Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

48
Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment Alan McSweeney
  • date post

    17-Oct-2014
  • Category

    Business

  • view

    904
  • download

    0

description

Despite years of emphasising the need for IT and business alignment, the disconnect between business and IT continues. IT focuses too much of pure technology. However, business expectations cam be unrealistic, based on part on IT not explaining itself to the business. IT technology trends are not relevant the business. The business is concerned with the results of investment in IT and sees technology as means to an end and not as ends in themselves. IT needs to structure itself so alignment pervades the entire IT function. IT must embed business alignment in the way it operates to ensure it remains relevant to the business. IT needs to mediate between the business and suppliers and technologies, acting as a lens focussing business needs on appropriate solutions. The gulf is between business and IT seems to be getting wider. Failure to ensure this alignment may lead to the business bypassing IT and going straight to suppliers and service providers. Disintermediation of IT is central to the business plans of many internet-based service providers. Failure to systematise alignment will expose IT to the danger of becoming irrelevant.

Transcript of Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Page 1: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Don’t Mention The “A”Word – Trends In Continuing Business And IT Misalignment

Alan McSweeney

Page 2: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Business View Of IT Trends Vs. IT View Of Trends

• AICPA – Survey of members from 2001 on initiatives in IT that are of concern to their nearly 400,000 members− http://www.aicpa.org/INTERESTAREAS/INFORMATIONTECHNOLO

GY/RESOURCES/TOPTECHNOLOGYINITIATIVES/TOP10TECHNOLOGIESARCHIVE

• Gartner – well known analyst company

• Two very different views of information technology trends− Business-oriented

− Technology-oriented

• IT tends to be concerned with technology trends for themselves rather than their application to business –internal focus

January 27, 2014 2

Page 3: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Business And IT Disconnect – Speaking A Different Language

I want: You need:

Business IT

You are not listening to

me

You are not listening to

me

January 27, 2014 3

Page 4: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

AICPA IT Initiatives Survey 2011-2013 Results

2013 2012 2011

1 Managing And Retaining Data Securing The IT Environment Control And Use Of Mobile Devices

2 Securing The IT Environment Managing And Retaining Data Information Security

3 Managing Vendors And Service Providers

Managing Risk And Compliance

Data Retention Policies And Structure

4 Managing IT Risks And Compliance Ensuring Privacy Remote Access

5 Ensuring Privacy Leveraging Emerging Technologies

Staff And Management Training

6 Managing System Implementations Managing System Implementation

Process Documentation And Improvements

7 Preventing And Responding To Computer Fraud

Enabling Decision Support And Managing Performance

Saving And Making Money W/Technology

8 Governing And Managing IT Investment And Spending

Governing And Managing IT Investment/Spending

Technology Cost Controls

9 Enabling Decision Support And Analytics

Preventing And Responding To Fraud

Budget Processes

10 Leveraging Emerging Technologies Managing Vendors And Service Providers

Project Management & Deployment Of New Systems

January 27, 2014 4

Page 5: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Gartner View of IT Trends 2009-2014

2014 2013 2012 2011 2010 2009

1 Mobile Device BattlesMedia Tablets and

BeyondCloud Computing Cloud Computing Virtualization Green IT

2Mobile Applications

and HTML5

Mobile-Centric Applications and

Interfaces

Mobile Applications and

Media Tablets

Advanced Analytics

Cloud ComputingUnified

Communications

3 Personal CloudContextual and

Social User Experience

Social Communications and Collaboration

Client ComputingServers — Beyond

BladesBusiness Process

Modeling

4 Enterprise App Stores Internet of Things Video IT for GreenWeb-Oriented Architectures

Metadata Management

5 The Internet of ThingsApp Stores and Marketplaces

Next Generation Analytics

Reshaping the Data Center

Enterprise Mashups

Virtualization 2.0

6Hybrid IT and Cloud

ComputingNext-Generation

AnalyticsSocial Analytics Social Computing

Specialized Systems

Mashup & Composite Apps

7 Strategic Big DataIn-Memory Computing

Context-Aware Computing

Security – Activity Monitoring

Social Software and Social

Networking

Web Platform & WOA

8 Actionable Analytics Big DataStorage Class

MemoryFlash Memory

Unified Communications

Computing Fabric

9In Memory Computing

Extreme Low-Energy Servers

Ubiquitous Computing

Virtualization for Availability

Business Intelligence

Real World Web

10Integrated Ecosystems

Cloud ComputingFabric-Based

Infrastructure and Computers

Mobile Applications

Green IT Social Software

January 27, 2014 5

Page 6: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Business And IT View Of Technology

• Business views technologies as means to an end and not as ends in themselves

• IT views technologies as solutions rather than as components of an overall business solution

• IT technology trends are very variable and depend on the ever-changing new next best thing

• Business view of the importance of technology application remains quite constant:− Security

