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Orchestrating IT Value Delivery. Agenda. The Challenge of Business/IT Management Today Business/IT Alignment – Engineering Model Agricultural Model of Business/IT Management Value Realization Cycle Conclusion. Issues in IT management. Centrality of IT to business strategy
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Agenda • The Challenge of Business/IT Management Today • Business/IT Alignment – Engineering Model • Agricultural Model of Business/IT Management • Value Realization Cycle • Conclusion
Issues in IT management • Centrality of IT to business strategy • Justification for IT investments • Who should control IT direction • IT skills and knowledge • Beneficiaries of IT (are there winners/losers?)
The Engineering Model • Mechanistic • Like construction • Assumes an orderliness which is false • Presumes all is known, standardized and measurable • Anything not is considered “error” • Siloed • A mirage • Looks perfect from afar but false when close
Agricultural Model • Investment in the life cycle • Planting • Cultivation • Nurturing • Harvesting • Renewing • Include all stakeholders in the full cycle • Not just planning
What is IT Governance? • “determines who has authority for significant IT decisions. Internally, in organizations, governance design is used to determine which executives (i.e., IT or business) are responsible for which IT activities and at which level of the firm (i.e., enterprise or line of business). Centralized, decentralized and federal modes are the commonly used forms of governance in IT.” (Smith, SIM APC Report, p. 6)
What is Enterprise Architecture? • An enterprise architecture is a ‘living’ ‘blueprint’ that articulates, in logical business and technical terms, the integrated relationship between business imperatives , business processes, information flows, information systems applications, and the technology and physical infrastructures that support the business in achieving its strategic objectives . • It applies frameworks, models, standards, and tools, to define the logical relationships and processes for ensuring effective and efficient coordination of resource and information flows, systems design and deployment, and project control and investment.
Classifying IT Investment Portfolios 10% 30% 60%
What to Measure? • Just what you need, not too much • Monetary and non-monetary • E.g. Ambulance response time • Hard and soft data • E.g. Customer satisfaction • Gap analysis • Proxy metrics • If a specific target is difficult to measure, a directly related one may stand in • E.g. Employee morale - absenteeism • There must be a causal link between what you are measuring and the goal you are trying to achieve • Metrics that employees feel they can impact
Harvest • Returns • Measure • The basis of communications • This year’s results feed next year’s plans