1. IT Governance a
Compass Without a Map?
Presenter: Troy DuMoulin
AVP Strategic Solutions

2. The “Risk Gap” For Business
Growth Goals
Process Requirements
• Increasing number of products & services
• Increasing rate of change RISK GAP
Increased Business Need Of IT Services
Increased Business Need Of IT Services
• Increasing complexity / data interdependency • Lack of availability,
performance,
• Increased speed and efficiency
reliability, quality
• Increased speed to market
• Reduced costs
IT Process Capabilities
• Silo / Fragmented / redundant processes
• Lack of integration, automation
• Lack of visibility
Scalability of Management Processes Over Time
Operating as a mature IT Service Provider requires consistent
management processes across silos!
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 3

3. What is IT Governance
IT governance is the responsibility of executives and the board of directors, and
consists of the leadership, organizational structures and processes that ensure that
the enterprise’s IT sustains and extends the organization’s strategies and
objectives.
Furthermore, IT governance integrates and institutionalizes good practices to
ensure that the enterprise’s IT supports the business objectives.
~IT Governance Institute – “COBIT 4.1”
IT Governance encompasses five major decision areas related to management and
use of IT in a firm, all of which should be driven by the operating model:
IT principles: high level decisions about the strategic role of IT in the business
Enterprise Architecture: the organizing logic for business processes and IT
infrastructure
IT Infrastructure: centrally coordinated, shared IT services providing part of the
foundation for execution
Business Application Needs: business requirements for purchased or internally
developed IT applications that both use and build the foundation for execution.
Prioritization and Investment: decisions about how much and where to invest in IT,
including project approval and justification
~ Harvard Business Review / MIT Sloan “Enterprise Service Architecture as Strategy”
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 4

4. The Governance Model ISO 38500
Corporate
Governance
of ICT
Evaluate
Direct Monitor
Proposals
Conformance
Performance
Policies
Plans
Business Processes
ICT Projects ICT Operations
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved.

5. Service Portfolio and Governance
IT Governance
Regulatory & Business Goals
Environmental and Strategies
IT Guiding IT Organizational
Principles Structure
IT Strategy
Service Portfolio
Management
Enterprise
Model
Architecture
IT Governance
Investment
IT Mgmt. tools
Decisions Service
Provider
IT Management
Type
Business Management
Projects Operations
Measurements
& Reporting
Risk Management Controls/Policies
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 8

6. The Changing Role For IT
HIGH
IT customers are the customer of
Value Network Focus the organization v3
IT is perceived as an internal
Business Focus business partner
IT has a single strategy and is focused on the
Customer Focus customer, but is perceived as an external v2
supplier
IT is focused on the integration and delivery of end-
Service Focus to-end IT services (business solutions)
IT is focused on technology, infrastructure and applications are
LOW
Technology Focus treated as separate and largely unrelated domains
Role Of IT/IS In The Organization
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 9

7. Four Stages or Architecture Maturity
Phase 1 Phase 2 Phase 3 Phase 4
Business Silo Standardized Technology Optimized Core Business Modularity
Architecture Architecture Architecture Architecture
Reuse loosely
Where Providing IT
coupled IT
companies look efficiencies Company wide
Enabled business
to maximize though data and
process
individual technology process
components
business unit standardization standardization
(services) to
needs of and, in most as appropriate
preserve global
functional silo cases for the operating
standards while
needs increased model
enabling local
centralization
differences
Source: HBS Enterprise Architecture as Strategy
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 10

8. IT Governance & Business Value Linkage
Core Business Measures
• Revenue
IT Core Strategic Measures
• Market Share
• Profit
IT Governance & Measures
• ROE
Balanced Scorecard
Business Value
IT Value Chain (Service Organization)
IT Governance / COBIT
IT Goals
IT Operational Processes
ITSM, SDLC, Project Mgmt., IT Processes
Security and Information Mgt.
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 12

9. DEMAND MANAGEMENT SUPPLY
Orders Commitments Develop & Maintain Deliver Service
E2E Service issues: Service delivery MI
Supplier strategies E2E Service information
Group governance
& profiles
11
Industry Best practice
Strategy, Planning 5 Develop & Integrate Deliver business change
Client strategies
3 and Sourcing Service Components Service
Architectures cost info
Handover components 9 10
Accepted Aggregated (awaiting authority
bid release to run) Incidents & 1st line support
Service Portfolio Plans Acceptance
Requests/fixes
documentation
Demand Authorise major changes Run Service Service
Approved Unplanned
6
levels Support Components
plans & change & supply
C controls demand capacity Performance vs.
U
Manage Client Relationships
OLA U
S
S
Manage Services
T Client requirements for/ 4 E2E Service Request for major Service changes
O agreement to change E
Design & Sourcing R
M
E S
11 Major
R Request for improved
Market and supplier change
S performance/fixes
info request 7 Manage Service
Maintain OLA requirements
Bid support Service Components 8 Components
Cost & OLA reporting
OLA metrics
price model
Minor change
2
Invoicing & payments Financial Processing 4 requests
& Reporting Incident
10 6 escalation
Financial information Major change
Supplier Incident requests
contract, escalation/ Problem reporting
Supplier issue resolution Manage Customer and resolution
negotiation resolution, Incident communications
Supplier 9 Services
profiles 11 requirements feedback
and Orders
benchmarking Supplier performance feedback
11 Manage Suppliers 12 Manage Risk
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 13

