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Creating A Business Focussed Information Technology Strategy

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Creating A Business Focussed Information Technology Strategy

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This presentation describes a structured approach to creating a business-focussed information technology strategy.

An effective business-oriented IT strategy is an opportunity to resolve the disconnection and to ensure the IT function is able to and does respond to business needs and is trusted by the business to provide IT solutions.

The IT strategy will consist of static structural elements relating to the organisation of the IT function:

• Capabilities – skills and abilities the IT function should possess and be able to use effectively and efficiently
• IT Function Structure – the organisation and arrangement of the sub-functions and their responsibilities and relationships
• Operating Model – how the IT function work and delivers value and the processes it implements and operates
• Staffing And Roles – the numbers of people, their roles, responsibilities, expected skills, experience and abilities, workload, reporting structures and expected ways of operating

It will also include dynamic elements relating to initiatives, both enabling initiatives within the IT function and specific business initiatives required to achieve the business strategy.

This presentation describes a structured approach to creating a business-focussed information technology strategy.

An effective business-oriented IT strategy is an opportunity to resolve the disconnection and to ensure the IT function is able to and does respond to business needs and is trusted by the business to provide IT solutions.

The IT strategy will consist of static structural elements relating to the organisation of the IT function:

• Capabilities – skills and abilities the IT function should possess and be able to use effectively and efficiently
• IT Function Structure – the organisation and arrangement of the sub-functions and their responsibilities and relationships
• Operating Model – how the IT function work and delivers value and the processes it implements and operates
• Staffing And Roles – the numbers of people, their roles, responsibilities, expected skills, experience and abilities, workload, reporting structures and expected ways of operating

It will also include dynamic elements relating to initiatives, both enabling initiatives within the IT function and specific business initiatives required to achieve the business strategy.

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Creating A Business Focussed Information Technology Strategy

  1. 1. Creating A Business Focussed Information Technology Strategy Alan McSweeney http://ie.linkedin.com/in/alanmcsweeney https://www.amazon.com/dp/1797567616
  2. 2. IT Strategy Needs To Be More Than Just A Collection of Buzzwords I Want An IT Strategy … And It Must Include The Internet of Things … … And Big Data … … And It Must Be Agile … … And Aligned … … And Innovative… … And Transformational … What About Cloud? And Artificial Intelligence And Machine Learning? And Blockchain? … And Digital … 5 November 2019 2
  3. 3. Some Meaningless Slide About Classical Greek Military Terms • Originally strategy meant generalship • Tactics meant the organisation of military forces – taktikos - arranging and ordering • Strategoi (generals) could be punished, exiled or even executed for failure to use initiative, even if they succeeded in battle, by soldiers or the assembly * • How many information technology strategists face a similar fate? • How many Chief Information Officers and consultants are made drink hemlock if their IT strategy fails? * See Battle of Arginusae, 406 BC 5 November 2019 3
  4. 4. Business And IT Disconnect – Each Speaks A Different Language I want: You need: Business IT You are not listening to me You are not listening to me 5 November 2019 4
  5. 5. Business And IT View Of Technology • Business functions view information technologies as means to an end and not as ends in themselves • IT views technologies as solutions rather than as components of an overall business solution • IT technology trends are very variable and depend on the ever-changing new next best thing • Business view of the importance of technology application remains quite constant: − Security − Data − Delivery − Value − Data − Managing Suppliers 5 November 2019 5
  6. 6. Business And IT Disconnect – Each Speaks A Different Language • The IT strategy is an opportunity to resolve this disconnection and to ensure the IT function is able to and does respond to business needs and is trusted by the business to provide IT solutions 5 November 2019 6
  7. 7. IT Strategy And Business • Information technology is only a tool • To be effective, it must be tightly linked to the underlying organisation • Organisation strategy, the strategy for the use of IT in the organisation and the strategy for the delivery and support of IT are interdependent and must be brought into line for optimum operation • The challenges to accomplishing this alignment include the complexity and uncertainty in the business and the IT environments, alignment issues within the business itself, and the fit of IT with the business • To direct architecture definition and IT decisions, a vision for IT must be established • Management needs to be committed to this vision. 5 November 2019 7
  8. 8. IT Strategy Objectives And Benefits • The Information Technology Strategy seeks to: − Align the priorities of IT with the priorities of the business − Ensure that IT is capable of fulfilling its role in the business − Align the characteristics of IT with those of the business • The Information Technology Strategy provides benefits to the organisation: − Supports active management and leadership on the use of IT to support the business strategy − Enhances management control over IT resources − Maximises the value contribution of IT by ensuring alignment of the IT strategy with the business strategy 5 November 2019 8
  9. 9. IT Demand Drivers Business Trends, Goals and Needs are Driving Information and Technology Demands Create an integrated relationship with the business Be more responsive, a quicker time to service and solution implementation and operation Meet exacting service levels for critical services Innovate and leverage new technologies and capabilities Simplify and consolidate our legacy application portfolio Optimise and automate IT operation activities Mitigate (cyber) risks and security threats Better sourcing - correct mix of insourcing and outsourcing and better supplier management 5 November 2019 9
  10. 10. Information Technology Demand And Supply • Demand Issues - what the business needs and wants from IT • IT portfolio alignment • Initiative identification and business strategy enablement • IT-enabled business invention • Demand rationalisation and prioritisation such as cost/benefit analyses and risk assessments • Speed of response and delivery • Security and risk management • Supply Issues - how the IT function has to operate to satisfy business demand • IT mission alignment • Cost and affordability constraints • Organisational positioning • IT governance and leadership • Core competencies and sourcing • Practical constraints 5 November 2019 10
  11. 11. IT Strategy – Key Questions Why Do We Need An IT Strategy? • Business Drivers and Changes • Objectives • Scope • Desired Outcomes • Gaps/Problems/Inefficiencies • Capabilities What Needs Are We Looking To Fulfil? What Problems Are We Looking To Solve? What Opportunities Are We Looking to Address? • Business Needs and Opportunities • IT Function Needs • IT Function Issues, Problems and Gaps • IT Opportunities How Will The IT Strategy Address These Needs/Problems/Opportunities? • Capabilities • IT Function Structure • Operating Model • Staffing And Roles What Will We Do To Define and Implement The Strategy to Achieve The Identified Needs? • People • Skills and Abilities • Tools, Methodologies, Techniques • Measures • Processes • Commitment 5 November 2019 11
  12. 12. IT Function and Business Strategy Feedback • The IT function can both respond to the business strategy and assist in the development of the business strategy by demonstrating the potential of IT to the business HowWhat How What Translate the What of business requirements into the How of technology and process Translate the What of new technologies into the How of the application to the business 5 November 2019 12
  13. 13. IT Function As A Lens IT Function Needs to Mediate Between the Business and Suppliers/ Technologies/Delivery Acting as a Lens Focussing Business Needs On To Appropriate Solutions Business Objectives and Requirements Service Operations and Provision Technology Landscape Supplier Ecosystem Solution Delivery 5 November 2019 13
  14. 14. IT Strategy • Develop IT strategy and architecture for the deployment and implementation, management and operation of IT solutions throughout the organisation in a cost- effective manner − Doing things better − Doing better things • Process of defining a strategy or direction and making decisions on allocating resources to pursue this strategy including capital and people • Create a blueprint that guides delivery of applications and information related to an organisation's activities • The end result is a Strategic IT Plan 5 November 2019 14
  15. 15. IT Strategy Scope Checklist IT Strategy Scope Static Components Run The Business Change The Business IT Value Chain Structural Elements Capabilities List of Key Capabilities IT Function Structure Operating Model Roles and Staffing Structure Skills and Abilities Tools, Methodologies, Techniques Commitment and Value Processes Staffing And Roles Organisation Change Change Domains Change Enablers and Indicators Dynamic Components Specific Initiatives Required To Achieve Business Strategy Generic Enabling Initiatives List of Key Initiatives Specific Initiatives List of Key Initiatives Implementation Options and Plan 5 November 2019 15
