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Don’t Mention The “A”
Word – Trends In Continuing
Business And IT
Misalignment

Alan McSweeney
Business View Of IT Trends Vs. IT View Of Trends
•

AICPA – Survey of members from 2001 on initiatives in IT
that are of c...
Business And IT Disconnect – Speaking A Different
Language
Business

You are not
listening to
me

I want:

January 27, 201...
AICPA IT Initiatives Survey 2011-2013 Results
2013
Managing And Retaining Data

1
2
3
4
5
6
7
8
9
10

2012

2011

Securing...
Gartner View of IT Trends 2009-2014
2014

2013

2012

2011

Media Tablets and
Cloud Computing Cloud Computing
1 Mobile Dev...
Business And IT View Of Technology
•
•
•
•

Business views technologies as means to an end and not as ends in
themselves
I...
AICPA Top 10 IT Initiatives 2005-2013
2013

2012

1

Managing And
Retaining Data

Securing The IT
Environment

2

Securing...
Importance of Security, Privacy, Continuity
2013

2012

1

Managing And
Retaining Data

Securing The IT
Environment

2

Se...
Importance of Data
2013

2012

1

Managing And
Retaining Data

Securing The IT
Environment

2

Securing The IT
Environment...
Importance of Cost and Implementation
2013

2012

1

Managing And
Retaining Data

Securing The IT
Environment

2

Securing...
Difference Between How The Business Feels IT Should
Spend Budget And How The Budget Is Actually Spent
•

Business view of ...
Difference Between How The Business Feels IT
Should Spend Budget And How It Is Actually Spent
•

Reasons for differences l...
Spending - Maintain The Momentum Of The
Business Through Existing Business Systems
•
•

Business has unrealistic view of h...
Contribute To Improving Business Results
•
•

IT is poor at delivery and proactive provision of advice and
consulting
Busi...
Provide IT Direction And Management That Is
Aligned To The Needs Of The Business
•
•

IT is not providing the leadership a...
Continuing Disconnect Between IT And Business
•

IT’s role is to mediate between the business and
technologies and supplie...
IT Needs To Deliver Business-Oriented
Solutions
IT
Supplier
Ecosystem

Business

Technology
Landscape

27 January 2014

IT...
Bringing The Gap Between IT And The Business
•

Both business and IT
must work to close the
gap

January 27, 2014

18
AICPA Technology Initiatives Survey 2012
2012

Lack of business confidence in
getting the basics of IT governance,
managem...
AICPA Technology Initiatives Survey 2013
2013
55%

1 - Managing And Retaining Data

51%

2 - Securing The IT Environment

...
Managing Suppliers - 2012
Only average view of the
performance of the key role of
managing suppliers

2012

62%

1 - Secur...
Managing Suppliers - 2013

Importance of supplier management
increasing and level of confidence
decreasing

2013

55%

1 -...
Delivering IT Innovation - 2012
2012

Important but very low confidence
of delivery
62%

1 - Securing The IT Environment

...
Delivering IT Innovation - 2013
2013

Lower level of importance but even
lower confidence of delivery
55%

1 - Managing An...
Business Intelligence - 2012
2012

After years of BI and related
technologies being available and
implemented, there is st...
Business Intelligence - 2013
Level of confidence reducing

2013
55%

1 - Managing And Retaining Data

51%

2 - Securing Th...
Generic Structure Of An IT Function
IT Governance
IT Strategy

Business
Relationship
and
Engagement
Business
Relationship
...
Generic Structure Of An IT Function
•
•

Generalised and idealised view of the structure, organisation and set
of logical ...
Matching Key IT Skills and Capabilities To
Organisation Functions
Capability

IT
Business
IT
Service Service
Service
Gover...
Sub-Function Importance To Organisation
IT Governance
IT Strategy

Business
Relationship
and
Engagement
Business
Relations...
View Of Importance Of Sub-Functions

= Very Important
= Important
= Less Important
•

Use this as a view of what areas you...
External IT and Business Alignment
Business-facing
sub-functions

Business
Relationship
and
Engagement

IT Governance

IT ...
Internal IT and Business Alignment
Business-facing
sub-functions
mediate
between
business and
technology and
service deliv...
IT Function Structure And Alignment
Alignment is not
just about being
aligned at the
Business
Relationship and
Engagement ...
IT Function Structure And Alignment
•

Real IT and business alignment needs to pervade the entire
IT function

•

IT must ...
IT Governance Sub-Functions
Defines strategy for IT function for both the IT function and how IT delivers on the overall b...
Business Relationship and Engagement SubFunctions
Business
Relationship
and
Engagement
Business
Relationship
Management

M...
IT Management Sub-Functions

Manages data,
defines data
standards
Operations
Management

Service
Planning

Manages the IT ...
Service Lifecycle Management Sub-Functions
Manages catalog of IT services

Manages configuration of installed assets
Manag...
Service and Solution Delivery Sub-Functions
Designs, develops and
implements new solutions
and changes and ensures
integra...
Service Operations Sub-Functions
Takes over the support and
operation of new systems
and applications,
implements support
...
View Of Status Of Sub-Functions
IT Governance
IT Strategy

Business
Relationship
and
Engagement
Business
Relationship
Mana...
View Of Status Of Sub-Functions
= Fully Implemented and Operational
= Partially Implemented and Operational
= Not Implemen...
Sample View - What IT Is Good At
IT Governance
IT Strategy

