of the targeted product or service.“Every business and public sector agency needs both an IT Strategy and a Digital Business Strategy. They must be highly aligned with each other, but they are not the same thing.” – GartnerExamples of IT capabilities that could be in-scope for a digital strategy include customer interfaces and experience, business processes, line of business applications, and analytics. A digital strategy normally does not include changes to enterprise applications, IT infrastructure, and security although there will be points of intersection with these capabilities.Real-world examples demonstrate this concept. Consider the evolution of roadside assistance, food delivery services, hospitals, supermarkets, cruise ships, and manufacturers—all of these have employed Digital Strategies to optimize and innovate within specific products and services while leaving other IT assets and services (that are not directly connected to the in-scope products and services) unaffected.Digital TransformationDigital Transformation encompasses an organisation's broader efforts to implement common technology foundations that serve as the basis for widespread digitisation of multiple or all products and services. This includes the adoption of technologies such as Cybersecurity, Cloud Computing, Big Data Analytics, Artificial Intelligence, Master Data Management, Integration, and Identity, among others. These technologies serve as the building blocks for digitising various aspects of an organisation's offerings.Digital Transformation can be viewed as a collection of individual digital strategies, each contributing to the broader goal of digitisation. However, it omits elements that do not directly impact products and services being transformed. For instance, if physical location security is irrelevant to how certain products and services are delivered, aspects like property management and building access control may be excluded from their digital transformation.Contrastingly, an IT Strategy takes a holistic view of technology's role across the entire organisation, encompassing all products and services, from the front-end customer experience to the back-end operations. While Digital Strategy and Digital Transformation can be subsets of IT Strategy, the reverse is rarely the case.ConclusionUnderstanding the differences between Business-linked IT Strategy, Digital Strategy, and Digital Transformation provides clarity in approaches to influence decision makers on the strategic tole of technology to enhance the value of products and services. Each strategy plays a unique role in shaping an organisation's future, and recognising their distinctions is essential for informed decision-making. Follow the link below for our next instalment, where we will learn the significance of IT Strategy in organisational success.<a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/blog/the-significance-of-it-strategy">The Significance of IT Strategy &gt;&gt;</a>

IT Strategy in the Wider Context

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Organisations are not content with mere survival; they aspire to thrive in an increasingly competitive marketplace. Technology is now integral to that aspiration. Boards and decision-makers are faced with the imperative to not only comprehend their organisation's IT Strategy but also stay well-informed about ever-evolving technology trends. The ability to apply these insights and make informed technology decisions has become an essential part of steering companies towards success.A leading global CIO advisory believes a well-crafted IT Strategy can augment an enterprise's bottom line by up to five percent (5%). This equates to a substantial impact. To harness the immense impact of IT on the business, Boards and Chief Information Officers (CIOs) must collaborate to forge common agendas, priorities, and investments into their Business-linked IT Strategy.“The IT Strategy is no longer a business-driven wish-list of IT applications and features. It is the singular mechanism that joins and aligns business and technology functions to achieve convergence of purpose, intentions, and outcomes where one drives the other.” – Kiran Rao, Xirocco CEOAn IT Strategy, when linked effectively to the Business Strategy, empowers business leaders to actively shape the IT agenda. It grants them joint control over IT's purpose, priorities, engagement model, and costs. Through a robust understanding of technology advancements and their impact on the business, business leaders can make informed technology investments that are aligned with their organisation's goals. On the other hand, IT Leaders can communicate a strong vision of how technology will maintain, enhance and/or unlock new business value. Organisations with a well-defined IT Strategy:<ul><li>Are 1.5 times more likely to outperform their peers through technology-enabled business agility (McKinsey).</li><li>Operate more swiftly, whether it's reviewing plans or reallocating resources. Strong strategy practices enable rapid talent and capital reallocation, four times faster than peers (McKinsey).</li><li>Add a 5% boost to their bottom line (Accenture Research).</li><li>Are one third more likely to possess an effective, digitally enabled business model.</li><li>Can pivot rapidly, responding within days, hours, or even minutes to emerging threats and opportunities.</li><li>Spend more time on matters of strategic importance, leading to fewer missteps and missed opportunities.</li><li>Achieve better alignment between Business and IT activities, minimising wastage, and regret costs.</li><li>Have more IT employees working closely with their business counterparts.</li><li>Have higher levels of IT employee engagement.</li></ul>ConclusionThe significance of IT Strategy in modern business cannot be overstated. It serves as a cornerstone, connecting technology with the overarching goals of the organisation. An effective IT Strategy not only adds value but also empowers decision-makers, pushing organisations towards higher performance, agility, and positions of competitive advantage. Follow the link below for our next instalment where we will explore typical events that trigger the need for a new or revised IT Strategy.<a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/blog/triggers-for-it-strategy-creation">Triggers for IT Strategy Creation &gt;&gt;</a>

