How To Align IT Plans and Business Strategies in Metals

Business strategy should drive metals technology investments

Metals leaders can – and often do – establish a business strategy and perfunctorily pass it along to the IT department. However, executives need to understand the value of including IT teams in the conversation. Following are three keys for aligning business strategy and technology investments.

Understand the reason for business goals

Establishing business goals isn’t enough. Metals leaders involved in executing strategies to reach those objectives must understand where they’re headed and what specific steps can help them get there.

For example, if a metals company decides to acquire another business as part of its growth strategy, it’s critical for IT teams to understand the why behind the acquisition rather than simply following acquisition integration steps. Understanding the why allows the IT leadership to make recommendations and decisions on technology, people, and plans that support the business goals.

Prioritize strategy objectives

Many metals companies need to hit several targets at once. It’s important for leaders to establish priorities among objectives or confirm that the company is moving toward each of them equally.

For example, if a metals company signs a contract with a customer in a new geography with different regulatory requirements and plans to increase revenue from existing customers as part of its growth strategy, IT teams need to know how to prioritize their workload. Balancing the need for technology to support new customer requirements with the need to enhance the customer experience for existing customers is a decision the business and IT leadership should collaborate on. When strategy and decisions are made together, it’s possible to address both the need to enhance with similar technology tools and maximize the return on the company's tech investment.

Determine how IT structure can support desired outcomes

Putting the right structure in place to support growth and achieve business goals is critical. IT leaders who are included in business strategy conversations can help create a connection between the outcome and the steps needed to get there.

As companies modernize technology platforms, IT teams should continue to cultivate the skills and expertise required to support the business. Having the right growth plans in place for IT team members provides a path to both retain top talent and recruit new team members.

Technology opportunities should inform metals business strategy

While business strategies inform technology investment decisions, technology opportunities should also inform the business strategy. Following are three questions metals leaders can ask.

What tools and resources does the company already have?

Metals leaders should assess what internal resources they might not be fully embracing. Companies often have unrealized opportunities within their own organizations that they can maximize, such as employee skills and software capabilities.

If a technology tool is being used at only 25%, understanding how the other 75% might also be used can provide quick wins. Alternatively, it might also behoove the company to consider whether this tool is still the right tool if the team only needs 25% of what the system offers.

How can technology make processes more efficient?

Many metals companies still rely on manual processes. Leaders should evaluate how teams get work done and identify inefficiencies in the process.

For example, a company might recognize that its warehouse team is manually tracking inventory, and the need to digitize inventory management might influence the business strategy.

What innovative technologies should be considered?

The rapid advancement of technology gives metals companies much to consider when establishing business objectives. For example, the proliferation of Wi-Fi was once a technological advancement that metals companies had to weave into their business strategy. Without taking advantage of Wi-Fi, organizations could have missed out on remotely collecting data or enhancing the customer experience.

Today, metals companies need to consider what implications AI might have on the organization and if adopting generative AI tools should be part of their business strategy.

Connect your metals IT plan and business strategies with Crowe

Digital transformation is a continual process that requires short- and long-term decisions. If you’re among the group of metals companies that is allocating more capital to technology investments but you don’t have a technology road map or strategy in place, you could discover that the short-term decisions you’re making aren’t beneficial in the long term.

Our team at Crowe specializes in helping metals companies establish and execute business strategies that both inform and are influenced by technology advancements. If you want to build a long-term strategy to sustain business growth with technology, don’t hesitate to reach out.