IT Governance Archetypes for allocating decision rights Pertemuan ke-7 s/d 10

2. IT Governance Archetypes for allocating decision rightsPertemuan ke-7 s/d 10 Matakuliah : Pengantar IT Governance Tahun : Feb - 2010

3. Governance ModelThree Major Components • What decisions need to be made? (Domains) • Who has decision and/or input rights? (Styles) • How are the decisions formed and enacted? (Mechanisms)

4. What Decisions Need to be Made?(Domains) There are five major decisions domains • Principles • Infrastructure strategies • Architecture • Business application needs • Investment and prioritization

5. Who has Decision & /or Input Rights?(Styles) • Business Monarchy • IT Monarchy • Feudal • IT Duopoly • Federal • Anarchy

6. Archetypes To describe the combinations of people who have either decision rights or input to IT decisions. Archetypes could describe how your enterprise makes one or more of the five keys IT decisions or provides input to the decision makers.

7. IT Governance Archetypes

8. Key Players in IT Governance Archetypes

9. Business Monarchy In a business monarchy, senior business executives make IT decisions affecting the entire enterprise. Business monarchy rely on input for key decisions from many sources • A group of, or individual senior managers (SVP; VP; Dean, Chair). Senior IT manager does not act independently.

10. IT Monarchy IT Professionals make IT decisions. Enterprises implement IT monarchies in many different ways, often involving IT professionals from both corporate teams and business units. This group proposes architecture rules to the senior IT management team. The senior IT management team ensures the clarity of the rules and owns the enforcement of architectural standards. • Individuals or groups of IT senior managers.

11. Feudal • The feudal model is based on the traditional model where the business unit make their own decisions, optimizing their local needs. • The feudal modal was not very common because most enterprises were looking for synergies across business units. • Unit leaders, key process owners or their delegates.

12. Federal • The federal decision making model has a long tradition in government. • Federal arrangements attempt to balance the responsiblities and accountability of multiple governing bodies. • Shared by HSC senior management and other College/Unit senior management. May include senior IT management.

13. IT Duopoly • IT Duopoly is a two party arrangement where decisions represent a bilateral agreement between IT executives and one other group (business unit). • IT senior management and one other group, e. g., HSC senior management or College/Unit senior management.

14. Six Styles of IT Governance Centralized Business Lead • Business monarchy • Top Managers • Federal • Combination of corporate center and SBUs • Feudal • Each SBU makes independent decisions • IT Duopoly • IT group and one other group • IT monarchy • IT specialists • Anarchy • Isolated individual or small group decision making Specifying the decision rights and accountability framework to encourage desirable behavior in the use of IT Centralized IT Lead

15. IT Principles IT Architecture IT Infrastructure Business Applications IT Investment and Priority BusinessMonarchy ITMonarchy Feudal Federal Duopoly Anarchy 3 3 3 2 3 1 1 2 2 1 3 1 2 2 1

16. Anarchy • Anarchies are the bane of the existence of many IT groups and are expensive to support and secure. • Individual users or small groups of users.

17. Domains Principles Architecture Infrastructure Business Applications Investment & Priorities Styles Input Decision Input Decision Input Decision Input Decision Input Decision Business Monarchy 0 IT Monarchy 1 Feudal Federal Duopoly Anarchy How the typical enterprise govern IT 30 27 0 6 0 7 1 12 1 73 59 18 20 10 0 8 0 9 0 3 0 0 1 2 1 18 0 3 83 46 59 81 30 93 27 14 4 6 36 34 27 30 15 15 30 23 17 6 0 0 0 1 0 1 0 3 0 1

18. Typical Governance arrangements for IT Principles • Typical Governance arrangements for IT Architecture • Typical Governance arrangements for IT Infrastructure Strategies • Typical Governance arrangements for IT Business Application Needs. • Typical Governance arrangements for IT Investment and prioritization.

19. Analyzing different governance patterns across enterprises • Strategic and performance goals • Organizational structure • Governance experience • Size and diversity • Industry and regional differences

20. IT Architecture Decisions Organising logic for data, applications,and infrastruc- ture captured in a set of policies, relationships, and technical choices to achieve desired business and technical standardisation And integration IT Infrastructure Decisions Centrally co-ordinated, shared IT services that provide the foundation for the enterprise’s IT capability. Business Applications Needs Specifying the business need for purchasing or internally developed IT applications. IT Principles Decisions High-level statements about how IT is used in the business IT Investment and Prioritisation decisions Decisions about how much and where to invest in IT, including project approvals and justification techniques. Key IT Governance Decisions

21. What What Governance Arrangements Performance Goals Strategy How How How Governance Mechanisms Metrics & Accountabilities Desirable Behaviors What What The Governance ModelThe “Harmony ‘What-How’ Framework”

22. What What Governance Arrangements Performance Goals Strategy How How How Governance Mechanisms Metrics & Accountabilities Desirable Behaviors What What The Governance ModelThe “Harmony ‘What-How’ Framework”

23. Industry & Regional Differences in IT Governance • Many factors influence governance requirements : • Industry • Region • And so on • Industry differences : • For profit vs Not-for-profit and Government sectors • Financial services • And so on

24. Region differences : • European firms vs Asia-Pacific firms • European firms vs American firms. • And so on

25. CASE

26. Monitoring Compliance Review Architecture Principles Information Management Steering Group Business Membership Business Applications Needs Infrastructure IT Membership IT Steering Group Business Membership Development Programme Business Membership Investment&prioritisation LJMU Federal Governance Model Continuing)

27. LJMU Governance Membership • 7 members of the LJMU Senior Management team, out of a total of 16 • School Directors • Service Directors – Library, Estates, HR • Admin/project/resource managers • All ICT Senior Managers

28. What Can Governance Do For You? • Get buy-in across the board • Do it with them, even if they don’t do it to themselves • Change behaviour, not just technology

29. EA & Governance • Executive buy-in to EA approach • Within LJMU Governance structure, Architecture already identified as responsibility of Information Management Steering Group • Demonstrate value of EA approach • ‘burning platform’ required, provided by existing Student Experience Review initiative • Visibility • Exposes Senior Management to EA approaches

30. Selling EA & Governance • Speak the language of the business • Or something as close as you can get • It’s all about value • The business has to see that this will promote better IS decision-making to support the business better • Show them pictures • Not like I’ve been doing in this presentation… • EA development will provide the pictures • See JISC SOA animation http://www.jisc.ac.uk/whatwedo/programmes/programme_eframework/soa.aspx

31. Selling EA & Governance • Business value: • Business wants to know how to analyse staffing requirements in light of increasing self-service • ‘As Is’ Architecture – self-service capability mapped to business processes as of now • ‘To Be’ Architecture – self-service capability mapped to business processes in light of move to Campus Solutions • Giving a visual representation that addresses the business problem

32. So, Governance… What is it ? Why do you want it? How can you get it? What will you do with it when you’ve got it?

33. Quiz