CIO Information session October 20, 2004

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CIO Information session October 20, 2004

  1. 1. CIO Information session October 20, 2004
  2. 2. State of Iowa Centralization Impact Assessment “Developing a Responsive and Agile Organization”
  3. 3. What are the Information Session Objectives Session Objectives: • Provide an update to the CIO Council with the latest Assessment status, models and thinking • Offer an Opportunity to Provide Feedback into the process (Wes as the focus ~ wes.hunsberger@iowa.gov) CIO Council role: • Gain engagement perspectives • Provide feedback Outcomes and Next Steps: – Receive CIO Council and AFSCME input by Oct 27th – Consolidate appropriate information into recommendations – Final Draft results to EIP Committee Nov 5th – Final Report and Recommendations December 1st – Legislative Session Review Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  4. 4. Introduction and Agenda • Current Project Status • Organizational Trends • Process Recommendations Updated • Process Model Review • Organizational Model Review • Provide input by Oct 27th • Next Steps Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  5. 5. What are the Objectives of House File 534 • How can investments in technology add Maximum Value to the State? • How can we increase cost effectiveness on a statewide basis? • How can we provide a greater focus on the core mission of the State? • How can we effectively manage Scarce Resources and improve service delivery? Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  6. 6. Assessment Roadmap • What We found • How we analyzed the findings • Resulting in specific conclusions for Iowa Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  7. 7. Major Methods & Tools Utilized
  8. 8. Assessment Methods and Process • What did we look at – Business Architecture – Information Architecture – Relationship Architecture • How did we find it – Critical Success Factor Interviews (CSF’s) – Value Perception Survey – Operational Maturity Assessment (CoBIT, ITIL and IT Standards Org) – Financial Perspectives (Research, Document reviews, surveys) – Coeur Research and benchmarks • How did we analyze the information – Proven Methods – Models – Tools • Statistical analysis • Empirical evidence • Factual evidence • Observational aspects Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  9. 9. Value Perceptions
  10. 10. What is The Value of Information Technology? Firm Grasp of IT Business Value Position Role and Use of IT within Business Business Respond to Competitive Technology Opportunities or Threats Time Critical Deployment of IT Develop and Maintain Competitive IT Capability Continual IT Business Alignment Establish and Align Expectations for IT Reskill IT Personnel to be Business Literate Leadership Establish and Maintain IT Processes Promote and Drive IT Value Initiatives Manage Change and Culture Issues Measure and Communicate Value of IT Deploy and Maintain Applications Establish Stable and Reliable Operations Deploy & Maintain Infrastructure Technology Establish and Maintain Sourcing Strategies Manage Technology Obsolescence Manage Critical Risks Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  11. 11. Management Perceptions of IT Value Value of IT Assessment Business No Yes Rating L M H 1 2 3 4 5 Executive Views & Perceptions Firm Grasp of IT Business Value • Does IT play a meaningful role in the overall capability of the Score Department? (1= no, 5-yes) 5 • Is the value of responsive and relevant information readily understood by IT? (1=no at all, 2=somewhat, 3=50/50, 4= increasing value, 5 5=highly valued) • Does the Department understand the value that Information Technology IT and ITE Views and can/should contribute? (1= no, 5-yes) Position Role and Use of IT within Business 5 Score Perceptions • How is the role of IT seen within the Department? (1= pure cost overhead, 2= some value/mostly cost, 3=about the same, 4= mostly value/some cost, 5= value add) 5 • How frequently do the Department users offer ideas, suggestions or plans to create