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Business – IT Management

Key Management Concepts and Disciplines. Business – IT Management. Warning Zone. Desired State. Business Enablement/Support. IT Delivering Business Value. High Attention Zone. Opportunity Zone.

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Business – IT Management

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  1. Key Management Concepts and Disciplines Business – IT Management Warning Zone Desired State Business Enablement/Support IT Delivering Business Value High Attention Zone Opportunity Zone Establish a Working Environment of Business/IT Management That Delivers the Desired Level of Business Value and Performance of IT for Assisting Agencies to Enable a Responsive, Accountable, and Citizen-Centric Government IT Providing Effective and Efficient services IT Operational Performance

  2. Motivations for Business/IT Management • Innovative service delivery • Enhanced quality and results of governmental programs • Greater productivity/efficiency in operations • Increase transparency and accountability for performance • More value to the public for expenditures Societal and technological change Directs • Technology is an integral part of the business • Technology can enhance citizen services and improve business processes A technologically aware organization Recognizes Today’s and tomorrow’s employee Expects • An IT-intensive environment • Service-centered and customer-focused • Efficient and effective in its operations • Responsive to changing business needs A credible IT organization Is • Advancement of organizational mission • Accomplishment of business goals and strategies • Business transformation A mature IT organization Enables 2

  3. Components of Business/IT Management Business Strategies and Initiatives Directs Business Processes (Work Tasks, Information, and Policies/Rules) Influences and Enables Dictates IT Plans and Projects Supports and Sustains Creates IT Infrastructure (Hardware, Software, Management Practices and Processes) 3

  4. Business/IT Management Outcomes* To get to the best outcome, both IT efficacy and business/IT enablement must be accomplished Warning Zone – Ineffective IT Operations Places Continued Business Growth At Risk Desired State –Business Enabled by IT Operational Excellence Business Improvement -14% IT Spend Change +13% 11% of companies Business Improvement +35% IT Spend Change - 6% 7% of companies Initiatives for improving IT efficacy and business/IT enablement may be performed in parallel IT Delivering Business Value Business Enablement/Support High Attention Zone – Both Business Support and IT Operational Performance Problems Opportunity Zone – Strong Delivery Capabilities But Weak Linkage of Operational Capabilities to Business Needs Business Improvement -2% IT Spend Change +0% 74% of companies Business Improvement +11% IT Spend Change -15% 8% of companies Achieving IT efficacy provides the most incremental business benefits IT Providing Effective and Efficient Services IT Operational Performance *Sloan Management Review, Fall 2007, “Are You Caught In the Alignment Trap?” 4

  5. Organizational Expectations for IT’s Role High IT possesses detailed business process knowledge and relationship skills IT Counselor IT Value Seeker • Anticipate business needs • Service over costs • Don’t hinder the business • Full business/IT integration • Efficiency and costs are important • Business process focus - solution driven IT Enabling/Supporting Business IT Delivering Business Value IT Doer IT Service Provider • Keep lights on • Efficiency and costs unimportant • Little role in business innovation or improvement • Reliability, costs and security emphasized • Technology not thought of as enabler of business mission IT has limited feel for business needs and processes IT Providing Efficient and Effective Services Low IT Operational Performance Low High IT operations extremely reactive and service delivery problematic IT operations proactive and service delivery reliable and responsive

  6. Business/IT Management Analysis Warning Zone Desired State Business Enablement/Support High Attention Zone Opportunity Zone IT Operational Performance Legend Focus on IT operational performance improvements Focus on business enablement and support improvements Focus on both business enablement and support and IT operational performance with priority for IT operations improvements 6

  7. Business/IT Alignment – Responsibilities for Functions and Processes Business Responsibilities for Processes Investment management (identification, evaluation, and selection/prioritization of IT capital investments and projects); enterprise architectures (business processes and information); and enterprise management of HR, finances, risk, business continuity planning, security, and governance processes. Missions and Strategies Business and Information Architectures Primarily Business Focus Drives Business Processes and Information Flows Prescribes Joint Business and IT Responsibilities for processes Program and project portfolio management, including project management mythology (PMI); applications portfolio management; and service level agreements (SLAs). Technical Architecture Joint Business and Technical Focus Applications (Data and Work Tools) Enabled by IT Responsibilities for processes IT is responsible for service management/technical operations (such as ITIL) including service desk, CMDB (for ITIL), and infrastructure assets; technical architecture; software development processes (SDLC, design, QA, testing, etc.); DR; and technical risk management. Technical Products and Services Primarily Technical Focus Supported by Technical Computing, Storage, and Networking Infrastructure

  8. Major Activities for Developing Agency IT Plans Correlation with Results Based Budgeting Approach Planning Type Agency Strategic Missions, Duties, and Responsibilities and Governmental Priorities Strategic Business Management Business Goals, Strategies, and Performance Measures (Results Based Budgeting) Current Business Status Future Business State Business Plans and Initiatives (Where we want to be) (How we get there) (Where we are) Step 4 Step 2 Step 1 Expansion Budget Requests Develop IT Initiatives and Projects and Create IT Plan Business/IT Management Business/IT Alignment and IT Operations Efficiency and Effectiveness Conduct Self Assessment of Current Status Determine Desired State Agency IT Plan Step 3 Perform Gap Analysis