− Data

− Delivery

− Value

− Data

− Managing Suppliers

January 27, 2014 6

Page 7: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

AICPA Top 10 IT Initiatives 2005-2013

Learning And Training

Competency

Spyware Detection And Removal

Document, Content And Knowledge

Management

Document, Forms, Content And Knowledge

Management

Electronic Data Retention Strategy

Server Virtualization And

Consolidation

Project Management & Deployment Of New Systems

Managing Vendors And

Service Providers

Leveraging Emerging

Technologies 10

Storage Technologies

Paperless Digital Technologies

Electronic Archiving And

Data Retention

Mobile And Remote

Computing

Document, Forms, Content And Knowledge

Management

Tax SoftwareBudget ProcessesPreventing And Responding To

Fraud

Enabling Decision Support And

Analytics 9

Authentication Technologies

Application And Data Integration

Mobile And Remote

Computing

Business Intelligence

Improved Application And Data Integration

Mobile DevicesTechnology Cost

Controls

Governing And Managing IT Investment/

Spending

Governing And Managing IT

Investment And Spending

8

Wireless Technologies

Wireless Technologies

Securing And Controlling Information Distribution

Conforming To Assurance And

Compliance Standards

Identity And Access

Management

Small Business Software

Saving And Making Money W/Technology

Enabling Decision Support And

Managing Performance

Preventing And Responding To

Computer Fraud 7

Collaboration And Messaging

Technologies

Digital Identity And

Authentication Technologies

IT GovernanceIdentity And

Access Management

Training And Competency

Laptop Security / Encryption

Process Documentation

And Improvements

Managing System Implementation

Managing System Implementations 6

Disaster RecoveryPrivacy

Management

Disaster Recovery Planning And

Business Continuity

Management

Business Process Improvement, Workflow And

Process Exception Alerts

Mobile And Remote

Computing

Document Management and

Workflow

Staff And Management

Training

Leveraging Emerging

TechnologiesEnsuring Privacy 5

Spam TechnologyIT GovernancePrivacy

ManagementPrivacy

Management

Business Process Improvement, Work Flow And

Process Exception Alerts

Secure Electronic Collaboration

Remote AccessEnsuring PrivacyManaging IT Risks And Compliance 4

Data Integration

Disaster And Business

Continuity Planning

Conforming To Assurance And

Compliance Standards

Business Continuity

Management And Disaster Recovery

Planning

Secure Data File Storage,

Transmission And Exchange

Backup, Disaster Recovery/ Business

Continuity

Data Retention Policies And

Structure

Managing Risk And Compliance

Managing Vendors And

Service Providers 3

Electronic Document

Management

Assurance And Compliance Applications

Identity And Access

ManagementIT Governance

Privacy Management

Connectivity and Communications

Information Security

Managing And Retaining Data

Securing The IT Environment 2

Information Security

Information Security

Information Security

Management

Information Security

Management

Information Security

ManagementSecurity Of Data

Control And Use Of Mobile Devices

Securing The IT Environment

Managing And Retaining Data 1

200520062008200820092010201120122013

January 27, 2014 7

Page 8: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Importance of Security, Privacy, Continuity

