For many companies, now is the time for budget planning. One of the most significant budget lines is technology; however, this can often lead to a frantic rush to identify necessary developments for the coming year. Equally challenging is estimating costs and assessing the realistic benefits these developments will deliver.
It is not uncommon for this process to be rushed, resulting in sub-optimal outcomes. Critical strategic questions, such as how the data strategy will evolve or whether the systems architecture is suitable for achieving medium-term growth goals, can be overlooked. Consequently, alignment with the commercial strategy often lacks robustness, and the necessary challenge is not adequately provided.
The result is that businesses implement technology changes the following year that do not represent the best use of resources, struggle to remain within budget, and fail to adhere to promised timelines. This creates a challenging situation for both business leaders and their technology teams.
To avoid this predicament, developing a multi-year tech strategy with a feasible roadmap that aligns with planned commercial success will simplify budget decisions and enhance the success of delivered outcomes. Here are some key steps to consider:
Work from the 1-2-5 year business strategy. IT leaders should be actively involved in shaping the commercial strategy through a two-way conversation.
Consider how technology capabilities can impact the visualisation of that strategy, potentially utilising SWOT analysis or similar methods.
Develop a technology vision and roadmap that supports and aligns with the commercial vision for what the business should look like over the specified timeframes.
Identify the capabilities required in each timeframe and highlight significant ‘open switches’ regarding technology decisions. Ensure that technology leaders can present estimated costs, lead times, and resourcing implications for each timeframe.
Present this information back to commercial leaders iteratively, road-test the vision by discussing it with middle managers and, ideally, opinion leaders 'on the ground', modifying commercial details as appropriate.
The outcome should be a comprehensive, costed, and engaging roadmap that resonates throughout the organisation. This foundation will facilitate discussions around smaller budget items and larger investment decisions that require longer lead times within the broader context of the commercial vision. Making investments on a commercially consistent roadmap to which the entire business is committed will significantly increase the chances of success for technology investments.
Getting technology right can mean the difference between commercial success and underperformance. If your roadmap for the upcoming budgetary year isn’t clear or well-considered, now is the time to reassess your approach.
If you'd value a fresh perspective or advice on how to build out an effective tech strategy, please get in touch with me using the link below.