Business
Relationship
and
Engagement
Business
Relationship
Man...
Sample View - What IT Is Average At
IT Governance
IT Strategy

Business
Relationship
and
Engagement
Business
Relationship
...
Sample View - What IT Is Poor At
IT Governance
IT Strategy

Business
Relationship
and
Engagement
Business
Relationship
Man...
Summary
•
•
•
•
•
•
•
•
•
•

Low confidence in IT by business stills exists
IT delivery of what the business wants is poor...
More Information
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney

January 27, 2014

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Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment

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Despite years of emphasising the need for IT and business alignment, the disconnect between business and IT continues. IT focuses too much of pure technology. However, business expectations cam be unrealistic, based on part on IT not explaining itself to the business. IT technology trends are not relevant the business. The business is concerned with the results of investment in IT and sees technology as means to an end and not as ends in themselves. IT needs to structure itself so alignment pervades the entire IT function. IT must embed business alignment in the way it operates to ensure it remains relevant to the business. IT needs to mediate between the business and suppliers and technologies, acting as a lens focussing business needs on appropriate solutions. The gulf is between business and IT seems to be getting wider. Failure to ensure this alignment may lead to the business bypassing IT and going straight to suppliers and service providers. Disintermediation of IT is central to the business plans of many internet-based service providers. Failure to systematise alignment will expose IT to the danger of becoming irrelevant.

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Transcript of "Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment"

