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Copyright 2012 COMMUNICATE!

Build an effective IT Delivery Model to
meet Business Needs!
- To deliver to set business ...
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Copyright 2012 COMMUNICATE!

CEO, CFO, CIO, CTO, SVP, Architects, Strategy, Business Executives
and the IT function in ...
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Copyright 2012 COMMUNICATE!

BrightTalk Thought Leadership: http://www.brighttalk.com/community/it-service-management/w...
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Copyright 2012 COMMUNICATE!

Build an IT (Service) Strategy!
- Leveraged by ITIL V 2 & 3!

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By

Martin Palmgren, IT S...
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Copyright 2012 COMMUNICATE!

Design, Build, Run!
•  Design the Business (IT) Value Proposition ()!
•  “Canvas” the IT S...
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The IT department deliver effective services !
1. Define services!
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Clearly defined portf...
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Focus on business value!
3. Business proposition!
Options are presented to management: In-...
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Institutionalise: Shared Infrastructure!

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Focus on strategy execution !

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Focus on strategy execution !

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Focus on strategy execution !

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Focus on strategy execution !

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Articulate the Business (IT) Service Strategy!!

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Articulate the Business (IT) Service Strategy!!

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Articulate the Business (IT) Service Strategy!

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Articulate the Business (IT) Service Strategy!

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Articulate the Business (IT) Service Strategy!!

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Articulate the Business (IT) Service Strategy!

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Design the Technology Architecture ...
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Articulate the Business (IT) Service Strategy!!

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Design the Technology Architecture ...
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Articulate the Business (IT) Service Strategy!

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Articulate the Business (IT) Service Strategy!

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Design the Technology Architecture!
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Articulate the Business (IT) Service Strategy!!

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Design the Technology Architecture ...
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Articulate the Business (IT) Service Strategy!

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Leverage strategy execution with IT!

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Develop the Program Plan!

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Leverage strategy execution with IT!

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Leverage strategy execution with IT!

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Develop Prog...
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Leverage strategy execution with IT!

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Leverage strategy execution with IT!

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Develop Prog...
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Leverage strategy execution with IT!

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Develop the Program Plan !

	
  

Develop P...
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Copyright 2012 COMMUNICATE!

CEO, CFO, CIO, CTO, SVP, Architects, Strategy, Business Executives
and the IT function in ...
.

Copyright 2012 COMMUNICATE!

BrightTalk Thought Leadership: http://www.brighttalk.com/community/it-service-management/w...
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Build an IT Service Strategy Leveraged by ITIL V2 & 3 Design - Spell out IT Activities from a Demand and Supplier Side

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This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/build-an-it-service-strategy-leveraged-by-itil-v2-and-3-design-spell-out-it-activities-from-a-demand-and-supplier-side-282

The "Deliver Business Value with IT" series provides a good overview and actionable material of the ways a CIO can provide valuable and effective support to your company strategy and leverages business model concepts to deliver business value from IT. Martin Palmgren propose an extremely solid piece of work that comes across as the A-Z reference of how to execute and implement IT strategy from a CEO and CIO level perspective."

Executive Summary:

The CIO and the IT Department need to position as premium provider of IT services and focus on value to cost.

In order to avoid the "do we really need a CIO and IT department to bother us with technology when we can use the cloud?" the CIO has to ensure that the business strategy and business objectives are supported by IT (from a Business and IT architecture perspective). Where the IT Strategy support Strategy execution, "Time to Market", Cost Effectiveness and stakeholder expectations from an Executive, Business Unit, IT Management and IT Risk Management perspective.

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Build an IT Service Strategy Leveraged by ITIL V2 & 3 Design - Spell out IT Activities from a Demand and Supplier Side

