1 / 32

“ Please More with Less” Create an Internal IT Marketplace

“ Please More with Less” Create an Internal IT Marketplace. NYS Executive Forum Albany, New York September 9, 2011. Kevin Belden Deputy Comptroller & CIO NYS Office of the State Comptroller. Premise….

Download Presentation

“ Please More with Less” Create an Internal IT Marketplace

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. “Please More with Less” Create an Internal IT Marketplace NYS Executive Forum Albany, New York September 9, 2011 Kevin Belden Deputy Comptroller & CIO NYS Office of the State Comptroller

  2. Premise… We wouldn’t want to live in a centrally planned economy; why are we willing to work in one? In our business, the best path to: Satisfy customers Balance IT service supply and demand And add value… Is to model a market economy.

  3. OSC IT Transformation… Five Organizational Systems Governance Internal Marketplace (staged) Structure (define implement) Culture (define educate) Tools & Techniques (as needed) Metrics & Rewards (later)

  4. Governance/Internal Marketplace The resource management and investment processes that determine : • What gets produced • For whom • When • At what quality level

  5. Why should we care? Sample symptoms that have root causes in governance/internal marketplace include: Demand exceeds supply Misalignment Appearance of unresponsiveness Clients feel lack of control Complaints about cost, slowness, quality Lack of investment funding Limited understanding of true costs

  6. What business are you in? John Scherer, at the 2011 NYS CIO Academy

  7. The answer depends on which hat you’re wearing… Enterprise CIO Role IT Enablement Strategy IT Provider IT “Business” IT & Security Policy CEO Role

  8. IT Business within a Business (Internal Service Company – Gartner) “The surest way to lose a monopoly is to behave as a monopolist.” N. Dean Meyer We may be single-source internal IT service providers, but we operate in a competitive marketplace.

  9. Our expectations in the marketplace …compared to at work 1) Demand is constrained by our income Supply is constrained 2) We make choices about what we can buy Customers feel lack of control 3) Someone will sell us what we want…at a price IT provides what it can, for “free” 4) We’re accountable for our buying decisions; the provider is responsible for the product/service Accountability is blurred

  10. One thing I learned in Eco101… When cost is zero, demand is infinite

  11. I wantneed a Ferrari!!! I know I can’t afford one, but I’ll take two if they’re free!

  12. How much money do your customers have to spend on IT? Are you happy with providers who say no? • What’s their “spending power”? • How does it relate to their expectations? • Who controls that spending power, sets priorities, makes purchase decisions? • Do you have to say “no”? • Does a governance group say no for you?

  13. That’s crazy! …to any fully-funded, reasonable request. Recommendation – Empower IT to Say “Yes”

  14. I said “fully-funded”! Customers need to be prepared to “pay” the fully-burdened costs of their initiatives and services, including life-cycle costs.

  15. Makes sense! How do we do it?

  16. Three prerequisites You don’t need to get there all at once! Something to “sell” At an associated “price” In a simulated market environment

  17. Governance/Internal Marketplace – What We’ve Been Working On • Clear responsibility/accountability • Improved financial reporting • “Transparency” moving to “accuracy” • Business within a Business tools • Service catalog • Pricing models • Cause and effect purchase decisions

  18. As IT service provider, what are your responsibilities in this relationship? And offer well-defined choices to customers, to support their decisions on the demand side. Reduce costs and improve service on the supply side: • Open the books! • Make the case for investment • Simplify architecture • Find efficiencies; increase productivity • Reduce duplication and overlap • Do comparative analysis (benchmarking)

  19. What are your customers’ responsibilities, enabled by this approach? Cumulative savings on the supply and demand sides > $7M over 3 years. Make wise decisions on the demandside: • Recognize that IT comes at a price • Understand the limits of spending power • Use scarce resources sensibly • Standardize • Accept enterprise solutions where sensible • Reduce demand for custom and “one of a kind” • Explicitly determine quality and quantity levels

  20. Three prerequisites You don’t need to get there all at once! Something to “sell” At an associated “price” In a simulated market environment

  21. Service Catalog Services define “units of economic exchange” in the internal marketplace. A key resource management process of an internal marketplace • Clarifies customer expectations and IT commitments • Describes service offerings • Associates costs (no free lunch!)

  22. What’s the “unit of economic exchange” in today’s environment? Historical Expectations Mandates Foot Stomping “The Boss Said So!” Dedicated Staff & Budget Allocated Resources Tomorrow…Defined Services

  23. Benefits of Services Approach V=B/C

  24. That’s crazy! By choice rather than by chance. Do less with less!

  25. Your budget is not your budget; you’re holding customer $ on account. The amount in each wedge defines a customer’s “spending power”

  26. That’s crazy! In the end, self-interest trumps! Enterprise Good… …is Bad!

  27. You’re holding customer $ on account. Enterprise Good Investments

  28. Traditional IT budget discussions… V=B/C ???

  29. Basis for informed IT decision-making

  30. Speaking of “the Cloud”… Service Standardization Usage-based Billing Two Essential Characteristics

  31. Accomplishment Highlights In “business within a business” terms, we’re growing market share and increasing customer satisfaction. Strategic alignment  business partnership Financial transparency More balanced expectations Improved reputation Support for architecture & standards Organizational realignment Value - the business pitches the IT budget Infrastructure modernization Adopting characteristics of a true “shared service”

  32. Contact Kevin G. Belden Deputy Comptroller & CIO Office of the State Comptroller 110 State Street – 13th Floor Albany NY 12236 kbelden@osc.state.ny.us 518-486-4349

More Related