  1. 1. Don’t Mention The “A” Word – Trends In Continuing Business And IT Misalignment Alan McSweeney
  2. 2. Business View Of IT Trends Vs. IT View Of Trends • AICPA – Survey of members from 2001 on initiatives in IT that are of concern to their nearly 400,000 members − http://www.aicpa.org/INTERESTAREAS/INFORMATIONTECHNOLO GY/RESOURCES/TOPTECHNOLOGYINITIATIVES/TOP10TECHNOLO GIESARCHIVE Gartner – well known analyst company • Two very different views of information technology trends • − Business-oriented − Technology-oriented • IT tends to be concerned with technology trends for themselves rather than their application to business – internal focus January 27, 2014 2
  3. 3. Business And IT Disconnect – Speaking A Different Language Business You are not listening to me I want: January 27, 2014 You are not listening to me IT You need: 3
  4. 4. AICPA IT Initiatives Survey 2011-2013 Results 2013 Managing And Retaining Data 1 2 3 4 5 6 7 8 9 10 2012 2011 Securing The IT Environment Control And Use Of Mobile Devices Securing The IT Environment Managing And Retaining Data Information Security Managing Vendors And Service Managing Risk And Data Retention Policies And Providers Compliance Structure Managing IT Risks And Compliance Ensuring Privacy Remote Access Ensuring Privacy Leveraging Emerging Staff And Management Technologies Training Managing System Implementations Managing System Process Documentation And Implementation Improvements Preventing And Responding To Enabling Decision Support And Saving And Making Money Computer Fraud Managing Performance W/Technology Governing And Managing IT Investment Governing And Managing IT Technology Cost Controls And Spending Investment/Spending Enabling Decision Support And Preventing And Responding To Budget Processes Analytics Fraud Leveraging Emerging Technologies Managing Vendors And Service Project Management & Providers Deployment Of New Systems January 27, 2014 4
  5. 5. Gartner View of IT Trends 2009-2014 2014 2013 2012 2011 Media Tablets and Cloud Computing Cloud Computing 1 Mobile Device Battles Beyond 2 Mobile Applications and HTML5 3 Personal Cloud 4 Enterprise App Stores 5 The Internet of Things 6 Hybrid IT and Cloud Computing 7 Strategic Big Data 8 Actionable Analytics 9 In Memory Computing 10 Integrated Ecosystems January 27, 2014 2010 2009 Virtualization Green IT Mobile-Centric Mobile Advanced Applications and Applications and Cloud Computing Analytics Interfaces Media Tablets Social Contextual and Servers — Beyond Social User Communications Client Computing Blades Experience and Collaboration Web-Oriented Internet of Things Video IT for Green Architectures App Stores and Next Generation Reshaping the Enterprise Marketplaces Analytics Data Center Mashups Next-Generation Specialized Social Analytics Social Computing Analytics Systems Social Software In-Memory Context-Aware Security – Activity and Social Computing Computing Monitoring Networking Storage Class Unified Big Data Flash Memory Memory Communications Extreme LowUbiquitous Virtualization for Business Energy Servers Computing Availability Intelligence Fabric-Based Mobile Cloud Computing Infrastructure and Green IT Applications Computers Unified Communications Business Process Modeling Metadata Management Virtualization 2.0 Mashup & Composite Apps Web Platform & WOA Computing Fabric Real World Web Social Software 5
  6. 6. Business And IT View Of Technology • • • • Business views technologies as means to an end and not as ends in themselves IT views technologies as solutions rather than as components of an overall business solution IT technology trends are very variable and depend on the everchanging new next best thing Business view of the importance of technology application remains quite constant: − − − − − − Security Data Delivery Value Data Managing Suppliers January 27, 2014 6
  7. 7. AICPA Top 10 IT Initiatives 2005-2013 2013 2012 1 Managing And Retaining Data Securing The IT Environment 2 Securing The IT Environment Managing And Retaining Data Information Security 3 Managing Vendors And Service Providers Managing Risk And Compliance Data Retention Policies And Structure 4 Managing IT Risks Ensuring Privacy And Compliance Remote Access Leveraging Emerging Technologies 2011 Control And Use Security Of Data Of Mobile Devices Staff And Management Training 5 Ensuring Privacy 6 Managing System Managing System Implementations Implementation 7 Preventing And Responding To Computer Fraud 8 Governing And Managing IT Investment And Spending 9 Enabling Decision Support And Analytics Preventing And Responding To Fraud Budget Processes 10 Leveraging Emerging Technologies Managing Vendors And Service Providers Project Management & Deployment Of New Systems January 27, 2014 2010 Process Documentation And Improvements Enabling Decision Saving And Support And Making Money Managing W/Technology Performance Governing And Technology Cost Managing IT Controls Investment/ Spending Connectivity and Communications 2009 2008 2008 Information Security Management Information Security Management Privacy Management IT Governance Information Security Management Identity And Access Management Business Conforming To Backup, Disaster Secure Data File Continuity Assurance And Storage, Recovery/ Management And Compliance Transmission And Business Disaster Recovery Standards Exchange Continuity Planning Business Process Improvement, Privacy Privacy Secure Electronic Work Flow And Management Management Collaboration Process Exception Alerts Business Process Disaster Recovery Planning And Improvement, Mobile And Document Business Workflow And Remote Management and Continuity Process Exception Computing Workflow Management Alerts 2006 2005 Information Security Information Security Assurance And Compliance Applications Electronic Document Management Disaster And Business Continuity Planning Data Integration IT Governance Spam Technology Privacy Management Disaster Recovery Collaboration And Messaging Technologies Laptop Security / Encryption Training And Competency Identity And Access Management IT Governance Digital Identity And Authentication Technologies Small Business Software Identity And Access Management Conforming To Assurance And Compliance Standards Securing And Controlling Information Distribution Wireless Technologies Wireless Technologies Mobile Devices Improved Application And Data Integration Business Intelligence Mobile And Remote Computing Application And Data Integration Authentication Technologies Tax Software Document, Forms, Content And Knowledge Management Mobile And Remote Computing Electronic Archiving And Data Retention Paperless Digital Technologies Storage Technologies Document, Forms, Content And Knowledge Management Document, Content And Knowledge Management Spyware Detection And Removal Learning And Training Competency Server Electronic Data Virtualization And Retention Strategy Consolidation 7