10. 3. Strategy, Planning & Sourcing 5. Develop& Integrate 6. Run Service Components 2. Manage Services
Service Components
3.1 Define Vision & 3.2 Define Strategic 6.1 Operate & 2.1 Produce
Strategy Investment Portfolio 6.2 Service recovery Service Plan
5.1 Manage projects monitor services
3.3 Develop / Maintain
3.4 Define Strategic 2.2 Track sservice
Service Portfolio, OM 5.2 Manage integrated performance
Roadmaps
& Architectures service components/ 8. Manage Service Components
3.5 Develop SP business change
3.6 Apply Strategic 8.1 Implement 2.3 Review & report
Business Plan changed/ new service 8.2 OLA management
Governance service performance
and Budget component
8.3 Operational 8.4 Service component
4. E2E Service Design supplier performance 2.4 Identify service
1. Manage Client management improvements
& Sourcing management
Relationships
4.1 Change demand 8.6 Update SCP 2.5 Update SLAs
1.1 Facilitate client capture 8.5 Benchmarking
database & reporting (existing services)
business strategy
4.2 Route to 7. Maintain
appropriate Service Components
1.2 Manage client change process 9. Manage Customer Services
demand
4.3 Confirm 7.1 Component
9.1 Manage 9.3 Manage order
feasibility of bid acceptance 9.2 Manage problem
1.3 Manage client incidents
contact
4.4 Mobilise team & 7.2 Release planning 9.4 Manage 9.5 Manage
prepare bid
1.4 Facilitate overall major incident knowledge
client satisfaction 7.3 Maintain
4.5 Agree with clients component
12. Manage Risk
1.5 Manage marketing
& account opportunities 7.4 Production 12.1 Provide local 12.2 Lead risk 12.3 Provide risk
4.6 Portfolio entry change control risk governance management consultancy
7.5 Business,
4.7 Aggregate business 12.4 Provide tools, 12.5 Provide risk 12.6 Provide IT
operations, IT & techniques & training & awareness
release/ plan entry supplier support security solutions
standards
10. Financial Processing & Reporting 11. Manage Suppliers
10.1 Operate and 10.2 Maintain 10.3 Maintain & 11.1 Provide market &
manage cost (ABC) 11.2 Negotiate with 11.3 Select suppliers 11.4 Communicate
maintain accounting financial accounts
systems and pricing models supplier intelligence suppliers with suppliers
10.4 Charging and 10.5 Management 10.6 Investment 11.5 Manage supplier 11.6 Review supplier 11.7 Resolve dispute
invoicing & financial Appraisal relationships performance with supplier
reporting
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 14

11. Process & Product Relationship
High Standardization Low Standardization
Regulatory Compliance Assemble To Order Specialist Knowledge
Cost Efficiency Tailored Solution
(3)
Commoditization Make To Order
Unique Context
Risk Service
(4) Catalog (2)
Formal Process Craftsmanship
Make To Stock Engineer To Order
(5) (1)
Policies, Roles, Procedures, Metrics, Common Tools
Low Variance
High Volume
$$
? High Variance
Low Volume
$$$$
Mitigating Risk of Variance Accepting Risk of Variance
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved.

12. IT Governance Model
US Securities &
Sarbanes-
Audit Models Exchange
COSO Oxley Commission
CobIT
Quality System
Quality System
App. Dev.
App. Dev. (SDLC)
Service Mgmt.
Service Mgmt.
Project Mgmt.
Project Mgmt.
IT Planning
IT Planning
Quality Systems &
IT Security
IT Security
Mgmt. Frameworks
ISO
CMMi
Six
Sigma
ITIL
IT OPERATIONS
ISO 20k ASL ISO TOGAF
PMI Zachman
27001
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 17

13. Where Do We Want To Be?
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 18

14. Services vs. Processes
ITIL is a Service
Management Framework.
This means that the
processes described by ITIL
exist for the primary purpose
of planning, delivering and
supporting IT Services.
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 20

15. Sample Service Catalog
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 23

16. Service and Process Architectures
Application Services
Infrastructure Services
Client Professional Services
SLA
Service & Process
Organizations
tied together by
App. Dev. Infrastructu
SLM re
SLM
Application Service SO Desktop
Service Owner Business App.
Infrastructure Service SO Hosting
Process Professional Service SO Security Mgmt
Improvements
based on
Service Reporting Process Owner Process (Incident)
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 24

17. The Evolving IT Service Organization
HIGH
Enterprise Business Engagement Model
Enterprise Governance & SD Function
CIO Span Of Control Issues Arise
Enterprise IT Groups Spin Off
LOW
Technology Consolidation
Organizational Design Drivers
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 25

18. Service Organization Model
Catalog
SLM SLA
Customer
Service Delivery Infrastructure Applications
• ITSM
• Security Service
• QA assurance / testing
• PMO
• Performance Mgmt.
• Planning / Consulting
• IT Finance
• Risk Mgmt./ Compliance
• IT Audit
• Human Resources
All of these functions have a enterprise IT mandate and not a
vertical technology focus
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 26

19. ITSM Tool Strategy & Integrations
Customer Web Portal
Service Catalog
Requests Fulfillment
Resource & Project Portfolio Mgmt.
Resource & Project Portfolio Mgmt.
Service level Management
Monitoring KPI Dash Boards
&
Event Mgmt.
Workflow Management
Reporting
Reporting
Incident Management
Code & Doc. Problem Management
Mgmt. Change Management
(DML) Release & Deployment Management
Access Management
Etc...
Configuration Management
Provisioning (CMS)
Federated Data Sources
Billing & Financial Management
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 27

20. Adoption Curve Of ITSM
Early Adopters Finance & Trading
Government
Key Drivers:
1) IT impact on revenue
Medical
2) Legislative
requirements
Utilities
Manufacturing
Education
Late Adopters Retail
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 28

21. Questions?
Troy DuMoulin
t.dumoulin@pinkelephant.com
http://blogs.pinkelephant.com/troy
http://twitter.com/TroyDuMoulin
Thank You
PINK ELEPHANT
www.pinkelephant.com
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 29