Sep22
It’s easy to assume that since IT exists to support the business, the IT strategy should simply mirror or follow the business strategy.
This belief is not only misguided but can lead to operational inefficiencies, missed opportunities, and increased risk. In today’s digital-first world, every business, regardless of industry, needs a well-defined IT strategy that aligns with, but is not simply an accessory to, its business strategy.
While business strategy does dictate the overarching direction and objectives that IT must support, an IT strategy is not something that can be derived purely from business goals.
Why?
Because IT operates under its own unique constraints and influences.
The role of IT strategy is not to duplicate or simply support the business strategy, but to reconcile the differences between the two. While business strategy might focus on growing market share, entering new markets, or enhancing customer experience, IT must deal with the technical reality of the need to regularly update systems, perform ongoing maintenance, address cybersecurity risks, and keep track of evolving technologies.
A well-crafted IT strategy acknowledges the limitations imposed by past decisions while also creating a roadmap for future flexibility. It allows companies to navigate technological debt, regulatory changes, and innovation cycles—all while supporting the company’s broader business goals.
IT operates within its own set of constraints that may not always align perfectly with business strategy. These include:
The IT strategy serves as a crucial bridge, reconciling any divergences between business needs and technological realities. It helps navigate the complex landscape of technological change while maintaining focus on business objectives.
A well-crafted IT strategy allows organizations to proactively plan for technological advancements, rather than reactively responding to changes. This approach can lead to competitive advantages and improved operational efficiency.
By addressing IT-specific challenges and opportunities, a dedicated IT strategy helps mitigate risks associated with technology investments, cybersecurity threats, and digital transformation initiatives.
When businesses assume that they don't need an IT strategy because they aren't a technology company, they expose themselves to serious risks. Without an IT strategy, the organization may find itself trapped in a cycle of reactive problem-solving, leading to ballooning technical debt, inefficient processes, and missed opportunities for innovation.
Moreover, the absence of a structured IT strategy increases the likelihood of compliance issues as regulatory requirements become more complex and technology-driven. Today, even traditionally non-tech sectors like finance, healthcare, and manufacturing are deeply reliant on technology. Regulatory frameworks, such as the upcoming EU Digital Operational Resilience Act (DORA), emphasize the importance of operational resilience in technology, further highlighting why a strong IT strategy is crucial for long-term success.
In an era where technology underpins almost every aspect of business operations, saying, "We don’t need an IT strategy because we’re not a tech company," is akin to saying, "We don’t need a business strategy because we’re not a Fortune 500 company."
Regardless of industry, your business depends on technology to operate, and that requires a clear, cohesive IT strategy.
By Fabio Turel
Keywords: Business Strategy, Digital Transformation, IT Strategy