The Significance of IT Strategy

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The initiation of a new IT Strategy can stem from various factors, often a combination of the following:User DissatisfactionWhen discontent and complaints from business users start to escalate, it catches the attention of the management, including the Board and CEO. Issues like underperforming and/or functionally poor business applications, aging end-user devices, or subpar user experiences with collaboration technologies can create a growing chorus of complaints. As the volume of discontent rises, leadership may recognise the need for a comprehensive assessment of the IT function, from its roots to its branches.Arrival of a New CIOThe appointment of a new Chief Information Officer presents a unique opportunity for a fresh start. It's a chance to attribute existing issues to the outgoing CIO and embark on a new IT journey under promising new leadership. Typically, a newly appointed CIO has a brief window of two to three months to gain a deep understanding of the existing IT landscape and formulate a compelling vision for the future. This transition period also offers the chance to restructure the IT team, purging loyalists of the outgoing CIO and bringing in individuals who have established trusted relationships with the new CIO.Technology Evolution &amp; DisruptionThe rapid evolution of technology itself, including advancements in artificial intelligence, cloud computing, and the Internet of Things, can cause organisations to fall behind technologically and render existing Business and IT strategies obsolete. They can trigger a reassessment of the IT strategy to ensure that the company remains competitive and relevant by adapting to these changes.Board EventsBoard events are perfect opportunities for CIOs to realign the IT agenda, especially when a new business strategy is unveiled. These occasions provide a platform to align the IT vision with broader organisational goals.Mergers and AcquisitionsWhen organisations undergo mergers or acquisitions, the integration of disparate IT systems, processes, and cultures becomes a critical priority. This often prompts the need for an updated IT strategy that consolidates and realigns the technology estate of the newly combined entities.Cybersecurity IncidentsThe occurrence of a cybersecurity breach or a significant security incident can expose vulnerabilities in an organisation's IT estate. The aftermath can be devastating (see the 4 R’s Framework in later blogs) and can prompt the call for a holistic new IT Strategy that leaves no stone unturned to avoid repeat of such incidents.ConclusionRecognising the triggers that necessitate the creation of a new IT Strategy is pivotal for CIOs seeking to navigate the evolving landscape of technology and business. By anticipating these triggers, CIOs can ensure that their IT strategies remain effective and aligned with the dynamic needs of the enterprise. Follow the link below for our next instalment where we will explore common challenges faced by CIOs in crafting IT Strategies.<a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/blog/it-strategy-creation-challenges">IT Strategy Creation Challenges &gt;&gt;</a>

Triggers for IT Strategy Creation

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BUSINESS CHALLENGE The customer had made many acquisitions over time but had failed to consolidated the individual IT functions. This resulted in significant duplicated efforts and conflict between Group and Business Unit teams. Consequently, the Board had difficulty getting clarity on overall demand, status of in-flight change, IT assets, risks, budgets, etc. IT leaders were frequently producing ad hoc IT Strategy decks with significant effort, with varying messages and plans.XIROCCO ENGAGEMENTThe customer engaged Xirocco Consulting and acquired Xirocco Strategy Software to be initially deployed at Group IT. Subsequently, the software license was extended to include all global Business Units and Affiliates.RESULTSXirocco Strategy Software immediately highlighted that the customer's IT Strategy was fragmented and existed in isolation. The consulting team was able to capture the business strategy into the toolset and align the IT Strategy to real business outcomes, so the strategies mutually reinforced each other. The integrated IT Roadmap that the customer's Board was craving for was created generated so the Board could finally exercise adequate control over technology benefits, investments and initiatives. With projects, critical applications and resources now correlated to strategic objectives, the IT strategy was able to better support the overall enterprise strategy.CUSTOMER FEEDBACK“With Xirocco, Business and IT Strategy were linked so stakeholders could generate joined up IT Roadmaps on-demand for better governance.”Head of IT Strategy &amp; Governance<a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/case-studies/2">Next Case Study &gt;&gt;</a>

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UK FTSE 100 Utilities

Business Challenge Customer was exploring digital possibilities, future scenarios and where opportunities lay. Key to their Digital Strategy was developing As-Is and To-Be blueprints. A rapid IT assessment and recommended future state was needed with Board-level summarisation.XIROCCO ENGAGEMENTThe customer engaged Xirocco and our partner for an accelerated 8-week engagement. Xirocco Strategy Software was deployed for creating and linking the customer’s Business and IT Strategy.RESULTSWith Xirocco, the customer received their IT Strategy within weeks that otherwise would have taken months with a traditional approach. Xirocco software quickly identified multiple challenges and helped address them rapidly. Xirocco outputs were presented directly to plc Board members, without need for PowerPoint.<ul><li>Within three weeks, Xirocco helped the customer reach a position in their IT Strategy that would otherwise take 3-5 months using traditional approaches.</li><li>Current State and Target Architectural Blueprints were created within the toolset and linked to the wider strategy to help the Board understand the role of each component.</li><li>Xirocco quickly identified misalignment and gaps.</li><li>Xirocco benchmarked their IT Strategy to standards.</li><li>Xirocco outputs were presented directly to plc Board members, without PowerPoint.</li></ul>CUSTOMER FEEDBACK“We found Xirocco to be an excellent tool for helping structure, build and maintain a dynamic IT strategy where we told a joint business and IT story in one place without resorting to static PowerPoint slides. It focussed our minds on what mattered.”Head of IT Programmes &amp; Governance<a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/case-studies/1">Next Case Study &gt;&gt;</a>

