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4. it governance a compass without a map v.2.6 pink elephant
1.
IT Governance a Compass
Without a Map? Presenter: Troy DuMoulin AVP Strategic Solutions
2.
The “Risk Gap”
For Business Growth Goals Process Requirements • Increasing number of products & services • Increasing rate of change RISK GAP Increased Business Need Of IT Services Increased Business Need Of IT Services • Increasing complexity / data interdependency • Lack of availability, performance, • Increased speed and efficiency reliability, quality • Increased speed to market • Reduced costs IT Process Capabilities • Silo / Fragmented / redundant processes • Lack of integration, automation • Lack of visibility Scalability of Management Processes Over Time Operating as a mature IT Service Provider requires consistent management processes across silos! IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 3
3.
What is IT
Governance IT governance is the responsibility of executives and the board of directors, and consists of the leadership, organizational structures and processes that ensure that the enterprise’s IT sustains and extends the organization’s strategies and objectives. Furthermore, IT governance integrates and institutionalizes good practices to ensure that the enterprise’s IT supports the business objectives. ~IT Governance Institute – “COBIT 4.1” IT Governance encompasses five major decision areas related to management and use of IT in a firm, all of which should be driven by the operating model: IT principles: high level decisions about the strategic role of IT in the business Enterprise Architecture: the organizing logic for business processes and IT infrastructure IT Infrastructure: centrally coordinated, shared IT services providing part of the foundation for execution Business Application Needs: business requirements for purchased or internally developed IT applications that both use and build the foundation for execution. Prioritization and Investment: decisions about how much and where to invest in IT, including project approval and justification ~ Harvard Business Review / MIT Sloan “Enterprise Service Architecture as Strategy” IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 4
4.
The Governance Model
ISO 38500 Corporate Governance of ICT Evaluate Direct Monitor Proposals Conformance Performance Policies Plans Business Processes ICT Projects ICT Operations IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved.
5.
Service Portfolio and
Governance IT Governance Regulatory & Business Goals Environmental and Strategies IT Guiding IT Organizational Principles Structure IT Strategy Service Portfolio Management Enterprise Model Architecture IT Governance Investment IT Mgmt. tools Decisions Service Provider IT Management Type Business Management Projects Operations Measurements & Reporting Risk Management Controls/Policies IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 8
6.
The Changing Role
For IT HIGH IT customers are the customer of Value Network Focus the organization v3 IT is perceived as an internal Business Focus business partner IT has a single strategy and is focused on the Customer Focus customer, but is perceived as an external v2 supplier IT is focused on the integration and delivery of end- Service Focus to-end IT services (business solutions) IT is focused on technology, infrastructure and applications are LOW Technology Focus treated as separate and largely unrelated domains Role Of IT/IS In The Organization IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 9
7.
Four Stages or
Architecture Maturity Phase 1 Phase 2 Phase 3 Phase 4 Business Silo Standardized Technology Optimized Core Business Modularity Architecture Architecture Architecture Architecture Reuse loosely Where Providing IT coupled IT companies look efficiencies Company wide Enabled business to maximize though data and process individual technology process components business unit standardization standardization (services) to needs of and, in most as appropriate preserve global functional silo cases for the operating standards while needs increased model enabling local centralization differences Source: HBS Enterprise Architecture as Strategy IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 10
8.
IT Governance &
Business Value Linkage Core Business Measures • Revenue IT Core Strategic Measures • Market Share • Profit IT Governance & Measures • ROE Balanced Scorecard Business Value IT Value Chain (Service Organization) IT Governance / COBIT IT Goals IT Operational Processes ITSM, SDLC, Project Mgmt., IT Processes Security and Information Mgt. IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 12
9.
DEMAND MANAGEMENT
SUPPLY Orders Commitments Develop & Maintain Deliver Service E2E Service issues: Service delivery MI Supplier strategies E2E Service information Group governance & profiles 11 Industry Best practice Strategy, Planning 5 Develop & Integrate Deliver business change Client strategies 3 and Sourcing Service Components Service Architectures cost info Handover components 9 10 Accepted Aggregated (awaiting authority bid release to run) Incidents & 1st line support Service Portfolio Plans Acceptance Requests/fixes documentation Demand Authorise major changes Run Service Service Approved Unplanned 6 levels Support Components plans & change & supply C controls demand capacity Performance vs. U Manage Client Relationships OLA U S S Manage Services T Client requirements for/ 4 E2E Service Request for major Service changes O agreement to change E Design & Sourcing R M E S 11 Major R Request for improved Market and supplier change S performance/fixes info request 7 Manage Service Maintain OLA requirements Bid support Service Components 8 Components Cost & OLA reporting OLA metrics price model Minor change 2 Invoicing & payments Financial Processing 4 requests & Reporting Incident 10 6 escalation Financial information Major change Supplier Incident requests contract, escalation/ Problem reporting Supplier issue resolution Manage Customer and resolution negotiation resolution, Incident communications Supplier 9 Services profiles 11 requirements feedback and Orders benchmarking Supplier performance feedback 11 Manage Suppliers 12 Manage Risk IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 13
10.
