Gilbert Silvius on Business IT Alignment

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Contribution to the \'Dag van de ICT Manager\' (June 2008).

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Gilbert Silvius on Business IT Alignment

  1. 1. Does alignment matter? Feiten en fictie over de afstemming van ICT en Business Drs. A.J.Gilbert Silvius MBA Lector Hogeschool Utrecht en principal consultant Van Aetsveld
  2. 2. Gilbert Silvius Koninklijke Militaire Academie Fender Precision Bass 1963 Vlaardingen Koninklijke Landmacht Erasmus Universiteit 2 kinderen MBA Getronics Synergie Consultancy . Lector Business, ICT en Innovatie Projectmanagement Business ICT Alignment 2027 Katholieke Universiteit Leuven Ede PhD . . Utrechtse Ondernemers Academie Bedrijfseconomie Master of Informatics Aetsveld Afghanistan Master of Project Management
  3. 3. Lectoraat Business IT Innovatie Beroepspraktijk Wetenschap Onderwijs
  4. 4. Does alignment matter? <ul><li>Wat is Business ICT Alignment? </li></ul><ul><li>Problemen met BIA </li></ul><ul><li>BIA in de praktijk </li></ul><ul><li>BIA strategieën </li></ul><ul><li>Relatie Business strategie / IT strategie / BIA volwassenheid </li></ul>
  5. 6. 2004 <ul><li>De alignment belofte is niet waargemaakt! </li></ul><ul><li>Menno van Doorn & Jaap Bloem (Sogeti/VINT) </li></ul>
  6. 8. Business IT Alignment Business IT Alignment
  7. 9. Klare taal? <ul><li>Business IT Alignment </li></ul><ul><li>IT Governance </li></ul><ul><li>IT Planning </li></ul><ul><li>Information Planning </li></ul><ul><li>IT Service Management </li></ul><ul><li>IT Strategy </li></ul>
  8. 10. Alignment?
  9. 11. Alignment? <ul><li>‘ fit’ (Venkatraman, 1989) </li></ul><ul><li>‘ harmony’ (Luftman et al. 1993) </li></ul><ul><li>‘ integration’ (Weill and Broadbent 1998) </li></ul><ul><li>‘ linkage’ (Henderson and Venkatraman 1993) </li></ul><ul><li>‘ bridge’ (Ciborra 1997) </li></ul><ul><li>‘ fusion’ (Smaczny 2001) </li></ul>
  10. 12. Vragen <ul><li>Alignment: </li></ul><ul><ul><li>Proces of Toestand? </li></ul></ul><ul><ul><li>Weill and Broadbent (1998): ‘ Alignment is a journey, not an event ’ </li></ul></ul>
  11. 13. Vragen <ul><li>Alignment: </li></ul><ul><ul><li>Proces of Toestand? </li></ul></ul><ul><ul><li>Eenrichtingverkeer of wederzijdse beïnvloeding? </li></ul></ul>
  12. 14. <ul><li>Wieringa et al. (2005): </li></ul><ul><ul><li>‘ the problem of matching IT services with the requirements of the business’ </li></ul></ul><ul><li>Poels (2006): </li></ul><ul><ul><li>Alignment implies a ‘mutual influence’ between business and IT. </li></ul></ul>
  13. 15. Het Strategic Alignment Framework <ul><li>Vier afstemmingsperspectieven: </li></ul><ul><li>Strategierealisatie </li></ul><ul><li>Technologie potentieel </li></ul><ul><li>Concurrentiepotentieel </li></ul><ul><li>Service niveau </li></ul>
  14. 16. Business IT Alignment <ul><li>Business IT Alignment is the degree to which the IT applications, infrastructure and organization, the business strategy and processes enables and shapes, as well as the process to realize this. </li></ul>
  15. 17. Does alignment matter? <ul><li>Wat is Business ICT Alignment? </li></ul><ul><li>Problemen met BIA </li></ul><ul><li>BIA in de praktijk </li></ul><ul><li>BIA strategieën </li></ul><ul><li>Relatie Business strategie / IT strategie / BIA volwassenheid </li></ul>
  16. 18. Issues <ul><li>A fuzzy target </li></ul>target start start doel
  17. 19. Issues <ul><li>A fuzzy target </li></ul><ul><li>Alignment versus Economies of Scale </li></ul>
  18. 20. Issues <ul><li>A fuzzy target </li></ul><ul><li>Alignment versus Economies of Scale </li></ul><ul><li>Multiple businesses </li></ul>
  19. 21. Does alignment matter? <ul><li>Wat is Business ICT Alignment? </li></ul><ul><li>Problemen met BIA </li></ul><ul><li>BIA in de praktijk </li></ul><ul><li>BIA strategieën </li></ul><ul><li>Relatie Business strategie / IT strategie / BIA volwassenheid </li></ul>
