SlideShare a Scribd company logo
1 of 20
Executive Overview
IT Capability
Maturity
Framework
Contents
1	 Welcome to the
Innovation Value Institute
3	 Introducing the IT Capability
Maturity Framework
7 	Key Capabilities
Marking Increasing IT Maturity
11	 Critical Capabilities
Underpinning the IT-CMF
16	References
17	About IVI
Innovation Value Institute, IT Capability
Maturity Framework, and IT-CMF are
trademarks of the Innovation Value
Institute. Many of the designations
used by manufacturers and sellers to
distinguish their products are claimed as
trademarks. Where those designations
appear in this book, and the Institute
was aware of a trademark claim, the
designations have been printed with initial
capital letters or all in capital letters.
Copyright © 2012
Innovation Value Institute —
Martin Curley
Eighth Printing: January 2012
Authors: Martin Curley
and Jim Kenneally
Document Design: Unthink
Document Editing: Thomas Keogan,
TeKcomm
Correspondence regarding this
document should be directed
to the Innovation Value Institute,
National University of Ireland,
Maynooth, County Kildare, Ireland.
Email: ivi@nuim.ie
Phone: + 353 1 708 6931
Fax: + 353 1 708 6916
Too often, these executives report that they lack
adequate knowledge and the tools that will allow
them to manage IT in a sustainable, coherent
fashion while optimizing the value contribution
to the business. There is a gaping hole waiting to
be filled by a unifying, value-based management
approach—an approach that focuses on both
process and outcome, and that acts as a unifying
lens for existing IT frameworks and for improving
management practices where current knowledge
or practices are often poor or non-existent.
This document presents an executive overview
of the IT Capability Maturity Framework™
(IT-CMF™). The IT-CMF is a live document that we
will continually update and improve using an open
innovation approach. We are excited about the
research agenda here at the Innovation Value
Institute (IVI). This research will amalgamate
leading academic theory with the best of corporate
and public sector experience to foster innovation
in the management and usage of IT to optimize
business value. We intend to be a centre of
excellence for IT Management and IT-driven
business value and innovation through the
development and use of our IT-CMF, which is at
the heart of our research agenda. Please join us
on the journey and help drive a structural change
in the profession and industry with respect to how
IT creates value.
Brian Donnellan and Martin Curley, Co-Directors
Welcome to the
Innovation Value Institute
Many executives are struggling to optimize the
way they manage and measure the business value
of IT investments. In addition, there are many
competing and conflicting demands such as security,
compliance, innovation, business agility, and budget
pressures that make the job of the CIO difficult.
01
Figure 1
Macro-Capabilities
of the IT-CMF
Managing IT
like a Business
Managing
the IT Budget
Managing IT for
Business Value
Managing the
IT Capability
We call our model the Information Technology
Capability Maturity Framework™ (IT-CMF™) to
emphasize that it is similar to, but different from
a classic Capability Maturity Model. The IT-CMF
was developed based on the synthesis of leading
academic research and industry practitioner
experience using a design science research
paradigm. It provides a generally reusable solution
or design pattern that CIOs can use in their own
specific context and environment to improve IT
capability and value contribution. Curley has shared
elements of the framework and empirically tested
them in workshops with CIOs around the world.
The IT-CMF is an emerging blueprint of the key
processes encapsulated in the IT capability of an
organization. A core function of the IT-CMF is to act
as an assessment tool and a management system
with associated improvement roadmaps to help
continuously improve, develop and manage the IT
capability in support of optimized value delivery.
The top-down approach taken with the IT-CMF
makes its major purposes and usage more clear
to executives and line-of-business managers. The
fine-grained detail of its maturity levels, capabilities,
characteristics, and critical capabilities provides
increasingly specific advice to IT professionals.
Systematically improving the maturity of critical
capabilities can improve the overall efficiency and
effectiveness of the IT capability in delivering
value to an organization. A detailed survey of
50 worldwide IT executives showed improved IT
maturity to be a good predictor of improved value
from the IT capability.
IVI will reference and, where possible, complement
existing standards and best practice frameworks
such as ITIL, CMMI, CoBIT, which are typically
targeted at specific processes that enable the
overall IT capability. We expect that the IT-CMF will
also be of use in the field of services innovation.
At the top level, the IT-CMF comprises four key
strategic areas of IT management, as shown
in Figure 1. We call these broad strategic areas
macro-capabilities in order to emphasize their
complexity and their particular importance in
managing IT for business value.
When the IT organization engine shown in
Figure 1 is in operation, IT leaders set strategies
for managing IT like a business. Like a business,
IT has customers, products, and services; and
aims to return business value on investments
that are made in new and ongoing systems.
The result of a business-like strategy setting is
a budget, and the next step in IT operations is
managing the IT budget. Projects and ongoing
operations must be funded and financed. In
more sophisticated IT organizations, portfolios
of IT projects and programmes are managed and
monitored such that resources continue to be
allocated within the budget and that they are in
alignment with the company’s overall strategies
and objectives.
The budget fuels the mission of the IT
organization, which is managing the IT capability of
the organization. This macro-capability comprises
the value-generating activities of an IT business.
All businesses have some assets and a value chain
which they use to generate value. Similarly, the
IT capability consists of assets and an associated
value chain. There are assets of several types to
be managed, including infrastructure, people,
relationships, and knowledge. For example,
infrastructure assets require maintaining an
agile and reliable infrastructure of networks,
storage systems, shared processors, personal
workstations, and software systems.
Introducing the
IT Capability Maturity Framework
Since its creation in the 1980s to stimulate
improvements in software development, the
Capability Maturity Model has inspired reuse in
many other areas of management. At the Innovation
Value Institute™, we intend to refine and extend a
framework originally developed by Martin Curley in
his 2004 book, Managing IT for Business Value,
and subsequently enhanced in his further research.
02/03
The IT organization intends that IT capability
will provide business value. Measurements are
needed to confirm that goals are met, which leads
us to the final macro-capability: managing IT for
business value. While in the past IT often reported
response times and other technical operating
measures, it is our contention that today’s IT
organization should develop and deploy measures
of business value. What is important is whether an
IT investment impacts the bottom line. Moreover,
the IT organization needs to actively manage IT
investments to ensure that value is realized.
The fundamental metric of business value is
dollars, euros, or yuan, or in the case of public
sector organizations, the quality of service that
is efficiently delivered to customers, citizens, and
stakeholders. The estimate may be based on
improvements in inventory turns, growth in market
share, or avoidance of costs due to IT efficiency
and IT automation. But, at the end of the day,
to understand IT’s return on investment—that is,
the business value contribution of IT—we will
need to use a monetary metric or a public sector
service outcome.
The cycle is complete, as Figure 1 on page 2 shows,
when business value outcomes inform IT leaders,
who then study the results, revise their business
plans, and set new goals, objectives, strategies,
and tactics.
It is the hallmark of a maturity model approach
that excellence is achieved incrementally. As Table 1
shows, the IT-CMF is a blueprint for incremental
improvement across the four macro-capabilities.
There are five maturity levels, and the initial level
is always unmanaged.