value from Information Technology? (1= seldom, 5 2=sometimes, 3=average, 4= quite often, 5=it seems like all of the time) • Does the IT function actively encourage new solutions that use Information Technology to meet the business goals? (1= not Gap Analysis encouraged, 5=strongly encouraged) Respond to Business Technology Opportunities or Threats 5 Score • Has your Department ever gained a significant business advantage from something it did with Information Technology? (1=don’t know, 2= no, 5 3= on occasion 4= often 5= very often) • Does the Department R&D function actively explore how to use “Best Actions to Best Information Technology? (1=no R&D, 2=very little, 3=somewhat, 4=strategic initiatives only, 5= yes) 5 Practices” Defined an Immediate Business Value Agenda Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  12. 12. Agility and Organization Effectiveness Perceptions Sub- Inadequate standard Standard Best Exceptional Scorecard Item Practice Practice Practice Practice Practice ITD Business Alignment and Relationship Management 1 2 3 4 5 Executive= ITE= Firm Grasp of IT Business Value • Does IT play a meaningful role in the overall capability of the Department? (1= no, 5-yes) 1 2 3 4 5 • Is the value of responsive and relevant information readily understood by IT? (1=no at all, 2=somewhat, 3=50/50, 4= increasing value, 5=highly valued) 1 2 3 4 5 • Does the Department understand the value that Information Technology can/should contribute? (1= no, 5-yes) 1 2 3 4 5 Position Role and Use of IT within Business • How is the role of IT seen within the Department? (1= pure cost overhead, 2= some value/mostly cost, 3=about the same, 4= mostly value/some cost, 5= value add) 1 2 3 4 5 • How frequently do the Department users offer ideas, suggestions or plans to create value from Information Technology? (1= seldom, 2=sometimes, 3=average, 4= quite often, 5=it seems like all of the time) 1 2 3 4 5 • Does the IT function actively encourage new solutions that use Information Technology to meet the business goals? (1= not encouraged, 5=strongly encouraged) 1 2 3 4 5 Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  13. 13. Top 10 Critical Gaps need to be addressed and closed • Project Management & Service Closing the Gaps With Departments Delivery • Require a Technology Architecture • Total Cost of Ownership • IT/Depart Align and Planning • Business Acumen & CRM Interaction • Sourcing Strategy & Supplier Mgt. • Reporting & Measurements of IT Value • Asset Inventory and Spend Analysis • Training and Learning Workforce • Business Recovery and Issue Mgt. Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  14. 14. Operational Maturity Operations Master
  15. 15. Operational Capability & Maturity Levels • Based on COBIT (Control Efficiency and Effectiveness Patterns Objectives for IT) • 8 Operational Best Practice Areas • 318 Control Categories • Scoring based on an extrapolation of self assessment • Develops Maturity Levels and Operational Capability scores Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  16. 16. COBIT Model: Four Domains and Control Objectives Business Objectives Business Objectives PO1Define a strategic IT plan PO2 Define the information architecture PO3 Determine the technological direction PO4 Define the IT organization and relationships M1 Monitor the processes COBIT PO5 Manage the IT investment PO6 Communicate management aims and direction PO7 Manage human resources M2 Assess internal control adequacy M3 Obtain independent assurance PO8 Ensure compliance with external requirements M4 Provide for independent audit Information Information PO9 Assess risks •• Effectiveness •• Availability Effectiveness Availability PO10 Manage projects •• Efficiency Efficiency •• Compliance Compliance PO11 Manage quality •• Confidentiality •• Reliability Confidentiality Reliability •• Integrity Integrity Monitoring Monitoring IT Resources IT Resources Planning & Planning & •• People People •• Application Systems Organization Organization Application Systems DS1 Define service levels •• Technology Technology DS2 Manage third-party