How do you decide on what is Strategic and what is Operational for Information Technology (IT)?

In the video below, I ask Chri Hjelm, EVP and CIO of Kroger about IT priorities.
In my view, there are three ways of looking at and deciding what is strategic and what is just operationally used for execution when it comes to Information Technology (IT):
  1. Strategic IT:
    • Is a want (e.g., innovation horizons, cloud, etc.)
    • Improves something for external and/or internal customers which usually can be measured
  2. Operational IT:
    • Is a need (e.g., email, a website, an accounting system, etc.)
  3. In-between IT:

It should also be noted that as time progresses, certain Strategic IT would become Operational IT.

Strategic IT vs. Operational IT
Strategic IT vs. Operational IT