///	At the initial level, there is no strategy, no
budget, no clear operating plan, and no
measures of outcome in monetary or service
terms. This level of maturity is often called
chaos. The IT organization is six months behind
schedule on important programmes, system
outages are common, and line-of-business
managers have no faith in IT.
///	At the basic level, the IT organization is starting
to become organized. IT is a cost centre with,
for example, a budget; and IT begins to deliver
technology more reliably. The concept of
tracking direct and indirect expenses emerges
with a focus on total cost of ownership.
///	The intermediate level shows further
improvements. Taking into account total cost
of ownership, the IT organization formally
begins considering the return on IT investments.
A potential project requires a business case.
IT operational expertise and efficiency begins
to flourish, and the unit cost of delivering IT
services begins to drop.
///	There is still room to grow and, at the
advanced level, IT becomes an investment
centre returning measured business value.
IT services are delivered in partnership with
IT’s customers, who are their business
colleagues in manufacturing, distribution,
marketing, and finance.
///	The optimizing level describes ongoing year-
on-year improvements to maintain and
improve the business value contributions of
IT. The successful IT organization finds itself
in a virtuous circle as cost savings provide
resources for innovative IT solutions which,
in turn, improve business value contributions.
IT’s track record of delivering solutions that
exhibit information or execution superiority over
competing organizations means IT is recognized
as a core competency and perhaps as an
entrepreneurial value centre.
Table 1
IT Capability
Maturity
Framework
Maturity Levels
Macro-Capabilities
Managing IT
like a Business
Managing the
IT Budget
Managing the
IT Capability
Managing IT for
Business Value
Optimizing Value centre Budget
amplification
Corporate core
competency
Optimized value
Advanced Investment centre Expanded
funding options
Strategic
business partner
Options and
portfolio
management
Intermediate Service centre Systemic cost
reduction
Technology expert ROI and
business case
Basic Cost centre Predictable
performance
Technology
supplier
Total cost of
ownership
Initial Unmanaged Unmanaged Unmanaged Unmanaged
Source: Martin Curley (2007)
Mission of the Innovation Value Institute
With the IT-CMF revealed, we can expand on the
Innovation Value Institute mission statement to say
that the Institute’s work is to build infrastructure
that enables IT organizations to measure their
maturity across four macro-capabilities and
to identify exactly which process skills and
competencies they should focus on next.
One implication of the IT-CMF is that growth is
incremental. A second message emanating from
the IT-CMF is that growth must be balanced across
the four macro-capabilities. Imagine excellence in
budgeting with no IT operational competence. A
disaster. Similarly, the absence of business value
assessment competence disables the strategizing
needed to run IT like a business. Whilst IT
organizations may be better at one or other of the
macro-capabilities, most will find that they will be
at about the same level across the four capabilities.
The IT-CMF in a Business Context
As the IT organization becomes more business-
like, its leadership will find that they are no longer
cost centre managers isolated from the rest of
the company and the outside world. As Figure 2
illustrates, IT Capability is in the centre of the
company’s activities and shares responsibility for
generating business value with the company’s
strategists and with the company’s business
operations managers.
Companies may aggressively posture IT as a key
competitive weapon and a distinguishing feature
of their products and services. IT could be on the
short list of capabilities for which the company
must excel in order to succeed. In other cases, IT
may play a less significant or less visible role—and
be an important but non-distinguishing feature.
In these senses, IT posture is reflected in the
relationship between business strategy and
IT capability.
IT adds value through two primary mechanisms:
ensuring business continuity and enabling business
change. Existing IT solutions primarily enable
business continuity to support value generation
from existing business operations, whilst new IT
investments are likely to be targeted to deliver
business change that creates new value through
improved business efficiency or effectiveness.
We define IT capability as the focused strategic
deployment of IT resources and competencies in
support of the organization’s goals. As such, IT
capability is a bridge between the company’s
business strategy and its business operations.
In essence, IT capability is what IT can do for the
business. IT must be precisely aligned with and
tightly coupled to both of these business functions
in order to provide business value. For example,
when the company’s strategy highlights high
quality customer care, the IT organization needs to
provide solid support to the business organization
for customer care systems.
The entire company is embedded in a business
context which is often turbulent. Market
conditions, regulatory responsibilities, and
competition are examples of elements in the
business context. Changes in these elements affect
overall business strategy most sharply. Many
of these changes quickly have an impact on IT’s
strategy. An agile IT organization that is capable of
shifting focus is, therefore, of critical importance to
the company as a whole.
For example, when a hot market emerges in the
manufacturing sector, a company’s focus may
well be to increase output at any cost, with the
goal of attaining mindshare and marketshare for
a new product. When a market shifts to price
competition, as is especially common in more
mature markets, the company must produce cost-
effective output. Seasonal markets will affect the
company’s capacity requirements. World events
can also create and destroy markets or change
customer requirements and appetites.
In financial market terms, the posture of the
organization with respect to IT can be either
bullish, bearish, or neutral at different points in
time. There will be some times when only the most
critical IT systems will be affordable and other
times when the IT organization will be asked to
deploy capacity rapidly.
Our concern with business context underscores a
fundamental characteristic of the IT-CMF. As IT
capabilities improve, IT will transform itself into a
central part of most companies’ businesses. To do
so will require improved IT maturity, as described
in Table 1 on page 4. This transformation will
also require leaders who have a greater degree
of situational awareness—ongoing knowledge
of the business context in which the company
is embedded—whilst also having the technical
acumen to know where technology can be applied
in order to provide competitive advantage.
Figure 2
IT Capability
in Context
04/05
Executive Overview of IT Strategy and Capability Maturity Framework
Key Capabilities
Marking Increasing IT Maturity
We are half way along a path which leads to the
research that the Innovation Value Institute is
undertaking. At this juncture, let us consider where
we have been and where we are going.
06/07
Where We Have Been
The IT-CMF comprises four key capabilities.
These four macro-capabilities work together to
manage IT capability and deliver business value.
We know what the four capabilities are and how
they interoperate in a high-level, control loop
fashion—with IT budget being a primary input
that fuels the IT capability to deliver value, and
with overall control provided through managing
IT like a business. We identified the levels of
maturity using a single, summarized term for each
of the levels in each of the macro-capabilities.
For example, Expanded Funding Options describes
the advanced level for the macrocapability called
Managing the IT Budget.
Where We Are Going
As we drill down, the next category of question
is ‘What competencies are needed to achieve
excellence in the four macro-capabilities?’
For our example, Expanded Funding Options,
exactly which capabilities and characteristics
are needed to achieve this level of maturity
when managing the budget? The answers
to questions of this nature take our thinking
about the IT-CMF to a finer grain size.
Finer, but not fine enough. Our final discussion
will break down the macro-capabilities into critical
capabilities—that is, a specific set of repeatable