  16. 16. IT Strategy Scope Checklist • Scope checklist defines the possible subjects to analyse and define as part of the IT strategy engagement • Use the scope checklist to agree the topics to be covered • These items map to IT strategy elements described later 5 November 2019 16
  17. 17. IT Strategy – Core Principles • Recommend that IT define a core set of principles/policies: − IT strategy will be developed and maintained in line with market analysis and key stakeholder requirements and IT strategy to be aligned with the organisation’s vision − IT delivers core services to cost and quality standards − IT as a function is controlled and compliant to industry standards − Security will be embedded in IT − IT enables flexible service delivery to users − IT supports business growth − IT supports and enables compliance in the wider organisation − IT budgets will be developed and maintained for new services or improved IT Services 5 November 2019 17
  18. 18. Business And IT Strategy – Responding To Demands And Changes New Business Models Competition Service Focus and Customer Expectations Increased Pace of Change Increased Regulation Business and Technology Changes Business and Technology Changes Increased Pace of Change Assist With The Design of New Business Models Identify Technology Trends That Offer Opportunities or Represent Challenges Identify Opportunities for Efficiencies Translate Innovation into Business Solutions Support Business Solutions Business Objectives Business Operational Model IT Strategy Delivery IT Governance, Management , Support And Operations Business Strategy Business IT Strategy IT Function Strategy 5 November 2019 18
  19. 19. IT Strategy In A Wider Organisation Context • IT strategy cannot be developed without reference to the overall business strategy • Its development is not a standalone activity • The IT strategy must reference the business strategy in order to formulate and implement the major goals and initiatives of the business and to respond to business demands and internal and external changes Business Objectives Business Operational Model IT Function Solution Implementation and Delivery Management And Operations Business Processes Required Operational Business Systems Business Strategy Solution Design/ Selection/ Sourcing Business IT Strategy IT Function Strategy IT Function Structure Required IT Operational Processes Required IT Infrastructure Business Systems Infrastructural Systems Design/ Selection/ Sourcing IT Function Resourcing and Management 5 November 2019 19
  20. 20. IT Strategy In Context – Components And Linkages • Business Strategy – the business or organisation must create an overall strategy for its operations defining what it does and what it seeks to achieve. The business strategy provides the context in which all other activities take place. • Business Objectives – the business strategy is translated into a number of objectives that must be achieved in order to realise the business strategy. • Business Operational Model – an organisational structure and operating needs to be defined in order to achieve the defined set of objectives. • Business Processes – the operational business processes needed to actualise the achievement of the defined objectives must be defined and implemented. • Required Operational Business Systems – the set of business systems required to operate the previously identified and defined business processes are described. • Business IT Strategy – the organisation needs to define an overall information technology strategy that encompasses the solutions, systems and applications needed to operate the business processes. • IT Function Strategy – the organisation’s information technology function must define its own strategy to achieve the wider organisation’s business IT strategy. This must include the information technology function structures and business processes. • IT Function Structure, Capabilities, Operating Model, Approaches, Standards – the IT function designs its structure, operating model, the required capabilities and sets of standards and approaches in order to deliver the IT function strategy and the wider business IT strategy • IT Function Resourcing And Management – the IT function implements its structure and put in place the required resources and management • Required IT Operational Processes – the IT function agrees and defines the set of operational business processes need to operate • Required IT Infrastructure Business Systems – the set of internal infrastructural IT applications needed to implement the IT business processes are identified • Infrastructural Systems Design/Selection/Sourcing – the set of internal infrastructural IT applications are sourced • Solution Implementation And Delivery – the solutions are implemented and transitioned to production • Solution Design/Selection/Sourcing – the set of previously identified business solutions are sourced • Management And Operations – the implemented solutions are operated and managed in production 5 November 2019 20
  21. 21. Core And Extended Activities Of An IT Strategy • Individual core and extended elements can be grouped into sets of actions, activities and functions Business Objectives Business Operational Model IT Function Solution Implementation and Delivery Management And Operations Business Processes Required Operational Business Systems Business Strategy Solution Design/ Selection/ Sourcing Business IT Strategy IT Function Strategy IT Function Structure Required IT Operational Processes Required IT Infrastructure Business Systems Infrastructural Systems Design/ Selection/ Sourcing IT Function Resourcing and Management 5 November 2019 21
  22. 22. Core And Extended Groups Of Activities Of IT Strategy IT Strategy Implementation and IT Function Operations, Tools and Processes Business Processes and Business Solutions IT Function Structure and Operating Model Business Strategy and Objectives Business IT Strategy and IT Strategy • Individual core and extended elements can be grouped into sets of actions, activities and functions 5 November 2019 22
  23. 23. Components Of IT Strategy • IT strategy will have a number of components • Static or structural changes to the IT function • Dynamic changes relating to initiatives, programmes or projects − Enabling/infrastructural/common initiatives − Specific business-lead initiatives IT Strategy Definition Static Components Structural Elements Dynamic Components Specific Initiatives Required To Achieve Business Strategy Generic Enabling Initiatives Specific Initiatives 5 November 2019 23
  24. 24. Components Of IT Strategy IT Strategy Implementation and IT Function Operations, Tools and Processes Business Processes and Business Solutions IT Function Structure and Operating Model Business Strategy and Objectives Business IT Strategy and IT Strategy • This shows the context of the static and dynamic components of the IT strategy Specific Initiatives Generic Enabling Initiatives Structural Elements IT Strategy Definition 5 November 2019 24
  25. 25. Staffing And Roles Operating Model Elements Of Static Component Of An IT Strategy • Structural Elements − Capabilities – skills and abilities the IT function should possess and be able to use effectively and efficiently − IT Function Structure – the organisation and arrangement of the sub-functions and their responsibilities and relationships − Operating Model – how the IT function work and delivers value and the processes it implements and operates − Staffing And Roles – the numbers of people, their roles, responsibilities, expected skills, experience and abilities, workload, reporting structures and expected ways of operating IT Function Structure Capabilities 5 November 2019 25
  26. 26. Interrelationships Of Structural IT Strategy Elements IT Function Structure Capabilities Staffing And Roles Operating Model Staff Must Have Skills to Provide IT Function Capabilities Operating Model Defines How the Personnel Work and the Processes they Operate to Delivery Value IT Function Structure Must be Populated with Staff in Defined Roles Staff Must Have Skills to Provide IT Function Capabilities Operating Model Breathes Life into the Function Structure Operating Model Defines How Capabilities are Used 5 November 2019 26
  27. 27. Interrelationships Of Structural IT Strategy Elements • The interrelationships between these elements show that the IT strategy must be developed as an entirety rather than individual elements be worked on • The resulting strategy and its implementation plan must also be taken together • The definition of these elements will assist in developing the subsequent strategy implementation plan 5 November 2019 27
  28. 28. Specific Initiatives In IT Strategy • There will be two sets of specific initiatives to be incorporated into the IT strategy 1. General initiatives to improve the operation and efficiency of the IT function or that are shared across multiple business functions, such as: • Digital transformation • Supplier management • Business engagement and agile • Data transformation • Cloud transition and application replatforming • Process automation 2. Specific initiatives required to achieve the business strategy and objectives • Portfolio of specific programmes and initiatives 5 November 2019 28
  29. 29. IT Strategy And Change • The design and implementation of the IT strategy will involve changes to the organisation: − Changes in the way the business and the IT function engage with each other − Changes in the way the IT function is structured and operated • The IT strategy is not developed in isolation − It must address how to transition the existing IT function structure and operating model to the target defined by the strategy − This transition will (need to) occur in stages 5 November 2019 29
