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Presented by Goh Boon Nam, Chief, New Initiatives & Strategic Planning, Institute of Systems Science, NUS at ISS-UXC Seminar: Move IT from Cost to Value Centre using IT Service Management and COBIT on …

Presented by Goh Boon Nam, Chief, New Initiatives & Strategic Planning, Institute of Systems Science, NUS at ISS-UXC Seminar: Move IT from Cost to Value Centre using IT Service Management and COBIT on 25 July 2014.

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  • 1. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 COBIT® 5 – Align IT to Corporate Strategy ISS-UXC Seminar 25 Jul 2015 1 COBIT is a registered trade mark of ISACA and the IT Governance Institute
  • 2. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Align IT to Corporate Strategy – Why? • What’s worse than a project that fails to meet its schedule, costs or specs? • A project that meets its schedule, specs and costs but...  is not what your organisations finds important or useful  and is seen as low value or worse, waste of time and money 2 Hence, IT needs to know what is important to the organisation and do accordingly Low Value Cost Centre or worse
  • 3. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 What is COBIT? • Control OBjectives for Information and related Technology • International framework from ISACA and IT Governance Institute • Helps maximise value of IT to businesses • Originally, more for monitoring/ audit /risk assessment of IT management processes • Increasingly recognised as comprehensive framework of IT Management best practices  Advises on WHAT to do  Some high-level of how to do • Currently Version 5 3
  • 4. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 COBIT - Governance and Management 4 Strategic Mgt General Mgt Tactical Mgt Operational Mgt Nb: Words in green above NOT part of COBIT but added by the author of this presentation. generally, the responsibility of Board of Directors
  • 5. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Strategic Management Processes in COBIT APO (Align, Plan and Organise) • Manage Relationships • Manage (IT) Strategy • Manage Innovation • Manage Enterprise Architecture • Manage Portfolio 5 These 7 Domains are elaborated into 37 processes • 5 of which relate to strategic alignment
  • 6. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Strategic Management Processes in COBIT APO (Align, Plan and Organise) • Manage Relationships • Manage (IT) Strategy • Manage Innovation • Manage Enterprise Architecture • Manage Portfolio 6
  • 7. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Manage Relationships (1) 7 Image courtesy of digitalart / FreeDigitalPhotos.net • Who determines what is important to the organisation? • Does IT know them and their needs well? IT Dept Other Depts Top Management Customers
  • 8. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Manage Relationships (2) 8 Image courtesy of Ambro / FreeDigitalPhotos.net What does COBIT recommend? • Establish relationship managers as single points of contact for each key customer
  • 9. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Practices under COBIT “Manage Relationships” Process 9 Manage the business relationship •Includes establishing single-point-of-contact relationship manager for each key customer Co-ordinate and communicate Understand business expectations Identify opportunities, risk and constraints for IT to enhance the business Provide input to the continual improvement of services
  • 10. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Strategic Management Processes in COBIT APO (Align, Plan and Organise) • Manage Relationships • Manage (IT) Strategy • Manage Innovation • Manage Enterprise Architecture • Manage Portfolio 10
  • 11. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Practices under COBIT “Manage (IT) Strategy” Process 11 Communicate the IT strategy and direction Define the strategic plan and road map Conduct a gap analysis Define the target IT capabilities Assess the current environment, capabilities and performance Understand enterprise direction
  • 12. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Understand Enterprise Direction 12 http://eunicechen.com/wp-content/uploads/2011/06/reflections-at-keppel-bay.jpg http://www.keppelland.com.sg/AU-Vision-And-Mission.asp http://en.wikipedia.org/wiki/Public_housing_in_Singapore#mediaviewer/File:BukitBatok.JPG http://www.hdb.gov.sg/fi10/fi10320p.nsf/w/AboutUsVisionMission?OpenDocument Keppel Land – Keppel Bay HDB – Bukit Batok Estate Who are the developers of these properties? Are their Enterprise Directions the same?
  • 13. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Define the target IT capabilities - e.g. Strategy Map (fictional example) 13 Optimal Costs Low Price Affordable High Productivity Good Quality Close Inspection / Checking Better Training Improved Knowledge Base Perspectives Productivity Automation E-Learning & KM Systems Quality Check Systems Customer Financial Process Learning IT Mission : We provide affordable quality homes
  • 14. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Practices under COBIT “Manage (IT) Strategy” Process 14 Communicate the IT strategy and direction Define the strategic plan and road map Conduct a gap analysis Define the target IT capabilities Assess the current environment, capabilities and performance Understand enterprise direction
  • 15. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Strategic Management Processes in COBIT APO (Align, Plan and Organise) • Manage Relationships • Manage (IT) Strategy • Manage Innovation • Manage Enterprise Architecture • Manage Portfolio 15
  • 16. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Practices under COBIT “Manage Innovation” Process 16 Monitor the implementation and use of innovation Recommend appropriate further initiatives Assess the potential of emerging technologies and innovation ideas Monitor and scan the technology environment Maintain an understanding of the enterprise environment Create an environment conducive to innovation
  • 17. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Monitor and Scan the Technology Environment - example 17 http://www.gartner.com/newsroom/id/2575515 Gartner Hype Cycle for Emerging Technologies 2013
  • 18. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Assess Potential of Emerging Technologies & Innovation Ideas 18 http://brandcredentials.com/pretotyping/ Palm PDA “pretotype” ISS “Innovation & Design Thinking” course at Makers Block event http://blog.nus.edu.sg/isssi/#.U8nyerEwDGt One of the methods for assessing potential
  • 19. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Practices under COBIT “Manage Innovation” Process 19 Monitor the implementation and use of innovation Recommend appropriate further initiatives Assess the potential of emerging technologies and innovation ideas Monitor and scan the technology environment Maintain an understanding of the enterprise environment Create an environment conducive to innovation
  • 20. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Strategic Management Processes in COBIT APO (Align, Plan and Organise) • Manage Relationships • Manage (IT) Strategy • Manage Innovation • Manage Enterprise Architecture • Manage Portfolio 20
  • 21. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Practices under COBIT “Manage Enterprise Architecture” 21 Provide enterprise architecture services Define architecture implementation Select opportunities and solutions Define reference architecture Develop the enterprise architecture vision
  • 22. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Enterprise Architecture is NOT Solution Architecture 22 Source : http://www.andyblumenthal.com/2007/08/enterprise-architecture-is-not.html
  • 23. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Enterprise Architecture 23 Technology Architecture Hardware, software, network Application Architecture Services Data Architecture Data, information Business Architecture Business processes, organization, people Technology Architecture Hardware, software, network Application Architecture Services Data Architecture Data, information Business Architecture Business processes, organization, people Current (now) Target (up to 5 yrs’ time) Plan Target (Reference) Architecture
  • 24. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Enterprise Architecture – Example
  • 25. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Business Architecture (1) 25 Source: http://portal.hud.gov/hudportal/documents/ huddoc?id=DOC_15169.pdf Duplication in Functions Streamlined & improved Functions New Functions Eg. Foreclosure Cost Mgt
  • 26. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Business Architecture (2) 26 Plan Improvements to Business Processes Current Target
  • 27. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Application Architecture – Current 27 Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13845.pdf Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13845.pdf Wasteful Redundancy and Siloed Applications duplicate applications for same process
  • 28. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 28 Application Architecture – Target Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13845.pdf Streamlined Portfolio of Applications Cost Mgt Module streamline & remove duplicates plan new applications