  1. 1. . Copyright 2012 COMMUNICATE! Build an effective IT Delivery Model to meet Business Needs! - To deliver to set business strategy and objectives ! !! Break Out or How do we do this! 1  
  2. 2. . Copyright 2012 COMMUNICATE! CEO, CFO, CIO, CTO, SVP, Architects, Strategy, Business Executives and the IT function in general. ! Target Audience! 3  
  3. 3. . Copyright 2012 COMMUNICATE! BrightTalk Thought Leadership: http://www.brighttalk.com/community/it-service-management/webcasts?q=martin+palmgren ! Get your cloud strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/29211 ! Get your IT Service Strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/23630! Leverage Strategy with IT: http://www.brighttalk.com/community/it-service-management/webcast/534/22934 ! Cloud Computing: Fluff or Lightening? http://www.brighttalk.com/community/it-service-management/webcast/534/21892 ! Run IT as a Service Business! http://www.brighttalk.com/community/it-service-management/webcast/534/21389 ! In French: ! Cloud Computing : La tête dans les nuages?: http://www.brighttalk.com/community/it-service-management/webcast/534/21919 ! Baseline: Coût, Consommation, chargeback et contribution IT aux objectifs de l'entreprise : ! http://www.brighttalk.com/community/it-service-management/webcast/534/21388! Deliver Business Value with IT (the book) https://www.smashwords.com/books/view/290604  (the blog) http:// deliverbusinessvaluewithit.wordpress.com /! I also share perspective @ some of the top French Business Schools, notably EDHEC! International Thought Leadership! 5  
  4. 4. . Copyright 2012 COMMUNICATE! Build an IT (Service) Strategy! - Leveraged by ITIL V 2 & 3! !! By Martin Palmgren, IT Strategy and Transformation Executive @ .COMMUNICATE 7  
  5. 5. . Copyright 2012 COMMUNICATE! Design, Build, Run! •  Design the Business (IT) Value Proposition ()! •  “Canvas” the IT Service Strategy ()! •  Develop a High level picture of the Business (IT) Strategy ()! •  Articulate the Business (IT) Strategy ()! •  Develop the Business (IT) Service Strategy ()! •  Build the Business (IT) Service Strategy ()! •  Govern the the Business (IT) Service Strategy () ! •  Design the Technology Architecture ()! •  Build the Sourcing Strategy ()! •  Develop the Program Plan ()! •  Leverage Business Strategy Execution ()! 9  
  6. 6. . Copyright 2012 COMMUNICATE! The IT department deliver effective services ! 1. Define services! •  Clearly defined portfolio of products and services and aligned to business goals and priorities! •  Costs are understood for each service with a TDABC analysis for resource capacity, Asset consumption by service is established! •  Best practice Asset Management practices are in place and IT leverages frameworks.! As we understand demand and cost drivers ! 11  
  7. 7. . Copyright 2012 COMMUNICATE! Focus on business value! 3. Business proposition! Options are presented to management: In-house, shared services, outsourcing, cloud sourcing, etc! •  •  •  •  •  Key IT projects deliver value as planned! Strategic IT opportunities are identified but not articulated! The Board will be presented with risk assessment decisions on critical initiatives! Position IT services in relation to the competition and industry! IT analyse competitor's IT initiatives! And solutions as needed ! 13  
  8. 8. . Copyright 2012 COMMUNICATE! ! Institutionalise: Shared Infrastructure! ! ! ! Options are presented to management: In-house, shared services, outsourcing! ! Leverage competitive advantage: Provide competitive advantage with a focus on business value! ! ! ! 4. Governance in place! ! ! Best practices processes continuously improved! Governance blueprint designed and operating! ! IT investments reflect:! 3. Business proposition! ! ! ! ! Key IT projects deliver value as planned! Strategic IT opportunities are identified but not articulated! The Board will be presented with risk assessment decisions on critical initiatives! Position IT services in relation to the competition and industry! ! IT analyse competitor's IT initiatives! 1. The strategic intent of the Board! 2. Business goal and priorities! 3. A clear IT portfolio of projects and services! 4. A Service Portfolio alignment to business goals and priorities! ! ! IT investments deliver a good return on investment! The IT Steering Committee will initiate a strategic IT competitive analysis! ! Stabilise: Understand demand and cost drivers! ! Consolidate: Provide Better Information! ! 1. Service definition! ! ! ! Clearly defined portfolio of products and services: - Portfolio aligned to business goals and priorities! ! Customer base and demand is clearly defined: ! ! Costs are understood for each service: - TDABC analysis for resource capacity, Asset consumption by service is established! ! ! ! Prices / SLAʼs for services are established: ! ! ! ! ! ! ! ! ! Best practice Asset Management practices are in place. - IT leverages best practice such as VALIT, COBIT, RISKIT, ITIL,CMMI, TOGAF.! ! ! ! ! ! ! 2. Market definition! - Who is consuming what services! - Internal rates compared to outside marketplace for IT (Make or Buy)! To the Strategic Plan! 15  
  9. 9. Strategic! Tactic! Operational! . Copyright 2012 COMMUNICATE! Strategy! Process! We deliver competitive services, execute strategy effectively and measure the added value to optimise investment in IT!! Leverage competitive advantage! Strategic! Tactic! Institutionalise! Consolidate! Operational! Stabilise! Time to Market (Performance & Conformity)! Application support ! Vendor Driven! Execute Business Strategy! Business Architecture! and deliver competitive services! 17  
  10. 10. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the Business (IT) strategy ! ! Develop an understanding of the Business (IT) Strategy and how the IT department will deliver effectively to support strategy execution: ! ! Objective: To develop a comprehensive understanding of the business environment and future direction in order to identify areas of strategic IT opportunities and as the basis to develop the IT strategy.! ! Benefit: A Clear business vision and direction avoids dispersed, conflicting, non-value added activities and costs and enable a clear focus on the chosen markets / products / services. The establishment of an agreed business vision provides an understanding for how IT can/should contribute to business objectives and how ROI can be driven from IT investments. As you establish the need for and agree on the scope/focus of the IT strategy engagement, it is important to develop a sense of the business environment and future direction. This understanding of the organisationʼs present and future is documented and is used to determine how IT will be leveraged.! ! It should be clearly understood that this activity is not intended to build the business vision but to support the roll out of an established business vision. The purpose of this activity is to understand the business, its internal and external environment and make explicit any unstated or inadequately articulated business values and vision elements to build a firm platform for the project.! 19  