services •• Facilities Facilities DS3 Manage performance and capacity •• Data Data DS4 Ensure continuous service DS5 Ensure systems security DS6 Identify and Delivery & Support Acquisition & Acquisition & Delivery & Support Implementation Implementation attribute costs DS7 Educate and train users DS8 Assist and advise IT customers AI1 Identify solutions DS9 Manage the configuration AI2 Acquire and maintain application software DS10 Manage problems and incidents AI3 Acquire and maintain technology architecture DS11 Manage data AI4 Develop and maintain IT procedures DS12 Manage facilities AI5 Install and accredit systems DS13 Manage operations AI6 Manage changes Source: ISACA Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  17. 17. Operational Maturity Levels Inadequate 1 2 3 4 5 Exceptional Ad Hoc Strategy Planning Strategic Planning Low level of Formal documentation and Administrative documentation and auditing controls Hiring, training, and Informal HR Human Resource compensation procedures planning Network Proactive network Management by Production Services planning and exception monitoring No formal policies Formal architecture and procedures End User Computing strategy Highly involved Inadequate business acumen User IT Interface business/IT alignment Multiple, Widely Single, Coordinated, Distributed, Left Communications Systems Planned to Evolve Ad hoc purchasing Sourcing strategy decisions Sourcing and architecture Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  18. 18. Strategy Formulation & Planning 1 2 3 4 5 Key Observations: Strategy Planning A Statewide Strategy and Planning process Business Alignment is not evident. Strategy Implication: Without a Statewide IT Strategic Planning process, there will be a high potential for misalignment to the Governor’s vision and, most importantly, Departmental and Constituent expectations. Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  19. 19. Strategy Formulation & Planning Strategy Formulation & Planning MANAGEMENT COMMITTEES/PLANNING PLAN DEVELOPMENT PLANNING PROCESS STRATEGY FORMULATION BASELINE PLANNING BUSINESS LINKAGE/OPPORTUNITY EVAL. 0 10 20 30 40 50 60 70 80 90 100 Effective Attempted Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  20. 20. Human User and IT Communications Strategy Formulation Administrative Production Services EUC Management Department Resources Interface System Sourcing and Planning Management Management Practices Management Management Management Large 46.27 70.18 58.13 63.03 55.79 46.32 58.27 49.68 Operational Maturity Comparison 72.48 33.47 71.78 24.46 56.73 26.41 64.31 26.42 73.31 29.99 67.40 26.61 64.52 26.42 60.23 18.82 98.83 100.00 96.75 96.42 98.92 100.00 90.14 100.00 36.20 64.26 56.34 34.35 32.35 25.74 27.98 46.20 70.59 70.14 55.40 73.77 58.10 58.98 80.94 64.51 59.50 76.21 54.93 77.58 66.06 68.54 64.95 59.56 90.36 95.88 87.79 88.29 87.98 90.40 95.60 84.69 Medium 63.23 75.28 41.92 50.11 60.53 67.45 59.10 37.54 12.53 15.12 11.26 12.65 20.94 14.30 13.66 11.24 41.96 49.48 45.10 65.34 72.61 43.69 45.46 27.25 86.22 91.99 83.62 62.43 83.46 87.40 65.34 79.26 40.40 52.89 61.37 63.83 59.22 21.87 51.51 68.26 42.61 25.43 9.49 12.56 2.30 7.78 33.60 24.69 33.43 67.91 44.68 38.75 48.30 44.13 32.81 32.18 83.27 69.64 67.41 63.47 69.37 66.00 55.33 59.29 8.68 21.18 5.00 10.30 15.79 0.00 18.61 0.00 31.68 33.69 24.34 30.26 45.12 32.31 28.30 20.53 Small 20.88 32.44 37.16 30.49 54.53 36.64 50.66 13.81 17.61 15.53 20.02 20.39 18.83 8.96 8.33 0.00 14.69 23.07 18.10 20.62 12.09 5.35 5.57 0.00 32.65 44.25 29.96 21.22 22.64 5.98 25.41 13.82 34.05 39.05 25.07 27.94 39.09 31.90 39.72 34.65 100.00 100.00 81.58 61.86 88.00 88.00 19.56 0.00 32.00 34.22 20.23 31.18 27.74 31.53 21.02 2.44 6.84 13.10 20.46 15.89 17.89 0.37 2.77 0.00 37.36 69.17 28.88 21.92 40.28 0.00 0.00 15.02 23.11 75.44 28.92 39.55 61.93 25.32 14.65 26.99 4.60 12.84 0.98 4.73 9.58 0.00 4.44 0.00 21.69 52.48 19.59 22.07 37.26 8.44 6.36 14.00 Iowa EIP Assessment :: EIP 10.15.04 Final © 2004 Coeur Business Group, St. Louis MO – USA :: coeurgroup.com :: All materials are confidential and proprietary.