integrated activities that leverage behaviour,
actions, methods, and metrics needed to deliver
specific outcomes in support of value creation. This
strategy provides us with specified descriptions of
what the IT organization needs to know and do.
The research of the Innovation Value Institute
comprises systematic exploration of ways to
improve these critical capabilities. Broadly stated,
the research agenda will answer the question,
‘How can IT organizations perform each of these
critical capabilities well, better, and best, in support
of value creation?’
Inspect Table 2 and Table 3 on page 8, and Table 4
and Table 5 on page 9 to gain an understanding
of the characteristics that are defined in terms
of capability and outcome maturity within
the four IT-CMF macro-capabilities. These
characteristics, along with the capabilities
of the IT-CMF, enrich our understanding of
the maturity levels and set the stage for the
following discussion of critical capabilities.
Maturity Level Key Capabilities and Characteristics
Value Centre - 	 IT is a value centre and publishes value statements regularly
- 	 IT and business values are highly aligned
- 	The IT organization uses balanced score cards to drive
continuous improvement
- 	 The IT organization is strongly entrepreneurial
Investment Centre - 	 IT is focused on service and usage excellence
- 	 IT customer and supplier relationship management are excellent
- 	 Funding mechanisms are flexible
- 	 IT uses dynamic resource allocation
Service Centre - 	 IT is oriented to customers and service
- 	 Chargeback and cost accounting systems are in place
- 	 Service delivery and management practices are implemented
Cost Centre - 	 IT is a cost centre
- 	 Asset and cost centre systems are in place
- 	 IT is focused exclusively on technology and process
- 	 Some IT processes have been documented
Unmanaged - 	 There is no IT strategy
- 	 There are no defined IT processes
Maturity Level Key Capabilities and Characteristics
Budget Amplification - 	 A stable IT budget supports the growth demands of the company
-	Budget allocations are balanced across appropriate portfolios that
are based on value performance
-	IT intensity is actively managed and compared against other key
corporate spending categories
-	 Budget is driven by long-term organisztion and business roadmaps
Expanded Funding Options -	 IT has attracted multiple sources of funding
-	 Cost savings are shifted to strategic investments or to the bottom line
-	The IT budget is in compliance with governance and with IT
usage principles
-	 The IT budget is aligned with long-term business value
Systematic Cost Reduction -	 Systematic cost reduction processes are in place
-	 IT unit costs are trended and reduced annually
-	 A dynamic baseline IT budget approach is in place
Predictable Financial
Performance
-	 A defined IT budget exists
-	 IT tracks performance against periodic financial and spending plans
-	Variance between actual and planned spend remains within
a specified control limit
Unmanaged -	 Financial performance is erratic
-	 The IT budget has no clear owner
-	 IT spend is invisible and fragmented
-	 IT funding is not aligned with long-term business value
Table 2
Managing IT
like a Business
Table 3
Managing the
IT Budget
Maturity Level Key Capabilities and Characteristics
Strategic Core Competency - 	 IT enables information and/or execution superiority over competition
- 	 A steady stream of solutions provides competitive advantage
- 	 IT is recognized as a differentiating core competency
Strategic Business Partner - 	 IT leadership is integrated with business leadership
- 	 IT delivers solutions that provide value in specific business areas
- 	 IT delivers key competitive capabilities in targeted areas
- 	 IT leaders understand the business and proactively propose solutions
to key opportunities and problems
Technical Expert - 	 IT has a track record for delivering quality services that are reliable
- 	 The IT organization is sought out as a source of technical expertise
- 	 IT provides a reliable utility IT service that is benchmarked
on performance and cost
Utility or
Technology Supplier
- 	 There is growing respect for the IT organization
- 	 The company views IT purely as a cost centre
- 	 IT is a cost to be continuously reduced
Unmanaged - 	 Users purchase and maintain IT systems
- 	 There is no formal IT presence
- 	 There is no integration of IT systems
Maturity Level Key Capabilities and Characteristics
Optimized
Investment Return
- 	 IT performs sophisticated investment and portfolio analysis
in order to optimize investments and spend
- 	 Returns from IT-enabled investments are equal to or greater
than returns from other investment types in the company
- 	 Historical data enables accurate predictions of the value
of future investments
Portfolio and Options
Management
- 	 IT has a proactive portfolio management programme
- 	 IT uses an options management approach to pick
and manage speculative IT investments
- 	 IT weighs risk and value-at-risk as key components
of business cases
Simple Return-on-
Investment and Business
Case Disciplines
- 	 There is a disciplined use and review of business cases
- 	 IT has in place either investment governance or
a business value programme
- 	 IT uses multi-metric analysis of business cases to determine
best quality investments
Total Cost of Ownership - 	 IT computes total cost of ownership for major assets
- 	 IT tracks total cost of ownership regularly to ensure there is
continuous cost reduction
- 	 IT computes total cost of ownership for the full life cycle
Unmanaged - 	 Decisions are based on cost, not value
- 	 There is no comprehension or measure of the value IT provides
- 	 Total cost of ownership is rampantly escalating
Table 4
Managing the
IT Capability
Table 5
Managing IT for
Business Value
08/09
Managing IT
like a Business
Managing
the IT Budget
Managing the
IT Capability
Managing IT for
Business Value
ITG
BPM
BP
SP
DSM
CFP
RM
AA
ODP
SRC
IM
SAI
SICT
EAM
TIM
PAM
KAM
RAM
RDE
SD
SRP
UTM
UED
PPM
SUM
CAM
FF
BGM
PPP
BOP
TCO
BAR
PM
IT Leadership and Governance Funding and Financing
Demand and Supply Management
Capacity Forecasting and Planning
Accounting and Allocation
Organization Design and Planning
Service Analytics and Intelligence
Programme and Project Management
Capability Assessment and Management
Research, Development, and Engineering
Portfolio Planning
and Prioritization
Budget Oversight and
Performance Analysis
Benefits Assessment and Realization
Figure 3
Critical Capabilities
of the IT-CMF
There is a range of different perspectives with
respect to the IT-CMF’s critical capabilities in
particular, and to the IT-CMF in general.
///	For the stakeholders and the board of directors,
IT is no longer a function of finance. Investors
and directors are well aware that a keen IT
strategy is a necessary enabler of enterprise
success. While the board and investors will not
expend effort in unnecessary overanalysis of the
IT strategy, they will most certainly monitor the
outcomes of IT strategy—namely the business
value derived from IT.
///	For the MD or CEO, IT capabilities emerged over
three decades ago as both an opportunity and a
risk. Across a wide spectrum of businesses, IT
capability has a demonstrated ability to move
markets, differentiate products, and change
entire industry landscapes. While the MD may
not care to know about each critical capability,
he or she would want to be assured that IT
is maturing and that best-known practices
are in place.
///	For the CIO, the challenge is to take on board-
level responsibilities and participate in all facets
of the company’s activities. To succeed, the
CIO must both cultivate a mature, efficient,
and innovative IT organization and participate
in company-wide business decision-making.
The CIO must also provide leadership as the IT
organization becomes a hybrid of both technical
and business expertise.
///	For IT senior leadership, critical capabilities
highlight the importance of top-level guidance.
Portfolio management, for example, is a step up
from project-by-project decisions. While it may
have inherent difficulties, Portfolio Management
recognises the value of IT. It has always been
true that IT has collections of initiatives and
activities. Similarly, IT’s senior leaders will
need to speak the language of business while
continuing to provide technology oversight to
projects and programmes.
///	For the IT line manager, critical capabilities
immediately lead to critical skill sets. IT line
managers need to assemble teams that know
