Information Technology (IT) Capacity Assessment

An information technology (IT) capacity assessment is defined by the extent to which the company’s IT system provides a basis for executing strategy. Accordingly, it concerns the degree to which the information technology resources and capabilities can be a lever for implementing change. This entails not only understanding the company’s present capabilities, but also evaluating new technologies available on the market and their potential to support new strategic options.

Methodology

1. Employ the application value framework. A qualitative framework that maps each major application system against business value on one axis and functional/technical adequacy on the other. Business value may be based on one or more considerations, such as: support for KSF, support for new business direction, critical information needs, and customer satisfaction.
2. Study the current baseline. This describes the current state of IT within an organization with respect t
3. Perform the IT organization change readiness assessment. This assesses the potential impact on the IT organization as a result of any change initiative. The following are typically assessed: management, structure, people, and workflow & procedures.
4. Perform the IT portfolio investment/value analysis. This provides a qualitative assessment of the investment and subsequent value of the current IT portfolio with respect to it being able to address the needs of the business. The intent is to show a causal link between business objectives and IT investment.

Notes

• Should be performed concurrently with all other analyses of the industry, company, and competitor companies to relate strategic thinking to company capabilities
• Understand the company’s capacity or degrees of freedom to execute certain strategies
• Can be related to the technology portion of the value chain

Strengths

• An identification of the current IT capabilities resources will outline the key areas of concern including key IT drivers and whether IT is an enabler or constraint

Weaknesses

• If resources and capabilities are incorrectly assessed otherwise sound and logical strategy might be rendered useless and performance measurement systems might be adversely affected