  8. 8. Importance of Security, Privacy, Continuity 2013 2012 1 Managing And Retaining Data Securing The IT Environment 2 Securing The IT Environment Managing And Retaining Data Information Security 3 Managing Vendors And Service Providers Managing Risk And Compliance Data Retention Policies And Structure 4 Managing IT Risks Ensuring Privacy And Compliance Remote Access 5 Ensuring Privacy 6 Managing System Managing System Implementations Implementation 7 Preventing And Responding To Computer Fraud 8 Governing And Managing IT Investment And Spending 9 Enabling Decision Support And Analytics Preventing And Responding To Fraud Budget Processes 10 Leveraging Emerging Technologies Managing Vendors And Service Providers Project Management & Deployment Of New Systems January 27, 2014 Leveraging Emerging Technologies 2011 2010 Control And Use Security Of Data Of Mobile Devices Staff And Management Training Process Documentation And Improvements Enabling Decision Saving And Support And Making Money Managing W/Technology Performance Governing And Technology Cost Managing IT Controls Investment/ Spending Connectivity and Communications 2009 2008 2008 Information Security Management Information Security Management Privacy Management IT Governance Information Security Management Identity And Access Management Business Backup, Disaster Secure Data File Conforming To Continuity Recovery/ Assurance And Storage, Management And Business Compliance Transmission And Disaster Recovery Continuity Standards Exchange Planning Business Process Improvement, Secure Electronic Privacy Privacy Work Flow And Collaboration Management Management Process Exception Alerts Business Process Disaster Recovery Improvement, Planning And Mobile And Document Workflow And Business Remote Management and Process Exception Continuity Computing Workflow Alerts Management 2006 2005 Information Security Information Security Assurance And Compliance Applications Electronic Document Management Disaster And Business Continuity Planning Data Integration IT Governance Spam Technology Privacy Management Disaster Recovery Collaboration And Messaging Technologies Laptop Security / Encryption Training And Competency Identity And Access Management IT Governance Digital Identity And Authentication Technologies Small Business Software Identity And Access Management Conforming To Assurance And Compliance Standards Securing And Controlling Information Distribution Wireless Technologies Wireless Technologies Mobile Devices Improved Application And Data Integration Business Intelligence Mobile And Remote Computing Application And Data Integration Authentication Technologies Tax Software Document, Forms, Content And Knowledge Management Mobile And Remote Computing Electronic Archiving And Data Retention Paperless Digital Technologies Storage Technologies Document, Forms, Content And Knowledge Management Document, Content And Knowledge Management Spyware Detection And Removal Learning And Training Competency Server Electronic Data Virtualization And Retention Strategy Consolidation 8
  9. 9. Importance of Data 2013 2012 1 Managing And Retaining Data Securing The IT Environment 2 Securing The IT Environment Managing And Retaining Data Information Security 3 Managing Vendors And Service Providers Managing Risk And Compliance Data Retention Policies And Structure 4 Managing IT Risks Ensuring Privacy And Compliance Remote Access Leveraging Emerging Technologies 5 Ensuring Privacy 6 Managing System Managing System Implementations Implementation 7 Preventing And Responding To Computer Fraud 8 Governing And Managing IT Investment And Spending 9 Enabling Decision Support And Analytics Preventing And Responding To Fraud 10 Leveraging Emerging Technologies Managing Vendors And Service Providers January 27, 2014 2011 2010 Control And Use Security Of Data Of Mobile Devices Staff And Management Training Connectivity and Communications 2009 2008 2008 Information Security Management Information Security Management Privacy Management IT Governance Information Security Management Identity And Access Management Business Backup, Disaster Secure Data File Conforming To Continuity Recovery/ Storage, Assurance And Management And Business Transmission And Compliance Disaster Recovery Continuity Exchange Standards Planning Business Process Improvement, Privacy Privacy Secure Electronic Work Flow And Management Management Collaboration Process Exception Alerts Business Process Disaster Recovery Planning And Document Improvement, Mobile And Business Management and Workflow And Remote Continuity Workflow Process Exception Computing Management Alerts 2006 2005 Information Security Information Security Assurance And Compliance Applications Electronic Document Management Disaster And Business Continuity Planning Data Integration IT Governance Spam Technology Privacy Management Disaster Recovery Collaboration And Messaging Technologies Laptop Security / Encryption Training And Competency Identity And Access Management IT Governance Digital Identity And Authentication Technologies Small Business Software Identity And Access Management Conforming To Assurance And Compliance Standards Securing And Controlling Information Distribution Wireless Technologies Wireless Technologies Mobile Devices Improved Application And Data Integration Business Intelligence Mobile And Remote Computing Application And Data Integration Authentication Technologies Budget Processes Tax Software Document, Forms, Content And Knowledge Management Mobile And Remote Computing Electronic Archiving And Data Retention Paperless Digital Technologies Storage Technologies Project Management & Deployment Of New Systems Server Virtualization And Consolidation Electronic Data Retention Strategy Document, Forms, Content And Knowledge Management Document, Content And Knowledge Management Spyware Detection And Removal Learning And Training Competency Process Documentation And Improvements Enabling Decision Saving And Support And Making Money Managing W/Technology Performance Governing And Technology Cost Managing IT Controls Investment/ Spending 9
  10. 10. Importance of Cost and Implementation 2013 2012 1 Managing And Retaining Data Securing The IT Environment 2 Securing The IT Environment Managing And Retaining Data 2011 Control And Use Security Of Data Of Mobile Devices Information Security 3 Managing Managing Risk Vendors And And Compliance Service Providers Data Retention Policies And Structure 4 Managing IT Risks Ensuring Privacy And Compliance Remote Access 5 6 7 8 Ensuring Privacy Leveraging Emerging Technologies Managing System Managing System Implementations Implementation Staff And Management Training Process Documentation And Improvements Enabling Decision Saving And Support And Making Money Managing W/Technology Performance Governing And Governing And Technology Cost Managing IT Managing IT Controls Investment/ Investment And Spending Spending Preventing And Responding To Computer Fraud 9 Enabling Decision Support And Analytics Preventing And Responding To Fraud 10 Leveraging Emerging Technologies Managing Vendors And Service Providers January 27, 2014 2010 Budget Processes Connectivity and Communications 2009 2008 2008 Information Security Management Information Security Management Privacy Management IT Governance Information