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ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
ValueFlowIT: A new IT Operating Model Emerges
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ValueFlowIT: A new IT Operating Model Emerges

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ValueFlow IT has synthesised the old and the new of IT management frameworks into a multi-speed operating model. This accommodates the different pace layers (thanks Gartner) of the portfolio and …

ValueFlow IT has synthesised the old and the new of IT management frameworks into a multi-speed operating model. This accommodates the different pace layers (thanks Gartner) of the portfolio and tunes the IT organisational structures processes and tools.

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  • 1. Bridging the Old and the New Worlds of IT A New IT Operating Model Emerges David Favelle November 2013 All Slides Copyright © 2013 ValueFlowIT
  • 2. Current State of Play Business Competitive cadence increasing Proliferation of technology options Relentless cost pressures Technology Struggling to keep up Growing complexity Managing the old world and the new separately Missing opportunities… 2
  • 3. What are some leading companies doing about it? Adopting Continuous Delivery (thank you Thoughtworks) Building in resilience (thank you NetFlix) Relentlessly automating (Ummm….”we’re not worthy” ;-]) 3
  • 4. Maybe there is something different we should be doing in Enterprise IT … In 2013 and beyond, can we really afford these tradeoffs? Good news is… There are emerging ways of doing things Better, Faster AND Cheaper Today’s topics 1. 2. 3. 4. 5. 6. 7. 8. 9. LeanStartup Digital Strategy Framework Pace Layering DevOps Scaled Agile Service Design Thinking Social Business COBIT 5 Weaving this into an IT Operating Model 4
  • 5. The Minimum Viable Product Concept drives an Innovation “Fast Lane” A recent webinar with Eric Ries and friends: http://tinyurl.com/n7yjumu 5
  • 6. Digital Strategy Framework to Organise & Focus Digital Program People Innovation Client Engagement Client insights • • • Analytics based segmentation Socially informed knowledge Service experience enhancement • • • • Digitally enhanced selling Augment service offering Predictive marketing Streamlined customer processes Knowledge Management • • • Communities of practice Information leverage External communities & repositories • • • • Working anywhere anytime Right device for context Right information for context New digital tools • • • • Collaboration tools Engaging external expertise Cross boundary utilisation Coaching & QA Top line growth Client touch points • • • Customer service Cross channel coherence Self service • • Unified Data and Processes Analytics capability Business Model Operational Process Process Digitization Performance improvement New features New automation • • • • Operations Dashboards Periodical Scorecards Customer feedback Employee Feedback • • Worker Enablement • • • Digitally-Modified Business Operational transparency Data driven decision making Virtual teams • • • Product/Service augmentation Transitioning physical to digital Digital wrappers • • Digital products Reshaping organisational boundaries • • • Enterprise Integration Redistribution decision authority Shared digital services Digital Analytics New Digital Business Performance Management Digital Capabilities • • Digital globalisation Business and IT Integration Solution delivery Adapted from MIT Sloan Digital Strategy Framework: http://www.capgemini.com/resources/digital-transformation-a-roadmap-for-billiondollar-organizations
  • 7. A new way of looking at the portfolio… Facebook presence iPhone App Sentiment analysis service Open innovation submission box Product review service Droid App Recommendations engine The “Fast Lane” driven by market cadence and requiring a rapid release cycle System of Innovation Customer Service Processes & systems R&D and Product development Processes & systems Configurator System of Differentiation Customer Product Suppliers Orders The “Medium Lane” driven by business plans and ability to absorb Change into the business i.e. internal cadence The “Steady Lane” driven by major product upgrades and major business transformation System of Record Source: Gartner 2011 7
  • 8. DevOps: ITSM Fast Lane or “keeping up with Agile!” Organisations implementing DevOps have seen these Benefits: Improved quality of 63% software developments Development (Software Engineering) https://puppetlabs.com/2013-state-of-devops-infographic Improved visibility into IT process and requirements 61% 55% 55% More agile development 51% More agile change management process Technology Operations 63% More responsive to business need DevOps More frequent software releases Culture change collaboration/ cooperation Quality Assurance (QA) 45% Improved quality of code 38% 8
  • 9. Toward the Agile Enterprise 9
  • 10. Where the rubber meets the road! Dean Leffingwell http://www.youtube.com/watch?v=pCaroLfl__4 10
  • 11. http://thisisservicedesignthinking.com/ Service Design Thinking: Make it all about the end user…
  • 12. How does the Social Media shift impact IT Management? A move toward personal Digital & Social technologies drives up business and user expectations and capabilities for engaging IT Socially and for integration of Social in day to day business processes. IT has been slow to adopt social but could quickly adopt this new channel for an more integrated and real team user engagement
  • 13. COBIT 5: Integrated Management & Governance Models We now have guidance well understood by audit and compliance stakeholders on how to integrate governance and management across the full technology lifecycle http://www.isaca.org/COBIT/Pages/Product-Family.aspx Source: COBIT® 5, figure 15. © 2012 ISACA® All rights reserved. 13