  11. 11. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! Assess the Business (IT) strategy ! ! Develop an understanding of the Business (IT) Strategy and how the IT department will deliver effectively to support strategy execution: Confirm business vision ! ! ! ! It is important to understand both the vision and the extent to which it has been communicated throughout the organisation and “bought in to” by Stakeholder, key influencers and end users.! ! In the event of a non articulated vision for the organisation, it should be agreed that a consensus approach is required to build one. A visioning workshop should be conducted with key stakeholders. ! ! ! ! ! ! ! ! 21  
  12. 12. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! Assess the Business (IT) strategy! ! Develop an understanding of the Business (IT) Strategy and how the IT department will deliver effectively to support strategy execution: Confirm External Environment !   !   The Business Profile developed should have identified a large number of organisational and industry key issues. These will set the direction and focus of the review of the strategic analysis and highlight material areas which have not been considered/ignored in the development of the Business (IT) Strategy plan. An analysis of the external environment will involve: political, economic, social and technological forces impact the business; suppliers and customers; threat of new entrants; possible substitution effects; the competitive arena and the business relative positioning.! ! ! ! 23  
  13. 13. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! Assess the Business (IT) strategy! ! Develop an understanding of the Business (IT) Strategy and how the IT department will deliver effectively to support strategy execution: Confirm IT Value Proposition and Product / Service offer!   The value proposition clearly articulates how value is defined by the stakeholder. It will differ by stakeholder and be defined by cost and demand drivers in regards of business drivers and objectives.! ! Further comprehension of expectations on the “IT Value Proposition” that is how do we (are we expected to) deliver IT services to business needs is achieved by conducting interviews with key executives and an analysis of stakeholder surveys.! ! ! ! ! ! 25  
  14. 14. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the Business (IT) strategy! !     Develop an understanding of the Business (IT) Strategy and how the IT department will deliver effectively to support strategy execution: Confirm Business (IT) Strategy, Objectives and Goals !   The business strategy and plan based on available data follows logically from it. The organisationʼs business imperatives, strategies, goals and objectives with Critical Success Factors within the control of the organisation are identified and documented. ! ! ! !   27  
  15. 15. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the Business (IT) strategy! ! Develop an understanding of the Business (IT) Strategy and how the IT department will deliver effectively to support strategy execution: Validate the Business (IT) Strategy!   Does IT support strategy execution with a clear IT Business Model and Value Proposition articulated in a service strategy?! ! Focus on the validation of the IT strategy and direction. Where certain areas are less focused, dispersed or contradict elements of the Business (IT) strategy it is necessary to undertake incremental strategic analysis. The extent to which this is necessary or desirable depend on if the area of concern is fundamental to the entire Business Strategy & impact on the Business (IT) Strategy. ! 29  
  16. 16. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Develop a high level picture of the Business (IT) Strategy! ! Develop a high level picture of the Business (IT) Strategy !   A high level picture of the Business (IT) Strategy contains a description of the Business Strategy with Business Drivers and Objectives, how IT support strategy execution, the needed competencies and resources. This picture is developed as we consider a number of aspects of the Business (IT) Strategy such as the subsequent value chain, process architecture, information/data architecture, organisation charts and skills and competencies. ! 31  
  17. 17. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Develop a high level picture of the Business (IT) Strategy! ! Develop a high level picture of the Business (IT) Strategy: Determine the leverage of IT to support strategy execution !   The extent to which IT is used as an organisational asset is an indication of Key Business Stakeholders Perception of IT as critical lever and drives the value the organisation places on it. This in turn will determine the nature and quality of information technology in use in the organisation. The importance of IT on the boardʼs agenda usually provides a good indication of the value the organisation places on IT. A SWOT analysis could be performed on the IT Strategy to highlight critical “hot spots”.! ! ! 33  
  18. 18. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! ! Develop a high level picture of the Business (IT) Strategy! ! Develop a high level picture of the Business (IT) Strategy: Identify high level IT enabled business opportunities - Identify Focus Areas ! ! To identify the areas of the organisation that are critical to the success of the business strategy we focus on business drivers and objectives. This involves to map prioritised IT objectives to high level business drivers and objectives. ! ! 35  