what to do and how to do it. The depth of
necessary skills can be daunting, and the scope
of skill requirements is ever-broadening. On the
other hand, career paths are vastly better
marked with an explicit and clear list of critical
capabilities to master.
Examine Table 6 on page 12 for an overview of
the IT-CMF’s critical capabilities. These are the
processes that enable capabilities and determine
the characteristics of the four macro-capabilities.
Study Table 7 on page 13, Table 8 and Table 9 on
page 14, and Table 10 on page 15 to understand the
critical capabilities in greater detail.
Critical Capabilities
Underpinning the IT-CMF
For the IT-CMF, critical capabilities are the key
activities and procedures that must be defined
and mastered to enable an IT organization
to plan and deliver IT solutions, and to measure
the business value consequences of its initiatives
and daily activities.
10/11
Macrocapability Critical Capability
Managing IT like a Business - 	 IT Leadership and Governance
- 	 Business Process Management
- 	 Business Planning
- 	 Strategic Planning
- 	 Demand and Supply Management
- 	 Capacity Forecasting and Planning
- 	 Risk Management
- 	 Accounting and Allocation
- 	 Organization Design and Planning
- 	 Sourcing
- 	 Innovation Management
- 	 Service Analytics and Intelligence
- 	 Sustainable ICT
Managing the IT Budget - 	 Funding and Financing
- 	 Budget Management
- 	 Portfolio Planning and Prioritization
- 	 Budget Oversight and Performance Analysis
Managing the IT Capability - 	 Enterprise Architecture Management
- 	 Technical Infrastructure Management
- 	 People Asset Management
- 	 Knowledge Asset Management
- 	 Relationship Asset Management
- 	 Research, Development, and Engineering
- 	 Solutions Delivery
- 	 Service Provisioning
- 	 User Training Management
- 	 User Experience Design
- 	 Programme and Project Management
- 	 Supplier Management
- 	 Capability Assessment and Management
Managing IT for Business Value - 	 Total Cost of Ownership
- 	 Benefits Assessment and Realization
- 	 Portfolio Management
Source: Martin Curley (2007)
Table 6
Critical
Capabilities
for the IT-CMF
Critical Capability Purpose and Results
IT Leadership
and Governance
ITG
- 	 Provides the decision rights and accountability framework to encourage behaviours
that lead to the achievement of the organization’s IT business value goals.
- 	 Top performing companies show 20% better performance when governance
is aligned with enterprise goals.
Business Process
Management
BPM
- 	 Document and manage the IT organization’s work flows and business processes.
- 	 Management of processes and work flows can substantially improve IT efficiency.
Business Planning
BP
- 	 Define and anticipate the company’s demands for IT capabilities and services.
- 	 Business planning identifies key objectives and areas for IT investments.
Strategic
Planning
SP
- 	 Sets the vision, mission and objectives for the IT organization in line with the
company’s overall strategies.
- 	 Business and IT strategy is aligned to ensure an effective translation of plans into IT
capability requirements and business value.
Demand
and Supply
Management
DSM
- 	 Achieve a balance between supply and demand for IT services which is both efficient
and sufficient.
- 	 Cost-effective and business-proficient IT systems are delivered at an optimal cost.
Capacity
Forecasting
and Planning
CFP
- 	 Anticipate the shifting needs for IT capabilities and plan to deliver them
in a timely fashion.
- 	 Capacity planning provides the company with the right amount of IT resources,
sometimes more and sometimes less, to meet shifting needs.
Risk
Management
RM
- 	 Analyse threats and their potential impacts, and develop strategies
to mitigate those threats.
- 	 Business continuity is ensured by systematically mitigating IT operational risk.
Accounting
and Allocation
AA
- 	 The policies, processes and tools used for calculating and distributing the costs of IT.
- 	 A range of methods such as chargeback, transfer pricing, and allocation
may be used to manage the cost of IT services and to influence the demand
for IT services within an organization.
Organization
Design and
Planning
ODP
- 	 Review and reorganize as necessary the alignment between the IT organization
and company needs.
- 	 Stable organizations are increasingly rare in the dynamic world of today’s business.
Sourcing
SRC
- 	 Identifying and forming supply agreements with vendors and internal providers.
- 	 Sourcing results in placing some enterprise activities outside the company,
that is, outsourcing.
Innovation
Management
IM
- 	 Creating, identifying, funding and measuring IT-based innovations in order to
generate business value.
- 	 Companies systematically monitor their environment, adapt with new solutions,
and prosper.
Service Analytics
and Intelligence
SAI
- 	 IT performance monitoring, modelling, and analysis to establish a clear
understanding of the relationship between business processes and the underlying
IT infrastructure and processes – in order to sustain and optimize the delivery
of IT services for business value.
- 	 The IT organization leverages this knowledge as an integral component
for efficient operations and effective planning.
Sustainable ICT
SICT
- 	 Align IT processes and practices with the core principles of sustainability,
i.e. reduce, reuse, recycle.
- 	 Adoption of IT-enabled business processes can deliver positive sustainability
benefits across the enterprise and beyond.
Source: Martin Curley (2007)
Table 7
Critical
Capabilities for
Managing IT
like a Business
12/13
Critical Capability Purpose and Results
Funding and
Financing
FF
- 	 Determine the scale, scope and sources of funding for IT, and assign financial
resources to IT activities.
- 	 Find a balance between capital expenses and operating expenses to optimize
total cost of ownership.
Budget
Management
BGM
- 	 Active, ongoing review and adjustment of the IT spending plan to systematically
ensure that allocated budgets are being spent effectively and are within budget
parameters and the governance model.
- 	 Careful budgeting leads to continuous unit cost reduction for IT services.
Portfolio
Planning and
Prioritization
PPP
- 	 Allocate the IT budget to projects and activities based on factors
such as risk management.
- 	 Historical returns data informs portfolio planning to improve the investment mix.
Budget Oversight
and Performance
Analysis
BOP
- 	 Periodic offline review of IT spending versus IT plan, which provides a stimulus
for re-profiling or reprioritization of budgets.
- 	 Oversight certifies that the budget targets are being met and variance analysis
improves forecasts in the future.
Source: Martin Curley (2007)
Critical Capability Purpose and Results
Enterprise
Architecture
Management
EAM
- 	 Provide the necessary models and practices for defining, planning and managing
the business and IT capabilities by developing the business, data, application,
and technical architecture of IT systems.
- 	 Achieve effectiveness and agility with technical standardization
and system integration.
Technical
Infrastructure
Management
TIM
- 	 Optimize IT infrastructure (including client, network, storage, and server)
to support the business
- 	 Provide an on-demand capability, which is efficient and reliable, as a platform
for delivering IT services.
People Asset
Management
PAM
- 	 Manage and train personnel to be successful contributors to the IT organization.
- 	 Create a culture where IT is customer-focused in order to provide the company
with business value.
Knowledge Asset
Management
KAM
- 	 Promote a collaborative culture and define practices and actions to guide
employees in harnessing knowledge assets as part of their work.
- 	 By identifying, capturing, classifying, maintaining and sharing knowledge
assets, value is leveraged throughout the organization.
Relationship
Asset
Management
RAM
- 	 Enhance the relationship between the IT organization and the company’s
business units.
- 	 IT will share in the risks and rewards associated with the overall business
of the company.
Research,
Development,
and Engineering
RDE
- 	 Formally investigate new information technologies and the opportunities
they provide.
- 	 IT RD can deliver prototypes of innovative IT systems, white papers,
or patent filings.
Solutions Delivery
SD
- 	 Deploy systems and solutions that efficiently address the company’s
IT requirements and opportunities.
- 	 IT solutions are delivered with the cost, schedule, functionality, and quality
the company needs.
Service
Provisioning
SRP