  30. 30. IT Strategy Implementation Stages And Steps Where We Are Now Where We Want To Be Improvement Leading To Better IT Outcomes Strategy Needs to Analyse and Define the Options for Transition Stage 1 Stage 2 Stage 3 Stage 4 5 November 2019 30
  31. 31. Change Domains Of Organisation Or Business Function • These six core change domains are divided into two groups: those relating to the business and those relating to information technology • Business-Oriented Change Areas − Location and Offices – existing and new locations and facilities of the organisation, their types and functions and the principles that govern the selection of new locations − Business Processes – current and future business process definitions, requirements, characteristics, performance − Organisation and Structure – organisation resources and arrangement, business unit, function and team structures and composition, relationships, reporting and management, roles and skills • Technology-Oriented Change Areas − Technology, Infrastructure and Communications – current and future technical infrastructure including security, constraints, standards, technology trends, characteristics, performance requirements − Applications and Systems – current and future applications and systems, characteristics, constraints, assumptions, requirements, design principles, interface standards, connectivity to business processes − Information and Data – data and information architecture, data integration, master and reference data, data access and management, data security and privacy • These six core change domains affect the organisation or business function • There is a seventh change domain for changes that occur outside the organisation such as the external business landscape that the organisation must react to Domains of Organisation Change Location and Offices Business Processes Technology, Infrastructure and Communications Applications and Systems Information and Data Organisation and Structure 5 November 2019 31
  32. 32. Extended Change Domain • In addition to the core change domains, there is an extended change domain involving the operating landscape outside the scope of the business function • This involves those external parties that interact with the business function – other business functions, partners, suppliers, customers – the impact on them from changes to the organisation Domains of Organisation Change Location and Offices Business Processes Technology, Infrastructure and Communications Applications and Systems Information and Data Organisation and Structure Organisation Operating Environment and Business Landscape 5 November 2019 32
  33. 33. Change Domains • Change domain model can be used to assist with the definition of the scope of the: − Business strategy − Overall organisation IT strategy − IT function IT strategy − IT function operating model • The failure to manage the human side of changes relating to the IT strategy can be a major contributor to the reasons why IT strategies fail 5 November 2019 33
  34. 34. Change Enablers And Indicators Employees at all levels are encouraged and lead to develop and share the skills and knowledge to work in new ways Capabilities Employees throughout the IT function are willing to embrace new ways to think, behave, and perform Commitment Employees at all levels are involved in change and share information and information is shared with them in a timely manner Communication The work environment and the employee values and behaviours can adapt to new situations and encourage employee performance Culture The IT function leadership team is aligned with the overall direction of the business and is engaged in driving behaviours and practices to achieve change Leadership Organisational structures including roles, responsibilities and relationships are designed to support organisational flexibility and performance Structure Processes, incentives and management practices recognise, reward and reinforce the achievement of goals and the demonstration of good behaviours Performance 5 November 2019 34
  35. 35. Change Enablers And Indicators • Being good at change means being good at the enablers of change • Assessing how good you are at each change enabler is an indicator of how good you will be at achieving change • You need to honestly assess how good you are at these change enablers and to get better at the ones where you are lacking 5 November 2019 35
  36. 36. Change Enablers And Indicators Assessment Employees at all levels are encouraged and lead to develop and share the skills and knowledge to work in new ways Capabilities Employees throughout the IT function are willing to embrace new ways to think, behave, and perform Commitment Employees at all levels are involved in change and share information and information is shared with them in a timely manner Communication The work environment and the employee values and behaviours can adapt to new situations and encourage employee performance Culture The IT function leadership team is aligned with the overall direction of the business and is engaged in driving behaviours and practices to achieve change Leadership Organisational structures including roles, responsibilities and relationships are designed to support organisational flexibility and performance Structure Processes, incentives and management practices recognise, reward and reinforce the achievement of goals and the demonstration of good behaviours Performance 5 November 2019 36
  37. 37. Interrelated Business And IT Strategies • There are three interrelated strategies affected by the organisation core change domain model 1. Business Strategy • Defines the strategic goals, imperatives and initiatives to direct the business • Business strategy is the principal driver of IT strategy • IT strategy is developed to support the business strategy • IT can also provide opportunities to reshape the business strategy 2. Organisation IT Strategy • Defines the strategic direction of information technology within the organisation required to support and achieve business strategy. 3. IT Business Function IT Strategy • Defines the strategic direction of the IT function to develop, deploy, operate, manage and support the IT systems needed by the business • Includes processes and supporting technology 5 November 2019 37
  38. 38. Two IT Strategies • There will be two IT strategies that will comprise the overall IT strategy, each with different sets of organisation changes: 1. Overall Organisation IT Strategy – how the organisation will use IT to achieve its objectives 2. Internal IT Function IT Strategy – what the IT function will do and how it will structure itself to deliver on the wider overall organisation IT strategy IT Function IT Strategy Locations and Offices Systems and Applications Business Processes Technology Organisation Information and Data 5 November 2019 38
  39. 39. Change Profiles Of Interrelated Strategies IT Function IT Strategy Locations and Offices Systems and Applications Business Processes Technology Organisation Information and Data Organisation IT Strategy Locations and Offices Systems and Applications Business Processes Technology Organisation Information and Data Business Strategy Locations and Offices Systems and Applications Business Processes Technology Organisation Information and Data Focus of change is on the business- related areas Focus of change is on the technology- related areas Changes are needed across all areas 5 November 2019 39
  40. 40. IT Function Operating Model 5 November 2019 40
  41. 41. IT Function Operating Model • The IT function operating model is concerned with: − The internal structure and operation of the IT function − How the IT function delivers business value • How it will achieve its internal strategy and so how it will assist with the delivery of the wider organisation IT strategy and ultimately the business strategy • The operating model can be complex and so should be divided into its constituent components, showing their interactions • The implementation of the operating model will change in response to internal and external pressures − So the operating model must be able to accommodate appropriate change 5 November 2019 41
  42. 42. Activities Of The IT Function • Doing – Run The Business − Business as usual activities (BAU) related to administering and operating production IT systems and providing service to users • Managing The Doing – Run The Business − Managing the BAU function and its service delivery • Doing – Change the Business − Implementing projects and delivering new services and systems • Managing The Doing – Change The Business − Managing the projects and associated changes Change The Business Run the Business Doing Managing The Doing 5 November 2019 42
  43. 43. Activities Of The IT Function • Not all activities are of equal weight • Balance between activities and required resources and expenditure depends on many factors: − Maturity of IT function and organisation − Level of change − Historical legacy of under or over investment in IT − Growth profile − Market changes • However, Run The Business will always dominate IT resources and activities • But Change The Business activities get disproportionately large and undeserved attention to the detriment of Run The Business activities • The IT strategy cannot ignore the Run The Business/Business As Usual activities of the IT function 5 November 2019 43
  44. 44. Average Relative Balance Of Resources And Cost Across Activity Areas • The actual balance between Run The Business and Change The Business activities will differ for every organisation • The operating model defined in the IT strategy needs to ensure that it reflects the correct balance of activities − IT strategy is not all about change − It is mostly about ensuring existing operations are efficient and effective Doing – Run The Business Doing – Change the Business Managing The Doing– Change The Business Managing The Doing – Run The Business 5 November 2019 44
