Briefly describe the strategic planning process: including SWOT analysis. Which method do you think businesses use most when identifying IT projects?
The strategic planning process for a business should take a top down approach. If the business does not have a clearly defined mission statement, then it will be extremely hard to identify and select IT projects. In short, an IT project should fit into the business' goals, not the other way around.
SWOT analysis is an acronym for Strengths, Weaknesses, Opportunities, and Threats. In essence it is a brainstorming exercise. To begin, a company can identify and list it's current strengths and weaknesses, and then evaluate opportunities in the market place - a product or service that consumers or businesses need. Lastly, identify threats. Are there other companies offering similar products already? Is the product unique enough that a larger company won't become a competitor easily?
SWOT analysis can also be utilized by a company for identifying which IT projects to undertake; however, it is more likely that a company would employ several analysis methods to choose which projects to initiate. Financial analysis is an obvious key factor. NPV (net present value), ROI (return on investment), and break-even point are some statistics that are commonly calculated.
SWOT is definitely the method I think most businesses should use. By clearing mapping out all the possible strengths, weaknesses, opportunities, and threats, you can a clear idea of whether or not you want to initiate the project. If you decide to proceed, it will help your chances for success.
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