When an IS organization is considered a cost center, what is their strategic planning process focused on?

A cost center in an organization refers to a department or unit that does not directly generate revenue but incurs costs for the organization. When an IS (Information Systems) organization is viewed as a cost center, the strategic planning process primarily focuses on determining how to do current tasks more efficiently. This is essential because the objective of a cost center is to manage expenses effectively while maintaining the quality of service or outputs. Operating efficiently allows the organization to control costs while supporting the broader goals of the organization.

While understanding collective business plans for the future, meeting with external stakeholders, and aligning with business strategies are important aspects of strategic planning, they are more relevant to profit centers or organizations looking to drive growth and innovation. In contrast, a cost center focuses on optimizing current operations and processes, ensuring that every dollar spent contributes efficiently to the organization's overall performance. By prioritizing efficiency, the IS organization can provide better support to the business while remaining mindful of budget constraints.