Learning And Training

Competency

Spyware Detection And Removal

Document, Content And Knowledge

Management

Document, Forms, Content And Knowledge

Management

Electronic Data Retention Strategy

Server Virtualization And

Consolidation

Project Management & Deployment Of New Systems

Managing Vendors And

Service Providers

Leveraging Emerging

Technologies 10

Storage Technologies

Paperless Digital Technologies

Electronic Archiving And

Data Retention

Mobile And Remote

Computing

Document, Forms, Content And Knowledge

Management

Tax SoftwareBudget ProcessesPreventing And Responding To

Fraud

Enabling Decision Support And

Analytics 9

Authentication Technologies

Application And Data Integration

Mobile And Remote

Computing

Business Intelligence

Improved Application And Data Integration

Mobile DevicesTechnology Cost

Controls

Governing And Managing IT Investment/

Spending

Governing And Managing IT

Investment And Spending

8

Wireless Technologies

Wireless Technologies

Securing And Controlling Information Distribution

Conforming To Assurance And

Compliance Standards

Identity And Access

Management

Small Business Software

Saving And Making Money W/Technology

Enabling Decision Support And

Managing Performance

Preventing And Responding To

Computer Fraud 7

Collaboration And Messaging

Technologies

Digital Identity And

Authentication Technologies

IT GovernanceIdentity And

Access Management

Training And Competency

Laptop Security / Encryption

Process Documentation

And Improvements

Managing System Implementation

Managing System Implementations 6

Disaster RecoveryPrivacy

Management

Disaster Recovery Planning And

Business Continuity

Management

Business Process Improvement, Workflow And

Process Exception Alerts

Mobile And Remote

Computing

Document Management and

Workflow

Staff And Management

Training

Leveraging Emerging

TechnologiesEnsuring Privacy5

Spam TechnologyIT GovernancePrivacy

ManagementPrivacy

Management

Business Process Improvement, Work Flow And

Process Exception Alerts

Secure Electronic Collaboration

Remote AccessEnsuring PrivacyManaging IT Risks And Compliance 4

Data Integration

Disaster And Business

Continuity Planning

Conforming To Assurance And

Compliance Standards

Business Continuity

Management And Disaster Recovery

Planning

Secure Data File Storage,

Transmission And Exchange

Backup, Disaster Recovery/ Business

Continuity

Data Retention Policies And

Structure

Managing Risk And Compliance

Managing Vendors And

Service Providers 3

Electronic Document

Management

Assurance And Compliance Applications

Identity And Access

ManagementIT Governance

Privacy Management

Connectivity and Communications

Information Security

Managing And Retaining Data

Securing The IT Environment2

Information Security

Information Security

Information Security

Management

Information Security

Management

Information Security

ManagementSecurity Of Data

Control And Use Of Mobile Devices

Securing The IT Environment

Managing And Retaining Data 1

200520062008200820092010201120122013

January 27, 2014 8

Page 9: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Importance of Data

Learning And Training

Competency

Spyware Detection And Removal

Document, Content And Knowledge

Management

Document, Forms, Content And Knowledge

Management

Electronic Data Retention Strategy

Server Virtualization And

Consolidation

Project Management & Deployment Of New Systems

Managing Vendors And

Service Providers

Leveraging Emerging

Technologies 10

Storage Technologies

Paperless Digital Technologies

Electronic Archiving And

Data Retention

Mobile And Remote

Computing

Document, Forms, Content And Knowledge

Management

Tax SoftwareBudget ProcessesPreventing And Responding To

Fraud

Enabling Decision Support And

Analytics 9

Authentication Technologies

Application And Data Integration

Mobile And Remote

Computing

Business Intelligence

Improved Application And Data Integration

Mobile DevicesTechnology Cost

Controls

Governing And Managing IT Investment/

Spending

Governing And Managing IT

Investment And Spending

8

Wireless Technologies

Wireless Technologies

Securing And Controlling InformationDistribution

Conforming To Assurance And

Compliance Standards

Identity And Access

Management

Small Business Software

Saving And Making Money W/Technology

Enabling Decision Support And

Managing Performance

Preventing And Responding To

Computer Fraud 7

Collaboration And Messaging

Technologies

Digital Identity And

Authentication Technologies

IT GovernanceIdentity And

Access Management

Training And Competency

Laptop Security / Encryption

Process Documentation

And Improvements

Managing System Implementation

Managing System Implementations 6

Disaster RecoveryPrivacy

Management

Disaster Recovery Planning And

Business Continuity

Management

Business Process Improvement, Workflow And

Process Exception Alerts

Mobile And Remote

Computing

Document Management and

Workflow

Staff And Management

Training

Leveraging Emerging

TechnologiesEnsuring Privacy 5

Spam TechnologyIT GovernancePrivacy

ManagementPrivacy

Management

Business Process Improvement, Work Flow And

Process Exception Alerts

Secure Electronic Collaboration

Remote AccessEnsuring PrivacyManaging IT Risks And Compliance 4

Data Integration

Disaster And Business

Continuity Planning

Conforming To Assurance And

Compliance Standards

Business Continuity

Management And Disaster Recovery

Planning

Secure Data File Storage,

Transmission And Exchange

Backup, Disaster Recovery/ Business

Continuity

Data Retention Policies And

Structure

Managing Risk And Compliance

Managing Vendors And

Service Providers 3

Electronic Document

Management

Assurance And Compliance Applications

Identity And Access

ManagementIT Governance

Privacy Management

Connectivity and Communications

Information Security

Managing And Retaining Data

Securing The IT Environment 2

Information Security

Information Security

Information Security

Management

Information Security

Management

Information Security

ManagementSecurity Of Data

Control And Use Of Mobile Devices

Securing The IT Environment

Managing And Retaining Data1

200520062008200820092010201120122013

January 27, 2014 9

Page 10: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Importance of Cost and Implementation