  19. 19. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! ! Develop a high level picture of the Business (IT) Strategy! ! Develop a high level picture of the Business (IT) Strategy: Identify high level IT enabled business opportunities - Identify scope/opportunities for improvement ! ! To identify opportunities for improvement and get a first, high level, view of the potential benefits available to the organisation, we map the Business Strategy with Business Drivers and Objectives to the current IT service strategy. ! ! The gap should be used to determine the scope of possible improvements. In addition to the benefits the opportunities are likely to bring in, a preliminary identification of the associated risk and cost is made. The scope / opportunities are validated and recorded on the ʻAs-Isʼ process model to ensure that the widest possible acceptance of this picture is achieved among management and staff not only involved in but are affected by the process. It should be noted that the opportunities identified in this task will primarily have a business focus. This analysis results in the first view of the Business (IT) Strategy business case.! ! ! 37  
  20. 20. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! Develop a high level picture of the Business (IT) Strategy! ! Develop a high level picture of the Business (IT) Strategy: Identify high level IT enabled business opportunities - Ensure stakeholder “buy in” and sponsorship ! ! To ensure that stakeholders, top management, IT management and other business managers have been involved in and have “bought in” to the output we need to understand stakeholder expectations and deliver to the latter. Adequate buy-in at appropriate levels from all stakeholders is critical to the success of the engagement. If appropriate sponsorship is not visible at all stages, the quality of the work effectuated and the ability to implement the solution will be limited. Appropriate action should be taken to ensure that the interest and sponsorship of top management is sustained throughout the engagement. The key to maintain sponsorship is to keep relevant stakeholders informed and to demonstrate the benefits case as it develops with the delivery of quick wins. ! ! ! ! ! 39  
  21. 21. . Copyright 2012 COMMUNICATE! Design, Build, Run! •  Articulate the Business (IT) Strategy ()! ! ! ! ! ! ! ! ! ! ! ! ! !! !! !! !! !! !! !! !! !! !! !! !! ! ! ! ! ! ! ! ! ! ! ! - Draw the current Business (IT) Service Strategy ()! - Scope ()! - IT Review ()! - Inventory of the existing IT and plan review scope and detail ()! - Understand and assess overall Alignment of IT to the business ()! - IT Benefits Review ()! - Assess the Business (IT) relationship ()! - Applications Review ()! - Applications Portfolio Review ()! - Assess IT programmes / projects ()! - Assess Stakeholders Priorities, Maturity and Satisfaction ()! ! 41  
  22. 22. . Copyright 2012 COMMUNICATE! Business Context! Business Strategy! IT Business Model & Value Proposition! Business Operations! Service strategy (ITIL) ! Delivery capability (VALIT, COBIT, RISKIT, CMMI, eSCM, ITDB)! Architecture (TOGAF)! Business Value! Security (ISO 9000, 20/ 27 000)! For Effective Governance, Risk, Compliance! Draw the current Business (IT) Service Strategy! 43  
  23. 23. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the As – Is of the Business (IT) Service Strategy ! ! Draw the current Business (IT) Service Strategy: IT Review ! ! An assessment of the existing The IT Business Model and Value proposition with a Service Strategy, IT Delivery Capability, Architecture and Security model is an essential and integral part of the IT strategy engagement. The nature and extent of the assessment will vary in each engagement. This assessment provides the ʻAs-Isʼ picture that will be the point of departure for the Business (IT) Strategy.! ! 45  
  24. 24. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the As – Is of the Business (IT) Service Strategy! ! Draw the current Business (IT) Service Strategy: Understand and assess overall Alignment of IT to the business ! ! ! The purpose of this task is to understand how well existing IT is aligned to the business. The effectiveness of the IT strategy and the extent of IT leverage to the business strategy can be assessed as we determine that IT investments match with business priorities and the extent of IT support to business requirements and priorities.! ! !   47  
  25. 25. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the As – Is of the Business (IT) Service Strategy! ! Draw the current Business (IT) Service Strategy: Assess the Business (IT) relationship! ! The relationship between IT (the supply side) and the Users (the demand side) will depend on the extent of integration of IT in the organisation. Traditionally, IT was a separate department with varying degree of autonomy depending on whether it was a cost or a profit centre.! ! A focus on strategy execution with business objectives and drivers forces the identification of a service strategy, delivery capability, architecture and security and will help you assess the expectations of the business stake holders.! ! ! 49  
  26. 26. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the As – Is of the Business (IT) Service Strategy! ! Draw the current Business (IT) Service Strategy: Applications Portfolio Review!   The existing portfolio of applications should be assessed by functional and technical quality. The two views provide the demand and supply side perspectives. The functional quality provides the userʼ perception of how well existing applications support the business. The technical quality provides the IT departments perception of how good the applications are from a technical standpoint. It is important to identify all applications that are to be included in the analysis.! ! ! 51  
  27. 27. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! Assess the As – Is of the Business (IT) Service Strategy! ! Draw the current Business (IT) Service Strategy: Assess Stakeholders Priorities, Maturity and Satisfaction ! ! Stakeholder priorities, Maturity and Satisfaction should be assessed to complete the understanding of the reasons for the existing effectiveness of IT in the organisation. Stakeholder priorities can be assessed by structured interviews of selected stakeholders to understand users priorities, IT skills, involvement in and satisfaction with IT. Alternatively, a user maturity assessment can be made via a workshop with IT and business representatives (or separately if needed) - any significant differences in views can be a measure of misalignment between IT and the business.! ! User satisfaction across different services provided by IT such as Operations, Supply of solutions and Support can be measured and assessed with Key Performance Indicators.! ! ! ! 53  
