Presentation on the reality of Business IT Alignment on the \'Landelijke Praktijkdag Functioneel Beheer\', March 23rd 2010

1. Reality bites De realiteit van business IT alignment A.J.Gilbert Silvius Lector Business, ICT en Innovatie

2. Gilbert Silvius

3. Hogeschool Utrecht

4. Kenniscentrum InnBus

5. Reality bites De realiteit van business IT alignment A.J.Gilbert Silvius Lector Business, ICT en Innovatie

6. In what business is this company?

7. In what business is this company?

8. In what business is this company?

9. It’s just getting interesting! Impact op Business hoog laag Jaren ’60 ’70 ’80 ’90 ’00 ‘10 Automatisering Informatisering Transformatie

10. ICT als bron van innovatie Bedrijfsmiddelen Bedrijfsprocessen Bedrijfsmodel Bedrijfsstrategie

11. En we zijn nog niet klaar!

12. De vraag ook niet Growing Flat Declining Help enable growth! Help improve margins! Help reduce fixed and variable costs! Company revenue IT budget IT demand

14. Does alignment pay-off?

15. Kans of kopzorg?

18. Jerry Luftman Business IT Alignment Maturity

19. Maturity of the Business IT Alignment process Alignment gap Initial / Ad-Hoc Process Committed Process Established/Focused Process Improved/Managed Process Optimized Process

20. Business IT Alignment Maturity Variables Partnership Business Perception of IT Value Role of IT in Strategic Business Planning Shared Goals, Risk, Rewards/Penalties IT Program Management Relationship/Trust Style Business Sponsor/Champion Scope & Architecture Traditional, Enabler/Driver, External Standards Articulation Architectural Integration: - Functional - Enterprise - Inter-enterprise Architectural Transparency, Flexibility Skills Innovation, Entrepreneurship Locus of Power Management Style Change Readiness Career crossover Education, Cross-Training Social, Political, Trusting Environment Communications Understanding of Business by IT Understanding of IT by Business Inter-/Intra-organizational learning Protocol rigidity Knowledge sharing Liaison(s) effectiveness Value measurement IT Metrics Business Metrics Balanced Metrics Service Level Agreements Benchmarking Formal assessments/reviews Continuous Improvement Governance Business Strategic Planning IT Strategic Planning Reporting/Organization Structure Budgetary Control IT Investment Management Steering Committee(s) Prioritization Process Six IT Business alignment maturity criteria

21. Business IT Alignment Maturity Variables Partnership Business Perception of IT Value Role of IT in Strategic Business Planning Shared Goals, Risk, Rewards/Penalties IT Program Management Relationship/Trust Style Business Sponsor/Champion Scope & Architecture Traditional, Enabler/Driver, External Standards Articulation Architectural Integration: - Functional - Enterprise - Inter-enterprise Architectural Transparency, Flexibility Skills Innovation, Entrepreneurship Locus of Power Management Style Change Readiness Career crossover Education, Cross-Training Social, Political, Trusting Environment Communications Understanding of Business by IT Understanding of IT by Business Inter-/Intra-organizational learning Protocol rigidity Knowledge sharing Liaison(s) effectiveness Value measurement IT Metrics Business Metrics Balanced Metrics Service Level Agreements Benchmarking Formal assessments/reviews Continuous Improvement Governance Business Strategic Planning IT Strategic Planning Reporting/Organization Structure Budgetary Control IT Investment Management Steering Committee(s) Prioritization Process Six IT Business alignment maturity criteria Processen Structures Capaciteiten Visies / Gedrag

22. Business IT Alignment Maturity Variables Partnership Business Perception of IT Value Role of IT in Strategic Business Planning Shared Goals, Risk, Rewards/Penalties IT Program Management Relationship/Trust Style Business Sponsor/Champion Scope & Architecture Traditional, Enabler/Driver, External Standards Articulation Architectural Integration: - Functional - Enterprise - Inter-enterprise Architectural Transparency, Flexibility Skills Innovation, Entrepreneurship Locus of Power Management Style Change Readiness Career crossover Education, Cross-Training Social, Political, Trusting Environment Communications Understanding of Business by IT Understanding of IT by Business Inter-/Intra-organizational learning Protocol rigidity Knowledge sharing Liaison(s) effectiveness Value measurement IT Metrics Business Metrics Balanced Metrics Service Level Agreements Benchmarking Formal assessments/reviews Continuous Improvement Governance Business Strategic Planning IT Strategic Planning Reporting/Organization Structure Budgetary Control IT Investment Management Steering Committee(s) Prioritization Process Six IT Business alignment maturity criteria

23. Luftman 2007

25. Alignment matters!

26. Alignment matters! Strategic Alignment Maturity makes a significant contribution to company performance. SAMs impact on company performance is .34. This is a very good validation of the relationship between SAM and company performance.

