Reality bites LPD2010 Silvius

Reality bites De realiteit van business IT alignment A.J.Gilbert Silvius Lector Business, ICT en Innovatie

Gilbert Silvius

Hogeschool Utrecht

Kenniscentrum InnBus

In what business is this company?

It’s just getting interesting! Impact op Business hoog laag Jaren ’60 ’70 ’80 ’90 ’00 ‘10 Automatisering Informatisering Transformatie

ICT als bron van innovatie Bedrijfsmiddelen Bedrijfsprocessen Bedrijfsmodel Bedrijfsstrategie

En we zijn nog niet klaar!

De vraag ook niet Growing Flat Declining Help enable growth! Help improve margins! Help reduce fixed and variable costs! Company revenue IT budget IT demand

Does alignment pay-off?

Kans of kopzorg?

Vraag
Hoe zou je de alignment tussen business en IT verbeteren?

Why is alignment still an issue?
Géén tweerichtingverkeer
Géén ‘silver bullit’
BIA is multidimensionaal
Geen instrumentarium om verbetering te plannen en te monitoren

Jerry Luftman Business IT Alignment Maturity

Maturity of the Business IT Alignment process Alignment gap Initial / Ad-Hoc Process Committed Process Established/Focused Process Improved/Managed Process Optimized Process

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

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 Processen Structures Capaciteiten Visies / Gedrag

Luftman 2007

Question
How does Alignment relate to Business Performance?
Does alignment matter?

Alignment matters!

Alignment matters! Strategic Alignment Maturity makes a significant contribution to company performance. SAMs impact on company performance is .34. This is a very good validation of the relationship between SAM and company performance.

Question
How does Alignment relate to Strategy?
To Business Strategy
To IT Strategy
Does strategy matter?

Relationships?? Business Strategy IT Strategy Business IT Alignment capability

Business Strategy Operational Excellence Product Leadership Customer Intimacy Operational Excellence Emphasis on efficiency and reliability, price leadership, cost control and supply chain optimization. Product Leadership Emphasis on continuing product development, innovation, fast time-to market and high margins. Customer Intimacy Emphasis on customer service, responsiveness, tailoring products and services to individual customer needs.

IT Strategie (Visie)
Conservative
IT saves costs
Proven technology
Efficiency orientation
Essential
IT essential in realising strategy
New technologies
Effectiveness orientation
Innovative
IT as competitive edge
Experimental technologies
Innovation orientation
Business
IT is business
All technologies
Service orientation
Perception of external impact of IT high low high low Perception of internal impact of IT

Relationships?? Business Strategy IT Strategy Business IT Alignment capability

Strategies combined

Strategie geeft Alignment

Business IT Alignment

Wat is belangrijk?

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 (maar andersom ook!) Wees transparant Creëer stuurmogelijkheden Creëer betrokken-heid Creëer een effectieve architectuur Ontwikkel de kwaliteit van medewerkers

What we know
Algemeen
BIA is multidimensionaal (processen, structuren, capaciteiten en visie)
Géén ‘silver bullit’
Kan bij alle business strategieën
Het levert op!

What we know
Wat helpt?
Tweerichtingsverkeer
Visie en (IT) strategie
Transparantie en stuurmogelijkheden
(Business) kennis in IT
IT kennis in de business
IT architectuur
Procesvolwassenheid in IT én business
Cultuur heeft invloed

Kijk uit voor bestuurders! Basistype Kenmerken Hypocriet Verklaart de IT belangrijk te vinden, ontkracht dit geloof door zijn handelen Weifelaar Accepteert aarzelend het strategisch belang van de IT. Wil echter niet zelf betrokken raken bij de IT-vraagstukken Atheïst Vindt de IT niet belangrijk. Verkondigt die overtuiging in het openbaar Fanaat Vindt de IT van strategisch belang. Beschouwd zichzelf als een autoriteit op het gebied van IT Agnost Geeft toe dat de IT van strategisch belang is. Moet daar steeds opnieuw van overtuigd worden Koning Accepteert dat de IT strategisch belangrijk is. Benoemt de best denkbare CIO en trekt zich dan terug Gelovige Gelooft dat de IT een strategisch voordeel kan bieden. Benadrukt die overtuiging door zijn dagelijkse optreden

What we don’t know
Nog niet goed onderzocht
BIA in MKB
Multibusiness IT alignment
Effect van outsourcing

Vragen??

Reality bites LPD2010 Silvius

by Gilbert Silvius on Mar 23, 2010

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