  28. 28. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! ! Assess the As – Is of the Business (IT) Service Strategy! ! Draw the current Business (IT) Service Strategy: Assess IT Talent and Organisational Skills ! ! In order to develop an IT skills and competency profile to support the development of the IT strategy, it is important to undertake an assessment of the skills and competencies of the IT staff. This review can be completed with an activity analysis of staff to support the development of a talent profile. An IT skills survey questionnaires can be appropriately conceived and distributed. An activity questionnaire can also be distributed or alternatively, timesheets can be analysed. The results should be analysed and staff experience, skills, competency and activity profiles prepared and results summarised. Results should clearly identify strengths and weaknesses of existing staff in the context of the relevant business strategy.! ! ! ! ! 55  
  29. 29. . Copyright 2012 COMMUNICATE! ! Focus on strategy execution ! ! Assess the As – Is of the Business (IT) Service Strategy! ! Draw the current Business (IT) Service Strategy: Review of External Services ! ! Where the organisation has an IT service provided by a third party supplier, the relationship between the service provider and IT on the one hand and Users on the other should be examined as this represents an extension of the IT supply chain. Several aspects of the external service need to be assessed. The first of these is the ʻpartnershipʼ or the relationship between the service provider and the client organisation. In this context the IT function will be both a supplier (to business users) and a user (of the service from the third party supplier). This dual relationship requires greater management sophistication than required of the simple IT function. The second aspect of the review is the user satisfaction expressed in regards of externally provided services.! ! ! ! 57  
  30. 30. . Copyright 2012 COMMUNICATE! Design, Build, Run! •  Develop the Business (IT) Service Strategy ()! ! ! ! ! ! ! ! ! ! ! ! !! !! !! !! !! !! !! !! !! !! !! ! ! ! ! ! ! ! ! ! ! ! - Draw the future Business (IT) Service Strategy ()! - Business (IT) Vision ()! - Set stretch targets ()! - Consolidate Business IT opportunities of improvement ()! - Service Strategy ()! - Delivery Capability ()! - Architecture ()! - Security ()! - Determine competencies/skills required ()! - Prepare the “Service Strategy” business case ()! ! ! 59  
  31. 31. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! ! ! Develop the Business (IT) Service Strategy! ! Draw the future Business (IT) Service Strategy: Business (IT) Vision ! ! The Business (IT) Vision set to strategic direction, stretch targets and design principles will be developed to conceive a ʻTo-Beʼ Business (IT) Model and Value Proposition. The model specifies objectives and drivers to the required level of detail and identifies the types of measures which will apply to each part of the organisation. ! ! A range of different scenario, based on a combination of strategic objectives and business drivers and technology will be created to start with. The benefit / risk / cost / time profile associated with each of the scenarios can be used to eliminate less attractive propositions. Sourcing alternatives should also be considered while developing the ʻTo-Beʼ Business IT model. If consistent with business principles and priorities, it is possible that certain ʻnon-coreʼ services should be a candidate for outsourced supply based on Demand and Cost Drivers (internal / external shared service centre, outsourced or cloud(out)sourced). ! 61  
  32. 32. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! ! ! Develop the Business (IT) Service Strategy! ! Draw the future Business (IT) Service Strategy: Consolidate Business IT opportunities of improvement! ! ! ! To develop the Business (IT) Model the strategic preferences of identified stakeholders are used to develop themes to address business / information technology opportunities. The latter could range from “to extend the value chain to customers and suppliers” to support the business strategy or use of new technology to underpin performance improvement. ! ! Opportunities should reflect the Business Strategy that is: Strategy execution, Business objectives and drivers.! ! Input from best practice models, industry benchmark and technology practices should be used to identify available opportunities. To meet stakeholder needs, incorporate new technologies to out perform competition and capture revenue are some examples of strategy considerations to improve business performance. Improvement opportunities are formulated and grouped as common elements to evaluate available options. ! ! ! 63  
  33. 33. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Develop the Business (IT) Service Strategy! ! Draw the future Business (IT) Service Strategy: Delivery Capability! ! ! ! Delivery Capability ensures that the IT Business is able to deliver IT capability to Execute the Business Strategy. The Delivery Capability perspective provides the basis to identify the projects and standards required to achieve to the desired future state. !  ! ! ! 65  
  34. 34. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Develop the Business (IT) Service Strategy! ! Draw the future Business (IT) Service Strategy: Security! ! Security defines how the IT Business will ensure IT RISK and Business Continuity in the future. The Security perspective provides the basis to identify projects and standards required to achieve to the desired future state. !  ! ! ! 67  
  35. 35. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! ! ! Develop the Business (IT) Service Strategy! ! Draw the future Business (IT) Service Strategy: Prepare the “Service Strategy” business case !   The last step is to prepare a set of “Service Strategy” business cases that define the projects required to deliver to the ʻTo-Beʼ Business (IT) Strategy Execution Model. A business case will identify tasks, resources, time lines, milestones, benefits and risks of identified projects. ! ! ! ! ! 69  
  36. 36. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! ! Build the Business (IT) Service Strategy! ! ! Build the Business (IT) service strategy:! ! ! Question:! What is the structure of services, applications, information and data needed to support the business in the future?! ! ! Objective:! To identify how services, applications, information and data will be structured to support the ʻTo-Beʼ business architecture.! ! ! Benefit:! Increase the flexibility of information systems to adapt to changing business needs and provide the information needed to manage the business.! ! ! ! ! 71  