Learning And Training

Competency

Spyware Detection And Removal

Document, Content And Knowledge

Management

Document, Forms, Content And Knowledge

Management

Electronic Data Retention Strategy

Server Virtualization And

Consolidation

Project Management & Deployment Of New Systems

Managing Vendors And

Service Providers

Leveraging Emerging

Technologies 10

Storage Technologies

Paperless Digital Technologies

Electronic Archiving And

Data Retention

Mobile And Remote

Computing

Document, Forms, Content And Knowledge

Management

Tax SoftwareBudget ProcessesPreventing And Responding To

Fraud

Enabling Decision Support And

Analytics 9

Authentication Technologies

Application And Data Integration

Mobile And Remote

Computing

Business Intelligence

Improved Application And Data Integration

Mobile DevicesTechnology Cost

Controls

Governing And Managing IT Investment/

Spending

Governing And Managing IT

Investment And Spending

8

Wireless Technologies

Wireless Technologies

Securing And Controlling Information Distribution

Conforming To Assurance And

Compliance Standards

Identity And Access

Management

Small Business Software

Saving And Making Money W/Technology

Enabling Decision Support And

Managing Performance

Preventing And Responding To

Computer Fraud 7

Collaboration And Messaging

Technologies

Digital Identity And

Authentication Technologies

IT GovernanceIdentity And

Access Management

Training And Competency

Laptop Security / Encryption

Process Documentation

And Improvements

Managing System Implementation

Managing System Implementations 6

Disaster RecoveryPrivacy

Management

Disaster Recovery Planning And

Business Continuity

Management

Business Process Improvement, Workflow And

Process Exception Alerts

Mobile And Remote

Computing

Document Management and

Workflow

Staff And Management

Training

Leveraging Emerging

TechnologiesEnsuring Privacy 5

Spam TechnologyIT GovernancePrivacy

ManagementPrivacy

Management

Business Process Improvement, Work Flow And

Process Exception Alerts

Secure Electronic Collaboration

Remote AccessEnsuring PrivacyManaging IT Risks And Compliance 4

Data Integration

Disaster And Business

Continuity Planning

Conforming To Assurance And

Compliance Standards

Business Continuity

Management And Disaster Recovery

Planning

Secure Data File Storage,

Transmission And Exchange

Backup, Disaster Recovery/ Business

Continuity

Data Retention Policies And

Structure

Managing Risk And Compliance

Managing Vendors And

Service Providers3

Electronic Document

Management

Assurance And Compliance Applications

Identity And Access

ManagementIT Governance

Privacy Management

Connectivity and Communications

Information Security

Managing And Retaining Data

Securing The IT Environment 2

Information Security

Information Security

Information Security

Management

Information Security

Management

Information Security

ManagementSecurity Of Data

Control And Use Of Mobile Devices

Securing The IT Environment

Managing And Retaining Data 1

200520062008200820092010201120122013

January 27, 2014 10

Page 11: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Difference Between How The Business Feels IT Should Spend Budget And How The Budget Is Actually Spent

What the Business Wants

15%

50%

35%

Maintain The Momentum Of The Business Through Existing Business Systems

Contribute To Improving Business Results

Provide IT Direction And Management That Is Aligned To The Needs Of The Business

What the Business Gets

70%

25%

5%

Maintain The Momentum Of The Business Through Existing Business Systems

Contribute To Improving Business Results

Provide IT Direction And Management That Is Aligned To The Needs Of The Business

• Business view of how it wants the proportion of IT expenditure to be allocated and how spending is actually allocated

January 27, 2014 11

Page 12: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Difference Between How The Business Feels IT Should Spend Budget And How It Is Actually Spent

• Reasons for differences lie with both sides

• Each side does not fully understand the other or explain itself properly to the other

January 27, 2014 12

Page 13: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Spending - Maintain The Momentum Of The Business Through Existing Business Systems

What the Business Wants

15%

35%

50%

Maintain The Momentum Of The Business Through Existing Business Systems

Contribute To Improving Business Results

Provide IT Direction And Management That Is Aligned To The Needs Of The Business

What the Business Gets

70%

5%

25%

Maintain The Momentum Of The Business Through Existing Business Systems

Contribute To Improving Business Results

Provide IT Direction And Management That Is Aligned To The Needs Of The Business

• Business has unrealistic view of how much it costs to keep IT function operational

• IT does not automate operations to drive operational costs down

January 27, 2014 13

Page 14: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Contribute To Improving Business Results

• IT is poor at delivery and proactive provision of advice and consulting

• Business expects too much without understanding the resource consequences of these expectations

What the Business Wants

50%

35%

15%

Maintain The Momentum Of The Business Through Existing Business Systems

Contribute To Improving Business Results

Provide IT Direction And Management That Is Aligned To The Needs Of The Business

What the Business Gets

25%

70%

5%

Maintain The Momentum Of The Business Through Existing Business Systems

Contribute To Improving Business Results

Provide IT Direction And Management That Is Aligned To The Needs Of The Business

January 27, 2014 14

Page 15: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Provide IT Direction And Management That Is Aligned To The Needs Of The Business

• IT is not providing the leadership and direction the business feels it wants

• Business has unrealistic expectation of the amount of IT spending should be or needs to be allocated to leadership and direction

What the Business Wants

35%

15%

50%

Maintain The Momentum Of The Business Through Existing Business Systems

Contribute To Improving Business Results

Provide IT Direction And Management That Is Aligned To The Needs Of The Business

What the Business Gets

5%

70%

25%

Maintain The Momentum Of The Business Through Existing Business Systems

Contribute To Improving Business Results

Provide IT Direction And Management That Is Aligned To The Needs Of The Business

January 27, 2014 15

Page 16: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Continuing Disconnect Between IT And Business

• IT’s role is to mediate between the business and technologies and suppliers

• Needs to maintain an external focus on fulfilling business needs and requirements

• IT needs to act as a lens focussing business needs on appropriate technology and supplier solutions

• Gulf is between business and IT seems to be getting wider

January 27, 2014 16

Page 17: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

IT Needs To Deliver Business-OrientedSolutions

Technology Landscape

Supplier Ecosystem

IT Needs to Mediate Between the Business and Suppliers/ Technologies,

Acting as a Lens Focussing Business Needs on Appropriate Solutions

IT Needs To Focus

Appropriate Services on Appropriate

Suppliers and Technologies

Business

IT

27 January 2014 17

Page 18: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Bringing The Gap Between IT And The Business

• Both business and IT must work to close the gap

January 27, 2014 18

Page 19: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

AICPA Technology Initiatives Survey 2012

2012

56%

60%

56%

46%

52%

34%

62%

65%

61%

62%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%

10 - Managing Vendors And Service

Providers

9 - Preventing And Responding To Fraud

8 - Governing And Managing IT

Investment/Spending

7 - Enabling Decision Support And

Managing Performance

6 - Managing System Implementation

5 - Leveraging Emerging Technologies

4 - Ensuring Privacy

3 - Managing Risk And Compliance

2 - Managing And Retaining Data

1 - Securing The IT Environment

← P

rio

rity

← Confidence in Level of Achievement →

Lack of business confidence in getting the basics of IT governance,

management and delivery right

January 27, 2014 19

Page 20: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

2013

27%

37%

38%

44%

44%

45%

47%

47%

51%

55%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%

10 - Leveraging Emerging Technologies

9 - Enabling Decision Support And

Analytics

8 - Governing And Managing IT

Investment And Spending

7 - Preventing And Responding To

Computer Fraud

6 - Managing System Implementations

5 - Ensuring Privacy

4 - Managing IT Risks And Compliance

3 - Managing Vendors And Service

Providers

2 - Securing The IT Environment

1 - Managing And Retaining Data

← P

rio

rity

← Confidence in Level of Achievement →

AICPA Technology Initiatives Survey 2013

Continuing lack of business

confidence in getting the basics of IT

governance, management and delivery

right

January 27, 2014 20

Page 21: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Managing Suppliers - 2012