- 	 Provide reliable IT services to support the company’s objectives and strategies.
- 	 Data centres, help desks, and service solutions are in position
to support IT’s customers.
Table 8
Critical
Capabilities
for Managing
the IT Budget
Table 9
Critical
Capabilities
for Managing
the IT Capability
Critical Capability Purpose and Results
User Training
Management
UTM
- 	 Maximize user proficiency and ensure users acquire the right skills
at the right time.
- 	 Business value is maximized when excellent IT solutions are put
to maximum usage.
User Experience
Design
UED
- 	 Create solutions that increase both business productivity and satisfaction
of end users.
- 	 Usefulness and ease of use are the hallmarks of a successful IT solution.
Programme
and Project
Management
PPM
- 	 Cultivate the ability to manage programmes and projects to be on time,
on budget, and on target.
- 	 The costs of schedule overruns are avoided and the quality of IT solutions is
matched to customer needs.
Supplier
Management
SUM
- 	 Encourage cooperative relationships with contractors to create shared value.
- 	 Achieve more value from the company’s primary supply base.
Capability
Assessment
and Management
CAM
- 	 Create the support, reliability, repeatability, and effectiveness to assess
the IT capability.
- 	 Assessment roadmaps are defined and put forward for realization to improve
the organization’s capability.
Source: Martin Curley (2007)
Critical Capability Purpose and Results
Total Cost of
Ownership
TCO
- 	 Track and control direct and indirect costs associated with IT infrastructure
and systems.
- 	 Total cost of ownership better informs the budgeting and portfolio
management processes.
Benefits
Assessment
and Realization
BAR
- 	 Establish a common business value vocabulary, and a measurement
and valuation methodology to express the potential business value returns
and to document the actual business value returns.
- 	 Construct high-quality business cases and manage the realization
of actual benefits versus original forecasts to ensure organizations achieve
business value delivery.
Portfolio
Management
PM
- 	 Regularly examine the mix of IT projects and the allocation
of resources among them.
- 	 Ensure that all proposed investments are executed within their set parameters
and remain in line with business objectives.
Source: Martin Curley (2007)
Table 10
Critical
Capabilities
for Managing
IT for Business
Value
Table 9 cont’d
14/15
References
Agarwal, R, and
Sambamurthy, V. 2002.
Principles and Models for Organizing the IT
Function, MIS Quarterly Executive, Volume
1 (1), March: 1-16.
Alter, A. 2003.
Do You Have Any Faith In Your ROI
Numbers? www.cioinsight.com, March 17.
Alter, A. 2006.
The Bitter Truth About ROI.
www.cioinsight.com, August 4.
Andreessen, M. 2002.
Sidestepping The New IT Crisis.
Tech News/CNET.com, December.
Barney, JB. 1991.
Firm Resources and Sustained Competitive
Advantage. Journal of Management,
17;1: 99-120.
Christensen, CM. 1997.
The Inventor’s Dilemma:
When New Technologies Cause
Great Firms to Fail. Boston, MA:
Harvard Business School Press.
Covey, SR. 1989.
The Seven Habits of Highly Effective
People. Simon and Schuster.
Crosby, PB. 1979.
Quality is free: The Art of Making
Quality Certain. McGraw Hill.
Curley, M. 2007.
Introducing the IT Capability Maturity
Framework. Proceedings of the
International Conference on Enterprise
Information Systems, Portugal, June.
Curley, M. 2006.
The IT Transformation at Intel.
MISQE, December.
Curley, M. 2006.
A Value Based IT Capability Maturity
Framework. Intel EMEA Academic
Forum, Ireland.
Curley, M. 2006.
IT Innovation, A New Era. Proceedings
of the International Conference of
Computational Science, Reading, UK.
Curley, M. 2004.
Managing Information Technology
for Business Value. Intel Press.
Curley, M. 2006.
The IT transformation at Intel.
MIS Quarterly Executive, Volume 5,
Issue 4 (1), December: 109 - 122.
de Geus, A. 1997.
The Living Company: Habits of Survival in
a Turbulent Business Environment. Harvard
Business School Press.
Dedrick, J, Gurbaxani, V,
and Kraemer, KL. 2002.
Information technology and economic
performance: a critical review of the
empirical evidence. University of California,
Irvine, Center for Research in IT and
Organizations (CRITO), November.
Earl MJ, and Sampler, JL. 1998.
Market Management to Transform the IT
Organization. MIT Sloan Management
Review, Summer.
Eckert, A. 2002.
Maximizing ROI Through User Proficiency.
Insiders View, SAS.com, June.
Gurbaxani, V, and Kemerer, CF. 1990.
An Agency Theory View of the
Management of Information Systems.
Proceedings of the International
Conference on Information Systems,
279-288.
Humphrey, W. 1989.
Managing the Software Process.
Software Engineering Institute.
Kohli, R, and Deveraj. 2004.
Realizing the Business Value
of IT Investments: An Organizational
Process. MIS Quarterly Executive,
Volume 3 (1), March.
Marchand, DA. 2004.
Reaping the Business Value of IT:
Focus on Usage, Not Just Deployment,
To Optimize Payback. IMD publication
No. 114, November.
Markus, ML, and Soh, C. 1995.
How IT Creates Value, a Process Theory
Synthesis. Proceedings of the 16th
International Conference of Information
Systems, Amsterdam, The Netherlands.
Markus, ML, and Soh, C. 1993.
Banking on Information Technology:
Converting IT Spending Into Firm
Performance. In RD Banker, RJ Kauffman
and MA Mahmood (Editors), Strategic
Information Technology Management:
Perspectives on Organizational growth
and Competitive Advantage. Harrisburg,
Pennsylvania: Idea Group Publishing,
pp 405-444.
Mooney, JG, Gurbaxani, V,
and Kraemer, K. 1995.
A Process Oriented Framework for
Assessing the Business Value of
Information Technology.
CRITO paper, UC Irvine.
Paulk, MC, Curtis, B,
Chrissis, MB, and Weber, C. 1993.
Capability Maturity Model for Software,
Version 1.1. Software Engineering Institute,
CMU/SEI-93-TR-24, DTIC Number
ADA263403, February.
Peppard, J, and Ward, J. 2004.
Beyond Strategic Information Systems:
Towards An IS Capability. The Journal
of Strategic Information Systems,
July, pp 167-194.
Ross, JW, Beath, CM,
and Goodhue, DL. 1996.
Developing Longterm Competitiveness
Through Information Technology Assets.
Sloan Management Review, Vol. 38, Fall.
Ross, JW, Weill, P, and
Robertson, DC. 2006.
Enterprise Architecture as Strategy:
Creating a Foundation for Business
Execution. Harvard Business School Press.
Salman, R, and Younis, N. 2005.
Lessons to Management from the Control
Loop Phenomenon. Transactions on
Engineering, Computing and Technology.
Sambamurthy, V,
and Zmud, RW. 1994.
It Management Competency Assessment:
A Tool For Creating Business Value
Through IT. Working Paper, Financial
Executives Research Foundation.
Sward, D. 2006.
Measuring IT for Business Value.
Intel Press.
Tallon, P, et al. 2000.
Executives’ Perspectives on the Business
Value of Information Technology.
A Process-Oriented Approach. Journal
of Management Information Systems.
Venkatraman, N. 1997.
Beyond Outsourcing: Managing IT
Resources as a Value Center. MIT Sloan
Management Review, Spring.
Weill, P. 1992.
The Relationship between Investment
in Information Technology and Firm
Performance: A Study of the Value
Manufacturing Sector. Information
Systems Review, Volume 3, Number 4,
pp 307-333.
Weill, P. 2004.
Don’t Just Lead, Govern. How Top-
performing Firms Govern IT. MIS Quarterly
Executive, Volume 3 (1), March.
Weill, P, and Ross, J. 2004.
How Top Performers Manage IT Decisions
Rights for Superior Results. Harvard
Business School Press.
Weill, P, and Ross, J. 2004.
IT Governance in One Page.
MIT CISR Working Paper #349.
Weill, P, and Woodham. 2002.
Don’t Just Lead, Govern: Implementing
Effective IT Governance. MIT Sloan CISR
Working Paper #326, April.
Innovation
Value Institute
(IVI)
The Innovation Value Institute is
a multi-disciplinary research and
education establishment co-founded
by the National University of Ireland
Maynooth and Intel Corporation.
IVI develops frameworks to assist IT
and business executives to manage
IT for Business Value and to deliver
IT-enabled business innovation. IVI
is supported by a global consortium
of like-minded peers drawn from a
community of public and private sector
organizations, academia, analysts,
professional associations, independent
software vendors, and professional
services organizations.
Contact Us
For more information on becoming a
member of the IVI Consortium, please
contact us at www.ivi.ie, ivi@nuim.ie
or +353 (0)1 708 6931
Membership
Steering Patrons
National University of Ireland Maynooth
Intel
The Boston Consulting Group
Patrons
BP
Chevron
Cisco
Ernst and Young
Fujitsu
Microsoft
SAP
www.ivi.ie

