Iterative analysis required to classify differentiating technologies and others. Generally, a logical straight forward approach does not fetch approvals from senior and executive management team. Strategist and architects must understand each senior and executive management team members individuals concerns, passion, interest, motivation and their vision and collate it. Work with them individually and as a team to build the consensus on differentiating technology and others. This classification plays a vital in defining the open source strategy. The differentiating technology depends on the industry you are in. In oil and gas sector, safety plays a most vital role and classification is made based on those attributes. In banking and finance sector, compliance, information security plays a most vital role. For any companies, the credit ratings are important. Particularly it is very important for banking and finance sector. Explore the criteria used by credit rating companies, bank examiner, external investor to evaluate a company in banking and finance sector and identity the role played by IT in those scenario. It will provide insights on differentiating technologies and other technology category.
In this step, strategist or architects makes a case for technology investment plan. Differentiating technology requires investment and others category technology requires cost reduction or optimization. Objective in this step is to have net saving projection to the over all IT operating cost.
At end of this step, you will have the list of technologies which requires cost reduction and investment. In the next blog, I will write on the frame work to reduce technology cost.
(Note: If you want to follow the story of IT strategy formation in the absence of business strategy, please start from this blog post)