  • 14. COBIT 5 Process Model: Speak the language of compliance The guidance extends down to practitioner level in all aspects of IT process, policy, roles and measures Source: COBIT® 5, figure 16. © 2012 ISACA® All rights reserved. 14
  • 15. Bringing it all together All of this non-proprietary (free!) thinking can be woven into a full lifecycle view that takes advantage of emerging frameworks and technologies Let’s call this the IT Operating Model 15
  • 16. Dimensions of an IT Operating Model The Operating Model for IT must incorporate many dimensions, in harmony as a “system” if IT is the deliver optimal value from the IT portfolio Business Engagement & Demand Service Lifecycle (Phases & Processes) Strategy, Architecture & Governance Organisational Design IT Operating Model Leadership & People Service Brokerage & Partner Integration Measurement & Improvement Automated Workflows, Controls & Reporting 16
  • 17. Integrating the Dimensions: ValueFlow IT Multi-Speed Operating Model™ Service Portfolio Service Pipeline 3 Service Portfolio speeds Business Demand Disruptive Innovations Business Line of Differentiation Business Strategy Corporate capabilities Transform Change Renewal Lifecycle Phases Innovation portfolio Business Unit Portfolios Enterprise Portfolios Concept Design Build Service Catalogue Transition Operate Improve Fast Lane Medium Lane Steady Lane Process Framework Organisational Structure IT Management platform & specialist tools Governance Controls 17
  • 18. Frameworks Across the ValueFlow IT Multi-Speed Operating Model™ Service Portfolio Service Pipeline Business Demand Disruptive Innovations Business Line of Differentiation Business Strategy Corporate capabilities Transform Change Renewal Innovation portfolio Concept Design Digital Strategy Open Innovation Build Transition Operate Scaled Agile DevOps Business Unit Portfolios Agile or SDLC Enterprise Portfolios SDLC or Agile Improve Lean 3 Service Portfolio speeds ITIL Lifecycle Phases Service Catalogue Process Framework Organisational Structure IT Management platform & specialist tools Governance Controls 18
  • 19. Process Framework Engage Strategise & Plan Govern IT Investment Management Strategy Generation Risk & Compliance Management Demand Management Service & Asset Portfolio Management Performance Management Relationship Management Architecture Management Operating Model Assurance Concept Design Build Experience Design Options Analysis Development Management ITSM Design Requirements Definition Workload Management Solution Design Innovation Management Quality Assurance Project/Programme Management Transition Release Management Change Management Configuration Management Testing Management Incident Management Operate IT Continuity Management Security Management Financial Management Request Fulfillment Event Management Availability Management Capacity Management Service Level Management Access Management Supplier Management Improve Problem Management Knowledge Management Service Reporting Asset Management Improvement Management 19
  • 20. Minimum Process System Engage Strategise, Plan & Manage Govern IT Investment Management Strategy Generation Risk & Compliance Management Demand Management Service & Asset Portfolio Management Portfolio Assurance Relationship Management Architecture Management Operating Model Assurance Concept Design Build Experience Design Options Analysis Development Management ITSM Design Requirements Definition Workload Management Solution Design Innovation Management Quality Assurance Project/Programme Management Transition Release Management Change Management Configuration Management Testing Management Incident Management Operate IT Continuity Management Security Management Financial Management Request Fulfillment Event Management Availability Management Capacity Management Service Level Management Access Management Supplier Management Improve Problem Management Knowledge Management Service Reporting Asset Management Improvement Management 20
  • 21. Tuning Operating Model for Multiple Speeds 1. 1. 2. 3. 2. 3. 5. Adapt controls to pace layers Integrate the pace layer approach into the architectural thinking Bring multi-speed roadmaps into the strategy Tune workflows Tune governance controls Design across the lifecycle phases 3. Automation 1. Automate as much as you can to ensure visibility and standardisation 4. 6. Align with process and compliance Build automation in concert with process and controls rather than after Organisation 1. 2. Multi-speed Processes 1. 2. 3. 4. What are the cadences? How can we organise by portfolio? Categorise by Pace layer and or risk Align Strategy, Architecture and Governance 1. 2. 3. 2. 3. Engage Business in Shaping demand Structure according to value, flow and risk Leadership is key in ensuring that the system is not “gamed” and that staff are fully supported in their efforts Don’t re-organise until you’ve figured out what problem you’re solving e.g. bottlenecks, focus Consider cross-functional and self organising teams to drive value and throughput Measurement: 1. 2. 3. 4. Throughput of each lane Bottlenecks/delays Customer satisfaction Costs and realisation of risk
  • 22. Key Takeaways 1. Better, faster, cheaper is possible. You can be “Cloud Like” 2. Take advantage of the eco-system of frameworks 3. A multi-speed approach is required to straddle the old and the new worlds 4. Your business context, cadence/rhythms, investment portfolios, sourcing models and current capabilities must drive how you go about it 22
  • 23. Which part of the IT Operating model would you like to explore in more detail ? Know with the flow… www.valueflowit.com.au @DaveFavelle, @ValueFlowIT info@ValueFlowIT.com.au 23

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