More Related Content

What's hot

Using the IVI (Innovation Value Institute) IT CMF (IT Capability Maturity Fra...
Using the IVI (Innovation Value Institute) IT CMF (IT Capability Maturity Fra...Using the IVI (Innovation Value Institute) IT CMF (IT Capability Maturity Fra...
Using the IVI (Innovation Value Institute) IT CMF (IT Capability Maturity Fra...Alan McSweeney
 
An Introduction to IT Management with COBIT 2019
An Introduction to IT Management with COBIT 2019An Introduction to IT Management with COBIT 2019
An Introduction to IT Management with COBIT 2019Gregor Polančič
 
Tech transfer making it as a risk free approach in pharmaceutical and biotech in
Tech transfer making it as a risk free approach in pharmaceutical and biotech inTech transfer making it as a risk free approach in pharmaceutical and biotech in
Tech transfer making it as a risk free approach in pharmaceutical and biotech iniaemedu
 
IT Strategy Framework
IT Strategy FrameworkIT Strategy Framework
IT Strategy FrameworkVishal Sharma
 
Boost your bottom line with scalable it methodologies
Boost your bottom line with scalable it methodologiesBoost your bottom line with scalable it methodologies
Boost your bottom line with scalable it methodologiesNirtiSingla
 
Business IT Management - Intro to CobiT & ITIL
Business IT Management - Intro to CobiT & ITILBusiness IT Management - Intro to CobiT & ITIL
Business IT Management - Intro to CobiT & ITILAhmad Hafeezi
 
PECB Webinar: Aligning COBIT 5.0 and ISO/IEC 38500
PECB Webinar: Aligning COBIT 5.0 and ISO/IEC 38500PECB Webinar: Aligning COBIT 5.0 and ISO/IEC 38500
PECB Webinar: Aligning COBIT 5.0 and ISO/IEC 38500PECB
 
IT Governance Overview
IT Governance OverviewIT Governance Overview
IT Governance OverviewJim Sutter
 
Governance and Management of Enterprise IT with COBIT 5 Framework
Governance and Management of Enterprise IT with COBIT 5 FrameworkGovernance and Management of Enterprise IT with COBIT 5 Framework
Governance and Management of Enterprise IT with COBIT 5 FrameworkGoutama Bachtiar
 
Strategic Business IT alignment
Strategic Business IT alignmentStrategic Business IT alignment
Strategic Business IT alignmentJulen Mohanty
 
IT Operating Model - Fundamental
IT Operating Model - FundamentalIT Operating Model - Fundamental
IT Operating Model - FundamentalEryk Budi Pratama
 
Proposal of a Framework of Lean Governance and Management of Enterprise IT
Proposal of a Framework of Lean Governance and Management of Enterprise ITProposal of a Framework of Lean Governance and Management of Enterprise IT
Proposal of a Framework of Lean Governance and Management of Enterprise ITMehran Misaghi
 
Creating A Business Focussed Information Technology Strategy
Creating A Business Focussed Information Technology StrategyCreating A Business Focussed Information Technology Strategy
Creating A Business Focussed Information Technology StrategyAlan McSweeney
 
Align Information Technology and Business Strategy
Align Information Technology and Business Strategy Align Information Technology and Business Strategy
Align Information Technology and Business Strategy Salman Memon
 

What's hot (20)

IT-CMF Overview
IT-CMF OverviewIT-CMF Overview
IT-CMF Overview
 
Using the IVI (Innovation Value Institute) IT CMF (IT Capability Maturity Fra...
Using the IVI (Innovation Value Institute) IT CMF (IT Capability Maturity Fra...Using the IVI (Innovation Value Institute) IT CMF (IT Capability Maturity Fra...
Using the IVI (Innovation Value Institute) IT CMF (IT Capability Maturity Fra...
 
Val it 2.0
Val it 2.0Val it 2.0
Val it 2.0
 
An Introduction to IT Management with COBIT 2019
An Introduction to IT Management with COBIT 2019An Introduction to IT Management with COBIT 2019
An Introduction to IT Management with COBIT 2019
 
Tech transfer making it as a risk free approach in pharmaceutical and biotech in
Tech transfer making it as a risk free approach in pharmaceutical and biotech inTech transfer making it as a risk free approach in pharmaceutical and biotech in
Tech transfer making it as a risk free approach in pharmaceutical and biotech in
 
IT Strategy Framework
IT Strategy FrameworkIT Strategy Framework
IT Strategy Framework
 
Boost your bottom line with scalable it methodologies
Boost your bottom line with scalable it methodologiesBoost your bottom line with scalable it methodologies
Boost your bottom line with scalable it methodologies
 
ICAB - ITA Chapter 1 class 3 - IT Strategy
ICAB - ITA Chapter 1 class 3 - IT StrategyICAB - ITA Chapter 1 class 3 - IT Strategy
ICAB - ITA Chapter 1 class 3 - IT Strategy
 
Business IT Management - Intro to CobiT & ITIL
Business IT Management - Intro to CobiT & ITILBusiness IT Management - Intro to CobiT & ITIL
Business IT Management - Intro to CobiT & ITIL
 
PECB Webinar: Aligning COBIT 5.0 and ISO/IEC 38500
PECB Webinar: Aligning COBIT 5.0 and ISO/IEC 38500PECB Webinar: Aligning COBIT 5.0 and ISO/IEC 38500
PECB Webinar: Aligning COBIT 5.0 and ISO/IEC 38500
 
IT Governance Overview
IT Governance OverviewIT Governance Overview
IT Governance Overview
 
Ea Value And Benefits Ver1 0
Ea Value And Benefits Ver1 0Ea Value And Benefits Ver1 0
Ea Value And Benefits Ver1 0
 
Governance and Management of Enterprise IT with COBIT 5 Framework
Governance and Management of Enterprise IT with COBIT 5 FrameworkGovernance and Management of Enterprise IT with COBIT 5 Framework
Governance and Management of Enterprise IT with COBIT 5 Framework
 
Strategic Business IT alignment
Strategic Business IT alignmentStrategic Business IT alignment
Strategic Business IT alignment
 
IT Operating Model - Fundamental
IT Operating Model - FundamentalIT Operating Model - Fundamental
IT Operating Model - Fundamental
 
Proposal of a Framework of Lean Governance and Management of Enterprise IT
Proposal of a Framework of Lean Governance and Management of Enterprise ITProposal of a Framework of Lean Governance and Management of Enterprise IT
Proposal of a Framework of Lean Governance and Management of Enterprise IT
 
ITIL vs. COBIT
ITIL vs. COBITITIL vs. COBIT
ITIL vs. COBIT
 
What is Cobit
What is CobitWhat is Cobit
What is Cobit
 
Creating A Business Focussed Information Technology Strategy
Creating A Business Focussed Information Technology StrategyCreating A Business Focussed Information Technology Strategy
Creating A Business Focussed Information Technology Strategy
 
Align Information Technology and Business Strategy
Align Information Technology and Business Strategy Align Information Technology and Business Strategy
Align Information Technology and Business Strategy
 

Viewers also liked

Office 365 Mail migration strategies
Office 365 Mail migration strategiesOffice 365 Mail migration strategies
Office 365 Mail migration strategiesFulvio Salanitro
 
Building an effective product strategy (Early stage start-ups) - UX India, 2013
Building an effective product strategy (Early stage start-ups) - UX India, 2013Building an effective product strategy (Early stage start-ups) - UX India, 2013
Building an effective product strategy (Early stage start-ups) - UX India, 2013Pankaj Saharan
 
Developing an Acquisition Centre of Excellence for Effective Sourcing and Sup...
Developing an Acquisition Centre of Excellence for Effective Sourcing and Sup...Developing an Acquisition Centre of Excellence for Effective Sourcing and Sup...
Developing an Acquisition Centre of Excellence for Effective Sourcing and Sup...Alan McSweeney
 
IT Capability Maturity Framework & Capability Improvement Program
IT Capability Maturity Framework & Capability Improvement ProgramIT Capability Maturity Framework & Capability Improvement Program
IT Capability Maturity Framework & Capability Improvement ProgramStrategic Business & IT Services
 
Stopping Analysis Paralysis And Decision Avoidance In Business Analysis And S...
Stopping Analysis Paralysis And Decision Avoidance In Business Analysis And S...Stopping Analysis Paralysis And Decision Avoidance In Business Analysis And S...
Stopping Analysis Paralysis And Decision Avoidance In Business Analysis And S...Alan McSweeney
 
Whitepaper Practical Information Technology Governance
Whitepaper   Practical Information Technology GovernanceWhitepaper   Practical Information Technology Governance
Whitepaper Practical Information Technology GovernanceAlan McSweeney
 
Enterprise architecture maturity model infographic
Enterprise architecture maturity model infographicEnterprise architecture maturity model infographic
Enterprise architecture maturity model infographicrenateavolution
 
Gartner's IT Score Wallchart
Gartner's IT Score WallchartGartner's IT Score Wallchart
Gartner's IT Score WallchartPaul Sullivan
 
Translating Big Raw Data Into Small Actionable Information
Translating Big Raw Data Into Small Actionable InformationTranslating Big Raw Data Into Small Actionable Information
Translating Big Raw Data Into Small Actionable InformationAlan McSweeney
 
Data Governance Best Practices
Data Governance Best PracticesData Governance Best Practices
Data Governance Best PracticesBoris Otto
 
Ibm data governance framework
Ibm data governance frameworkIbm data governance framework
Ibm data governance frameworkkaiyun7631
 
HealthCare IT Maturity Model
HealthCare IT Maturity ModelHealthCare IT Maturity Model
HealthCare IT Maturity ModelSteven Gorenbergh
 
Overview Of Effective CRM Implementation And Operation
Overview Of Effective CRM Implementation And OperationOverview Of Effective CRM Implementation And Operation
Overview Of Effective CRM Implementation And OperationAlan McSweeney
 
Project Benefits Realisation General Presentation 7 Actions G Byatt
Project Benefits Realisation   General Presentation   7 Actions   G ByattProject Benefits Realisation   General Presentation   7 Actions   G Byatt
Project Benefits Realisation General Presentation 7 Actions G ByattGareth Byatt
 
Business Cases And Benefits Management
Business Cases And Benefits ManagementBusiness Cases And Benefits Management
Business Cases And Benefits ManagementAlan McSweeney
 
Benefits Identification, Assessment, Validation and Realisation for Informati...
Benefits Identification, Assessment, Validation and Realisation for Informati...Benefits Identification, Assessment, Validation and Realisation for Informati...
Benefits Identification, Assessment, Validation and Realisation for Informati...Alan McSweeney
 
Strategy Management of Ford Motor Company.
Strategy Management of Ford Motor Company.Strategy Management of Ford Motor Company.
Strategy Management of Ford Motor Company.Zahra Rezwana
 

Viewers also liked (20)

Office 365 Mail migration strategies
Office 365 Mail migration strategiesOffice 365 Mail migration strategies
Office 365 Mail migration strategies
 
Building an effective product strategy (Early stage start-ups) - UX India, 2013
Building an effective product strategy (Early stage start-ups) - UX India, 2013Building an effective product strategy (Early stage start-ups) - UX India, 2013
Building an effective product strategy (Early stage start-ups) - UX India, 2013
 
Developing an Acquisition Centre of Excellence for Effective Sourcing and Sup...
Developing an Acquisition Centre of Excellence for Effective Sourcing and Sup...Developing an Acquisition Centre of Excellence for Effective Sourcing and Sup...
Developing an Acquisition Centre of Excellence for Effective Sourcing and Sup...
 
IT Capability Maturity Framework & Capability Improvement Program
IT Capability Maturity Framework & Capability Improvement ProgramIT Capability Maturity Framework & Capability Improvement Program
IT Capability Maturity Framework & Capability Improvement Program
 
Stopping Analysis Paralysis And Decision Avoidance In Business Analysis And S...
Stopping Analysis Paralysis And Decision Avoidance In Business Analysis And S...Stopping Analysis Paralysis And Decision Avoidance In Business Analysis And S...
Stopping Analysis Paralysis And Decision Avoidance In Business Analysis And S...
 
