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Strategic Information Initiatives

Strategic Information Initiatives. Week 2 Corporate Investment Decisions. Agenda. Kinds of initiatives The decision gauntlet Example internal decision processes Example budget cycle Perspectives on spending decisions. Corporate Initiatives. (examples) General business planning

darrel-riggs
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Strategic Information Initiatives

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  1. Strategic Information Initiatives Week 2 Corporate Investment Decisions

  2. Agenda • Kinds of initiatives • The decision gauntlet • Example internal decision processes • Example budget cycle • Perspectives on spending decisions

  3. Corporate Initiatives (examples) • General business planning • Mergers and Acquisitions (M&A) • Internal policies and procedures • Organization restructuring • New products or services • Competitive analysis • Business turnaround • Systems selection / implementation • Enterprise data model • (info?) • Metrics • Finance • Metrics • Metrics • Forecasts • Markets • Models • Research • Data analysis

  4. The Decision Gauntlet • Internal project proposal process • Budget cycle • Funding source • Competing priorities • Competing investments • Staffing constraints • Strategic alignment • Executive sponsorship • Internal politics

  5. Internal Decision Process [example from large insurance company] • Project Oversight Committee • Project proposal forms and guidelines • Cost benefit analysis • ROI analysis • Quarterly submission deadlines • Preliminary review process • Ongoing status report requirements

  6. Budget Cycle [example from software company] • Annual budget approval for major spending • Quarterly budget reviews and updates • Strategic priority override process • Funding limits by source • R&D (tax deductable) • Operations (expenses) • Capital (expenditures)

  7. Types of Spending Decisions • Operations • funded by operating budget • routine decision making • Investment • “special budget” category • e.g.: capital, executive, planning or marketing • optional / compete with other investments

  8. ROI Payback Risk levels Tie in w/ strategy TCO / TBO Value added Intangibles Internal politics Research (due diligence, SWOT) Who is accountable / sponsor Training stuff.... KPIs / timeframes Implementation plan Long/short term relevance Competition (market) Alternatives Budget / financial plan Criteria for Investment Decision

  9. Portfolio Approach to Investments • Investment categories • Product, service, brand development, internal operations, partnering • Range of benefit time-frames • Short-term, mid-term, long-term • Range of risk levels • Low, moderate, high • ROI (return on investment) • High, medium, low

  10. Investment Proposal Pipeline Preliminary ideas Pre-proposal investigations Approved/pending proposals Approved/funded proposals Projects in process Projects completed

  11. Evaluation & Selection • Investment proposal pipeline • Portfolio balancing • Funding pool • Funding allocation • Option rankings • Funding selection cut-off points • Recurring portfolio reviews • Incremental funding, go/no-go decisions

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