  37. 37. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Build the Business (IT) Service Strategy! ! Build the Business (IT) service strategy: Develop the Information Architecture! ! Further techniques, such a data normalisation, can be used to rationalise data group and link data. The exercise is best performed with a small group of talent with at least one experienced data modeller. The results is then validated with a wider business audience for buy-in and verification.! ! Workshops are used to identify responsibilities for ownership and maintenance of critical information and data the establishment of appropriate business drivers and subsequent processes included. ! ! ! 73  
  38. 38. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Build the Business (IT) Service Strategy! ! Build the Business (IT) service strategy: Define Information/Applications Architecture Implementation Policies/ Principles & Standards !   Once the information and applications architecture has been defined, a set of policies, principles and standards for implementing this architecture has to be established. This will include policies and principles for package preferred solutions, replacement of applications/modules, integration and interface standards for current and future components of the information and applications architecture and responsibilities for maintaining architectural compliance.! ! ! 75  
  39. 39. . Copyright 2012 COMMUNICATE! Design, Build, Run! •  Govern the the Business (IT) Service Strategy ()! ! ! ! ! ! ! ! !! !! !! !! !! !! !! ! ! ! ! ! ! ! - Define the role of the IT Department and scope of the IT ! function ()! - Define IT management principles and policies ()! - Define IT management practices ()! - Define Critical Success Factors and Performance Metrics ()! - Define the IT Organisational structure ()! ! 77  
  40. 40. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Govern the Business (IT) Service Strategy ! ! Govern the Business (IT) Service Strategy: Define the role of the IT Department and scope of the IT function! ! We define the role of the IT Department in the organisation as a partner in business planning and strategy processes and an agent to support the change process, an integrator that brings focus on business strategy execution, business drivers and objectives and identify subsequent services and technology solutions as a cost effective provider of services.! ! !! 79  
  41. 41. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Govern the Business (IT) Service Strategy ! ! ! ! Govern the Business (IT) Service Strategy: Define IT management practices! ! To define the desired IT management practices and processes we need to understand that not all management practices will be important for the future and we should focus on the key practices that need to be improved. We need to identify a prioritised list of practices for which improvement programs should be kicked-off as part of the overall program plan. In addition, the IT Business Strategy should clearly relate to how it supports the Execution of the Business Strategy.! ! ! ! ! 81  
  42. 42. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Govern the Business (IT) Service Strategy ! ! Govern the Business (IT) Service Strategy: Define the IT Organisational structure ! ! Define the IT organisational structure with the distribution of IT staff and the identification of line and staff reporting relationships in line with the overall IT management principles defined earlier.! ! ! 83  
  43. 43. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Design the Technology Architecture ! ! ! ! ! Define architecture framework, design principles and policies:! ! Question:! What technology components are needed to support strategy execution with the information and application architecture in the future? ! ! ! Objective:! To develop a set of technology blueprints for an integrated set of information system components, together with a framework of standards and principles to ensure that components will operate effectively together, and adapt readily to the evolving needs of the business and supports strategy execution.! ! ! Benefit:! As we support the strategy execution process we identify the optimal integrated set of information systems technology components to invest in that will! best help manage information/ knowledge and adapt readily to the future needs of the business.! 85  
  44. 44. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Design the Technology Architecture ! ! ! ! Define architecture framework, design principles and policies:! ! The architecture framework defines the general design principles that will the guide development of the technology blueprints. In addition to establishing common approaches to general architectural requirements such as flexibility and scalability, the framework provides standards and guidelines for a number of common system design and integration issues. These are based on the application of industry and technology best practices to the overall business information requirements that have been defined in previous activities. The framework also identifies technology standards that will be used to implement the infrastructure.! 87  
  45. 45. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Design the Technology Architecture ! ! ! ! Define architecture framework, design principles and policies: Identify ʻbest practiceʼ and “key trends”! ! We focus on the impact of business change on best practice in regards of IT infrastructure design to complement performed research of business and technology sources. ! ! The team will review and confirms result, conduct follow-up research as needed, and then documents findings in the form of a summary of best practices that highlights impact on the architecture framework and blueprints.! ! ! 89  
  46. 46. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Design the Technology Architecture ! ! ! ! Define architecture framework, design principles and policies: Identify technology classes ! ! We use the framework identified to define specific technologies or classes of technologies that will be used to implement the design. ! ! As we identify and prioritise the various issues to be addressed by the framework we agree on best practices, and then identify and evaluate alternatives (where possible) that will enable an effective migration from the As Is to the To Be. Once preferred alternatives have been identified for all of the framework topic areas, the team conduct a systematic review to identify and resolve gaps and inconsistencies among the various design principles and guidelines, as well as conflicts with business drivers and other framework constraints.! ! If existing policies or contracts specifies the use of predefined products they should be clearly identified, since they may influence the selection of other technologies or products.! ! ! ! ! 91  
