Thursday, October 29, 2009

IT Strategic Grid

There are several methods on how you can evaluate where does and IT give the company value added. One of the methods is Strategic Grid Analysis which is developed by McFarlan and McKenney. This method is explained in 'Corporate Information Systems Management : The Issues Facing Senior Executives' (1983).

The strategic grid is useful explains where and how IT investmet has been made. It clasifies IT investment into four categories :
  • Strategic : Investment that is critical for future success
  • Turnaround : Investment that is strategic importance and be able to provide strategic opportunities
  • Factory : Invesment that is required to sustain existing business. This investment aims to improve performance or reduce cost
  • Support : Investment that is necessary for improving, but not critical to existing business. Normally this much related to individual performance improvement tools
The clasification helps management to see whether IT investments so far have been aligned to business objectives such as to support business growth, competitiveness or new business venture.

The IT Strategic Grid is normally drawed by 2X2 boxes which in each quadrant the four type of IT investment is listed. This link will give you an illustration of this tools as well as some additional definition.

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