3. Strategy, Planning
& Sourcing 5. Develop& Integrate 6. Run Service Components 2. Manage Services Service Components 3.1 Define Vision & 3.2 Define Strategic 6.1 Operate & 2.1 Produce Strategy Investment Portfolio 6.2 Service recovery Service Plan 5.1 Manage projects monitor services 3.3 Develop / Maintain 3.4 Define Strategic 2.2 Track sservice Service Portfolio, OM 5.2 Manage integrated performance Roadmaps & Architectures service components/ 8. Manage Service Components 3.5 Develop SP business change 3.6 Apply Strategic 8.1 Implement 2.3 Review & report Business Plan changed/ new service 8.2 OLA management Governance service performance and Budget component 8.3 Operational 8.4 Service component 4. E2E Service Design supplier performance 2.4 Identify service 1. Manage Client management improvements & Sourcing management Relationships 4.1 Change demand 8.6 Update SCP 2.5 Update SLAs 1.1 Facilitate client capture 8.5 Benchmarking database & reporting (existing services) business strategy 4.2 Route to 7. Maintain appropriate Service Components 1.2 Manage client change process 9. Manage Customer Services demand 4.3 Confirm 7.1 Component 9.1 Manage 9.3 Manage order feasibility of bid acceptance 9.2 Manage problem 1.3 Manage client incidents contact 4.4 Mobilise team & 7.2 Release planning 9.4 Manage 9.5 Manage prepare bid 1.4 Facilitate overall major incident knowledge client satisfaction 7.3 Maintain 4.5 Agree with clients component 12. Manage Risk 1.5 Manage marketing & account opportunities 7.4 Production 12.1 Provide local 12.2 Lead risk 12.3 Provide risk 4.6 Portfolio entry change control risk governance management consultancy 7.5 Business, 4.7 Aggregate business 12.4 Provide tools, 12.5 Provide risk 12.6 Provide IT operations, IT & techniques & training & awareness release/ plan entry supplier support security solutions standards 10. Financial Processing & Reporting 11. Manage Suppliers 10.1 Operate and 10.2 Maintain 10.3 Maintain & 11.1 Provide market & manage cost (ABC) 11.2 Negotiate with 11.3 Select suppliers 11.4 Communicate maintain accounting financial accounts systems and pricing models supplier intelligence suppliers with suppliers 10.4 Charging and 10.5 Management 10.6 Investment 11.5 Manage supplier 11.6 Review supplier 11.7 Resolve dispute invoicing & financial Appraisal relationships performance with supplier reporting IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 14
11.
Process & Product
Relationship High Standardization Low Standardization Regulatory Compliance Assemble To Order Specialist Knowledge Cost Efficiency Tailored Solution (3) Commoditization Make To Order Unique Context Risk Service (4) Catalog (2) Formal Process Craftsmanship Make To Stock Engineer To Order (5) (1) Policies, Roles, Procedures, Metrics, Common Tools Low Variance High Volume $$ ? High Variance Low Volume $$$$ Mitigating Risk of Variance Accepting Risk of Variance IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved.
12.
IT Governance Model
US Securities & Sarbanes- Audit Models Exchange COSO Oxley Commission CobIT Quality System Quality System App. Dev. App. Dev. (SDLC) Service Mgmt. Service Mgmt. Project Mgmt. Project Mgmt. IT Planning IT Planning Quality Systems & IT Security IT Security Mgmt. Frameworks ISO CMMi Six Sigma ITIL IT OPERATIONS ISO 20k ASL ISO TOGAF PMI Zachman 27001 IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 17
13.
Where Do We
Want To Be? IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 18
14.
Services vs. Processes
ITIL is a Service Management Framework. This means that the processes described by ITIL exist for the primary purpose of planning, delivering and supporting IT Services. IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 20
15.
Sample Service Catalog IT
Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 23
16.
Service and Process
Architectures Application Services Infrastructure Services Client Professional Services SLA Service & Process Organizations tied together by App. Dev. Infrastructu SLM re SLM Application Service SO Desktop Service Owner Business App. Infrastructure Service SO Hosting Process Professional Service SO Security Mgmt Improvements based on Service Reporting Process Owner Process (Incident) IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 24
17.
The Evolving IT
Service Organization HIGH Enterprise Business Engagement Model Enterprise Governance & SD Function CIO Span Of Control Issues Arise Enterprise IT Groups Spin Off LOW Technology Consolidation Organizational Design Drivers IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 25
18.
Service Organization Model
Catalog SLM SLA Customer Service Delivery Infrastructure Applications • ITSM • Security Service • QA assurance / testing • PMO • Performance Mgmt. • Planning / Consulting • IT Finance • Risk Mgmt./ Compliance • IT Audit • Human Resources All of these functions have a enterprise IT mandate and not a vertical technology focus IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 26
19.
ITSM Tool Strategy
& Integrations Customer Web Portal Service Catalog Requests Fulfillment Resource & Project Portfolio Mgmt. Resource & Project Portfolio Mgmt. Service level Management Monitoring KPI Dash Boards & Event Mgmt. Workflow Management Reporting Reporting Incident Management Code & Doc. Problem Management Mgmt. Change Management (DML) Release & Deployment Management Access Management Etc... Configuration Management Provisioning (CMS) Federated Data Sources Billing & Financial Management IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 27
20.
Adoption Curve Of
ITSM Early Adopters Finance & Trading Government Key Drivers: 1) IT impact on revenue Medical 2) Legislative requirements Utilities Manufacturing Education Late Adopters Retail IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 28
21.
Questions?
Troy DuMoulin t.dumoulin@pinkelephant.com http://blogs.pinkelephant.com/troy http://twitter.com/TroyDuMoulin Thank You PINK ELEPHANT www.pinkelephant.com IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 29
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