  45. 45. Activities Across Doing And Managing The Doing Focus on architecture and design aspects of existing services Focus on architecture, design, selection, development and delivery aspects of new projects and services Focus on management processes associated with the operation and delivery of existing services Focus on management processes associated with the architecture, design, selection, development and delivery aspects of new projects and services Existing Programmes, Projects and Services New Programmes, Projects and Services Focus on the prerequisites and foundations for strategy, architecture and design across IT function and solution lifecycle Focus on the prerequisite and foundation management processes across IT function and solution lifecycle Fundamental Organisational Requirements DOING MANAGINGTHEDOING 5 November 2019 45
  46. 46. IT Function Pillars • Architecture and Realisation (“Doing”) − Strategy − Design − Development − Implementation • Management and Processes (“Managing the Doing”) − Business Change − Programmes − Projects − Operations IT Function Pillars Architecture and Realisation Vision and Strategy Architecture Development, Customisation and Configuration Implementation and Deployment Operation and Control Management and Processes Enterprise Management Programme and Portfolio Management Project Management Service Management Architecture Management 5 November 2019 46
  47. 47. Architecture And Realisation Pillar • Vision and Strategy − Creates the business vision defines the direction for subsequent information technology initiatives − Internal and external requirements and processes are analysed − Allows prioritisation of the business and information system areas that will addressed in subsequent stages − Ensures that all further work is aligned with the vision and strategy • Architecture − Designed to translate the Vision and Strategy into an implementable, operable and supportable structure − Architecture can encompass both enterprise and specific solution areas − Scope, requirements and functionality of the business processes and the associated information systems are specified − Architecture is concerned with both business and information technology in parallel − Constituent projects and changes to deliver the architecture are identified • Development, Customisation and Configuration − Selects, designs, builds, customises and tests the elements of the solution − Includes some or all of customised development, package customisation and system enhancement. − Development activities related to business change and technical infrastructure are addressed • Implementation and Deployment − Takes the solution components and creates a fully operable system, complete with data and business process changes − Includes integration testing, pilot, data conversion documented procedures, training, and operational readiness and acceptance • Operation and Control − Creates and implements practices for ensuring defined service levels for the operation, maintenance, and support of the new or modified systems 5 November 2019 47
  48. 48. Management And Processes Pillar • Enterprise Management − Involves establishing business objectives, monitoring achievement against targets and making necessary corrections • Programme and Portfolio Management − Directs and manages programmes and portfolios of initiatives and undertakings offerings to balance benefits, costs, resources and risks in a strategic context and ensuring benefits realisation − Establish the competency within an organisation to provide this service internally or manage its provision by external agents • Project Management − Concentrates on the effective and efficient processes required to identify, coordinate, and continuously focus people and resources on achieving project objectives and commitment within time, cost, resource and quality controls − Enables organisations to deliver both the simple and complex initiatives and to perform projects capably • Service Management − Controls and manages the operational services phases of the overall initiative life cycle − Service request management handles requests from users − Manages their fulfilment and includes logging, performing initial analysis, monitoring, prioritising, measuring, and closing − Service delivery management directs and manages services to ensure that the end-user receives the agreed service • Architecture Management − Concerned with the business, technical, and operational procedures and processes needed to ensure and maintain integrated enterprise and solution architecture during the implementation of the solution and its subsequent operation 5 November 2019 48
  49. 49. Mapping Doing And Managing The Doing Pillars To The Functional Activities • Two high-level views of IT function structure 1. Doing/ Managing the Doing 2. Architecture and Realisation/ Management and Processes 1. This represents a summary view of the structure of the IT function IT Function Pillars Architecture and Realisation Vision and Strategy Architecture Development, Customisation and Configuration Implementation and Deployment Operation and Control Management and Processes Enterprise Management Programme and Portfolio Management Project Management Service Management Architecture Management Fundamental Processes and Competencies Implementation of New Projects and Services Operation of Existing Services 5 November 2019 49
  50. 50. IT Function Operating Model • The size and structure of the IT function operating model depends on the expected workload and its profile – existing operations and new services • Operating model includes service delivery model and business engagement model • There is considerable overlap between the design and specification of the operating model and the other structural elements of the IT strategy 5 November 2019 50
  51. 51. Dimensions Of Operating Model – 1 Structure How the Function is Organised To Operate and Where the Roles and Capabilities Will Reside Roles and Staffing What Roles Will Exist Within the Function Structure with the Required Capabilities 5 November 2019 51
  52. 52. Dimensions Of Operating Model – 2 Commitment and Value End-to-end Implementation and Operation From Request To Response to Deliver Results and Create Value and Measure Delivery Tools, Methodologies, Techniques Tools and Skills and Experience in Their Use to Perform Work 5 November 2019 52
  53. 53. Structure Dimensions Of Operating Model • Six dimensions to the core IT function operating model 1. Roles and Staffing 2. Structure 3. Skills and Abilities 4. Tools, Methodologies, Techniques 5. Processes 6. Commitment and Value • Together these combine to form a complete view of the target operating model + = Commitment and Value Tools, Methodologies, Techniques Roles and Staffing 5 November 2019 53
  54. 54. Interconnected Aspects Of Operating Model • The IT function operating model will be a combination of a structure with capabilities implemented and operated consistently by repeatable processes and filled by people with roles using tools, techniques and methodologies to perform the required workload in order to deliver on and measure commitments and generate value for the organisation IT Function Operatin g Model Roles and Staffing Structure Capabilities Tools, Methodologi es, Techniques Commitment and Value Processes 5 November 2019 54
  55. 55. Interconnected Aspects Of Operating Model Structure Capabilities Will Be Operated Through Defined Processes Personnel Will Have Skills to Deliver Capabilities Personnel Will Operate Within Structure Processes Will Be Supported By Tools Personnel Will Use Tools and Methodologies Processes Roles and Staffing Commitment and Value Tools, Methodologies, Techniques Skills and Abilities Personnel Will Operate Processes Commitment Will Use Processes to Deliver and Measure Value Personnel Will Deliver Value Capabilities Will Be Embedded in Structure Methodologies Will Support The Delivery of Value Skills and Abilities Will Enable The Delivery of Value 5 November 2019 55
  56. 56. Target Operating Model Gaps • There will be gaps between the current and target operating model • The IT strategy must define the target operating model and how to move from the current to the target IT Function Operating Model Roles and Staffing Structure Capabilities Tools, Methodologies, Techniques Commitment and Value Processes IT Function Operating Model Roles and Staffing Structure Capabilities Tools, Methodologies, Techniques Commitment and Value Processes = Size of Gap 5 November 2019 56
  57. 57. Core And Extended Operating Model • Extended operating model is the context in which the IT function operates − Interactions with other business units − Interactions with external partners and customers − Interactions with suppliers • These are sources of demands on the IT function • IT function operating model must embed capabilities, skills, people and processes to handle this extended operating environment IT Function Operating Model Roles and Staffing Structure Capabilities Tools, Methodologies, Techniques Commitment and Value Processes Partners and Customers Other Business Units Suppliers 5 November 2019 57
  58. 58. Strategy And Its Implementation • The IT strategy and its implementation cannot be separated • The IT strategy must be implementable, operable, maintainable, supportable and successfully deliver benefits to the IT function and the wider business 5 November 2019 58
  59. 59. IT Function Capabilities 5 November 2019 59