  21. 21. Multi Dimensional Analysis Business/IT Alignment examines the overall business strategy, executive commitment, business case for the initiative, the IT strategy, and the current state of business and IT alignment. Business/IT Business/IT Governance and Control Alignment Alignment considers two key elements: Governance – the tools and techniques used to prioritize initiatives and allocate resources Service Service Governance across the enterprise, and Control – the tools and techniques Delivery & Delivery & Value Governance Risk & Control used to manage and control the program initiative. Operations Operations & Control Human Capital Management examines organizational and personnel considerations, including organization structures, culture, readiness, training, Technology, Culture Human and alignment of roles, responsibilities, and incentives with Technology, Human Tools, and Tools, and Capital Capital objectives. Process Process Management Management Technology and Tools examines the technology solution: enterprise architecture, information architecture, technical architecture and infrastructure, application architecture, behavioral characteristics, and tools and standards for application delivery. An Analysis of the Critical Service Delivery and Operations Factors Effecting the examines the tools and processes installed to support ongoing EIP Assessment Areas operations. Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  22. 22. Evaluation Elements Requiring Organizational Improvements Business/IT Business/IT • Strategy, Vision & Goals • Executive Commitment/CSFs Alignment • Business Case and Risk • Business/IT Relationship Alignment • Business Processes & Reqts • Communication Plans • Governance Model • Program Mgmt Governance & Governance & • Information Policy • Budget & Resource Mgmt Control Control • Methodologies • Statement of Work • Organization Structure • Training Human Capital Human Capital • Organizational Readiness • Knowledge Transfer Management Management • Functional Competencies • Architectures and Standards • Application Delivery Technology, Technology, • Process/Tool Mapping • Infrastructure Engineering Tools, && Process Tools, Process • Product Viability • Behavioral Characteristics • Enterprise Systems Mgmt • Sourcing/Vendor Mgmt Service Delivery Service Delivery • Service Level Mgmt • Contracts & Operations & Operations Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  23. 23. Prioritization and Value Categorization Technology Investment Portfolio Discretionary Projects TTB Venture The IT Organization As a Whole Value/Timing Has Inadequate Processes to Define, Growth Risks Track and Manage the Budget GTB Process in a Standardized Fashion. Discretionary Enhancements Risk Non- Costs Nondiscretionary Discretionary Core RTB Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  24. 24. Iowa Fund Structure State of Iowa Governmental Proprietary Funds Component Units Fiduciary Funds Funds Finance General Funds Enterprise Funds Internal Service Pension Trust Funds Authority Tobacco Tax-Exempt Workmen’s Higher Education Private Bond Proceeds University Funds Compensation Loan Authority Purpose Funds Unemployment Material & Ag Development Non-Major Equipment Revolving Agency Funds Benefits Authority Special Revenue Tobacco Depreciation State Fair Funds Settlement Authority Revolving Authority Capital Projects Non-Major Innovations Funds Permanent ICN Other Funds Lottery State Prison Industries Liquor Control Act Other Primary Revenue Sources Primary Expenses Revenue Sources •Taxes $4.9B •Human Services $3.4B •Charges for •Education $2.6B Service $0.09B •Receipts From •Personal Services $1.5B •Contributions 0.05B Other Entities $3.6B •Admin & Reg $1.2B Total $0.14B •Charges for •Transportation $1.0B Service $3.1B •State Aid to Univ $0.7B Expenses •Other $2.0B •Justice & Pub Dfns $0.6B •Direct •State Aid & Credits $0.4B Expenses $0.06B Total •Other $2.0B $13.5B Total Chg in Net $13.4B Assets $0.08B Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  25. 25. Executive Vision and Business Drivers
  26. 26. Common Vision Requirements for Information Technology Departments’ View of What They Value Fulfilling Commit- Reliability ments Responsive Compe- and tence Tangible Accessible Functionality Improves My Delivered Communi- cation Business Cost- Ease of Competitive- Doing ness Business Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  27. 27. Departmental Interview Results Iowa Common Business Drivers 1. Security 4. Cost Management 1. User access 1. Effectiveness/Efficiencies 2. Homeland Security 2. Avoidance 3. Intrusion Detection 5. Service Delivery 2. Data Management 1. Problem Management 1. Integrity 2. Change Management 2. Accessibility 3. Service Level Agreements 3. Storage 6. Business/Constituent 3. Regulatory Alignment 1. Compliance 1. Funding Process 2. Federal /State Programs 2. Constituency Alignment 3. Strategic Focus Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  28. 28. Of Note • Over 500 Technology Based Vendors Statewide • Nearly 400 Technology Based Vendors for the EIP Study • 80% of IT Vendor Spend Is With 30 Vendors • Vendors Not Being Managed to Performance Metrics • Vendor Relationships Are Not Being Leveraged Across Departments • Projected Significant Savings Potential Over Three Year Life Cycle With Proper Vendor Management Practices in Place Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  29. 29. First Strikes in Consolidation
