Business-IT Alignment Workshop: Frameworks and Questions

1. Business-IT AlignmentWorkshop:Frameworks and Questions Led by: Keith Bogg, Gartner Leslie Willcocks, LSE

2. Diagnosis1. What role does IT play?2. What role should IT play?3. Where are we hurting?

3. Business: Market Leader/Risk Taker/High Growth The Butler The Entrepreneur "IT provides support services but is not strategically important" "IT is a vital component of our business model" Expected IT Role: Tactical/ Utility Expected IT Role: Strategic/ Transformational The Team Player The Grinder "We are dependent on IT systems in our business operations, so we give it as much time as we can afford" "IT is a cost of doing business" Business: Market Follower/Risk Averse/Mature Where Are YOU? Where Do YOU Need to Be? 3 Gartner, 2007

4. Business: Market Leader/Risk Taker/High Growth The Entrepreneur • No time for "IT governance" –Principles for speed/quality balance –Clear domain responsibility The Butler • Minimized governance – Anticipate business needs –Portfolios for focus –Low governance overhead Expected IT Role: Tactical/ Utility Expected IT Role: Strategic/ Transformational The Grinder • Governance as self- protection –Principles for focus –Benefits realization for value –Strong ROI criteria The Team Player • Formal collaborative governance –Clear decision rights –Focus on benefits realization –Agile governance processes Business: Market Follower/Risk Averse/Mature Where Are YOU? Where do YOU need to be? IT Governance vs. IT Role 4 Gartner, 2007

5. “In the business” “On the business” CIOs are working to reposition the role of IT What Is/Should Be The Role(s) of IT? IT As Contributor To Strategic Transformation IT As An Enabler of Business Improvement IT As A Platform For Business Operations IT As A Cost IT As A Risk 5 Source: Gartner, 2007

6. Should Your IT Contribute to Competitive Asymmetry? If So, How? Structural Advantages Privileged Relationships Frontline Execution Insight Foresight Sources of Competitive Advantage Examples • Scarce Assets • Scale and scope • Customer intimacy • Supplier relationships • Value web partnerships • Process know-how • Operational feedback • Core knowledge • R&D processes • Creativity • Pattern identification Source: Gartner, McKinsey 6

7. Actions 4. What MORE do you need to do to optimize the business contribution of IT?

8. Prioritise Investments To Get To The Strategic IT Portfolio: Three Routes Business plans and Goals Current System IT Opportunities Evaluative Surveys & Audits Strengths Weaknesses Users & Specialists Creative Techniques, Processes & Environment Examples Scenarios Bright Sparks & Product Champions Analytical Methodology Opportunities, Threats ‘Listen to the Technology’ Teamwork Application Strategic Plan Mandatory Strategic Development Infrastructure Renewal Maintenance R&D Earl, 1996 8

9. Evaluate Existing IT and Applications Technical Quality of IT and Application (Provider) HIGH LOW Divest Reassess LOW Add Value Business Value of IT and Application (User) Maintain Renew Enhance HIGH 9

10. Run the business E.g. IT Oversight Risk management Senior exec engagement E.g. IS operations processes Technology selection Vendor management Relationship management E.g.Running IT as a business (ISCo) Measurement/ dashboards IT PR/ communication Grow the business E.g. Value model Demand governance Portfolio management E.g.Program/ project management IS development processes E.g.Harvesting processes Change leadership Transform the business E.g.Business innovation Business process improvement E.g.IT Innovation E.g.Learning Identify what MORE you need in place to achieve business-IT alignment……. Practices to run, grow and transform the business IT actions DOING THE RIGHT THINGS DOING THING RIGHT GETTING THE BENEFIT Gartner framework 10

11. New Projects: Achieve Three Tasks across Three Phases IT: Extended Implementation Process PHASE TWO DESIGN AND DEVELOPMENT PHASE THREE PUTTING IT INTO PRACTICE KEY ELEMENTS PHASE ONE GENERATING THE CONTEXT FOR IT Integrating, Business, IT Human Resource, Organization, Strategies Developing Stakeholder Support, Organizational Commitment Developing General IT Literacy and Task Competence Aligning System Design with Phase One Design Process and Design to tap and promote user ownership System Designed to promote and use mastery Aligning Operational use of System Sustaining User ownership and Support of System Users Know-How and Competence Support System Operations Alignment Commitment/ Support/ Ownership Competence/ Mastery 11 Willcocks et al, 2002