  60. 60. IT Function Capabilities And Areas of Competence • Key areas where the IT function needs to maintain significant levels of competence, skill and experience and practise • General sets of skills required of the IT function • Transcend specific technical and technology skills and trends − Technology change is a constant • It is about having the overarching skills to handle change, adopt suitable and appropriate new technologies and deliver a service and value to the underlying business • Not all activity areas require all the key capabilities • Use this to identify what is important for your IT function based on your current and desired/necessary activity profile • Quantify gaps in your skills levels in competence areas • Use this to define programme of improvement and increased capability 5 November 2019 60
  61. 61. IT Function Capabilities And Areas Of Competence • This is just one view of the required capabilities of the IT function • These capabilities will be closely related to the initiatives contained in the IT strategy 1. IT Leadership and Governance 2. Strategic and Business Planning 3. Demand and Supply Management, Capacity Forecasting and Planning 4. Sourcing and Supplier Management, Acquisition, Procurement 5. Innovation 6. Accounting, Funding, Financing, Budgeting and Planning 7. Programme Management, Portfolio Management, Project Management 8. Relationship Management and Business Engagement 9. Organisation Design and Planning 10. Enterprise Architecture 11. Infrastructure, Networks and Communication 12. Business and Process Analysis 13. Solution Architecture and Design 14. Benefits Assessment and Realisation 15. Service Provisioning, Service Delivery and Service Management 16. Testing 17. Security, Continuity and Disaster Recovery 18. Solution Development and Delivery 19. People Asset Management 20. Knowledge Asset Management 21. User Experience Design 22. Change and Change Management What the IT function needs to be good at: 5 November 2019 61
  62. 62. IT Capabilities By Doing/Managing The Doing Activity Area Capability Doing Managing the Doing Run The Business Change The Business Run The Business Change The Business IT Leadership and Governance l l Strategic and Business Planning l l Demand and Supply Management, Capacity Forecasting and Planning l l l l Sourcing and Supplier Management, Acquisition, Procurement l l l l Innovation l l l l Accounting, Funding, Financing, Budgeting and Planning l l l l Programme Management, Portfolio Management, Project Management l l l l Relationship Management and Business Engagement l l Organisation Design and Planning l l Enterprise Architecture l l Infrastructure, Networks, Cloud Architectures and Communications l l Business and Process Analysis and Design l l Solution Architecture and Design l l Benefits Assessment and Realisation l l Service Provisioning, Service Delivery and Service Management l l Testing l l Security, Continuity and Disaster Recovery l l Solution Development and Delivery l People Asset Management l l l l Data, Information, Knowledge Asset Management l l l l User Experience Design l Change and Change Management l l l l 5 November 2019 62
  63. 63. IT Function Capabilities And Areas Of Competence • Use current levels of competence and importance of competency across all activity areas to identify those areas at which getting better will yield the greatest return • Classify by − Importance − Current Skill Level − Improvement Benefit if Skill Improved • Targeted investment of resources • Get good at what matters • Get the biggest bang for your buck Capabilities To Target For Improvement 5 November 2019 63
  64. 64. IT Function Structure 5 November 2019 64
  65. 65. Generic Structure Of An IT Function • The following describes a generalised and idealised view of the structure, organisation and set of logical sub-functions within an IT function • Organisational view rather than capability view − Capabilities must ultimately reside in or across sub-functions • Actual optimum implementation depends on the size and profile of the organisation • Not all sub-functions relevant to all organisations • Not all sub-functions have the same importance for all organisations • Not all sub-functions are at the same level of operational effectiveness for all organisations • Logical sub-functions can be combined or split further • A model that explicitly includes proactive linkage to the business and the delivery of business requirements 5 November 2019 65
  66. 66. IT Function - Generic Logical Organisation Structure IT Governance Business Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Business Relationship Management Business Analysis and Consulting Solution Architecture Demand Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Technology Selection and Management Acquisition, Sourcing and Supplier Management Test Management Service Planning Operations Management IT Strategy IT Enterprise Architecture management IT Governance and Leadership IT Financial Management IT Service and Sourcing Strategy IT Innovation Management IT Security Management Configuration and Asset Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management Service Catalog Management Takeover and Management Operations Co-ordination and Risk Management Support Function Incident Management Service Request Management Problem Management Facilities and Device Management Monitoring and Alerting Solution Design, Development, Implementation and Integration Infrastructure and Communications Implementation Transition to Production Analysis Design Realisation Test Service and Solution Support Analysis Design Realisation Test Service and Solution Support Business Readiness and Organisation Change Infrastructure, Networks Management Data, Information, Knowledge Management 5 November 2019 66
  67. 67. External IT And Business Alignment IT GovernanceBusiness Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Business-facing sub-functions 5 November 2019 67
  68. 68. Internal IT And Business Alignment IT GovernanceBusiness Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Business-facing sub-functions mediate between business and technology and service delivery and operation 5 November 2019 68
  69. 69. IT Function Structure And Alignment IT GovernanceBusiness Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Alignment is not just about being aligned at the Business Relationship and Engagement and IT Governance levels Alignment means following through throughout the IT function 5 November 2019 69
  70. 70. IT Governance Sub-Functions IT Governance IT Strategy IT Enterprise Architecture management IT Governance and Leadership IT Financial Management IT Service and Sourcing Strategy IT Innovation Management IT Security Management Defines strategy for IT function for both the IT function and how IT delivers on the overall business strategy Manages the definition and maintenance of overall enterprise IT architecture including systems and application standards and operational framework Implements IT governance and maintains leadership of the IT function Manages the process for defining how services and solutions should be acquired and managed Manages IT application and infrastructure security standards Manages the process for bringing new ideas to an appropriate implementation to generate value Manages the IT budget, finances, financial reporting and control standards, cost-benefit analysis 5 November 2019 70
  71. 71. Business Relationship and Engagement Sub- Functions Business Relationship and Engagement Business Relationship Management Business Analysis and Consulting Solution Architecture Demand Management Manages the relationship with the business and escalations , the identification of work, helps the business navigate IT processes and acts as the voice of the business to IT Offers business analysis and consulting services to translate business needs into a structured set of requirements to enable the business understand its needs Defines business-oriented solutions based on structured business requirements that comply with IT delivery and operational standards Manages the demand from the business for resources and ensures the business can accommodate the associated change Business Readiness and Organisation Change Ensures the organisation is ready and able to accept the changes required of new or changed application 5 November 2019 71
  72. 72. IT Management Sub-Functions Manages the IT operation Plans for the introduction of new services Manages data, defines data standards Manages IT infrastructure Manages delivery of programs and projects, manages standards and ensures consistency Ensures quality of IT processes Manages IT people resources, induction, training, development, standards Manages IT assets and software licenses IT Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Technology Selection and Management Acquisition, Sourcing and Supplier Management Test Management Service Planning Operations Management Infrastructure, Networks Management Data, Information, Knowledge Management Manages process for selecting suitable technologies Manages and implements service and supplier acquisition Manages testing 5 November 2019 72
  73. 73. Service Lifecycle Management Sub-Functions Service Lifecycle Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management Service Catalog Management Ensures capacity of IT assets Manages and implements release to production process Implements and manages network of service level agreements Manages business continuity, disaster recovery and system and application availability Manages catalog of IT services Manages configuration of installed assets Manages the delivery of change 5 November 2019 73
  74. 74. Service and Solution Delivery Sub-Functions Service and Solution Delivery Solution Design, Development, Implementation and Integration Infrastructure and Communications Implementation Transition to Production Analysis Design Realisation Test Service and Solution Support Analysis Design Realisation Test Service and Solution Support Transitions new systems and changes to production and manages handover to support, ensures new systems are operable and supportable Implements support arrangements for new services and solutions Designs, develops and implements new solutions and changes and ensures integration with existing systems Designs, develops and implements IT infrastructure and communications networks 5 November 2019 74
  75. 75. Service Operations Sub-Functions Service Operations Takeover and Management Operations Co-ordination and Risk Management Support Function Incident Management Service Request Management Problem Management Facilities and Device Management Monitoring and Alerting Operates application and infrastructure support function and processes Manages and operates IT infrastructure, equipment and communications network Takes over the support and operation of new systems and applications, implements support arrangements Resolves recurring problems to improve support efficiency 5 November 2019 75
  76. 76. IT Function – Target Organisation Structure • Use the generic structure as a basis to create a target IT function structure • Then identify the gaps between the current and target structure • The strategy can both identify the gaps and create a plan for their remediation 5 November 2019 76
  77. 77. Status Heatmap Of Sub-Functions IT Governance Business Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Business Relationship Management Business Analysis and Consulting Solution Architecture Demand Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Technology Selection and Management Acquisition, Sourcing and Supplier Management Test Management Service Planning Operations Management IT Strategy IT Enterprise Architecture management IT Governance and Leadership IT Financial Management IT Service and Sourcing Strategy IT Innovation Management IT Security Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management Service Catalog Management Takeover and Management Operations Co-ordination and Risk Management Support Function Incident Management Service Request Management Problem Management Facilities and Device Management Monitoring and Alerting Solution Design, Development, Implementation and Integration Infrastructure and Communications Implementation Transition to Production Analysis Design Realisation Test Service and Solution Support Analysis Design Realisation Test Service and Solution Support Business Readiness and Organisation Change Infrastructure, Networks Management Data, Information, Knowledge Management 5 November 2019 77
  78. 78. View Of Status Of Sub-Functions = Fully Implemented and Operational = Partially Implemented and Operational = Not Implemented and Operational • Use this as a view of what areas you need to get better at • Match with importance to identify high priority functions to address first 5 November 2019 78
  79. 79. Sample View - What IT Is Good At IT Governance Business Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Business Relationship Management Business Analysis and Consulting Solution Architecture Demand Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Technology Selection and Management Acquisition, Sourcing and Supplier Management Test Management Service Planning Operations Management IT Strategy IT Enterprise Architecture management IT Governance and Leadership IT Financial Management IT Service and Sourcing Strategy IT Innovation Management IT Security Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management Service Catalog Management Takeover and Management Operations Co-ordination and Risk Management Support Function Incident Management Service Request Management Problem Management Facilities and Device Management Monitoring and Alerting Solution Design, Development, Implementation and Integration Infrastructure and Communications Implementation Transition to Production Analysis Design Realisation Test Service and Solution Support Analysis Design Realisation Test Service and Solution Support Business Readiness and Organisation Change Infrastructure, Networks Management Data, Information, Knowledge Management 5 November 2019 79
  80. 80. Sample View - What IT Is Average At IT Governance Business Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Business Relationship Management Business Analysis and Consulting Solution Architecture Demand Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Technology Selection and Management Acquisition, Sourcing and Supplier Management Test Management Service Planning Operations Management IT Strategy IT Enterprise Architecture management IT Governance and Leadership IT Financial Management IT Service and Sourcing Strategy IT Innovation Management IT Security Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management Service Catalog Management Takeover and Management Operations Co-ordination and Risk Management Support Function Incident Management Service Request Management Problem Management Facilities and Device Management Monitoring and Alerting Solution Design, Development, Implementation and Integration Infrastructure and Communications Implementation Transition to Production Analysis Design Realisation Test Service and Solution Support Analysis Design Realisation Test Service and Solution Support Business Readiness and Organisation Change Infrastructure, Networks Management Data, Information, Knowledge Management 5 November 2019 80
  81. 81. Sample View - What IT Is Poor At IT Governance Business Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Business Relationship Management Business Analysis and Consulting Solution Architecture Demand Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Technology Selection and Management Acquisition, Sourcing and Supplier Management Test Management Service Planning Operations Management IT Strategy IT Enterprise Architecture management IT Governance and Leadership IT Financial Management IT Service and Sourcing Strategy IT Innovation Management IT Security Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management Service Catalog Management Takeover and Management Operations Co-ordination and Risk Management Support Function Incident Management Service Request Management Problem Management Facilities and Device Management Monitoring and Alerting Solution Design, Development, Implementation and Integration Infrastructure and Communications Implementation Transition to Production Analysis Design Realisation Test Service and Solution Support Analysis Design Realisation Test Service and Solution Support Business Readiness and Organisation Change Infrastructure, Networks Management Data, Information, Knowledge Management 5 November 2019 81
  82. 82. IT Function Structure – Planning To Address The Gaps One element of the IT strategy is both to define the target structure, identify the gaps between the current and target structure and to define how to move from the As-Is to the To-Be structure 5 November 2019 82
  83. 83. IT Function Roles And Staffing 5 November 2019 83
  84. 84. IT Function Roles And Staffing • IT function must ultimately be operated by people with defined roles with defined responsibilities at defined skill and experience levels • Required roles and skills depend on: − IT function structure and required capabilities and associated implementation and operational processes − Volume of work − Approach to staffing and balance of permanent and contingent − Budget available • Look to use existing role definition frameworks to assist with structure, staffing and role specification definition work to reduce effort − Skills Framework for the Information Age (SFIA) - http://www.sfia-online.org/ • Three level model – category, sub-category, skill − European e-Competence Framework (ECF) - http://www.ecompetences.eu/ • Five dimension model – area, competency, required proficiency, knowledge required, skills − Use these frameworks to assist with matching skills to roles − Frameworks contain detailed role specifications − Adapt the frameworks to meet the organisation’s specific needs − There is an overlap between these frameworks and the key IT function capabilities covered earlier 5 November 2019 84
  85. 85. SFIA (Skills Framework For The Information Age) • Seven skill levels for each role area: 1. Follow 2. Assist 3. Apply 4. Enable 5. Ensure, Advise 6. Initiate, Influence 7. Set Strategy, Inspire, Mobilise • Five attributes used to classify each skill level 1. Autonomy 2. Influence 3. Complexity 4. Knowledge 5. Business Skills Skill Level Attributes Autonomy Influence Complexity Knowledge Business Skills Follow Assist Apply Enable Ensure, Advise Initiate, Influence Set Strategy, Inspire, Mobilise 5 November 2019 85
  86. 86. SFIA – Levels 1 And 2 Strategy And Architecture Information Strategy Advice And Guidance Business Strategy And Planning Technical Strategy And Planning Change And Transformation Business Change Implementation Business Change Management Development And Implementation Systems Development User Experience Installation And Integration Delivery And Operation Service Design Service Transition Service Operation Skills And Quality Skill Management People Management Quality And Conformance Relationships And Engagement Stakeholder Management Sales And Marketing 5 November 2019 86
  87. 87. SFIA – Levels 1, 2 And 3 Strategy And Architecture Information Strategy Enterprise IT Governance Strategic Planning Information Governance Information Systems Coordination Information Security Information Assurance Analytics Data Visualisation Information Content Publishing Advice And Guidance Consultancy Specialist Advice Business Strategy And Planning Demand Management IT Management Financial Management Innovation Research Business Process Improvement Knowledge Management Enterprise And Business Architecture Business Risk Management Sustainability Technical Strategy And Planning Emerging Technology Monitoring Continuity Management Network Planning Solution Architecture Data Management Methods And Tools Change And Transformatio n Business Change Implementati on Portfolio Management Programme Management Project Management Portfolio, Programme And Project Support Business Change Management Business Analysis Business Modelling Requirements Definition And Management Organisationa l Capability Development Organisation Design And Implementati on Change Implementati on Planning And Management Business Process Testing Benefits Management Development And Implementatio n Systems Development Systems Development Management Systems Design Software Design Programming / Software Development Real-Time/ Embedded Systems Development Animation Development Data Modelling And Design Database Design Network Design Testing Safety Engineering Information Content Authoring User Experience User Research User Experience Analysis User Experience Design User Experience Evaluation Installation And Integration Systems Integration And Build Porting/Soft ware Configuration Hardware Design Systems Installation/ Decommissio ning Delivery And Operation Service Design Availability Management Service Level Management Service Transition Service Acceptance Configuration Management Asset Management Change Management Release And Deployment Service Operation System Software Capacity Management Security Administratio n Penetration Testing Radio Frequency Engineering Application Support IT Infrastructure Database Administratio n Storage Management Network Support Problem Management Incident Management Facilities Management Skills And Quality Skill Management Learning And Development Management Competency Assessment Learning Design And Development Learning Delivery Teaching And Subject Formation People Management Performance Management Resourcing Professional Development Quality And Conformance Quality Management Quality Assurance Measurement Conformance Review Safety Assessment Digital Forensics Relationships And Engagement Stakeholder Management Sourcing Supplier Management Contract Management Relationship Management Customer Service Support Sales And Marketing Marketing Selling Sales Support Product Management 5 November 2019 87
  88. 88. European e-Competence Framework (ECF) • Five ECF dimensions: 1. Five high-level competency areas 2. 40 competencies within competency areas 3. Required proficiency area for each competency – five possible levels 1. Contributes, performs work and acts under guidance 2. Acts systematically and organises work 3. Exploits specialist knowledge and applies creativity and accounts for own and others actions 4. Provides leadership and takes responsibility and exploits wide ranging specialist knowledge 5. Applies strategic thinking and organisational leadership and makes strategic decisions 4. Knowledge required for competency 5. Skills required for competency Dimension 1 – Competency Area Dimension 2 - Competency Dimension 3 – Competency Proficiency Level Dimension 4 – Competency Knowledge Dimension 5 – Competency Skills 5 November 2019 88
  89. 89. European e-Competence Framework (ECF) – Dimensions 1 And 2 ECF Framework A. Plan A.1. IS and Business Strategy Alignment A.2. Service Level Management A.3. Business Plan Development A.4. Product / Service Planning A.5. Architecture Design A.6. Application Design A.7. Technology Trend Monitoring A.8. Sustainable Development A.9. Innovating B. Build B.1. Application Development B.2. Component Integration B.3. Testing B.4. Solution Deployment B.5. Documentation Production B.6. Systems Engineering C. Run C.1. User Support C.2. Change Support C.3. Service Delivery C.4. Problem Management D. Enable D.1. Information Security Strategy Development D.2. ICT Quality Strategy Development D.3. Education and Training Provision D.4. Purchasing D.5. Sales Proposal Development D.6. Channel Management D.7. Sales Management D.8. Contract Management D.9. Personnel Development D.10. Information and Knowledge Management D.11. Needs Identification D.12. Digital Marketing E. Manage E.1. Forecast Development E.2. Project and Portfolio Management E.3. Risk Management E.4. Relationship Management E.5. Process Improvement E.6. ICT Quality Management E.7. Business Change Management E.8. Information Security Management E.9. IS Governance 5 November 2019 89
  90. 90. ECF Example – Competency - IS and Business Strategy Alignment – Dimensions 3 – 5 Dimension1–Area Plan Dimension2-Competency IS and Business Strategy Alignment Dimension3–ApplicableCompetencyLevels Level 4 - Provides Leadership And Takes Responsibility And Exploits Wide Ranging Specialist Knowledge Level 5 - Applies Strategic Thinking And Organisational Leadership And Makes Strategic Decisions Dimension4–CompetencyKnowledge K1 - Business Strategy Concepts K2 - Trends And Implications Of ICT Internal Or External Developments For Typical Organisations K3 - The Potential And Opportunities Of Relevant Business Models K4 - The Business Aims And Organisational Objectives K5 - The Issues And Implications Of Sourcing Models K6 - The New Emerging Technologies (e.g. Distributed Systems, Virtualisation, Mobility, Data Sets) K7 - Architectural Frameworks K8 - Security Dimension5–CompetencySkills S1 - Analyse Future Developments In Business Process And Technology Application S2 - Determine Requirements For Processes Related To ICT Services S3 - Identify And Analyse Long Term User / Customer Needs S4 - Contribute To The Development Of ICT Strategy And Policy, Including ICT Security And Quality S5 - Contribute To The Development Of The Business Strategy S6 - Analyse Feasibility In Terms Of Costs And Benefits S7 - Review And Analyse Effects Of Implementations S8 - Understand The Impact Of New Technologies On Business (e.g. Open / Big Data, Dematerialisation Opportunities And Strategies) S9 - Understand The Business Benefits Of New Technologies And How This Can Add Value And Provide Competitive Advantage (e.g. Open / Big Data, Dematerialisation Opportunities And Strategies) S10 - Understand The Enterprise Architecture S11 - Understand The Legal and Regulatory Landscape In Order To Factor Into Business Requirements 5 November 2019 90
  91. 91. Skills Status Heatmap Strategy And Architecture Information Strategy Enterprise IT Governance Strategic Planning Information Governance Information Systems Coordination Information Security Information Assurance Analytics Data Visualisation Information Content Publishing Advice And Guidance Consultancy Specialist Advice Business Strategy And Planning Demand Management IT Management Financial Management Innovation Research Business Process Improvement Knowledge Management Enterprise And Business Architecture Business Risk Management Sustainability Technical Strategy And Planning Emerging Technology Monitoring Continuity Management Network Planning Solution Architecture Data Management Methods And Tools Change And Transformation Business Change Implementati on Portfolio Management Programme Management Project Management Portfolio, Programme And Project Support Business Change Management Business Analysis Business Modelling Requirements Definition And Management Organisationa l Capability Development Organisation Design And Implementati on Change Implementati on Planning And Management Business Process Testing Benefits Management Development And Implementatio n Systems Development Systems Development Management Systems Design Software Design Programming / Software Development Real-Time/ Embedded Systems Development Animation Development Data Modelling And Design Database Design Network Design Testing Safety Engineering Information Content Authoring User Experience User Research User Experience Analysis User Experience Design User Experience Evaluation Installation And Integration Systems Integration And Build Porting/Softw are Configuration Hardware Design Systems Installation/ Decommissio ning Delivery And Operation Service Design Availability Management Service Level Management Service Transition Service Acceptance Configuration Management Asset Management Change Management Release And Deployment Service Operation System Software Capacity Management Security Administratio n Penetration Testing Radio Frequency Engineering Application Support IT Infrastructure Database Administratio n Storage Management Network Support Problem Management Incident Management Facilities Management Skills And Quality Skill Management Learning And Development Management Competency Assessment Learning Design And Development Learning Delivery Teaching And Subject Formation People Management Performance Management Resourcing Professional Development Quality And Conformance Quality Management Quality Assurance Measurement Conformance Review Safety Assessment Digital Forensics Relationships And Engagement Stakeholder Management Sourcing Supplier Management Contract Management Relationship Management Customer Service Support Sales And Marketing Marketing Selling Sales Support Product Management 5 November 2019 91
  92. 92. Skills Status Heatmap • IT strategy should define the target personnel numbers across the required skills levels • Create a skills heatmap based on factor such as: − Number of roles and skills levels required compared to actual numbers and roles − Relevance of role to the organisation • Use this to identify the important roles to fill • IT strategy should identify the staffing and skill level gaps and define a plan to address them in the context of other strategy elements: − IT function structure − Capabilities − Operating model 5 November 2019 92
  93. 93. Creating The IT Strategy 5 November 2019 93
  94. 94. IT Strategy – Bringing The Static/Structural Elements Together Capabilities IT Function Structure Operating Model Staffing And Roles IT Strategy 5 November 2019 94