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UK FTSE 250 Manufacturer

CIO Challenge The CIO was new in role and wanted to better understand whether the IT function they had inherited from the outgoing CIO was capable of supporting a new 5-Year Business Strategy published by the Board that sought to develop new digital and omnichannel routes to market. A rapid IT assessment was required to evaluate fitness of existing IT capabilities, followed by a strategy to digitally enable the business vision.XIROCCO ENGAGEMENT<ul><li>The customer engaged Xirocco and our implementation partner for an accelerated 8-week engagement.</li><li>Xirocco IT Strategy Software Suite deployed as the primary tool for the development and ongoing management of the customer’s Business and IT Strategy</li></ul>RESULTSWith Xirocco, the team executed a significant amount of work even before the engagement started, wowing the customer on the first day of the engagement and ensuring a massive head start for the team. Within two weeks, they presented a comprehensive picture of the CIO's IT function. This segued neatly into a 3-year, business-linked IT Strategy that was produced within four weeks using Xirocco's built-in accelerators.CUSTOMER FEEDBACK“With Xirocco, the team executed a significant amount of work even before the project started, wowing the Governance Board on day one and securing a massive head start.”CIO<a target="_blank" rel="noopener noreferrer" href="https://www.xirocco.com/case-studies/2">Next Case Study &gt;&gt;</a>

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UK High Street Retailer

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Vague or unclear business direction and expectations leaves CIOs feeling like they are operating in vacuum.

With Xirocco, bring all stakeholders from everywhere in the world together into one integrated toolset to co-author a unified strategy that drives clarity and more meaningful interactions between business and IT.

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Stakeholders have competing interests or differing expectations for what IT should prioritise.

With Xirocco, win greater confidence of your business with assurance that IT is working on their highest priorities. When business priorities change, refocus IT in lockstep to ensure alignment with the new vision.


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The question of how IT contributes to overall business success still lingers in many boardrooms.

With Xirocco, establish the vital link between technology and business aspirations to prove that IT is not merely a support function; it is also a catalyst that can transform business models and unlock new opportunities.

Prove Value & Role of IT

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Despite central role of technology in modern business, CIOs struggle with obtaining sufficient budget for IT. 

With Xirocco, easily convey benefits of technical investment proposals and their benefits in terms that resonate with stakeholder interests, with implications of each budgeting decision on the overall vision.

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Legacy systems can be inflexible, inefficient, and a security risk yet modernisation remains a challenge.

With Xirocco, communicate to stakeholders the risk and constraints of legacy applications and technical debt by demonstrating their crippling effect on business outcomes and innovation.

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Consultants offer valuable expertise, but cost and no transfer of ownership leaves you reliant on them.

AI has infringed upon the traditional role and advantages held by consultants. With Xirocco’s AI integration, you can achieve similar results with your staff, with external expertise only where required.


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Even with significant efforts, many stakeholders don’t not readily perceive improvements IT makes. 

With Xirocco, provide visual evidence of the IT transformation journey, building confidence in your strategic vision. Assure stakeholders that IT is on the right path and that real, tangible change is taking place.

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We found Xirocco to be an excellent tool for helping structure, build and maintain a dynamic IT strategy where we told a joint business and IT story in one place without resorting to static PowerPoint slides. It focussed our minds on what mattered.

FTSE250 Manufacturing Co, UK

Xirocco presents a transformational new way to create and talk about strategy. This is the way organisations should be doing strategy today.

Healthcare Co, UK

If I had Xirocco at any of the last three or four organisations I have worked in, it would have saved so much time. The time involved in updating the business plan and the strategy is just ludicrous, way over the top and we are all trying to do our day job as well. It's just beyond a joke, so having a tool like this I believe would have made life a lot easier.

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Head of IT Strategy & Governance

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FTSE250 Utilities Co, UK

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XiroccoTM is our pioneering SaaS product that seamlessly merges industry-standard frameworks and best practices with innovative capabilities of artificial intelligence. The result? A profound shift that liberates you from the shackles of routine work in strategy creation, allowing you to channel your energies toward higher value thought leadership that matters more to your business stakeholders.
 
Backed by our deep consulting expertise and partner network, Xirocco is AI-enabled software that helps you quickly create, visualise, and manage an integrated Business and IT strategy.