  47. 47. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Design the Technology Architecture ! ! ! ! Design Technology Solutions: Define Blue Prints! ! Blueprints are defined to meet the data storage and communications capabilities required to implement the information/applications solutions to meet agreed objectives in terms of performance, reliability, security and evolution. This is done as we determine the technologies required at each type of site (based on the applications and databases that run on workstations and servers located on site), define the network and communication technologies required to provide needed connectivity. Proof of concept testing will be required to confirm the inter-operability and performance of the various hardware and software components. At this point the team assess how the new technology infrastructure will need to be supported to deliver to set metrics. The final activity in this phase revisits the business case. In the light of what has been learned through the blueprint design process, the team will be in a good position to refine earlier projections and assumptions on the benefits that the new architecture will be able to deliver, cost and risks involved in the construction. This reassessment may lead to modifications in the proposed architecture.! 93  
  48. 48. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Design the Technology Architecture! ! ! ! Design Technology Solutions: Define Site Technology Models ! ! As we define the technology at different sites we identify boundaries between technology owned by business divisions and external services. Captured in a blueprint they form the site technology model.! ! As the architecture is completed and describe the functionality, topology, and technology for all of the applications, databases, and common services within the scope of the initiative, we turn to the definition of technology components upon which the applications and data will be deployed across the enterprise. As the architecture describe the "upper" layers of technology, the technology blueprint defines the "lower" layers: Data management, access and security, Operating system, Messaging, Network, Hardware.! ! ! 95  
  49. 49. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Design the Technology Architecture ! ! ! ! Design Technology Solutions: Define the Enterprise Technology Model ! ! As we draw the enterprise technology model we present a definition of the way the organisationʼs technology infrastructure will be organised and managed; specific hardware, software and network components and identity responsibilities for maintenance, operation and support together with technology infrastructure components shared with suppliers/customers and/or with outsourced service providers.! ! The enterprise technology model is concerned with connecting the site models developed in the previous sub-task. Once application and database functionality has been bundled in user workstations, and these workstations have been distributed into representative sites and attached to local networks, it is possible to model a network that responds to the aggregate demand for system and network bandwidth resources. The enterprise technology model is also concerned with system and network management requirements as they exist as a result of connecting the sites.! 97  
  50. 50. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Design the Technology Architecture ! ! Design Technology Solutions: Summarise models and define technology cost and risk! ! We consolidate technology diagrams to assess costs and risks involved with the overall infrastructure and to define boundaries of the infrastructure, identify responsibilities for maintenance and operations of specific applications and technologies including outsourced services. ! ! The original business case should be revisited. In light of what has been learned through the blueprint design process, the team will be in a good position to refine earlier projections and assumptions both on the benefits the new architecture will be able to deliver, and the cost and risk involved in building it.! ! ! 99  
  51. 51. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Build the Sourcing Strategy ! ! The focus on sourcing as a part of the service strategy is limited to the identification of an optimal sourcing strategy for the IT Service Strategy. ! ! Question: How do we optimally source our IT requirements to execute strategy and business drivers and objectives?! ! Objective: The objective is to create a model to meet the IT services strategy required by the organisation and how it should be packaged for optimal delivery. This leads to a definition of the resources (skills and competencies) required to support and manage defined services effectively. Service levels and key performance indicators to monitor and manage each service ʻbundleʼ are also developed to ensure the effective management services.! ! Benefit: Define the value of services required to support the business requirements and identify the best sourcing options for IT to meet business performance objectives.! ! ! ! ! ! ! 101  
  52. 52. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Build the Sourcing Strategy ! ! Develop a service architecture:! ! The Service Strategy is developed with input from the IT Assessment, Demand Side Architecture, Technical Architecture and preliminary reflections on governance to structure an architecture of the IT services. The architecture clearly identifies services (in-house and outsourced) required by the organisation with skills and competencies required to effectively manage the required services.! ! ! 103  
  53. 53. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Build the Sourcing Strategy ! Develop a service architecture: Establish guiding principles! ! To establish guiding principles to take decisions on to in-source or outsource services the key elements considered include available skills and competencies, cost, potential for improved productivity, effectiveness and user satisfaction to meet demand and cost drivers.! ! ! ! 105  
  54. 54. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy!! ! Build the Sourcing Strategy ! Develop a service architecture: Evaluate sourcing options! ! All identified sourcing options should be evaluated as we look at the benefits, cost and risk associated with each option. ! ! ! ! ! ! 107  