Security Management Identity And Access Management Business Conforming To Backup, Disaster Secure Data File Continuity Assurance And Storage, Recovery/ Management And Compliance Transmission And Business Disaster Recovery Standards Exchange Continuity Planning Business Process Improvement, Privacy Privacy Secure Electronic Work Flow And Management Management Collaboration Process Exception Alerts Business Process Disaster Recovery Planning And Improvement, Mobile And Document Business Workflow And Remote Management and Continuity Process Exception Computing Workflow Management Alerts 2006 2005 Information Security Information Security Assurance And Compliance Applications Electronic Document Management Disaster And Business Continuity Planning Data Integration IT Governance Spam Technology Privacy Management Disaster Recovery Collaboration And Messaging Technologies Laptop Security / Encryption Training And Competency Identity And Access Management IT Governance Digital Identity And Authentication Technologies Small Business Software Identity And Access Management Conforming To Assurance And Compliance Standards Securing And Controlling Information Distribution Wireless Technologies Wireless Technologies Mobile Devices Improved Application And Data Integration Business Intelligence Mobile And Remote Computing Application And Data Integration Authentication Technologies Tax Software Document, Forms, Content And Knowledge Management Mobile And Remote Computing Electronic Archiving And Data Retention Paperless Digital Technologies Storage Technologies Document, Content And Knowledge Management Spyware Detection And Removal Learning And Training Competency Project Document, Forms, Server Management & Content And Electronic Data Virtualization And Deployment Of Knowledge Retention Strategy Consolidation New Systems Management 10
  11. 11. Difference Between How The Business Feels IT Should Spend Budget And How The Budget Is Actually Spent • Business view of how it wants the proportion of IT expenditure to be allocated and how spending is actually allocated What the Business Wants What the Business Gets 25% 5% 50% 35% 15% Maintain The Momentum Of The Business Through Existing Business Systems Contribute To Improving Business Results Provide IT Direction And Management That Is Aligned To The Needs Of The Business January 27, 2014 70% Maintain The Momentum Of The Business Through Existing Business Systems Contribute To Improving Business Results Provide IT Direction And Management That Is Aligned To The Needs Of The Business 11
  12. 12. Difference Between How The Business Feels IT Should Spend Budget And How It Is Actually Spent • Reasons for differences lie with both sides • Each side does not fully understand the other or explain itself properly to the other January 27, 2014 12
  13. 13. Spending - Maintain The Momentum Of The Business Through Existing Business Systems • • Business has unrealistic view of how much it costs to keep IT function operational IT does not automate operations to drive operational costs down What the Business Wants What the Business Gets 25% 5% 50% 35% 15% Maintain The Momentum Of The Business Through Existing Business Systems Contribute To Improving Business Results Provide IT Direction And Management That Is Aligned To The Needs Of The Business January 27, 2014 70% Maintain The Momentum Of The Business Through Existing Business Systems Contribute To Improving Business Results Provide IT Direction And Management That Is Aligned To The Needs Of The Business 13
  14. 14. Contribute To Improving Business Results • • IT is poor at delivery and proactive provision of advice and consulting Business expects too much without understanding the resource consequences of these expectations What the Business Wants What the Business Gets 25% 5% 50% 35% 15% 70% Maintain The Momentum Of The Business Through Existing Business Systems Maintain The Momentum Of The Business Through Existing Business Systems Contribute To Improving Business Results Contribute To Improving Business Results Provide IT Direction And Management That Is Aligned To The Needs Of The Business Provide IT Direction And Management That Is Aligned To The Needs Of The Business January 27, 2014 14
  15. 15. Provide IT Direction And Management That Is Aligned To The Needs Of The Business • • IT is not providing the leadership and direction the business feels it wants Business has unrealistic expectation of the amount of IT spending should be or needs to be allocated to leadership and direction What the Business Wants What the Business Gets 25% 5% 50% 35% 15% Maintain The Momentum Of The Business Through Existing Business Systems Contribute To Improving Business Results Provide IT Direction And Management That Is Aligned To The Needs Of The Business January 27, 2014 70% Maintain The Momentum Of The Business Through Existing Business Systems Contribute To Improving Business Results Provide IT Direction And Management That Is Aligned To The Needs Of The Business 15
  16. 16. Continuing Disconnect Between IT And Business • IT’s role is to mediate between the business and technologies and suppliers • Needs to maintain an external focus on fulfilling business needs and requirements • IT needs to act as a lens focussing business needs on appropriate technology and supplier solutions • Gulf is between business and IT seems to be getting wider January 27, 2014 16
  17. 17. IT Needs To Deliver Business-Oriented Solutions IT Supplier Ecosystem Business Technology Landscape 27 January 2014 IT Needs to Mediate Between the Business and Suppliers/ Technologies, Acting as a Lens Focussing Business Needs on Appropriate Solutions IT Needs To Focus Appropriate Services on Appropriate Suppliers and Technologies 17
  18. 18. Bringing The Gap Between IT And The Business • Both business and IT must work to close the gap January 27, 2014 18
  19. 19. AICPA Technology Initiatives Survey 2012 2012 Lack of business confidence in getting the basics of IT governance, management and delivery right 62% 1 - Securing The IT Environment 61% 2 - Managing And Retaining Data 65% ← Priority → 3 - Managing Risk And Compliance 62% 4 - Ensuring Privacy 34% 5 - Leveraging Emerging Technologies 52% 6 - Managing System Implementation 7 - Enabling Decision Support And Managing Performance 46% 8 - Governing And Managing IT Investment/Spending 56% 60% 9 - Preventing And Responding To Fraud 10 - Managing Vendors And Service Providers 56% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% ← Confidence in Level of Achievement → January 27, 2014 19
  20. 20. AICPA Technology Initiatives Survey 2013 2013 55% 1 - Managing And Retaining Data 51% 2 - Securing The IT Environment ← Priority → 3 - Managing Vendors And Service Providers 47% 4 - Managing IT Risks And Compliance 47% Continuing lack of business confidence in getting the basics of IT governance, management and delivery right 45% 5 - Ensuring Privacy 6 - Managing System Implementations 44% 7 - Preventing And Responding To Computer Fraud 44% 8 - Governing And Managing IT Investment And Spending 38% 9 - Enabling Decision Support And Analytics 37% 27% 10 - Leveraging Emerging Technologies 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% ← Confidence in Level of Achievement → January 27, 2014 20
