Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment
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Transcript of 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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Bringing The Gap Between IT And The Business
• Both business and IT must work to close the gap
January 27, 2014 18
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
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
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
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
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
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
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
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
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
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
Matching Key IT Skills and Capabilities To Organisation Functions
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IT Management
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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
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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
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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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
January 27, 2014 48
More Information
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney