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IT-Business Alignment

IT-Business Alignment. CIS 590, Spring 2009 Chapter 11 Presented by Chris Park 5/6/2009. Let’s start!. “Chris… My brain is full. Can I leave now?”. Interesting Topics. What is IT alignment with Business? Discuss traditional IT Why do we need to align IT with Business?

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IT-Business Alignment

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  1. IT-Business Alignment CIS 590, Spring 2009 Chapter 11 Presented by Chris Park 5/6/2009

  2. Let’s start! “Chris… My brain is full. Can I leave now?”

  3. Interesting Topics • What is IT alignment with Business? • Discuss traditional IT • Why do we need to align IT with Business? • Discuss industry trends in IT alignment with Business • What changes are made to IT organizations? • What do IT professionals need to know?

  4. What is IT alignment with Business? • Synchronization with the business • IT gains a deeper understanding of the desired business outcomes • IT gains agreement from the business regarding the business value achieved through the use of technology • IT learns and uses business terminology in IT strategy and processes

  5. IT vs Business: Traditional Relationship Alignment has traditionally been hard to achieve, one cause being the siloed approach to Business and IT Strategies BusinesStrategy IT Strategy External Organizational infrastructure and processes IT infrastructure and processes Internal

  6. IT – Offering Solutions • IT does not engage the Business because: -Technology driven solutions “offered” to the Business -IT was looking for problems to solve • Business strategy is too vague: Mission statements or goals were too abstract • Complexity of the business: too costly, too complex to understand the business

  7. What you can do to achieve alignment • IT should engage the Business • Eat the elephant one bite at a time • Measure the result (Business metrics, not IT metrics) • Change the organization, educate IT leadership and professional staff, develop common strategy

  8. Achieving Alignment through collaboration on a business-driven plan Business owns: -Leadership -Business SMEs -IT Facilitates IT owns Business approves IT owns Governed by Business and Architecture Solution Business Architecture (strategy & operations) Solution Architecture(platform independent) Technical Architecture(infrastructure & processes)

  9. The result is a business-capability driven blueprint that integrates business strategy, business operations and IT solution support Business Architecture BusinessStrategy Business Operations Desired Business Capabilities Blueprint & Roadmap Solution Architecture Information Model Interface Model Application Model Infrastructure Model Technology Architecture Data Models App Models Development Model s Execution Models Operations Models Security Models

  10. Business architecture and blueprinting must be integrated into the IT operating model As-Built Architecture Approved Projects Business Strategic Planning Enterprise Architecture Blueprinting Release Planning (Portfolio Mgmt) Project Execution (SDLC) Business Operations IT Governance Business Metrics Objectives & Measurement Indicators Architecture Benefit Results Business Benefit Results

  11. Standardize Business Processes To what extent should common business processes across business units be standardized? All None Business Units are free to use their own standards for common processes A sub-set of common processes are standardized across business units Business processes are standardized across all business unitsTo Current Position Desired Position

  12. Linking Business Capabilities with Requirements Strategic Business Architecture A set of realistic outcomes tracked by performance indicators that collectively support goal attainment Objectives A description of how the business plans to achieve the objectives Capabilities A description of what should be implemented Requirement

  13. Use the Business and Solution Architectures to derive a roadmap of business capabilities Business Operations Business Strategy Solutions Blueprint to show when each capability is delivered

  14. Tackle the enterprise, one Line of Business or theme at a time Breakdown of the Enterprise into Smaller Pieces Enterprise Business Domains Project / Release Project Release Domain 1 Models Project Release Enterprise Level Models Domain 1 Models Project Release Domain 1 Models Enterprise Level Models Project Release Enterprise Level Models Business Capabilities Repository

  15. The Business Architecture generates metrics by which IT progress can be measured and governed • Performance Indicators -Business specific metrics linked to objectives and goals • Alignment Metrics - Number of projects involved with each goal - Exception and deferral impact on goals - IT spend per goal - IT spend per objective -Quantitative view of blueprint delivery progress -Blueprint value management