  21. 21. Managing Suppliers - 2012 Only average view of the performance of the key role of managing suppliers 2012 62% 1 - Securing The IT Environment 61% 2 - Managing And Retaining Data 65% ← Priority → 3 - Managing Risk And Compliance 62% 4 - Ensuring Privacy 34% 5 - Leveraging Emerging Technologies 52% 6 - Managing System Implementation 7 - Enabling Decision Support And Managing Performance 46% 8 - Governing And Managing IT Investment/Spending 56% 60% 9 - Preventing And Responding To Fraud 10 - Managing Vendors And Service Providers 56% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% ← Confidence in Level of Achievement → January 27, 2014 21
  22. 22. Managing Suppliers - 2013 Importance of supplier management increasing and level of confidence decreasing 2013 55% 1 - Managing And Retaining Data 51% 2 - Securing The IT Environment ← Priority → 3 - Managing Vendors And Service Providers 47% 4 - Managing IT Risks And Compliance 47% 45% 5 - Ensuring Privacy 6 - Managing System Implementations 44% 7 - Preventing And Responding To Computer Fraud 44% 8 - Governing And Managing IT Investment And Spending 38% 9 - Enabling Decision Support And Analytics 37% 27% 10 - Leveraging Emerging Technologies 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% ← Confidence in Level of Achievement → January 27, 2014 22
  23. 23. Delivering IT Innovation - 2012 2012 Important but very low confidence of delivery 62% 1 - Securing The IT Environment 61% 2 - Managing And Retaining Data 65% ← Priority → 3 - Managing Risk And Compliance 62% 4 - Ensuring Privacy 34% 5 - Leveraging Emerging Technologies 52% 6 - Managing System Implementation 7 - Enabling Decision Support And Managing Performance 46% 8 - Governing And Managing IT Investment/Spending 56% 60% 9 - Preventing And Responding To Fraud 10 - Managing Vendors And Service Providers 56% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% ← Confidence in Level of Achievement → January 27, 2014 23
  24. 24. Delivering IT Innovation - 2013 2013 Lower level of importance but even lower confidence of delivery 55% 1 - Managing And Retaining Data 51% 2 - Securing The IT Environment ← Priority → 3 - Managing Vendors And Service Providers 47% 4 - Managing IT Risks And Compliance 47% 45% 5 - Ensuring Privacy 6 - Managing System Implementations 44% 7 - Preventing And Responding To Computer Fraud 44% 8 - Governing And Managing IT Investment And Spending 38% 9 - Enabling Decision Support And Analytics 37% 27% 10 - Leveraging Emerging Technologies 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% ← Confidence in Level of Achievement → January 27, 2014 24
  25. 25. Business Intelligence - 2012 2012 After years of BI and related technologies being available and implemented, there is still a low level of confidence 62% 1 - Securing The IT Environment 61% 2 - Managing And Retaining Data 65% ← Priority → 3 - Managing Risk And Compliance 62% 4 - Ensuring Privacy 34% 5 - Leveraging Emerging Technologies 52% 6 - Managing System Implementation 7 - Enabling Decision Support And Managing Performance 46% 8 - Governing And Managing IT Investment/Spending 56% 60% 9 - Preventing And Responding To Fraud 10 - Managing Vendors And Service Providers 56% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% ← Confidence in Level of Achievement → January 27, 2014 25
  26. 26. Business Intelligence - 2013 Level of confidence reducing 2013 55% 1 - Managing And Retaining Data 51% 2 - Securing The IT Environment ← Priority → 3 - Managing Vendors And Service Providers 47% 4 - Managing IT Risks And Compliance 47% 45% 5 - Ensuring Privacy 6 - Managing System Implementations 44% 7 - Preventing And Responding To Computer Fraud 44% 8 - Governing And Managing IT Investment And Spending 38% 9 - Enabling Decision Support And Analytics 37% 27% 10 - Leveraging Emerging Technologies 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% ← Confidence in Level of Achievement → January 27, 2014 26
  27. 27. Generic Structure Of An IT Function IT Governance IT Strategy Business Relationship and Engagement Business Relationship Management Business Analysis and Consulting Solution Architecture IT Enterprise Architecture management Business Readiness and Organisation Change January 27, 2014 IT Service and Sourcing Strategy IT Financial Management IT Security Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Design Realisation Takeover and Management Test Co-ordination and Risk Management Operations Service and Solution Support Transition to Production Infrastructure and Communications Implementation Design Realisation Test Management Service Operations Solution Design, Development, Implementation and Integration Analysis Infrastructure, Networks Management Acquisition, Sourcing and Supplier Management Technology Selection and Management Service and Solution Delivery Data, Information, Knowledge Management Service Planning IT Innovation Management IT Management Analysis Demand Management IT Governance and Leadership Operations Management Support Function Monitoring and Alerting Test Incident Management Service Request Management Problem Management Service and Solution Support Facilities and Device Management Service Lifecycle Management Service Catalog Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management 27
  28. 28. Generic Structure Of An IT Function • • Generalised and idealised view of the structure, organisation and set of logical sub-functions within an IT function Organisational view rather than capability view − Capabilities must reside in organisation functions • • • • • • Actual optimum implementation depends on the size and profile of the organisation Not all sub-functions relevant to all organisations Not all sub-functions have the same importance for all organisations Not all sub-functions are at the same level of operational effectiveness for all organisations Logical sub-functions can be combined or split further A model that explicitly includes proactive linkage to the business and the delivery of business requirements January 27, 2014 28
  29. 29. Matching Key IT Skills and Capabilities To Organisation Functions Capability IT Business IT Service Service Service Governance Relationship Management and Operations Lifecycle and Solution Management Engagement Delivery IT Leadership and Governance Strategic and Business Planning Demand and Supply Management, Capacity Forecasting and Planning Sourcing and Supplier Management, Acquisition, Procurement Innovation Accounting, Funding, Financing, Budgeting and Planning Programme Management, Portfolio Management, Project Management Relationship Management and Business Engagement Organisation Design and Planning Enterprise Architecture Infrastructure, Networks and Communications Business and Process Analysis and Design Solution Architecture and Design Benefits Assessment and Realisation Service Provisioning, Service Delivery and Service Management Testing Security, Continuity and Disaster Recovery Solution Development and Delivery People Asset Management Data, Information, Knowledge Asset Management User Experience Design Change and Change Management January 27, 2014 29
