CIO Exclusive And Strategic Overview
The Winning Formula For
Successful IT Business Integration
Tariq Elsadik

The Agenda
The Scene
Statistics
Opportunities
Approach

According to the IMF
The Global economic slowdown is so sever that the world economy will contract
for the first time is 60 years

1. Change is the only Constant
2. Change isn’t only about the Big things, but about a series of little things
3. Change is disruptive but at the same time presents opportunities
The Whole of Science is
nothing more than a
refinement of everyday
thinking

IT Budgets are under increased Pressure
A.
Nimble but…Transforming an organization is always challenging
B.
Change Drivers … External = Urgent (Macro) vs Internal = More Time.
C.
Expectations of service will not reduce, but support for investment, training,
D.
people development will.
Business / IT Alignment … is still very much an Open Issue
E.
Increasing the Increasing the Increasing the
understanding and probability of likelihood of success
transparency of selecting those of executing the
costs, risks and investments with the selected investments
benefits highest potential (Project Mastery)
return
Passion to get things done and challenge the status quo

• IT and business executives today face a bewildering array of quality
disciplines to help them manage processes within their organizations.
• There are Pros and Cons to each.
Source: Gartner

Transforming an
organization is always
challenging
Barriers to Overcome
1. Business strategies are
unclear / non existent
2. Lack of business engagement
3. Missing business skills in IT
4. Lack of a performance
measurement system
Slide 7

The Scene
Statistics
Opportunities
Approach

As enterprises face a challenging economic environment, IT spending budgets will be essentially flat
with a planned increase of 0.16 percent in 2009, according to results from the 2009 CIO (1,527) survey
by Gartner
RANK RANK
Top 10 Business Priorities Top 10 Technology Priorities
Business process improvement 1 Business intelligence 1
Reducing enterprise costs 2 Enterprise applications (ERP, CRM &others) 2
Improving enterprise workforce 3 Servers and storage technologies 3
effectiveness (virtualization)
Attracting &retaining new customers 4 Legacy application modernization 4
Increasing the use of information/analytics 5 Collaboration technologies 5
Creating new products or services 6 Networking, voice and data communications 6
(innovation)
Targeting customers and markets more 7 Technical infrastructure 7
effectively
Managing change initiatives 8 Security technologies 8
Expanding current customer relationships 9 Service-oriented applications and 9
architecture
Expanding into new markets & geographies 10 Document management 10
Slide 9

In 2007, PricewaterhouseCoopers (PwC) was
commissioned by the IT Governance Institute
(ITGI) to conduct the third global survey on IT
governance, resulting in this IT Governance
Global Status Report—2008.

‘How would you describe the level of engagement by business management in the governance
of IT-enabled business initiatives?’

Thinking about your overall corporate strategy or vision, how important do you consider IT to be
to the successful delivery of this strategy or vision?

How frequently is IT included on your organization's board agenda?

Non-IT People in the
sample have a much
more positive view of IT

Take Home: When all aspects of the problem are taken into account, the most important
problems are:
1. Staffing Issues
2. Service Delivery
3. Proving the Value of IT

Observation: It is clear that the most pragmatic/practical practices are
indeed the most popular.

What (IT governance) solutions/frameworks do you use or are you considering using?’

The Scene
Statistics
Opportunities
Approach

Are we getting
Are we doing the benefits
from the
the right
things? investments
we make?
The Strategic Question: Is the investment? The Value Question: Do we have?
 In line with our vision  A clear and shared understanding of the
 Consistent with our businesses principles expected benefits
 Contributing to our strategic goals  Clear accountability for realizing the benefits
 Providing optimal value, at affordable cost, at  Relevant metrics
 An effective benefits realization process
an acceptable level of risk

Are we doing Are we getting
them the right them done
way? well?
The Architecture Question: Is the investment? The Delivery Question: Do we have?
 In line with our architecture  Effective and disciplined service
 Consistent with our architectural principles management
 In line with other initiatives  Competent and available technical and
business resources to deliver the required
capabilities

Vision / Mission / Business Goals
President / CxO
Objective:
Define a Set of Top Objectives to be
cascaded throughout the organization
Strategy for Success
Alignment
Leadership Layer
Top Down / Bottom up
Objective:
Define set of Objectives relevant to
strategy and cascade to relevant areas
BU Strategies
Alignment
Top Down / Bottom up
Units
Objective:
Define set of Objectives relevant to strategy Co. / Unit
and cascade to relevant areas
Department 1 Department 2 Department n
Slide 23