  • 29. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Data Architecture – Current 29 Duplicate, Inconsistent Data Some data not available for future needs Adapted from: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13840.pdf HUD Program Data FHA Program Data FHA Program Data OFHEO Program Data
  • 30. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Data Architecture – Target 30 Streamlined and Updated Portfolio of Data Sources -Consistent data - “Single” source of truth Adapted from: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13840.pdf HUD Program Data FHA Program Data OFHEO Program Data Cost Management
  • 31. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Technology Architecture – Current & Target 31 • Target Future (TF) • Pilot (P) • Target Current (TC) • Maintain (M) • Obsolete (O) HUD TRM CATEGORY Parent Name Product Version HUD TRM Status Application Server Software SUN JAVA SYSTEM APPLICATION SERVER 9 TF Application Server Software SUNONE APPLICATION SERVER 8.2 TC Application Server Software SUNONE APPLICATION SERVER 7 M Application Server Software SUNONE APPLICATION SERVER 6.5 O Asset Management Tools OPEN VIEW ASSET CENTER 5 TF Asset Management Tools OPEN VIEW ASSET CENTER 2 TC Business Intelligence MICROSTRATEGY 8.X TC Business Intelligence CRYSTAL REPORTS 8.5 M Business Intelligence CRYSTAL REPORTS 8 O etc.. Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13829.pdf
  • 32. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Technology Architecture – Target 32 Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13843.pdf Streamlined Technology Architecture (example)
  • 33. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Practices under COBIT “Manage Enterprise Architecture” 33 Provide enterprise architecture services Define architecture implementation Select opportunities and solutions Define reference architecture Develop the enterprise architecture vision
  • 34. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Strategic Management Processes in COBIT APO (Align, Plan and Organise) • Manage Relationships • Manage (IT) Strategy • Manage Innovation • Manage Enterprise Architecture • Manage Portfolio 34
  • 35. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Practices under COBIT “Manage Enterprise Architecture” 35 Manage benefits achievement Maintain portfolios Monitor, optimise and report on investment portfolio performance Evaluate and select programmes to fund Determine the availability and sources of funds Establish the target investment mix
  • 36. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Establish Target Investment Mix 36 Source: Framework from P.Weill & M. Broadbent, Leveraging the New Infrastructure: How market leaders capitalize on IT, Harvard Business School Press, 1998. Data: Percentages are 2009 total $IT spending (operations + depreciation) from 1091 firms in 77 countries from Gartner CIO Survey http://cisr.mit.edu/research/research-overview/classic-topics/it-portfolio-management/
  • 37. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Evaluate and Select Programmes to Fund (1) 37 Which projects would you do first?
  • 38. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 38 Evaluate and Select Programmes to Fund (2) Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13840.pdf
  • 39. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Monitor Portfolio Performance / Manage Benefits Achievement 39 http://aptris.com/images/servicenow-project-portfolio-management.jpg
  • 40. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Summary • Manage Relationships • Manage (IT) Strategy • Manage Innovation • Manage Enterprise Architecture • Manage Portfolio 40 Low Value Cost Centre or worse
  • 41. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 Q & A 41
  • 42. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 For Further Information General: http://www.iss.nus.edu.sg/ COBIT: https://www.iss.nus.edu.sg/ProfessionalCourses/SearchCourse/CourseDetail/tabid/267/cid/20/ cname/nicf-cobit-foundation/Default.aspx Manage Innovation: https://www.iss.nus.edu.sg/ProfessionalCourses/ServiceInnovation.aspx Manage Enterprise Architecture: https://www.iss.nus.edu.sg/ProfessionalCourses/SearchCourse/CourseDetail/tabid/267/cid/1/c name/nicf-certified-enterprise-architecture-practitioner-course/Default.aspx Setting up of Portfolio, Programme, Project Office (P3O): https://www.iss.nus.edu.sg/ProfessionalCourses/SearchCourse/CourseDetail/tabid/267/cid/46/ cname/nicf-portfolio-programme-and-project-offices-p3o-foundation-and-practitio/Default.aspx Managing Stakeholders: https://www.iss.nus.edu.sg/ProfessionalCourses/SearchCourse/CourseDetail/tabid/267/cid/51/ cname/nicf-managing-project-stakeholders-a-practical-approach/Default.aspx 42
  • 43. © 2014 NUS. All Rights Reserved Unless Otherwise Stated. ATA/Lucid/2014-07 MUS/ COBIT5 – Align IT to Corp Strategy.pptx/v1.1 THE END 43