It is a combination of the knowledge of available technology and business goals, that make software IT strategies successful.

Software development usually occurs as part of projects to streamline business processes for increased efficiencies or new business initiatives. Companies tend to go in cycles of good and bad economic times within their sector. In good economic times they grow quicker and build out their systems, in poor economic times they look to streamline and become more efficient. Building out their systems and expansion generally involves capital equipment rollouts and sometimes new systems. New initiatives have new business requirements for new software systems.

IT Strategies can utilize software technology in two ways: through the adoption of new enabling technologies that can improve productivity, and through a search for best available technology to solve a particular business goal.

To implement software well, it is important to have defined business goals, business requirements, and a good understanding of the current situation and business practices. Strategic planning can then yield identifiable and quantifiable benefits.

Off the shelf systems are generally preferred and are the first place to look when new software is required. Benefits of off the shelf software include: lots of research and development (R&D) time and effort, shared R&D cost across the user base, many feedback/improvement cycles with users, well defined business processes and workflow included that can be adopted and used if the business requirements are the same or similar. Efficiencies can be gained by automation of data transfer and workflow between different off the shelf software packages through scripting or development of intermediary software to form the unique system that represents the company's needs.

When existing off the shelf software does not fit the business requirements, then new software development is required. Any work invested in reviewing business needs and off the shelf software can form a good basis moving into a custom software development project. The software development cycle can begin which has a strong non technical component in the initial stages.

To successfully develop good software in a time and cost efficient way, business strategists are important in the first two phases in the cycle:

1. Business requirements gathering and definition
2. Business design for a business audience
3. Technical design
4. Software prototype
5. Test deployment

Eric Sundin is CEO and one of the founding principals of Data Perceptions Inc. Eric has over 15 years consulting experience in information technology providing technical strategy, infrastructure architecture, design and deployment of networks and systems, application architecture and development, management consulting and organizational structure.