January 27, 2014 21

2012

56%

60%

56%

46%

52%

34%

62%

65%

61%

62%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%

10 - Managing Vendors And Service

Providers

9 - Preventing And Responding To Fraud

8 - Governing And Managing IT

Investment/Spending

7 - Enabling Decision Support And

Managing Performance

6 - Managing System Implementation

5 - Leveraging Emerging Technologies

4 - Ensuring Privacy

3 - Managing Risk And Compliance

2 - Managing And Retaining Data

1 - Securing The IT Environment

← P

rio

rity

← Confidence in Level of Achievement →

Only average view of the performance of the key role of

managing suppliers

Page 22: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Managing Suppliers - 2013

January 27, 2014 22

2013

27%

37%

38%

44%

44%

45%

47%

47%

51%

55%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%

10 - Leveraging Emerging Technologies

9 - Enabling Decision Support And

Analytics

8 - Governing And Managing IT

Investment And Spending

7 - Preventing And Responding To

Computer Fraud

6 - Managing System Implementations

5 - Ensuring Privacy

4 - Managing IT Risks And Compliance

3 - Managing Vendors And Service

Providers

2 - Securing The IT Environment

1 - Managing And Retaining Data

← P

rio

rity

← Confidence in Level of Achievement →

Importance of supplier management increasing and level of confidence

decreasing

Page 23: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Delivering IT Innovation - 2012

2012

56%

60%

56%

46%

52%

34%

62%

65%

61%

62%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%

10 - Managing Vendors And Service

Providers

9 - Preventing And Responding To Fraud

8 - Governing And Managing IT

Investment/Spending

7 - Enabling Decision Support And

Managing Performance

6 - Managing System Implementation

5 - Leveraging Emerging Technologies

4 - Ensuring Privacy

3 - Managing Risk And Compliance

2 - Managing And Retaining Data

1 - Securing The IT Environment

← P

rio

rity

← Confidence in Level of Achievement →

Important but very low confidence of delivery

January 27, 2014 23

Page 24: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

2013

27%

37%

38%

44%

44%

45%

47%

47%

51%

55%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%

10 - Leveraging Emerging Technologies

9 - Enabling Decision Support And

Analytics

8 - Governing And Managing IT

Investment And Spending

7 - Preventing And Responding To

Computer Fraud

6 - Managing System Implementations

5 - Ensuring Privacy

4 - Managing IT Risks And Compliance

3 - Managing Vendors And Service

Providers

2 - Securing The IT Environment

1 - Managing And Retaining Data

← P

rio

rity

← Confidence in Level of Achievement →

Delivering IT Innovation - 2013Lower level of importance but even

lower confidence of delivery

January 27, 2014 24

Page 25: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Business Intelligence - 2012

2012

56%

60%

56%

46%

52%

34%

62%

65%

61%

62%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%

10 - Managing Vendors And Service

Providers

9 - Preventing And Responding To Fraud

8 - Governing And Managing IT

Investment/Spending

7 - Enabling Decision Support And

Managing Performance

6 - Managing System Implementation

5 - Leveraging Emerging Technologies

4 - Ensuring Privacy

3 - Managing Risk And Compliance

2 - Managing And Retaining Data

1 - Securing The IT Environment

← P

rio

rity

← Confidence in Level of Achievement →

After years of BI and related technologies being available and

implemented, there is still a low level of confidence

January 27, 2014 25

Page 26: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

2013

27%

37%

38%

44%

44%

45%

47%

47%

51%

55%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%

10 - Leveraging Emerging Technologies

9 - Enabling Decision Support And

Analytics

8 - Governing And Managing IT

Investment And Spending

7 - Preventing And Responding To

Computer Fraud

6 - Managing System Implementations

5 - Ensuring Privacy

4 - Managing IT Risks And Compliance

3 - Managing Vendors And Service

Providers

2 - Securing The IT Environment

1 - Managing And Retaining Data

← P

rio

rity

← Confidence in Level of Achievement →

Business Intelligence - 2013Level of confidence reducing

January 27, 2014 26

Page 27: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

IT Governance

Business

Relationship

and

Engagement

Service Lifecycle Management

Service and Solution Delivery Service Operations

IT Management

Business

Relationship

Management

Business

Analysis and

Consulting

Solution

Architecture

Demand

Management

Program and

Project

Management

IT Process and

Quality

Management

IT Resource

Management

Asset and

License

Management

Technology

Selection and

Management

Acquisition,

Sourcing and

Supplier

Management

Test

Management

Service

Planning

Operations

Management

IT Strategy

IT Enterprise

Architecture

management

IT Governance

and

Leadership

IT Financial

Management

IT Service and

Sourcing

Strategy

IT Innovation

Management

IT Security

Management

Configuration

Management

Change

Management

Continuity and

Availability

Management

Capacity

Management

Service Level

Management

Release

Management

Service

Catalog

Management

Takeover and Management

OperationsCo-ordination and Risk

Management

Support Function

Incident

Management

Service Request

Management

Problem Management

Facilities and Device Management

Monitoring and

Alerting

Solution Design, Development, Implementation

and Integration

Infrastructure and Communications

Implementation

Transition to

Production

Analysis Design Realisation Test

Service and Solution Support

Analysis Design Realisation Test

Service and Solution Support

Generic Structure Of An IT Function

January 27, 2014 27

Business

Readiness and

Organisation

Change

Infrastructure,

Networks

Management

Data,

Information,

Knowledge

Management

Page 28: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Generic Structure Of An IT Function