  30. 30. Sub-Function Importance To Organisation IT Governance IT Strategy Business Relationship and Engagement Business Relationship Management Business Analysis and Consulting Solution Architecture IT Enterprise Architecture management Business Readiness and Organisation Change 27 January 2014 IT Financial Management IT Service and Sourcing Strategy IT Security Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Design Realisation Takeover and Management Test Co-ordination and Risk Management Operations Service and Solution Support Transition to Production Infrastructure and Communications Implementation Design Realisation Test Management Service Operations Solution Design, Development, Implementation and Integration Analysis Infrastructure, Networks Management Acquisition, Sourcing and Supplier Management Technology Selection and Management Service and Solution Delivery Data, Information, Knowledge Management Service Planning IT Innovation Management IT Management Analysis Demand Management IT Governance and Leadership Operations Management Support Function Monitoring and Alerting Test Incident Management Service Request Management Problem Management Service and Solution Support Facilities and Device Management Service Lifecycle Management Service Catalog Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management 30
  31. 31. View Of Importance Of Sub-Functions = Very Important = Important = Less Important • Use this as a view of what areas you to prioritise getting better at January 27, 2014 31
  32. 32. External IT and Business Alignment Business-facing sub-functions Business Relationship and Engagement IT Governance IT Management Service and Solution Delivery Service Operations Service Lifecycle Management January 27, 2014 32
  33. 33. Internal IT and Business Alignment Business-facing sub-functions mediate between business and technology and service delivery and operation Business Relationship and Engagement IT Governance IT Management Service and Solution Delivery Service Operations Service Lifecycle Management January 27, 2014 33
  34. 34. IT Function Structure And Alignment Alignment is not just about being aligned at the Business Relationship and Engagement and IT Governance levels Business Relationship and Engagement IT Governance IT Management Service and Solution Delivery Service Operations Alignment means following through throughout the IT function Service Lifecycle Management January 27, 2014 34
  35. 35. IT Function Structure And Alignment • Real IT and business alignment needs to pervade the entire IT function • IT must embed business alignment in the way it operates to ensure it remains relevant to the business • Otherwise the business will bypass IT and go straight to suppliers and service providers • Disintermediation of IT is central to the business plans of many internet-based service providers • Failure to systematise alignment will expose IT to the danger of becoming irrelevant
  36. 36. IT Governance Sub-Functions Defines strategy for IT function for both the IT function and how IT delivers on the overall business strategy Manages the definition and maintenance of overall enterprise IT architecture including systems and application standards and operational framework Implements IT governance and maintains leadership of the IT function IT Governance IT Strategy IT Enterprise Architecture management IT Governance and Leadership IT Financial Management IT Service and Sourcing Strategy IT Innovation Management IT Security Management Manages the IT budget, finances, financial reporting and control standards, cost-benefit analysis Manages the process for defining how services and solutions should be acquired and managed Manages the process for bringing new ideas to an appropriate implementation to generate value Manages IT application and infrastructure security standards January 27, 2014 36
  37. 37. Business Relationship and Engagement SubFunctions Business Relationship and Engagement Business Relationship Management Manages the relationship with the business and escalations , the identification of work, helps the business navigate IT processes and acts as the voice of the business to IT Business Analysis and Consulting Offers business analysis and consulting services to translate business needs into a structured set of requirements to enable the business understand its needs Solution Architecture Defines business-oriented solutions based on structured business requirements that comply with IT delivery and operational standards Demand Management Manages the demand from the business for resources and ensures the business can accommodate the associated change Business Readiness and Organisation Change Ensures the organisation is ready and able to accept the changes required of new or changed application 27 January 2014 37
  38. 38. IT Management Sub-Functions Manages data, defines data standards Operations Management Service Planning Manages the IT operation Data, Information, Knowledge Management Infrastructure, Networks Management Plans for the introduction of new services IT Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Technology Selection and Management Acquisition, Sourcing and Supplier Management Test Management Manages IT infrastructure Manages testing Manages and implements service and supplier acquisition Manages process for selecting suitable technologies Manages IT assets and software licenses Manages IT people resources, induction, training, development, standards Ensures quality of IT processes Manages delivery of programs and projects, manages standards and ensures consistency 27 January 2014 38
  39. 39. Service Lifecycle Management Sub-Functions Manages catalog of IT services Manages configuration of installed assets Manages the delivery of change Service Lifecycle Management Service Catalog Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management Manages business continuity, disaster recovery and system and application availability Ensures capacity of IT assets Implements and manages network of service level agreements Manages and implements release to production process 27 January 2014 39
  40. 40. Service and Solution Delivery Sub-Functions Designs, develops and implements new solutions and changes and ensures integration with existing systems Service and Solution Delivery Solution Design, Development, Implementation and Integration Analysis Design Realisation Test Service and Solution Support Designs, develops and implements IT infrastructure and communications networks Infrastructure and Communications Implementation Analysis Design Realisation Test Transition to Production Transitions new systems and changes to production and manages handover to support, ensures new systems are operable and supportable Service and Solution Support Implements support arrangements for new services and solutions 27 January 2014 40