  30. 30. Top Consolidation Program Winners • Governance Process ( control investments to standards) • Vendor Performance Management (value based contracts) • Data Center Consolidation (backup and disaster recovery) • Common Statewide Infrastructure • Network Consolidation • Application Consolidation Initiative (full inventory first) • Telecommunications Utility (utilize statewide) • Desktop Life cycle (spend to standards, cascade) • Procurement Processes (commodity buys, web buy type) • Defined Architecture for Project Procurements Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  31. 31. Process and Cost Impacts
  32. 32. 2003 IT Spending Per Employee $30,000 Iowa IT Spending= $126.8M Total Employees= 18,018 $25,000 $20,000 $15,000 $11,319 $10,000 $7,037 $5,000 $0 = Peer Group Range = Peer Group Average Weighted Blend = 50%Median = Iowa Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  33. 33. Percent of Employees Dedicated to IT 9.00% Iowa Total Employees= 18,018 8.00% IT Employees= 676 7.00% 6.00% 5.00% 4.66% 4.00% 3.75% 3.00% 2.00% 1.00% = Peer Group Range = Peer Group Average 0.00% = 50%Median Weighted Blend = Iowa Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  34. 34. 2003 IT Spending Distribution of 2003 IT Spending Iowa Benchmark 40% 37% 37% 35% 32% 30% 25% 23% 22% 20% 18% 15% 15% 15% 10% 5% 0% Personnel Hdwe/Sfwe Outsourcing Other Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  35. 35. Organizational Trends
  36. 36. Forces That Are Reshaping State Government in Iowa at an Unprecedented Rate Technology Drivers Technology Drivers • •Need for Speed and Access Across Need for Speed and Access Across the State the State • •Unprecedented rates of technological Unprecedented rates of technological change (Techtonics) driving change (Techtonics) driving implementation costs implementation costs • Standardization back in vogue to drive Cultural Drivers • Standardization back in vogue to drive Cultural Drivers out costs out costs • •People skills mastery becoming the People skills mastery becoming the • Long Term Employees • Long Term Employees biggest resource constraint • Departmental Focus biggest resource constraint • Departmental Focus • •E-Government • •Compartmentalized but aa need to E-Government Compartmentalized but need to collaborate collaborate Business Drivers Business Drivers • •Regulatory/Compliance Regulatory/Compliance • •Data Management (Protection of Data Management (Protection of Data) Data) • •Secure Access to Information Secure Access to Information • •Cost Effectiveness Cost Effectiveness • •Service Delivery Value Service Delivery Value • •Business Alignment Business Alignment Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  37. 37. The Business Strategy Drives Implications for IT Across the Classic Dimensions Department Regulatory Data Cost Service & Security Business Compliance Management Control Delivery Alignment • Best Practice, high quality IT processes • Well defined & architected Process information flows • Meaningful metrics, tied to performance, clearly communicated Information State’s State’s Technology Strategy Strategy • Planned architecture • High performing production environment • Enabling culture • Appropriate investment in supporting • Appropriate skills tools and technologies • Planned career development • Aligned incentives & Organization Performance Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  38. 38. Organization Change Principles
  39. 39. 8 Guiding Principles for IT Reorganization/Centralization 1. Creating & enabling leadership at every level: Senior personnel must lead to clarify ambiguity, decide with imperfect information, achieve progress amid numerous distractions, build trust among strangers, and enhance team communication among individuals. 2. Becoming technically astute: Periodic experiments, prototypes, and speculative, analytical configurations test an organization's ability to detect vaporware (false IT products) and re-engineer systems. 3. Creating an information sharing culture: Senior IT staff members reinforce that complex solutions are best solved by collaborative performances. 4. Developing rapid learning: The pace of technology change and application requires constant and continual learning. 5. Encouraging and rewarding prudent risk-taking: Change is inherently risky; encourage sensible risk taking with the understanding that some failures are bound to occur. 6. Focusing on business relationship management: Although agile ITOs have cultures of awareness, learning, and information sharing, knowledgeable ITOs stay dynamically aligned with their lines of business (LOBs). CIOs recognize business's changing nature, appoint specialists (BRMs) to facilitate close business/IT relationships, 7. Gaining relentless execution: High-performance ITOs meet their financial, process, employee, operations, transition, portfolio, and risk commitments and expectations on time and on budget. 8. Having meaningful measures of work: Multivariable metrics (money, time, resource improvement, maturity, increased customer satisfaction, etc.) must be used to comprehensively capture and communicate progress and value. Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  40. 40. 7 Steps of Organization Change Responsible management seeks and recruits individuals that possess the Seek & skills which will enable accomplishment Staff of the objectives Skills are identified to Skills enable accomplishment Needed of the tasks specified Specific Tasks are identified Specific that will provide best Tasks accomplishment of the objectives •How can we effectively Structure is based on the Structure manage Scarce method desired for managing and Resources and improve accomplishing the objectives service delivery? Specific functions are defined ♦How can we provide a greater Specific focus on the core mission of the based on objectives Functions to be accomplished State? Specific Specific objectives are ♦How can we increase cost effectiveness Objectives prioritized and defined on a statewide basis? by timeframe Executives and CIO Set organizational ♦How can investments in technology add Strategy Strategy which lists Maximum Value to the State? Specific Objectives Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  41. 41. Process First