• Generalised and idealised view of the structure, organisation and set of logical sub-functions within an IT function

• Organisational view rather than capability view− Capabilities must reside in organisation functions

• Actual optimum implementation depends on the size and profile ofthe organisation

• Not all sub-functions relevant to all organisations

• Not all sub-functions have the same importance for all organisations

• Not all sub-functions are at the same level of operational effectiveness for all organisations

• Logical sub-functions can be combined or split further

• A model that explicitly includes proactive linkage to the business and the delivery of business requirements

January 27, 2014 28

Page 29: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Matching Key IT Skills and Capabilities To Organisation Functions

����

����

����

����

����

����

����

����

����

����

����

����

����

����

����

����

����

IT Management

����

����

����

����

����

����

����

Service and

Solution Delivery

Capability IT Governance

Business Relationship

and Engagement

Service Operations

Service Lifecycle

Management

IT Leadership and Governance ����

Strategic and Business Planning ���� ����

Demand and Supply Management, Capacity Forecasting and Planning

���� ����

Sourcing and Supplier Management, Acquisition, Procurement

����

Innovation ����

Accounting, Funding, Financing, Budgeting and Planning ���� ���� ���� ����

Programme Management, Portfolio Management, Project ManagementRelationship Management and Business Engagement ���� ����

Organisation Design and Planning ���� ����

Enterprise Architecture ����

Infrastructure, Networks and Communications

Business and Process Analysis and Design ����

Solution Architecture and Design ����

Benefits Assessment and Realisation ���� ����

Service Provisioning, Service Delivery and Service Management

���� ����

Testing ����

Security, Continuity and Disaster Recovery ���� ����

Solution Development and Delivery

People Asset Management ���� ����

Data, Information, Knowledge Asset Management ���� ����

User Experience Design ����

Change and Change Management ���� ���� ����

January 27, 2014 29

Page 30: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

IT Governance

Business

Relationship

and

Engagement

Service Lifecycle Management

Service and Solution Delivery Service Operations

IT Management

Transition to

Production

Sub-Function Importance To Organisation

27 January 2014 30

Configuration

Management

Change

Management

Continuity and

Availability

Management

Capacity

Management

Service Level

Management

Release

Management

Service

Catalog

Management

Business

Relationship

Management

Business

Analysis and

Consulting

Solution

Architecture

Demand

Management

Business

Readiness and

Organisation

Change

IT Strategy

IT Enterprise

Architecture

management

IT Governance

and

Leadership

IT Financial

Management

IT Service and

Sourcing

Strategy

IT Innovation

Management

IT Security

Management

Program and

Project

Management

IT Process and

Quality

Management

IT Resource

Management

Asset and

License

Management

Technology

Selection and

Management

Acquisition,

Sourcing and

Supplier

Management

Test

Management

Service

Planning

Operations

Management

Infrastructure,

Networks

Management

Data,

Information,

Knowledge

Management

Takeover and Management

OperationsCo-ordination and Risk

Management

Support Function

Problem Management

Facilities and Device Management

Incident

Management

Service Request

Management

Monitoring and

Alerting

Solution Design, Development, Implementation

and Integration

Infrastructure and Communications

Implementation

Service and Solution Support

Service and Solution Support

Analysis Design Realisation Test

Analysis Design Realisation Test

Page 31: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

View Of Importance Of Sub-Functions

= Very Important

= Important

= Less Important

• Use this as a view of what areas you to prioritise getting better at

January 27, 2014 31

Page 32: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

External IT and Business Alignment

IT GovernanceBusiness

Relationship

and

Engagement

Service Lifecycle Management

Service and Solution Delivery Service Operations

IT Management

Business-facing sub-functions

January 27, 2014 32

Page 33: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Internal IT and Business Alignment

IT GovernanceBusiness

Relationship

and

Engagement

Service Lifecycle Management

Service and Solution Delivery Service Operations

IT Management

Business-facing sub-functions

mediate between

business and technology and service delivery and operation

January 27, 2014 33

Page 34: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

IT Function Structure And Alignment

IT GovernanceBusiness

Relationship

and

Engagement

Service Lifecycle Management

Service and Solution Delivery Service Operations

IT Management

Alignment is not just about being

aligned at the Business

Relationship and Engagement and

IT Governance levels

Alignment means following

through throughout the

IT function

January 27, 2014 34

Page 35: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

IT Function Structure And Alignment

• Real IT and business alignment needs to pervade the entire IT function

• IT must embed business alignment in the way it operates to ensure it remains relevant to the business

• Otherwise the business will bypass IT and go straight to suppliers and service providers

• Disintermediation of IT is central to the business plans of many internet-based service providers

• Failure to systematise alignment will expose IT to the danger of becoming irrelevant

Page 36: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

IT Governance Sub-Functions

January 27, 2014 36

IT Governance

IT Strategy

IT Enterprise

Architecture

management

IT

Governance

and

Leadership

IT Financial

Management

IT Service and

Sourcing

Strategy

IT Innovation

Management

IT Security

Management

Defines strategy for IT function for both the IT function and how IT delivers on the overall business strategy

Manages the definition and maintenance of overall enterprise IT architecture including systems and application standards and operational framework

Implements IT governance and maintains leadership of the IT function

Manages the process for defining how services and solutions should be acquired and managed

Manages IT application and infrastructure security standards

Manages the process for bringing new ideas to an appropriate implementation to generate value

Manages the IT budget, finances, financial reporting and control standards, cost-benefit analysis

Page 37: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Business Relationship and Engagement Sub-Functions

27 January 2014 37

Business

Relationship

and

Engagement

Business

Relationship

Management

Business

Analysis and

Consulting

Solution

Architecture

Demand

Management

Manages the relationship with the business and escalations , the identification of work, helps the business navigate IT processes and acts as the voice of the business to IT

Offers business analysis and consulting services to translate business needs into a structured set of requirements to enable the business understand its needs

Defines business-oriented solutions based on structured business requirements that comply with IT delivery and operational standards

Manages the demand from the business for resources and ensures the business can accommodate the associated change

Business

Readiness and

Organisation

Change

Ensures the organisation is ready and able to accept the changes required of new or changed application

Page 38: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

IT Management Sub-Functions

27 January 2014 38

Manages the IT operation

Plans for the introduction of new services

Manages data, defines data

standards

Manages IT infrastructure

Manages delivery of programs and projects, manages standards and ensures consistency

Ensures quality of IT processes

Manages IT people resources, induction, training, development, standards

Manages IT assets and software licenses

IT Management

Program and

Project

Management

IT Process and

Quality

Management

IT Resource

Management

Asset and

License

Management

Technology

Selection and

Management

Acquisition,

Sourcing and

Supplier

Management

Test

Management

Service

Planning

Operations

Management

Infrastructure,

Networks

Management

Data,

Information,

Knowledge

Management

Manages process for selecting suitable technologies

Manages and implements service and supplier acquisition

Manages testing

Page 39: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Service Lifecycle Management Sub-Functions

27 January 2014 39

Service Lifecycle Management

Configuration

Management

Change

Management

Continuity and

Availability

Management

Capacity

Management

Service Level

Management

Release

Management

Service

Catalog

Management

Ensures capacity of IT assets

Manages and implements release to production process

Implements and manages network of service level agreements

Manages business continuity, disaster recovery and system and application availability

Manages catalog of IT services

Manages configuration of installed assets

Manages the delivery of change

Page 40: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Service and Solution Delivery Sub-Functions

27 January 2014 40

Service and Solution Delivery

Solution Design, Development,

Implementation and Integration

Infrastructure and Communications

Implementation

Transition

to

Production

Analysis Design Realisation Test

Service and Solution Support

Analysis Design Realisation Test

Service and Solution Support

Transitions new systems and changes to production and manages handover to support, ensures new systems are operable and supportable

Implements support

arrangements for new services and

solutions

Designs, develops and implements new solutions and changes and ensures integration with existing systems

Designs, develops and implements IT infrastructure and communications networks

Page 41: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Service Operations Sub-Functions

27 January 2014 41

Service Operations

Takeover and Management

OperationsCo-ordination and Risk

Management

Support Function

Incident

Management

Service Request

Management

Problem Management

Facilities and Device Management

Monitoring and

Alerting

Operates application and infrastructure support function and processes

Manages and operates IT infrastructure, equipment

and communications network

Takes over the support and operation of new systems and applications, implements support arrangements