  20. 22. BITA in praktijk <ul><li>Creëer overzicht en inzicht </li></ul><ul><li>Centraliseer inkoop </li></ul><ul><li>Centraliseer autorisatie van projecten </li></ul><ul><li>Ontwikkel standaarden </li></ul><ul><li>Rationaliseer assets </li></ul>
  21. 23. Conclusie <ul><li>Business IT Alignment is niet een objectief methodologisch proces </li></ul><ul><li>Business IT Alignment heeft een meer fuzzy context dan geïmpliceerd in de theorie </li></ul><ul><li>IT afdelingen hebben een eigen verantwoordelijkheid </li></ul><ul><li>Business IT Alignment is in praktijk de subjectieve uitkomst van de interactie tussen actoren met soms tegenstrijdige verantwoordelijkheden </li></ul>
  22. 24. Jerry Luftman Business IT Alignment Maturity
  23. 25. Maturity of the Business IT Alignment process Alignment gap Initial / Ad-Hoc Process Committed Process Established/Focused Process Improved/Managed Process Optimized Process Business Strategy / Organization IT Strategy / Organization
  24. 26. Business IT Alignment Maturity Variables Partnership Business Perception of IT Value Role of IT in Strategic Business Planning Shared Goals, Risk, Rewards/Penalties IT Program Management Relationship/Trust Style Business Sponsor/Champion Scope & Architecture Traditional, Enabler/Driver, External Standards Articulation Architectural Integration: - Functional - Enterprise - Inter-enterprise Architectural Transparency, Flexibility Skills Innovation, Entrepreneurship Locus of Power Management Style Change Readiness Career crossover Education, Cross-Training Social, Political, Trusting Environment Communications Understanding of Business by IT Understanding of IT by Business Inter-/Intra-organizational learning Protocol rigidity Knowledge sharing Liaison(s) effectiveness Value measurement IT Metrics Business Metrics Balanced Metrics Service Level Agreements Benchmarking Formal assessments/reviews Continuous Improvement Governance Business Strategic Planning IT Strategic Planning Reporting/Organization Structure Budgetary Control IT Investment Management Steering Committee(s) Prioritization Process Six IT Business alignment maturity criteria
  25. 27. De sociale dimensie Keen (1991) Key to alignment is relationships, not strategy
  26. 28. Does alignment matter? <ul><li>Wat is Business ICT Alignment? </li></ul><ul><li>Problemen met BIA </li></ul><ul><li>BIA in de praktijk </li></ul><ul><li>BIA strategieën </li></ul><ul><li>Relatie Business strategie / IT strategie / BIA volwassenheid </li></ul>
  27. 29. BIA strategies <ul><li>Conservative </li></ul><ul><li>IT saves costs </li></ul><ul><li>Proven technology </li></ul><ul><li>Efficiency orientation </li></ul><ul><li>Essential </li></ul><ul><li>IT essential in realising strategy </li></ul><ul><li>New technologies </li></ul><ul><li>Effectiveness orientation </li></ul><ul><li>Innovative </li></ul><ul><li>IT as competitive edge </li></ul><ul><li>Experimental technologies </li></ul><ul><li>Innovation orientation </li></ul><ul><li>Business </li></ul><ul><li>IT is business </li></ul><ul><li>All technologies </li></ul><ul><li>Service orientation </li></ul>Perception of external impact of IT high low high low Perception of internal impact of IT
  28. 30. Relationships?? Business Strategy IT Strategy
  29. 31. Business Strategy Operational Excellence Product Leadership Customer Intimacy Operational Excellence Emphasis on efficiency and reliability, price leadership, cost control and supply chain optimisation. Product Leadership Emphasis on continuing product development, innovation, fast time-tomarket and high margins. Customer Intimacy Emphasis on customer service, responsiveness, tailoring products and services to individual customer needs.
