IT Alignment and Strategic Planning

1. IT Alignment and Strategic Planning Chapter 12 Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

2. Learning Objectives To be able to understand the importance of an IT strategic plan. To review the components of the IT strategic plan. To be able to understand the processes for developing an information technology strategy. To be able to discuss the challenges of developing an IT strategy. To be able to appreciate the ability of information technology to improve organizational competitiveness and performance. Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

3. Outline • Goals of IT alignment and strategic planning • An overview of strategy • Areas requiring strategy • Vectors for arriving at IT strategy • The IT Asset and governing concepts • A normative approach to IT strategy • Challenges of IT strategy and alignment • Information technology as a competitive advantage Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

4. Goals of Strategic IT Planning • Ensure that information technology plans and activities are well linked to the plans and activities of the organization • Ensure that the alignment is comprehensive: • Each aspect of strategy has been addressed from an IT perspective recognizing that not all aspects have an IT component and not all components will be funded • The non-IT organizational initiatives needed to ensure maximum leverage of the IT initiative, for example, process re-engineering, are understood • The organization has not missed a strategic IT opportunity, for example, those that might result from new technologies Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

5. Goals of Strategic IT Planning • Develop the tactical plan that details approved project descriptions, timetables, budgets, staffing plans and plan risk factors • Create a communication tool that can inform the organization of the IT initiatives which will be undertaken and those that will not • Establish a political process that helps to ensure that the plan results have sufficient organizational support Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

6. Overview of Strategy • Formulation • Mission and goals • Activities and initiatives • Implementation • Structures • Skills • Organizational capabilities • Organizational processes Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

7. Areas Requiring IT Strategy • The application system agenda • Should we implement the electronic health record? • Initiatives to improve the IT Asset • How do we improve the security of our infrastructure? • Concepts that govern the approach to a class of initiatives and applications • Should we be on the cutting edge of technology or adopt a more conservative approach? Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

8. Strategy Vectors • Derived from organizational strategy • Persistent focus on core organizational processes and information management • New information technology • Strategic trajectory/vision • Fundamental views of organizations Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

10. Example of IT Strategy Derived from Organizational Strategy How should IT support our disease management initiative? • Develop and publish best practices • Monitor costs, quality and care activity of a cohort • Guide documentation • Remind providers and patients of steps to be taken • Monitor and manage a specific patient Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

11. Example of a New Technology Vector – Wireless Personal Devices Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

12. Example of a Focus on a Core Organizational Process Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

13. The Synthesis of the IT Strategy Continuous Process and Information Management Improvement IT Ramifications of Organizational Strategies New Information Technology Strategic Trajectory Fundamental Views Leadership Synthesis and Debate IT Asset Initiatives Governing Concepts Application Inventory Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

14. The IT Asset • Applications • Sourcing • Application uniformity • Application acquisition • Infrastructure • We want our applications to be able to …, e.g., support clinical decision support and be accessible from home • Broad properties of the infrastructure, e.g., security and reliability Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

15. The IT Asset • Data • Acquisition of new types of data • Data meaning • Organizational responsibility for managing data • Data analysis technologies • IT Staff • Acquisition of new skills • Organization of the IT staff • Sourcing of the IT staff • Characteristics of the IT staff • Governance Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

16. Governing Concepts • What is it about the electronic medical record that makes it important to us? • What does “integrated systems” mean to us? • Should we treat IT as an expense or an investment? • Should we collaborate with other organizations in our region on IT or view IT as a way to achieve a competitive advantage? Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

17. An Example of the Linkage Between Organizational Goals and the IT Agenda Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

18. Contents of an Information Technology Strategic Plan • Inventory of the IT initiatives that will be undertaken • Linkage of the initiatives to the organization’s strategic plan • Initiative timeline and interdependencies • Plan budget • Risk assessment Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

19. Challenges in IT Planning • The overall strategy is unclear or volatile • The linkage may be shallow • Senior management may hesitate to engage in the IT strategy discussion • The true value of an IT initiative may be unclear • It is difficult to make tradeoffs between IT investments Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

20. IT Alignment at Maturity Keen, 1993 • IT planning was not a separate process • IT planning had neither a beginning nor an end • IT planning involved shared decision making and shared learning between IT and the organization • The IT plan emphasized themes Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

21. Sources of an IT Competitive Advantage • Leverage organizational processes • Enable rapid and accurate provision of critical data • Enable product and service differentiation • Support the alteration of overall organizational form or characteristics Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

22. Sustainability of an Advantage • Attempting to out hustle the competition • Freezing the system • Changing the basis of competition • Leveraging some other, significant organizational strength • Leveraging a well developed, strong IT Asset Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

23. Good to Great Companies - IT Lessons Collins, 2003 Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

24. Summary • IT planning has several objectives • IT strategies are developed through five vectors • IT alignment remains a significant organizational challenge • IT can be applied to improve an organization’s competitive position • IT is a tool; its value is achieved by thoughtful application Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser