With advances like the introduction of Esri’s Utility Network, Geographic Information System (GIS) strategies are transforming to become an integral part of enterprise business strategy. No longer an insular exercise by the Information Technology (IT) directors, senior management, GIS manager; Line of Business (LOB) executives, and IT/GIS managers are working together to create and co-own new technology-based strategies. IT/GIS managers need an inclusive, agile, and systematic approach to technology strategy development to meet the ever-changing needs of their business. This blog identifies a number of key factors that promote greater alignment between business and IT/GIS strategies.

Aligning Your UN Goals

Aside from software depreciation, utilities must continue to control the cost of their GIS technology and determine where to invest in more advanced solutions like the UN to meet its growing business and operational objectives. As an IT/GIS manager, aligning your UN goals and objectives with the needs of your organization will help to:

• Identify how those solutions can provide greater value to the business.
• Align with business strategy to determine how to gain greater value from your technology.
• Understand the new UN capabilities you need to enable greater service delivery opportunities.
• Set a strategic direction that links your business challenges with leading-edge technology solutions.
• Develop the right set of solution strategies and the timing of those strategies to support your business needs better.

Today, it would be difficult for a utility organization to define a effective business strategy that does not rely significantly on GIS. In general, GIS has become a significant organizational resource for executing the business and operational needs of the utility. Given GIS’s importance in a business strategy, the two must be in alignment. No GIS solution on its own will deliver improved operational performance; the performance comes from taking advantage of the functionality to achieve the business objectives. Simple to say but can be challenging to do.

A useful way of understanding how organizations can achieve successful alignment between business and IT/GIS strategies is to identify factors that promote alignment. There are a number of questions and related success factors listed below that have proven to promote the alignment between business and IT/GIS strategies, including:

• Strategy Imperative. Are the goals of the utility known and understood across the organization? The goals are no good if nobody knows or understands them. Make sure that any planned investment in IT/GIS has a clear line of sight to one or more business objectives. This kind of decision-making does not happen overnight. This will take time to create internal processes that allow your management and staff to make the correct investment decisions. Again, good communication is at the heart of any well-run organization. Everyone needs to know what the expected outcomes and expected business values are.
• Organization-wide Involvement. How well do your business and IT/GIS teams collaborate? A collaborative relationship between the business and GIS functions is required during strategy development to achieve alignment and requires ongoing organization-wide participation. In particular, the IT/GIS manager must be actively involved in all business and IT/GIS strategy development.
• Effective Communication. Does your organization have a successful track record of effective communication? Consistent and effective communication will facilitate understanding and promote mutually beneficial thinking about IT/GIS and business strategy alignment. Communication needs to start at the executive level with the view that IT/GIS is a business resource that is used to achieve business needs.
• Governance Process and Structure. How formal is the decision-making process across the organization? An enterprise governance process must be in place to support strategic decision-making to ensure successful alignment. An organizational structure that provides mechanisms for accountability and ownership of strategy development ensures that IT/GIS and business strategies will hold individuals accountable when alignment is not achieved and business objectives are not fulfilled.
• Organizational Culture. How strong is the collaboration within the organization for supporting a transformational IT/GIS project like a UN implementation? A supportive organizational culture is required to establish a solid relationship between the business and IT/GIS functions and achieve successful alignment.
• IT/GIS is a Business Enabler. Is technology seen as an impediment or enabler in supporting the business and operational needs of the utility? IT/GIS must be perceived by the organization as a resource and a business enabler. This perception needs to be instilled within the organization to ensure that new IT/GIS emerging opportunities are recognized and how they can support business and operational objectives.
• Leadership Capability Level. What is the level of management capability in both IT/GIS and business managers? Business managers must have a good understanding of technology, and the IT/GIS manager must have a solid understanding of the organization’s business functions to ensure effective alignment. It is important to note that the IT/GIS and business managers have a fundamental understanding of the organizational change aspects of a transformation project like a UN implementation.
• Single Connected Strategy for Both IT/GIS and Business. Do your IT/GIS objectives directly connect to business objectives? If you hope to align your business and IT/GIS initiatives, then you will have to make sure you have a solid business strategy within your organization. This can help ensure that everyone understands exactly how technology will be used to achieve the business objectives.

These factors will vary across the individual, group, and organizational levels, indicating that successful alignment is complex and requires a transformation of both individuals and the organization. It is important to note that the business decision maker’s skills and capability are likely one of the most important factors in achieving successful alignment. IT/GIS managers want to be more involved in business strategy development; however, CEOs do not always believe that necessary. IT/GIS managers would also like more CEO involvement in IT/GIS strategy development, but CEOs may not believe it’s necessary. Even today, some CEOs perceive that business and IT/GIS decision-makers need only be involved in their strategy development process.

Overall, aligning business strategy and IT/GIS strategies has remained an important organizational challenge that has plagued management for many years and has long been recognized as a key issue for managers as technologies like GIS have become strategically significant. The factors presented above suggest where organizations should focus their attention to successfully align their IT/GIS and business strategies.

In the end, it all comes down to execution. No, not chopping off heads, but rather how you go about having your IT/GIS department perform the tasks that the business needs to do to successfully deliver an enterprise solution like a UN implementation. How hard can that be?