  55. 55. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Build the Sourcing Strategy ! Develop a service architecture: Outsource, Cloud(source) Effectively! ! The best outsourcing agreement is not necessarily the one with the lowest price. In fact, successful outsourcing contracts are those that strike a balance and focus on the primary goal of meeting business needs on day one and throughout the life of the contract. Five guidelines to help companies align their outsourcing agreements with internal strategies and requirements. 
 ! Five Ways to Strike the Right Balance:
 1. Contract Terms – It is important for you to fully understand the terms and conditions you will live with for many years to come. Governance, delivery locations, and clear termination language are critical pieces of a successful outsourcing agreement.
 2. Statement of Work (SOW) – SOWs should clearly define the roles and responsibilities of the provider as well as the client side. We recommends organizing the SOW into market-based towers, such as Server Management, Contact Center Management, Applications Development, etc. which results in easier ʻapples to applesʼ comparisons of competing providers. Setting up the SOW this way also makes it much easier to benchmark the price of services periodically over the term of the contract. 
 109  
  56. 56. . Copyright 2012 COMMUNICATE! ! Articulate the Business (IT) Service Strategy! ! Build the Sourcing Strategy ! Develop a service architecture: Outsource, Cloud(source) Effectively! !   5. Pricing – Expect your outsourcing costs to go down over time. One of the best ways to ensure the long-term success of your outsourcing agreement is to start with an agreement based on market prices. This means you are starting the relationship in the right place, and any future pricing adjustments (such as benchmark adjustments) will not be as extreme or emotional as they otherwise might be. 
 ! ! ! 111  
  57. 57. . Copyright 2012 COMMUNICATE! ! Leverage strategy execution with IT! ! Develop the Program Plan! ! ! ! ! ! ! ! ! ! Develop Program Plan: ! ! Question:! How do we sequence tasks needed to support the business strategy and what resources do we need?! What are the capital investments and operating expenses over the next 5 years to implement the plan?! How do we manage risk and change during implementation?! ! Objective:! The purpose of this step is to develop an implementation strategy and plan to effectively manage the transition from the ʻAs-Isʼ to the ʻTo-Beʼ state.! ! Benefit:! Business buy-in, ownership and commitment to the transition plan and its benefits.! ! ! ! ! 113  
  58. 58. . Copyright 2012 COMMUNICATE! ! Leverage strategy execution with IT! ! Develop the Program Plan !   Develop Program Plan: Establish Program Management Principles ! ! Program management principles are established to provide guidance to the implementation team of the effective management and administration of all projects in the program. A workshop is conducted to identify all program risks, barriers and critical success factors for successful implementation. Appropriate lifecycle methodologies, work breakdown standards and project management tools are also identified in this workshop.! ! The development of these principles is essential for consistent quality of delivery and effective management of resources. These also provide the program management team with the required flexibility to meet the needs of individual projects.! ! ! ! ! ! 115  
  59. 59. . Copyright 2012 COMMUNICATE! ! Leverage strategy execution with IT! ! Develop the Program Plan !   Develop Program Plan: Develop a Change Program to set target!   The IT program is driven to support the Execution of the Business Strategy with a Stage Gate implementation plan with clear objectives. ! ! 117  
  60. 60. . Copyright 2012 COMMUNICATE! ! Leverage strategy execution with IT! ! ! Develop the Program Plan !   Develop Program Plan: Identify and plan for required skills and competencies   ! It is important to identify skills and competencies required to deliver the program. The skills and competencies for each major stream and project should be identified separately and synergies to share resources agreed on. This will require a review of priorities. ! ! ! ! ! 119  
  61. 61. . Copyright 2012 COMMUNICATE! ! Leverage strategy execution with IT! ! Develop the Program Plan !   Develop Program Plan: Prepare for program implementation ! ! The implementation of the program plan involves a number of activities such as to define roles and responsibilities, the establishment of an appropriate program organisation, the set up of processes for risk management, issue resolution, quality management as well as program governance and communication. ! 121  
  62. 62. . Copyright 2012 COMMUNICATE! ! Leverage strategy execution with IT! ! ! Develop the Program Plan !   Develop Program Plan: Set up program monitoring and management mechanism ! ! ! A program performance monitoring and management mechanism is established to ensure that the benefits identified are delivered on time, to budget and the required quality. This include the establishment of milestones and a set of performance measures that will guide the program roll-out together with processes for risk management, issue resolution, quality management and program reporting and communication.! ! ! ! 123  
  63. 63. . Copyright 2012 COMMUNICATE! CEO, CFO, CIO, CTO, SVP, Architects, Strategy, Business Executives and the IT function in general. ! Target Audience! 125  
  64. 64. . Copyright 2012 COMMUNICATE! BrightTalk Thought Leadership: http://www.brighttalk.com/community/it-service-management/webcasts?q=martin+palmgren ! Get your cloud strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/29211 ! Get your IT Service Strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/23630! Leverage Strategy with IT: http://www.brighttalk.com/community/it-service-management/webcast/534/22934 ! Cloud Computing: Fluff or Lightening? http://www.brighttalk.com/community/it-service-management/webcast/534/21892 ! Run IT as a Service Business! http://www.brighttalk.com/community/it-service-management/webcast/534/21389 ! In French: ! Cloud Computing : La tête dans les nuages?: http://www.brighttalk.com/community/it-service-management/webcast/534/21919 ! Baseline: Coût, Consommation, chargeback et contribution IT aux objectifs de l'entreprise : ! http://www.brighttalk.com/community/it-service-management/webcast/534/21388! Deliver Business Value with IT (the book) https://www.smashwords.com/books/view/290604  (the blog) http:// deliverbusinessvaluewithit.wordpress.com /! I also share perspective @ some of the top French Business Schools, notably EDHEC! International Thought Leadership! 127  

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