Resolves recurring problems to improve support efficiency

Page 42: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

IT Governance

Business

Relationship

and

Engagement

Service Lifecycle Management

Service and Solution Delivery Service Operations

IT Management

Business

Relationship

Management

Business

Analysis and

Consulting

Solution

Architecture

Demand

Management

Program and

Project

Management

IT Process and

Quality

Management

IT Resource

Management

Asset and

License

Management

Technology

Selection and

Management

Acquisition,

Sourcing and

Supplier

Management

Test

Management

Service

Planning

Operations

Management

IT Strategy

IT Enterprise

Architecture

management

IT Governance

and

Leadership

IT Financial

Management

IT Service and

Sourcing

Strategy

IT Innovation

Management

IT Security

Management

Configuration

Management

Change

Management

Continuity and

Availability

Management

Capacity

Management

Service Level

Management

Release

Management

Service

Catalog

Management

Takeover and Management

OperationsCo-ordination and Risk

Management

Support Function

Incident

Management

Service Request

Management

Problem Management

Facilities and Device Management

Monitoring and

Alerting

Solution Design, Development, Implementation

and Integration

Infrastructure and Communications

Implementation

Transition to

Production

Analysis Design Realisation Test

Service and Solution Support

Analysis Design Realisation Test

Service and Solution Support

View Of Status Of Sub-Functions

January 27, 2014 42

Business

Readiness and

Organisation

Change

Infrastructure,

Networks

Management

Data,

Information,

Knowledge

Management

Page 43: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

View Of Status Of Sub-Functions

= Fully Implemented and Operational

= Partially Implemented and Operational

= Not Implemented and Operational

• Use this as a view of what areas you need to get better at

• Match with importance to identify high priority functions to address first

January 27, 2014 43

Page 44: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

IT Governance

Business

Relationship

and

Engagement

Service Lifecycle Management

Service and Solution Delivery Service Operations

IT Management

Business

Relationship

Management

Business

Analysis and

Consulting

Solution

Architecture

Demand

Management

Program and

Project

Management

IT Process and

Quality

Management

IT Resource

Management

Asset and

License

Management

Technology

Selection and

Management

Acquisition,

Sourcing and

Supplier

Management

Test

Management

Service

Planning

Operations

Management

IT Strategy

IT Enterprise

Architecture

management

IT Governance

and

Leadership

IT Financial

Management

IT Service and

Sourcing

Strategy

IT Innovation

Management

IT Security

Management

Configuration

Management

Change

Management

Continuity and

Availability

Management

Capacity

Management

Service Level

Management

Release

Management

Service

Catalog

Management

Takeover and Management

OperationsCo-ordination and Risk

Management

Support Function

Incident

Management

Service Request

Management

Problem Management

Facilities and Device Management

Monitoring and

Alerting

Solution Design, Development, Implementation

and Integration

Infrastructure and Communications

Implementation

Transition to

Production

Analysis Design Realisation Test

Service and Solution Support

Analysis Design Realisation Test

Service and Solution Support

Sample View - What IT Is Good At

January 27, 2014 44

Business

Readiness and

Organisation

Change

Infrastructure,

Networks

Management

Data,

Information,

Knowledge

Management

Page 45: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

IT Governance

Business

Relationship

and

Engagement

Service Lifecycle Management

Service and Solution Delivery Service Operations

IT Management

Business

Relationship

Management

Business

Analysis and

Consulting

Solution

Architecture

Demand

Management

Program and

Project

Management

IT Process and

Quality

Management

IT Resource

Management

Asset and

License

Management

Technology

Selection and

Management

Acquisition,

Sourcing and

Supplier

Management

Test

Management

Service

Planning

Operations

Management

IT Strategy

IT Enterprise

Architecture

management

IT Governance

and

Leadership

IT Financial

Management

IT Service and

Sourcing

Strategy

IT Innovation

Management

IT Security

Management

Configuration

Management

Change

Management

Continuity and

Availability

Management

Capacity

Management

Service Level

Management

Release

Management

Service

Catalog

Management

Takeover and Management

OperationsCo-ordination and Risk

Management

Support Function

Incident

Management

Service Request

Management

Problem Management

Facilities and Device Management

Monitoring and

Alerting

Solution Design, Development, Implementation

and Integration

Infrastructure and Communications

Implementation

Transition to

Production

Analysis Design Realisation Test

Service and Solution Support

Analysis Design Realisation Test

Service and Solution Support

Sample View - What IT Is Average At

January 27, 2014 45

Business

Readiness and

Organisation

Change

Infrastructure,

Networks

Management

Data,

Information,

Knowledge

Management

Page 46: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

IT Governance

Business

Relationship

and

Engagement

Service Lifecycle Management

Service and Solution Delivery Service Operations

IT Management

Business

Relationship

Management

Business

Analysis and

Consulting

Solution

Architecture

Demand

Management

Program and

Project

Management

IT Process and

Quality

Management

IT Resource

Management

Asset and

License

Management

Technology

Selection and

Management

Acquisition,

Sourcing and

Supplier

Management

Test

Management

Service

Planning

Operations

Management

IT Strategy

IT Enterprise

Architecture

management

IT Governance

and

Leadership

IT Financial

Management

IT Service and

Sourcing

Strategy

IT Innovation

Management

IT Security

Management

Configuration

Management

Change

Management

Continuity and

Availability

Management

Capacity

Management

Service Level

Management

Release

Management

Service

Catalog

Management

Takeover and Management

OperationsCo-ordination and Risk

Management

Support Function

Incident

Management

Service Request

Management

Problem Management

Facilities and Device Management

Monitoring and

Alerting

Solution Design, Development, Implementation

and Integration

Infrastructure and Communications

Implementation

Transition to

Production

Analysis Design Realisation Test

Service and Solution Support

Analysis Design Realisation Test

Service and Solution Support

Sample View - What IT Is Poor At

January 27, 2014 46

Business

Readiness and

Organisation

Change

Infrastructure,

Networks

Management

Data,

Information,

Knowledge

Management

Page 47: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

Summary

• Low confidence in IT by business stills exists

• IT delivery of what the business wants is poor

• IT does not explain itself well

• Business can have unrealistic expectations

• IT needs to structure itself for business alignment and delivery

• Real IT and business alignment needs to pervade the entire IT function

• IT must embed business alignment in the way it operates to ensure it remains relevant to the business

• Otherwise the business will bypass IT and go straight to suppliers and service providers

• Disintermediation of IT is central to the business plans of many internet-based service providers

• Failure to systematise alignment will expose IT to the danger of becoming irrelevant

January 27, 2014 47

Page 48: Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

January 27, 2014 48

More Information

Alan McSweeney

http://ie.linkedin.com/in/alanmcsweeney