  41. 41. Service Operations Sub-Functions Takes over the support and operation of new systems and applications, implements support arrangements Service Operations Takeover and Management Operations Co-ordination and Risk Management Support Function Monitoring and Alerting Resolves recurring problems to improve support efficiency Incident Management Service Request Management Operates application and infrastructure support function and processes Problem Management Facilities and Device Management Manages and operates IT infrastructure, equipment and communications network 27 January 2014 41
  42. 42. View Of Status Of Sub-Functions IT Governance IT Strategy Business Relationship and Engagement Business Relationship Management Business Analysis and Consulting Solution Architecture IT Enterprise Architecture management Business Readiness and Organisation Change January 27, 2014 IT Financial Management IT Service and Sourcing Strategy IT Security Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Design Realisation Takeover and Management Test Co-ordination and Risk Management Operations Service and Solution Support Transition to Production Infrastructure and Communications Implementation Design Realisation Test Management Service Operations Solution Design, Development, Implementation and Integration Analysis Infrastructure, Networks Management Acquisition, Sourcing and Supplier Management Technology Selection and Management Service and Solution Delivery Data, Information, Knowledge Management Service Planning IT Innovation Management IT Management Analysis Demand Management IT Governance and Leadership Operations Management Support Function Monitoring and Alerting Test Incident Management Service Request Management Problem Management Service and Solution Support Facilities and Device Management Service Lifecycle Management Service Catalog Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management 42
  43. 43. View Of Status Of Sub-Functions = Fully Implemented and Operational = Partially Implemented and Operational = Not Implemented and Operational • Use this as a view of what areas you need to get better at • Match with importance to identify high priority functions to address first January 27, 2014 43
  44. 44. Sample View - What IT Is Good At IT Governance IT Strategy Business Relationship and Engagement Business Relationship Management Business Analysis and Consulting Solution Architecture IT Enterprise Architecture management Business Readiness and Organisation Change January 27, 2014 IT Financial Management IT Service and Sourcing Strategy IT Security Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Design Realisation Takeover and Management Test Co-ordination and Risk Management Operations Service and Solution Support Transition to Production Infrastructure and Communications Implementation Design Realisation Test Management Service Operations Solution Design, Development, Implementation and Integration Analysis Infrastructure, Networks Management Acquisition, Sourcing and Supplier Management Technology Selection and Management Service and Solution Delivery Data, Information, Knowledge Management Service Planning IT Innovation Management IT Management Analysis Demand Management IT Governance and Leadership Operations Management Support Function Monitoring and Alerting Test Incident Management Service Request Management Problem Management Service and Solution Support Facilities and Device Management Service Lifecycle Management Service Catalog Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management 44
  45. 45. Sample View - What IT Is Average At IT Governance IT Strategy Business Relationship and Engagement Business Relationship Management Business Analysis and Consulting Solution Architecture IT Enterprise Architecture management Business Readiness and Organisation Change January 27, 2014 IT Financial Management IT Service and Sourcing Strategy IT Security Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Design Realisation Takeover and Management Test Co-ordination and Risk Management Operations Service and Solution Support Transition to Production Infrastructure and Communications Implementation Design Realisation Test Management Service Operations Solution Design, Development, Implementation and Integration Analysis Infrastructure, Networks Management Acquisition, Sourcing and Supplier Management Technology Selection and Management Service and Solution Delivery Data, Information, Knowledge Management Service Planning IT Innovation Management IT Management Analysis Demand Management IT Governance and Leadership Operations Management Support Function Monitoring and Alerting Test Incident Management Service Request Management Problem Management Service and Solution Support Facilities and Device Management Service Lifecycle Management Service Catalog Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management 45
  46. 46. Sample View - What IT Is Poor At IT Governance IT Strategy Business Relationship and Engagement Business Relationship Management Business Analysis and Consulting Solution Architecture IT Enterprise Architecture management Business Readiness and Organisation Change January 27, 2014 IT Financial Management IT Service and Sourcing Strategy IT Security Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Design Realisation Takeover and Management Test Co-ordination and Risk Management Operations Service and Solution Support Transition to Production Infrastructure and Communications Implementation Design Realisation Test Management Service Operations Solution Design, Development, Implementation and Integration Analysis Infrastructure, Networks Management Acquisition, Sourcing and Supplier Management Technology Selection and Management Service and Solution Delivery Data, Information, Knowledge Management Service Planning IT Innovation Management IT Management Analysis Demand Management IT Governance and Leadership Operations Management Support Function Monitoring and Alerting Test Incident Management Service Request Management Problem Management Service and Solution Support Facilities and Device Management Service Lifecycle Management Service Catalog Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management 46
  47. 47. Summary • • • • • • • • • • Low confidence in IT by business stills exists IT delivery of what the business wants is poor IT does not explain itself well Business can have unrealistic expectations IT needs to structure itself for business alignment and delivery Real IT and business alignment needs to pervade the entire IT function IT must embed business alignment in the way it operates to ensure it remains relevant to the business Otherwise the business will bypass IT and go straight to suppliers and service providers Disintermediation of IT is central to the business plans of many internet-based service providers Failure to systematise alignment will expose IT to the danger of becoming irrelevant January 27, 2014 47
  48. 48. More Information Alan McSweeney http://ie.linkedin.com/in/alanmcsweeney January 27, 2014 48
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