As digital transformation consultants, we often see the terms ‘technology strategy’ and ‘target state roadmap’ used interchangeably. However, while both are important for a successful digital transformation, they each play a different role.
What roles do technology strategy and target state roadmap perform in digital transformation?
A technology strategy addresses ‘why’ and ‘what’. It answers the question ‘How will we use technology to compete, grow, and deliver value over time?’. It outlines how technology will support your organisation’s business goals and identifies key areas of transformation. It’s an essential document whether you’re modernising legacy systems, improving data governance, or adopting AI to automate manual processes. It also outlines constraints and opportunities, such as budget limitations, regulatory requirements, or emerging customer expectations.
On the other hand, a target state roadmap shows ‘how’ and ‘when’. It answers the question ‘What specific goals, objectives, and actions are required to reach our desired future state?’. A target state roadmap takes these strategic inputs and translates them into a tangible, structured plan that shows a timeline and milestones, including prioritisation and the order in which work needs to be completed.
How a technology strategy and target state roadmap interact
Technology strategy and target state roadmaps are not independent. They are linked, and each one is most effective when informed by the other.
Generally, the strategy informs the roadmap. However, the interaction is not one-way. Sometimes, the process of building the roadmap reveals gaps or assumptions in the original strategy. For example, you might find that your current infrastructure can’t support the kind of scalability envisioned in the strategy, or that integration challenges require initiatives to be in a particular sequence. This kind of iteration and feedback between the two documents is healthy and a sign of a mature approach to digital transformation. Your technology strategy evolves through the development of a target state roadmap, and the reverse is also true.
A housing analogy
If you were planning to build a house, the architectural brief is the equivalent of a technology strategy. It outlines goals such as the number of rooms, sustainability features, budget, lifestyle needs. It’s the vision for the kind of house you want to live in.
The target state roadmap is the builder’s plan. It shows how the house will be constructed, which stages happen in which order, what materials are needed, and when each phase of work will begin and end.
You wouldn’t want to start pouring the foundation of a house without a clear idea of what you’re building. On the other hand, you might discover during planning that your original brief needs to shift because of material costs, land constraints or building regulations.
Which comes first – technology strategy or target state roadmap?
‘Start with the technology strategy, but expect to revisit and refine as you develop your target state roadmap.’
It’s important to start with a clear technology strategy. Your strategy creates meaning that will underpin the roadmap. It will help you make tough decisions about trade-offs, resourcing, and sequencing.
In practice, the relationship between these two documents is iterative. Don’t be afraid to move between the two a number of times until you get it right.
- High-level strategic goals such as ‘consolidating platforms’ or ‘becoming cloud-first’ can guide your activities. Then during the process of mapping your current and future state you may uncover constraints and gaps that will inform how the strategy is implemented.
- In organisations with a fragmented technology environment or a number of legacy systems, the act of drafting a roadmap helps clarify what the strategy needs to address.
Tip for perfect alignment: Consider looping back between technology strategy and target state roadmap 2 or 3 times until they both feel stable and aligned.
How 9Yards digital transformation consultants can help
We’ve seen organisations struggle when the technology function is under pressure to deliver quick wins. Unsurprisingly, it’s tempting to jump straight into delivery mode.
The trouble is that skipping the strategic thinking leads to short-term gains at the cost of long-term coherence. At the same time, staying too long in the strategy stage can lead to “analysis paralysis” where nothing gets done.
The expert team of digital transformation consultants at 9Yards can help you ensure your technology strategy and target state roadmap support each other. Contact us for help with review, audit or even development of a technology strategy and target state roadmap that aligns with focus, clarity and a realistic development plan.
