Strategic Grid for IT

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Description of Strategic Grid for IT. Explanation.

Definition Strategic Grid for IT. Description.

The Strategic Grid for IT from McFarlan, McKenney & Pyburn ('83) is a tool that can be used to assess the current operational dependence on information systems (low, high) versus the future potential strategic impact of information systems (low, high). Combining the 2 views in a matrix results in 4 possible combinations:

1. Support (currently low, low in the future too). IT has little relevance and simply supports some processes. Firms or systems in this quadrant will place the least amount of emphasis on IT (planning) in terms of senior management concern and involvement.

2. Turnaround (currently low, high in the future). IT will be a key feature of future strategic planning. Significant top management involvement in IT (planning) must be established.

3. Factory (currently high, low in the future). It is important in terms of day-to-day operations but it is not felt that there are any major IT developments on the horizon that will fundamentally alter the nature of the business. The level of senior management involvement is decreasing.

4. Strategic (high, high). IT Strategy is very important ands plays a critical role in the formulation of the overall business strategy. High level of involvement of top management in IT strategy.

One can use the McFarlan Grid to analyze the impact of information systems as a whole for an organization or for a division or department of an organization. But the strategic grid can also be used to analyze the dependence and impact of individual IT applications or systems.

Any organization would be wise to have an IT Strategy, even if it is in the support quadrant.

According to Professor Earl, there are nine reasons as to why any organization should have an IT strategy:

1. IT involves high costs.
2. IT is critical to the success of many organizations.
3. IT is now used as part of the commercial strategy in the battle for competitive advantage.
4. IT is required by the economic context (from a macro-economic point of view).
5. IT affects all levels of management.
6. IT has meant a revolution in the way information is created and presented to management.
7. IT involves many stakeholders, not just management, and not just within the organization.
8. The detailed technical issues in IT are important.
9. IT requires effective management, as this can make a real difference to successful IT use.

Strategic Impact of IT Special Interest Group Special Interest Group (157 members)

Strategic Impact of IT Forum   Recent topics   Insufficient IT Knowledge at C Level           Moving to the Cloud and Outsourcing Strategy           Great Questions to Assess the Strategic Impact of IT

Best Practices - Strategic Impact of IT   Assessing the Relationship Between Business and IT           IT is a Value Enhancer for Any Organization           Where is the Value for the Customer in the Strategic Grid for IT?           Usage of the McFarlan Grid         All you need to know about management   IT in Support Quadrant of McFarlan's Strategic Grid

Expert Tips - Strategic Impact of IT   Characteristics of Organizations with an IT-driven Business Transformation Strategy     Advance yourself in business administration and management

Resources - Strategic Impact of IT How Businesses can Use Information Technology (IT) in Strategic Ways   Project Management of Information Technology Projects   Information Systems in Today's Organizations   Introduction to Cloud Computing   Benefits and Risks of Cloud Computing     News about Strategic Impact Of It         Videos about Strategic Impact Of It         Presentations about Strategic Impact Of It         Books about Strategic Impact Of It         More about Strategic Impact Of It       Accelerate your management career

Compare with: Strategic Alignment  |  Impact/Value Framework  |  Strategic Thrusts  |  TDC Matrix  |  Chief Information Officer

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This ends our Strategic Grid for IT summary and forum.