What Is Strategic Use of IT? (And 6 Steps To Create Integration)

The Importance of IT Strategic Management

Why do companies develop an IT strategy?

Companies frequently create IT strategies for a variety of goals, such as starting improvements, optimizing processes, and improving relationships with clients, employees, and important stakeholders. Other reasons companies integrate IT strategies include:

Encourage innovation

One of the main advantages of IT strategies is that they assist businesses in supporting creative processes that result in new goods and services. Cloud computing and other IT integrations can assist businesses in acquiring alternative IT resources and project development tools. This is crucial for fostering teamwork and planning when creating novel solutions for client markets.

Improve communication

Information technology strategies also assist businesses in enhancing internal communication. Businesses and organizations can increase the availability of tools and resources for other department teams by implementing an effective IT strategy. For the IT, sales, marketing, and administrative teams to coordinate ongoing processes so that all parties involved are aware of changes and implementations that enhance products and services, it is essential to improve communications and responsiveness.

Support collaboration

Information technology approaches also aid businesses in fostering cooperation between the IT division and other teams, such as the marketing, sales, product development, and finance divisions. Companies frequently take team communication and collaboration into account when they develop and implement an IT integration plan. These factors are crucial in assisting professionals in their roles to boost customer satisfaction, enhance internal procedures, and set themselves apart from competitors in the market.

Create new business models

Employing an IT strategy also enables businesses to better support modifications to their current business models. An organization that sells goods through online storefronts, for instance, can use IT strategies to develop a particular e-commerce business model that enables it to target larger markets. Following this procedure, the business can lower its distribution costs and give customers more specialized options.

What is the strategic use of IT?

The term “strategic use of IT” describes how businesses utilize technology to accomplish business objectives. By describing various factors that may influence a company’s use of and investment in computer hardware and software solutions, information technology strategies support the use of technology. Organizations frequently take into account particular factors like budget, performance, functionality, and accessibility when evaluating technology use strategies. An effective IT strategy is developed through coordination between IT management, executives, and shareholders, as well as through budget evaluation, legal compliance, and business and technology user collaboration.

Elements of an IT strategy

A successful IT strategy often contains the following elements:

Strategy overview

The first part of an IT strategy gives a company’s entire information technology department a broad overview. You outline the mission, values, goals, and techniques IT teams intend to employ to meet business objectives in the overview. The overview may also contain information on the current tactics IT uses to achieve business objectives.


The IT department’s costs for integrating new and alternative resources are also included in an IT strategy along with the budget for current technology. Spending forecasts are also included in this section of the IT strategy, which businesses use to make projections for specific time periods. An IT strategy typically provides forecasts and spending projections over a number of years, which helps professionals better understand the long-term viability of suggested strategies.

Project outlines

An overview of the current and potential projects a company launches is another crucial component of an effective IT strategy. You can summarize ongoing projects in this section by outlining their goals, timelines, and performance benchmarks, which teams establish to better understand what can be expected of them when using different approaches. This component of the strategy also outlines the anticipated results of any future projects the IT department might complete.

Resources and tools

This component of an IT strategy offers a list of your organization’s current organizational structure, including the IT department. The resources component describes an organization’s current capabilities and technological capacity as well as any potential needs for upcoming projects. This component also contains information on the necessary personnel and infrastructure tools.

Internal and external factors

The internal and external factors that may have an impact on the effectiveness and outcome of technology integration are also taken into account by the IT strategy. Many businesses use this component of their IT strategies to investigate the benefits and drawbacks of available tools and resources. Professionals can then use this analysis to implement strategies to enhance the current environment of various information technology solutions.

Risk-benefit analysis

IT strategies may also include a risk-benefit analysis, which experts can use to choose the best mitigating actions to safeguard IT systems and procedures. This analysis may include methods for resolving technical errors, security problems, and external constraints. Additionally, a risk-benefit analysis assists businesses in identifying specific variables that may have an impact on results so they can put strategies into place to lower risk and boost successful outcomes.

How to create an effective IT strategy

An outline for developing a successful IT strategy can be found in the steps below:

1. Create the overall IT strategy plan

Outlining the fundamental strategy for enhancing or improving the IT department is the first step in developing a successful IT strategy. Teams define specific roles and the duties of participating team members in this step. This section also provides information on the tools teams use and the procedures businesses use to approve different technological solutions. In this component, you can also specify the deadlines and desired results for implementing your strategy.

2. Collect critical information

The dissemination of crucial information is another component of a successful IT strategy. Teams compile information from various viewpoints, interviews, and workshops to understand how strategy integration impacts stakeholders, IT staff, and consumers. Information from various sources, such as the finance, sales, and customer service departments, may also be included in this component. Companies can more effectively choose which IT solutions to integrate into their current models if they have enough information about the needs of the staff, executives, and customers.

3. Analyze and establish goals

In this phase of the process, potential IT integration strategies that support business objectives are examined. It’s crucial to assess current goals in order to pinpoint different factors influencing outcomes, such as financial, sales, and marketing activities. Businesses can also perform a GAP analysis, which enables experts to contrast current performance with the performance they hope to achieve.

4. Create an action plan

The action plan offers a comprehensive breakdown of the various deliverables the IT department must provide. This component also includes the standards that teams must meet when preparing to implement the strategy. Action plans can also offer data on financial models, transitions, and potential modifications to current operations and systems.

5. Integrate the strategy

You can start the IT strategy once you create a thorough action plan. Most businesses specify the steps teams must take to get approval before implementing particular strategies. The execution component also entails teams putting into practice the procedures and techniques they outlined in the earlier planning stages.

6. Use feedback to improve consistency

In order to evaluate the success of their IT strategies, teams rely on feedback. Understanding which aspects of the strategy are effective and which areas still require development requires regular feedback. It also helps to evaluate and receive feedback in order to spot emerging issues with IT integration.


What is strategic use of information technology?

A comprehensive plan that describes how technology should be used to achieve IT and business goals is known as an IT strategy. An organization’s investment in and use of technology are influenced by a number of different factors, which are described in detail in an IT strategy.

What is the use of IT in strategic management?

Clarifying and translating the vision and corporate strategy. Communicating and linking the strategic objectives and measures. Planning and setting targets and aligning strategic initiatives.

What are the 4 main points of IT strategic planning?

The 4 Steps of Strategic Planning Process
  • Environmental Scanning. The process of gathering, compiling, and evaluating information is called environmental scanning.
  • Strategy Formulation. …
  • Strategy Implementation. …
  • Strategy Evaluation.

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