  9. Overview of Agency IT Planning Process Department Strategic Initiatives, Business Drivers, and Results-Based Budgeting Plans Plans for Legacy Applications Changes in Portfolio of Infrastructure Assets Human Resource Requirements Improvements in Business/IT Management Areas (Note) Governance Process for Selecting and Prioritizing Funding Requests for Initiatives, Programs, and Projects New Business Requirements or Government Program Initiatives Adjustments to Current Projects Note – Areas include: applications portfolio management (APM), program/project portfolio management (PPM), management of personnel, vendor management, management of architecture, software development process, service management/operations support, fiscal and budget management, and infrastructure asset management Dept. IT Plan Initiatives and Funding Requests • Input to Agency’s IT Plan for Submission to State CIO • Input to Expansion Budget Request Process

  10. Overview of Agency IT Planning Process • Department mission • Business/program goals and objectives • Governmental initiatives • Citizen services offered • Regulatory/compliance requirements • Statutory mandates • One-stop shop and information sharing opportunities • Organization streamlining potential • Business process reengineering opportunities Department Strategic Initiatives, Business Drivers, and Results-Based Budgeting Plans Plans for Legacy Applications Changes in Portfolio of Infrastructure Assets Human Resource Requirements Improvements in Business/IT Management Areas • Retirements/replacements • Eliminations/consolidations • Modernizations, technical renovations, and functional enhancements • On-going maintenance • Refreshment cycles • Security/reliability upgrades • Standardization and consolidations • Staffing numbers and skill requirements • Training requirements • Use of supplemental staffing • Policy and process improvements - Note • Organization realignments • Changes due to consolidations and other statewide initiatives • Initiative and Funding Request Priority Setting • (Spending on Right Projects to Improve Operations and Services) • Identify potential initiatives and investments and evaluate candidates against defined criteria (business benefit or public value, strategic alignment, financial return, impact on business processes, technical architecture fit, risks, etc.) • Prioritize initiatives and investments based on analysis results (relative weighted scores) and dependencies • Balance staffing and fiscal resources • Determine disposition – select, reject, adjust, or sunset • Include selections in department IT Plan and funding requests New Business Requirements or Government Program Initiatives Adjustments to Current Projects • Current project inventory, staffing and funding commitments, and status • Projects requiring additional funding to complete • Projects no longer relevant or with lower priorities • Projects with higher priorities or increased urgency • New governmental priorities • Regulatory/compliance requirements • Statutory mandates • Opportunities for productivity improvements or service level performance enhancements in business processes • Opportunities for new or better services for the state’s citizens, businesses, or employees • E-government opportunities Note – Areas include: applications portfolio management, program/project portfolio management, management of personnel, vendor management, management of architecture, software development process, service management/operations support, fiscal and budget management, and infrastructure asset management Dept. IT Plan Initiatives and Funding Requests • Input to Agency’s IT Plan for Submission to State CIO • Input to Expansion Budget Request Process

  11. Key Components of Business - IT Management • Prioritiesfor governmental programs and services • Economic realities and budgetary constraints • Stakeholders and funding and oversight authorities • Business and information architectures • Compliance/regulatory mandates • Environmental sustainability Business Strategy and Requirements • Goals and objectives • Future technologies and enterprise architecture • Communications • Leadership and new directions and approaches • Management processes and maturity levels IT Vision IT Strategy and Plans • Investment selection and resource (staffing) allocation • Financial management and budget control • Risk management • Business and technical architectures • Service offerings • Major initiatives and programs Management and Governance • Portfolio and asset management and tools • PMO • Decision making processes, with participants and processes • Purchasing and vendor management • Life cycle management • Personnel management • Organizational structure Application Delivery Operations Excellence • Project management with development and management methodologies • Software development and quality management • Applications engineering • Tools • IT service management (ITSM) – ITIL framework • IT asset management (ITAM) • Service catalogue and service level agreements (SLAs) • Platform, networking, and storage engineering • Tools

  12. Business - IT Management Overview Business Plans and Strategies IT Plans and Strategies • Business Architecture –business models, services/governmental programs, and processes • Information Architecture –acquisition, distribution/sharing, and application of data • Applications Architecture –technicalstructures of applications and facilities for exchanging data among them • Technical Architecture –technical descriptions for platforms/servers, storage devices, networking equipment and interconnections among them Business - IT Governance • Roles and responsibilities • Policies and processes Management Disciplines • Portfolio management • Project management • Investment management • Personnel management • Financial management • Asset management • Service/operations management • Purchasing and vendor management • Applications development management • Legacy applications management

  13. Historical Perspective for Business – IT Management Period 60s 70s 80s and 90s Today Business Role Senior Leader Business – IT Governance Unquestioned Superior Command and Control Gap Between Business and IT Servitude Follower Order Taker Organizational Problem Solver Deliverer of Business Technology IT Role

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