  42. 42. The Departmental Business Strategy Drives Implications for IT Across the Classic Dimensions Department Regulatory Data Cost Service & Security Business Compliance Management Control Delivery Alignment • Best Practice, high quality IT processes • Well defined & architected Process information flows • Meaningful metrics, tied to performance, clearly communicated Information State’s State’s Technology Strategy Strategy • Planned architecture • High performing production environment • Enabling culture • Appropriate investment in supporting • Appropriate skills tools and technologies • Planned career development • Collaborative and leveraged • Aligned incentives & Organization Performance • Innovative Culture Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  43. 43. Gain and Outside, Unbiased Assessment What Are The Objectives Of House File 534 • How Can Investments In Technology Add Maximum Value To The State? • How Can We Increase Cost Effectiveness On A Statewide Basis? • How Can We Provide A Greater Focus On The Core Mission Of The State? • How Can We Effectively Manage Scarce Resources And Improve Service Delivery? Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  44. 44. Process Recommendations Initiate A Statewide Investment Governance Process And Structure (Technology investment decisions based on business drivers in support of customer requirements) Develop A Statewide Architecture Strategy (Drives technology and infrastructure standards and aids in establishment of a statewide information policy) Develop A Sourcing Strategy (A sourcing strategy defines vendor partnering relationships based on product and services as well as performance measures and denotes changes in procurement processes to drive critical efficiencies for dealing with suppliers and purchase of standards including spend audit and control) Develop A Program Management Office (Provides for successful management of mission critical projects and initiatives from an enterprise perspective. Develops a standard project management approach to maximize the use of subject matter expertise across the enterprise) Create A Customer Relationship Management Focus (Create and implement an effective customer relationship model to ensure departmental and technology alignment) Develop Process Controls To Increase Workforce Skills And Utilization Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  45. 45. Process Model Review Investment Governance Model Enterprise Architecture Model Client Relationship Model
  46. 46. IT Governance Model IT Governance Model Enterprise-wide IT Governance Admin Intra-Dept Governance Process Executive IT Governance Board Support Committee (Business Owners) Dept Executive Project Approve/Reject Management Steering Proposals Approve/ EPfMO Proposals Dept Reject Business Process Owners (Business or Prioritized Dept Product and IT Info. Initiatives Operations) Service Owners Policy Alternatives Business Business Requests Info. Requests and Costs Case/ Request Policy Benefits Application Developers IT IT Relationship User Services Requests Managers Project and Task Infrastructure Support Support Requests Force Approved IT Projects Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  47. 47. Enterprise Architecture Development Model Environment, Business and Technology Trends Common Requirements Vision Business Define/ Define/ Define/ Define/ Department Business Drivers Visioning Refine Refine Refine Refine EBA EIA EWTA EAP ∆? Enterprise ∆? Enterprise ∆? Enterprise Wide ∆? Enterprise Business Information Technology Application Architecture Architecture Architecture Portfolio Gap Document Current Assets Analysis Business Projects Information Projects Application Projects EPfMO Technology Projects Migration Implementation Planning Planning Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  48. 48. Customer Relationship Model Customer Life Cycle Engage Service Cust. Transact Pattern Fulfill Customer-Related CRM Technology Business Processes “Ecosystem” Support Channels & “POI” Collaborative Analytical IT IT IT Sales Mktg. Service SLA (“Offerings”) Operational Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  49. 49. Value Sourcing Framework Roadmap Assessment & Planning Delivery & Reporting Dept #1 Dept #2 IT Business Drivers Value Sourcing Management Supplier Selection Spending Contract Negotiation & Management Procurement Sourcing Lifecycle and Practices Strategy Asset Management Deal Delivery & Measurement Procurement Governance Supplier Management Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  50. 50. Enterprise Governance Model & Key Relationships Steering Committee EPfMO Architecture Architecture Team Review Board PMO Coordination, not execution Project … Project … Project 1 Project 2 Project 1 Project 2 Project 1 Project 2 Domain Architecture Teams Business & Technical Iowa EIP :: 00CIO Info Session 10.20.04 MAPv2.ppt © 2004 Coeur Business Group, St. Louis MO – USA :: CoeurGroup.com :: All materials are confidential, WIP and proprietary.
  51. 51. Organization Structures

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