  95. 95. IT Strategy – Identifying And Filling The Static/Structural Gaps Capabilities IT Function Structure Operating Model Staffing And RolesGaps 5 November 2019 95
  96. 96. Strategy Development – High-Level Steps Direction– What Are We Looking For? What Is The Scope? How Much Change Can/Will Be Tolerated? How Much Time Do We Have? Collection- Definition of Scope and Collection of Information on Current Situation and Options Available Collation- Aggregate, Consolidate and Reconcile Collected Information Interpretation- Analyse and Interpret Information, Define And Document Options, Make Recommendations Dissemination- Distribute and Present Draft Analysis, Incorporate Feedback, Distribute and Present Final Version 5 November 2019 96
  97. 97. Strategy Development – High-Level Steps • Work cannot be done in isolation without referral to the sponsor • The strategy development process should be iterative – interim results and conclusions should be presented • Constant communication and adjustment is important • Direction may change based on the information collected and analysis generated 5 November 2019 97
  98. 98. IT Strategy And IT Value Chain • The IT value chain is the set of activities and their supporting structures and processes performed by the IT function to enable the business operate successfully • The IT strategy should seek to explicitly define the IT value chain showing how the IT function will work with the wider organisation to achieve business value Information Technology Strategy Information Technology Function (IT Function Structure, Capabilities, Roles and Staffing, Operating Model) Information Technology Governance Information Technology Operations, Processes and Engagement Provide Information Technology Solutions Optimise Information Technology Operations Engage With and Respond to Business Needs Actively Offer Business New Solutions Focus on Delivering Value to the Organisation Enable and Support Business Outcomes 5 November 2019 98
  99. 99. IT Value Creation Value Creation 3 Intermediate High Low 4 Advanced 2 Basic 5 Optimising 1 Initial IT enables and drives business value creation and business opportunities IT is fully aligned with business strategy and anticipates business needs IT focuses on business value creation Value oriented IT management using various industry best practices IT directly contributes to business value creation in some areas IT turns toward focusing on business value creation, but is mostly understood as service provider IT mainly provides services allowing business to create value IT focuses on delivering solutions for business needs, but not a value creator on its own IT disconnected from business value creation IT is not an integral part of value creation IT Value Contribution Increasing contribution to business value as the IT organisation increases its capabilities and process repeatability Organisation must be able to translate IT capabilities into business value contribution 5 November 2019 99
  100. 100. IT Strategy Creation Indicative Workplan Information Technology Strategy Creation Start Information Technology Strategy Meet with Project Sponsor Develop Project Definition and Scope Identify Project Team Define Project Communications and Reporting Prepare Project Plan and Arrange Logistics Agree Timescale and Deliverables Agree Business Engagement Approach Assemble Project Team Analyse Business Situation Review Business Strategy Conduct Interviews with Business Representatives Create Preliminary Business Strategy Framework Review Business Posture Analyse Business Processes Understand and Define Required Specific IT Initiatives Align and Integrate Business Strategy Framework Analyse IT Situation Review Expenditure and Develop Cost Model Define Current IT Function Structure Define Current IT Function Operating Model Define Current IT Roles and Staffing Define Current IT Function Capabilities Profile Suppliers Review Technology Posture Characterise Existing Governance Structure and Management Processes Review Business User Relationship with IT Assess Current Operating Environment Review Best Practices Identify Current Issues and Gaps Identify Business Plans Identify Technology and Industry Trends Create Leverage Model Determine Technology Impact on Business Strategy Assess Portfolios and Identify Opportunities Develop Future Vision Develop Vision for Enterprise IT Domains Develop Vision for IT Business Area Define Future IT Function Operating Model Define Future IT Function Operating Model Define Future IT Function Structure Define Future IT Function Roles and Staffing Define Future IT Function Capabilities Define Specific IT Initiatives Assess Gaps, Evaluate Options, and Analyse Tradeoffs Compare Current Situation to Desired Future State Develop Change Options Group Change Options into Scenarios and Analyse Tradeoffs Conclude Information Technology Strategy Conduct Executive Tradeoff Review Select Change Scenario to Recommend Document Strategy Strategy Checklist Review and Finalise Strategic Plan 5 November 2019 100
  101. 101. IT Strategy Creation Workplan • Seven phases with review gate at the end of each phase • Structured approach with defined activities and tasks Start Information Technology Strategy The project planning activities are the foundation for a successful Information Technology Strategy project. Once the organisation has accepted the Information Technology Strategy approach, this activity produces the Project Definition that provides guidance for the project to go forward. After the Project Definition has been accepted, the project manager plans the work in detail, completes the logistics arrangements and forms the team. Analyse Business Situation The organisation’s business strategy and operating style are critical in determining the optimal IT strategy for an organisation. Understanding the business context will help determine the appropriate level of investment, the required systems and technology infrastructure and the appropriate organisational structure and relationship model to be employed. Alignment of all of these components with the business strategy is required for the IT function to be successful within a particular business context. Analyse IT Situation Develop an IT profile to understand and assess the current IT situation and underlying components. Vary the scope and the depth of assessment in each area depending on the nature of the challenges being addressed during the Information Technology Strategy. This IT profile is used later in the gap analysis that compares the current situation to the future-state model or to the "ideal" way to support business needs within constraints. Assess Current Operating Environment Here the business and IT information is consolidated. The analysis of the current IT situation in conjunction with the business situation has provided enough information to assess the situation and identify areas that are deficient or misaligned and therefore require change. As opportunities and capabilities are analysed, additional understanding of areas already explored will be generated leading to update the outputs created in earlier activities. Develop Future Vision The vision of the desired future IT condition consists of a set of prioritised IT business uses (the organisation’s IT demand portfolio for systems, information, and technology) and a set of IT business area capabilities and processes (the IT operating model or supply portfolio) sufficient to deliver the high-priority business uses. The Information Technology Strategy consists of the changes to the current supply and demand condition necessary to realise the vision. This definition of the demand and supply portfolios may also suggest updates to the outputs created in earlier activities. Assess Gaps, Evaluate Options, and Analyse Tradeoffs Use the gathered information to evaluate how effectively the organisation's IT function can support the business direction. Consider strategies for gap closure, best practices information, relative importance of closing particular gaps, and organisation culture. The evaluation of options and analysis of tradeoffs may also suggest updates to work products created in earlier activities. This is an iterative process that starts informally as other activities are being performed. The options are formally documented in this activity. Few organisations can execute many simultaneous changes. Concentrate on the few high-leverage changes that are most likely to close the important gaps. Conclude Information Technology Strategy The Information Technology Strategy project is concluded by reviewing tradeoffs among options, selecting the most favourable scenario and finalising the strategic plan and the strategy report. The selection and documentation of the favoured scenario may also imply updates to outputs created in earlier activities. 5 November 2019 101
  102. 102. IT Strategy Checklist 5 November 2019 102 IT Strategy Scope Static Components Run The Business Change The Business IT Value Chain Structural Elements Capabilities List of Key Capabilities IT Function Structure Operating Model Roles and Staffing Structure Skills and Abilities Tools, Methodologies, Techniques Commitment and Value Processes Staffing And Roles Organisation Change Change Domains Change Enablers and Indicators Dynamic Components Specific Initiatives Required To Achieve Business Strategy Generic Enabling Initiatives List of Key Initiatives Specific Initiatives List of Key Initiatives Implementation Options and Plan
  103. 103. IT Strategy Checklist • These are subjects that must be addressed within the IT strategy • Use the checklist to validate the topics have been adequately and appropriately covered 5 November 2019 103
  104. 104. More Information Alan McSweeney http://ie.linkedin.com/in/alanmcsweeney https://www.amazon.com/dp/1797567616 5 November 2019 104

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