Interaction
Environment
Suppliers / Customers Flow
Market
Interact with
Business Services
Environment
Business
Governed by
Business Processes
Executed by
Business People
Enabled by
Environment
IT Services
IT
Developed Through
Applications Processes People Infrastructure
Enterprise Spread

The decisions you make today about IT Investments can only suggest
one thing… ???
No Yes
That you are in fact, practicing a form of IT Governance
So, the key question is: Can you today, afford to have IT Governance
by Default or Bad IT Governance by Design?

The CIO span of influence and
accountabilities have been changing and
expanding. Yet, perhaps the greatest
opportunity to be an invaluable strategic
partner lies ahead
Operational
Excellence
Operational Excellence Success Principles
Customer Product 1 - The Efficient Management Of People
Intimacy Leadership
2 - The Management Of Efficient Processes
3 - Dedication To Measurement Systems
4 - Management Of Customer Expectations

The Scene
Statistics
Opportunities
Approach

A from/to map –
Strategic The IT Balanced
Self Assessment
outcomes define charts the Scorecard
defines the start
the destination course drives change
Business Goals and Objectives
Strategy – Strategy Map
Business Model
Value Discipline
Slide 28

A from/to map –
Strategic The IT Balanced
Self Assessment
outcomes define charts the Scorecard
defines the start
the destination course drives change
Understand IT’s current capabilities
Prepare a gap analysis
Identify those specific competencies &
Capabilities that IT must acquire
Slide 29

A from/to map –
Strategic The IT Balanced
Self Assessment
outcomes define charts the Scorecard
defines the start
the destination course drives change
What Changes? COBIT From To How
Manage IT Human PO7 Operationally Managing Personnel development/Growth Investment
Resources focused on and Turnover in People
hiring Standard
Service Levels Defined DS1 Inconsistent Managed and measureable ITIL
ISO20000
Focused on business value of investments Val IT
IT Investment PO5 Focused on cost
Management of operations
Slide 30

A from/to map –
Strategic The IT Balanced
Self Assessment
outcomes define charts the Scorecard
defines the start
the destination course drives change
Value Perspective
• IT Business Alignment
• IT Budget
User Perspective
• Improved Knowledge Transfer
• Drive Process Improvement
Process Excellence
• Key to the success of any IT Shop
• Consistent and cost effective service delivery
Future Orientation
• Gaining new skills and expertise
• Developing sound business knowledge
Slide 31

Business Environment
Project-Based
All IT resources are centralized under a single reporting structure with centralized resource
Leadership Support
allocation (staffing). The organizational structure is built around resource pools. Line managers are
replaced by resource managers.
Centralized
Decision
Business
Resources
drivers
IT is centralized under a single enterprise CIO. All IT systems and budgets reside at the
Making
corporate level.
Process
Decentralized Organization Culture
IT is decentralized by business unit, operating group, subsidiary, or geography. Each of these
Businesshas its own CIO, IT organization, and IT budget. There is little or no attempt to
entities
Reduce costs
coordinate across units or with corporate. Corporate IT supports the corporate HQ staff and
Goals Learning & Feedback IT
perhaps some enterprise wide applications.
Sustain market share
Innovation
IT
Structure Value
Federated Business
Operating customer satisfaction
Value Improve Execution
Strategy
IT takes on a hybrid structure. A centralized IT organization supports all infrastructure and
Model Blueprint
Statements
Technologywide applications, usually in a shared services environment. Individual business units Delivery
Model/Tool
Grow revenue
enterprise
(IT Goals)
Trends
maintain their own applications development organizations and budgets for BU- specific systems.
Enable new products and/or services
Source: Forester Research - 2005
Performance Measures
Risk Management
Slide 32

Mindsets have shifted!
No one said it better than a C-level business executive from the travel and entertainment
industry:
“I do not want IT solutions to be just about
productivity and efficiency gains. If we are not
productive and efficient at this point, we are in
the wrong business.
I need my IT colleagues to be real business
partners and bring solutions that will enable our
company to win new business, convert more
prospects to customers, increase our market
share, and get into the new markets.
I need IT to be a true business partner, not a
cost centre.”

Tariq.Elsadik@alfahim.ae
Slide 34