MIT Sloan Management Review

Management of Technology and Innovation

Six Stages of IT Strategic Management

By Antonio Kovacevic and Nicolás Majluf

July 15, 1993

WADING THROUGH ALL THE ADVICE ON STRATEGIC PLANNING FOR INFORMATION TECHNOLOGY (IT) CAN BE DIFFICULT. THE AUTHORS have assembled a general framework from a number of methodologies and have used it successfully in their work with companies. They argue that an organization’s primary concern should be to integrate the IT strategic planning process with the general strategic management process. The process should result in a coherent program that works across the corporate, business, and functional levels.

The management literature is full of valuable strategic planning methodologies for information technology (IT).1 Nonetheless, a survey of eighty organizations found that IT planners were not satisfied with their methodologies, that planning required too many resources, that top management commitment was not easily obtained, and that only 24 percent of the projects recommended in a plan were ultimately executed.2

We have grappled with these issues many times as we have tried to help organizations apply the vast array of suggestions. Over the years, we have organized the different issues arising in IT strategic planning into a structured framework. In this paper, we will present and illustrate this framework, a comprehensive IT strategic planning methodology that incorporates many of the suggestions offered in the literature and the results of our own field experiences.

Conditions for Effective IT Strategic Management

Many authors have studied the conditions that need to be in place for an IT strategic planning process to be effective. Boynton and Zmud argue that twenty issues are critical for effective IT planning efforts.3 Nine of these issues must be addressed in the planning agenda: internal politics, internal market, business strategy, business market, technology, organizational learning, organizational culture, IT infrastructure, and IT risk taking. Eleven issues relate to the planning process itself. It should be iterative and hierarchical, that... To read the complete article, login or sign-up using the form below.

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