28. Relationships?? Business Strategy IT Strategy Business IT Alignment capability

29. Business Strategy Operational Excellence Product Leadership Customer Intimacy Operational Excellence Emphasis on efficiency and reliability, price leadership, cost control and supply chain optimization. Product Leadership Emphasis on continuing product development, innovation, fast time-to market and high margins. Customer Intimacy Emphasis on customer service, responsiveness, tailoring products and services to individual customer needs.

31. Relationships?? Business Strategy IT Strategy Business IT Alignment capability

32. Strategies combined

34. Strategie geeft Alignment

35. Business IT Alignment

36. Business IT Alignment Maturity Variables Partnership Business Perception of IT Value Role of IT in Strategic Business Planning Shared Goals, Risk, Rewards/Penalties IT Program Management Relationship/Trust Style Business Sponsor/Champion Scope & Architecture Traditional, Enabler/Driver, External Standards Articulation Architectural Integration: - Functional - Enterprise - Inter-enterprise Architectural Transparency, Flexibility Skills Innovation, Entrepreneurship Locus of Power Management Style Change Readiness Career crossover Education, Cross-Training Social, Political, Trusting Environment Communications Understanding of Business by IT Understanding of IT by Business Inter-/Intra-organizational learning Protocol rigidity Knowledge sharing Liaison(s) effectiveness Value measurement IT Metrics Business Metrics Balanced Metrics Service Level Agreements Benchmarking Formal assessments/reviews Continuous Improvement Governance Business Strategic Planning IT Strategic Planning Reporting/Organization Structure Budgetary Control IT Investment Management Steering Committee(s) Prioritization Process Six IT Business alignment maturity criteria

37. Wat is belangrijk?

38. Wat is belangrijk?

39. Wat te doen? Partnership Business Perception of IT Value Role of IT in Strategic Business Planning Shared Goals, Risk, Rewards/Penalties IT Program Management Relationship/Trust Style Business Sponsor/Champion Scope & Architecture Traditional, Enabler/Driver, External Standards Articulation Architectural Integration: - Functional - Enterprise - Inter-enterprise Architectural Transparency, Flexibility Skills Innovation, Entrepreneurship Locus of Power Management Style Change Readiness Career crossover Education, Cross-Training Social, Political, Trusting Environment Communications Understanding of Business by IT Understanding of IT by Business Inter-/Intra-organizational learning Protocol rigidity Knowledge sharing Liaison(s) effectiveness Value measurement IT Metrics Business Metrics Balanced Metrics Service Level Agreements Benchmarking Formal assessments/reviews Continuous Improvement Governance Business Strategic Planning IT Strategic Planning Reporting/Organization Structure Budgetary Control IT Investment Management Steering Committee(s) Prioritization Process Six IT Business alignment maturity criteria Verdiep je in de business (maar andersom ook!) Wees transparant Creëer stuur- mogelijkheden Creëer betrokken-heid Creëer een effectieve architectuur Ontwikkel de kwaliteit van medewerkers

40. Reality bites De realiteit van business IT alignment A.J.Gilbert Silvius Lector Business, ICT en Innovatie

43. Kijk uit voor bestuurders! Basistype Kenmerken Hypocriet Verklaart de IT belangrijk te vinden, ontkracht dit geloof door zijn handelen Weifelaar Accepteert aarzelend het strategisch belang van de IT. Wil echter niet zelf betrokken raken bij de IT-vraagstukken Atheïst Vindt de IT niet belangrijk. Verkondigt die overtuiging in het openbaar Fanaat Vindt de IT van strategisch belang. Beschouwd zichzelf als een autoriteit op het gebied van IT Agnost Geeft toe dat de IT van strategisch belang is. Moet daar steeds opnieuw van overtuigd worden Koning Accepteert dat de IT strategisch belangrijk is. Benoemt de best denkbare CIO en trekt zich dan terug Gelovige Gelooft dat de IT een strategisch voordeel kan bieden. Benadrukt die overtuiging door zijn dagelijkse optreden

45. Vragen??