  30. 32. Relationships?? Business Strategy IT Strategy Business IT Alignment capability
  31. 33. Business IT Alignment Maturity Variables Partnership Business Perception of IT Value Role of IT in Strategic Business Planning Shared Goals, Risk, Rewards/Penalties IT Program Management Relationship/Trust Style Business Sponsor/Champion Scope & Architecture Traditional, Enabler/Driver, External Standards Articulation Architectural Integration: - Functional - Enterprise - Inter-enterprise Architectural Transparency, Flexibility Skills Innovation, Entrepreneurship Locus of Power Management Style Change Readiness Career crossover Education, Cross-Training Social, Political, Trusting Environment Communications Understanding of Business by IT Understanding of IT by Business Inter-/Intra-organizational learning Protocol rigidity Knowledge sharing Liaison(s) effectiveness Value measurement IT Metrics Business Metrics Balanced Metrics Service Level Agreements Benchmarking Formal assessments/reviews Continuous Improvement Governance Business Strategic Planning IT Strategic Planning Reporting/Organization Structure Budgetary Control IT Investment Management Steering Committee(s) Prioritization Process Six IT Business alignment maturity criteria
  32. 34. Relationships?? Business Strategy IT Strategy Business IT Alignment capability
  33. 35. Strategies combined
  34. 37. Relationships?? Not much relationship visible, but…. Business Strategy IT Strategy
  35. 38. Relationships?? Business Strategy IT Strategy
  36. 39. Relationships?? Business Strategy IT Strategy
  37. 40. Relationships?? IT Strategy Business IT Alignment capability
  38. 41. Dual case study IT strategy Business & IT alignment
  39. 42. Dual case study Perception of external impact of IT high low high low Perception of internal impact of IT Conservative Essential Innovative Business Bank A Bank B
  40. 43. B vs A
  41. 44. Conclusion IT strategy offensive defensive high low BIA capability Conservative IT strategy Essential IT strategy Innovative IT strategy
  42. 45. Does alignment matter? Feiten en fictie over de afstemming van ICT en Business Drs. A.J.Gilbert Silvius MBA Lector Hogeschool Utrecht en principal consultant Van Aetsveld
  43. 46. Relationships?? Business Strategy IT Strategy Business IT Alignment capability
  44. 47. Wat te doen? <ul><li>Creëer een visie! </li></ul><ul><li>Bouw alignment volwassenheid </li></ul>
  45. 48. Wat te doen? Partnership Business Perception of IT Value Role of IT in Strategic Business Planning Shared Goals, Risk, Rewards/Penalties IT Program Management Relationship/Trust Style Business Sponsor/Champion Scope & Architecture Traditional, Enabler/Driver, External Standards Articulation Architectural Integration: - Functional - Enterprise - Inter-enterprise Architectural Transparency, Flexibility Skills Innovation, Entrepreneurship Locus of Power Management Style Change Readiness Career crossover Education, Cross-Training Social, Political, Trusting Environment Communications Understanding of Business by IT Understanding of IT by Business Inter-/Intra-organizational learning Protocol rigidity Knowledge sharing Liaison(s) effectiveness Value measurement IT Metrics Business Metrics Balanced Metrics Service Level Agreements Benchmarking Formal assessments/reviews Continuous Improvement Governance Business Strategic Planning IT Strategic Planning Reporting/Organization Structure Budgetary Control IT Investment Management Steering Committee(s) Prioritization Process Six IT Business alignment maturity criteria Verdiep je in de business Wees transparant Creëer stuurmogelijk-heden voor de business Creëer betrokken-heid Creëer een effectieve architectuur Ontwikkel de kwaliteit van medewerkers
  46. 49. Wat te doen? <ul><li>Creëer een visie! </li></ul><ul><li>Bouw alignment volwassenheid </li></ul><ul><li>Mensen maken het verschil </li></ul>
  47. 50. Mensen maken het verschil <ul><ul><li>Interventies die ertoe doen! </li></ul></ul><ul><ul><li>Herinrichten van ICT-functie vanuit externe oriëntatie </li></ul></ul><ul><ul><li>Stimuleren en initiëren van experimenten </li></ul></ul><ul><ul><li>Belonen van een multidisciplinaire teamprestatie </li></ul></ul><ul><ul><li>Instellen van ICT-awards </li></ul></ul><ul><ul><li>Iemand aanstellen als of (zich laten) ontwikkelen tot hybride CIO </li></ul></ul><ul><ul><li>Trainen van IT’ers: denken en praten in businesstaal </li></ul></ul><ul><ul><li>Job-rotation tussen business en IT </li></ul></ul><ul><ul><li>Optimaliseren service proces </li></ul></ul>Bron: Rob Poels
  48. 51. Vragen??
  49. 52. Bedankt voor uw aandacht!

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