  16. Consider organizational changes that increase the likelihood of achieving Business/IT alignment • Create positions in an organization who are responsible for tracking and measuring IT alignment with business capabilities (i.e. Enterprise Architects) - Assigned to specific Business domains - Oversee Business and Solution Architecture • Consider combining Business and IT strategy functions - Single “Strategy” organization • Consider a dedicated alignment governance organization - Lightweight, few resources - Tiered governance, focusing on high dollar, high risk projects

  17. Avoid some common pitfalls when building a Blueprint • Do not start with requirements, start with capabilities - Requirements are good for implementation but bog down the planning process - Capabilities provide a manageable level of detail for prioritization and release planning • Do not start with processes, start with functions - Process engineering requires a tremendous amount of detail - Functions allow coarse-grained prioritization and justification for follow-on detailed process work • Develop first a couple of blueprints to understand priorities - Ensure you are working on the highest priority common services

  18. What do you need to know to start? • Study industry trends and learn from the best • Choose one or two accepted models and become more knowledgeable in one model first • All work was accomplished with MS Office -Excel (linking), and PowerPoint (models), and Word (reports) • The experience gained hand-crafting modeling is invaluable -Assess standard meta-model -Assess ability to link from Strategic to Operational to Solution models -Assess ability to track and report progress -Visualization is different from modeling

  19. Industry Trends-1 The Open Group Architecture Framework (TOGAF) is a framework (version 9): www.togaf.com - a detailed method and a set of supporting tools for developing an enterprise architecture. It may be used freely by any organization wishing to develop an enterprise architecture for use within that organization. - The original development of TOGAF Version 1 was developed by the US Department of Defense (DoD) in 1995.

  20. Industry Trends-2 ITIL® means IT alignment with the businesswww.itil.org/indexEN.html The Best-Practice collection for IT operations that is known under the name IT Infrastructure Library (ITIL) is undergoing a revision. Version 3 is currently being worked on under the project name "ITIL Refresh".

  21. ITIL V3 - Service Life Cycle

  22. Industry Trends-3 • www.zachmaninternational.com • Enterprise orientation as opposed to information systems orientation

  23. Key Takeaways • IT must engage the Business - Develop Guiding Principles - Document the Strategic Business Architecture - Document the Operational Business Architecture • Eat the elephant one bite at a time - Divide the enterprise into manageable domains - Blueprint each one in succession • Measure the result - Use Business Architecture metrics to manage and govern • Change the organization if needed - Create “renaissance” roles for Enterprise Architects, Business Architecture, and Governance

  24. Q & A Thank You “IT alignment is a journey, not a destination.”

  25. CIS 510 Sample Questions 5. Which of the following is not an operating system function? a. CPU management c. process management b. memory management d. database management 6. A(n) ____ is an area of storage that is accessed in a last-in, last-out (LILO) basis. a. cache c. buffer b. stack d. I/O port 7. The _______ scheduling always dispatches the ready thread that has been waiting the longest. a. real time c. multithreaded b. priority-based d. preemptive 8. _______ partitions processing among multiple systems. a. scaling up c. caching b. scaling out d. using software interrupts

  26. CIS 510 Sample Questions-Cont’d 5. Which of the following is not an operating system function? a. CPU management c. process management b. memory management d. database management 6. A(n) ____ is an area of storage that is accessed in a last-in, last-out (LILO) basis. a. cache c. buffer b. stack d. I/O port 7. The _______ scheduling always dispatches the ready thread that has been waiting the longest. a. real time c. multithreaded b. priority-based d. preemptive 8. _______ partitions processing among multiple systems. a. scaling up c. caching b. scaling out d. using software interrupts

  27. CIS 510 Sample Questions-Answers 1. b. data transfer rate 2. a. wait state 3. d. blocked 4. c. kernel • d. database management • c. buffer • b. priority-based • b. scaling out

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