Whitepaper Practical Information Technology Governance
Whitepaper   Practical Information Technology GovernanceWhitepaper   Practical Information Technology Governance
Whitepaper Practical Information Technology Governance
 
Enterprise architecture maturity model infographic
Enterprise architecture maturity model infographicEnterprise architecture maturity model infographic
Enterprise architecture maturity model infographic
 
Gartner's IT Score Wallchart
Gartner's IT Score WallchartGartner's IT Score Wallchart
Gartner's IT Score Wallchart
 
Translating Big Raw Data Into Small Actionable Information
Translating Big Raw Data Into Small Actionable InformationTranslating Big Raw Data Into Small Actionable Information
Translating Big Raw Data Into Small Actionable Information
 
Data Governance Best Practices
Data Governance Best PracticesData Governance Best Practices
Data Governance Best Practices
 
Ibm data governance framework
Ibm data governance frameworkIbm data governance framework
Ibm data governance framework
 
HealthCare IT Maturity Model
HealthCare IT Maturity ModelHealthCare IT Maturity Model
HealthCare IT Maturity Model
 
Overview Of Effective CRM Implementation And Operation
Overview Of Effective CRM Implementation And OperationOverview Of Effective CRM Implementation And Operation
Overview Of Effective CRM Implementation And Operation
 
Project Benefits Realisation General Presentation 7 Actions G Byatt
Project Benefits Realisation   General Presentation   7 Actions   G ByattProject Benefits Realisation   General Presentation   7 Actions   G Byatt
Project Benefits Realisation General Presentation 7 Actions G Byatt
 
Benefits realisation: Getting beyond the smoke and mirros
Benefits realisation: Getting beyond the smoke and mirrosBenefits realisation: Getting beyond the smoke and mirros
Benefits realisation: Getting beyond the smoke and mirros
 
Business Cases And Benefits Management
Business Cases And Benefits ManagementBusiness Cases And Benefits Management
Business Cases And Benefits Management
 
Benefits Identification, Assessment, Validation and Realisation for Informati...
Benefits Identification, Assessment, Validation and Realisation for Informati...Benefits Identification, Assessment, Validation and Realisation for Informati...
Benefits Identification, Assessment, Validation and Realisation for Informati...
 
CRM Implementation
CRM ImplementationCRM Implementation
CRM Implementation
 
Strategy Management of Ford Motor Company.
Strategy Management of Ford Motor Company.Strategy Management of Ford Motor Company.
Strategy Management of Ford Motor Company.
 
SOA Maturity Models
SOA Maturity ModelsSOA Maturity Models
SOA Maturity Models
 

Similar to Executive Overview of IT Strategy and Capability Maturity Framework

rethinking marketing
rethinking marketingrethinking marketing
rethinking marketingNavneet Singh
 
Ivi external briefing_pack_v.aim
Ivi external briefing_pack_v.aimIvi external briefing_pack_v.aim
Ivi external briefing_pack_v.aimAIMIreland
 
Governance and Management of Enterprise IT with COBIT 5 Framework
Governance and Management of Enterprise IT with COBIT 5 FrameworkGovernance and Management of Enterprise IT with COBIT 5 Framework
Governance and Management of Enterprise IT with COBIT 5 FrameworkGoutama Bachtiar
 
How to Maintain a Productive CFO-CIO Relationship
How to Maintain a Productive CFO-CIO RelationshipHow to Maintain a Productive CFO-CIO Relationship
How to Maintain a Productive CFO-CIO RelationshipVMware
 
The Role of IT in Supporting Mergers and Acquisitions
The Role of IT in Supporting Mergers and AcquisitionsThe Role of IT in Supporting Mergers and Acquisitions
The Role of IT in Supporting Mergers and AcquisitionsCognizant
 
Cfo insights evaluating_it
Cfo insights evaluating_itCfo insights evaluating_it
Cfo insights evaluating_itKamalakar Yadav
 
The Economist Intelligence Unit
The Economist Intelligence UnitThe Economist Intelligence Unit
The Economist Intelligence Unitdallamas73
 
Chap11 Developing Business It Strategies[1]
Chap11 Developing Business It Strategies[1]Chap11 Developing Business It Strategies[1]
Chap11 Developing Business It Strategies[1]sihamy
 
Outcome-Focused IT Delivery: The Next Step in the Continuous Improvement Journey
Outcome-Focused IT Delivery: The Next Step in the Continuous Improvement JourneyOutcome-Focused IT Delivery: The Next Step in the Continuous Improvement Journey
Outcome-Focused IT Delivery: The Next Step in the Continuous Improvement JourneyCognizant
 
Gartner using itfm_to_improve_biz_results_2012
Gartner using itfm_to_improve_biz_results_2012Gartner using itfm_to_improve_biz_results_2012
Gartner using itfm_to_improve_biz_results_2012Karthik Arumugham
 
MAKING SENSE OF IT GOVERNANCE
MAKING SENSE OF IT GOVERNANCEMAKING SENSE OF IT GOVERNANCE
MAKING SENSE OF IT GOVERNANCERudy Shoushany
 
Managing IT as a Business.pptx
Managing IT as a Business.pptxManaging IT as a Business.pptx
Managing IT as a Business.pptxFaisal Yahya
 
CIO Support Services Framework Part I of II - Andy Blumenthal
CIO Support Services Framework Part I of II - Andy BlumenthalCIO Support Services Framework Part I of II - Andy Blumenthal
CIO Support Services Framework Part I of II - Andy BlumenthalAndy (Avraham) Blumenthal
 
IT Governance - Core Concepts for Business Managers
IT Governance - Core Concepts for Business ManagersIT Governance - Core Concepts for Business Managers
IT Governance - Core Concepts for Business ManagersWalter Adamson
 
Ilta 2005 successful technology begins outside the computer room by dave cu...
Ilta 2005 successful technology begins outside the computer room   by dave cu...Ilta 2005 successful technology begins outside the computer room   by dave cu...
Ilta 2005 successful technology begins outside the computer room by dave cu...David Cunningham
 
Report on IT Auditing and Governance_Ta_Hoang_Thang
Report on IT Auditing and Governance_Ta_Hoang_ThangReport on IT Auditing and Governance_Ta_Hoang_Thang
Report on IT Auditing and Governance_Ta_Hoang_ThangThang Ta Hoang
 
IT value Frameworks- VAL-IT COBIT 5 and KPMG
IT value Frameworks- VAL-IT COBIT 5 and KPMGIT value Frameworks- VAL-IT COBIT 5 and KPMG
IT value Frameworks- VAL-IT COBIT 5 and KPMGShwetha Bhat
 
Artificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdf
Artificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdfArtificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdf
Artificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdfssuser13fb76
 

Similar to Executive Overview of IT Strategy and Capability Maturity Framework (20)

IT Infrastructure - Importance of IT to Business
IT Infrastructure - Importance of IT to BusinessIT Infrastructure - Importance of IT to Business
IT Infrastructure - Importance of IT to Business
 
rethinking marketing
rethinking marketingrethinking marketing
rethinking marketing
 
Ivi external briefing_pack_v.aim
Ivi external briefing_pack_v.aimIvi external briefing_pack_v.aim
Ivi external briefing_pack_v.aim
 
Governance and Management of Enterprise IT with COBIT 5 Framework
Governance and Management of Enterprise IT with COBIT 5 FrameworkGovernance and Management of Enterprise IT with COBIT 5 Framework
Governance and Management of Enterprise IT with COBIT 5 Framework
 
How to Maintain a Productive CFO-CIO Relationship
How to Maintain a Productive CFO-CIO RelationshipHow to Maintain a Productive CFO-CIO Relationship
How to Maintain a Productive CFO-CIO Relationship
 
The Role of IT in Supporting Mergers and Acquisitions
The Role of IT in Supporting Mergers and AcquisitionsThe Role of IT in Supporting Mergers and Acquisitions
The Role of IT in Supporting Mergers and Acquisitions
 
Running IT like a business
Running IT like a businessRunning IT like a business
Running IT like a business
 
Cfo insights evaluating_it
Cfo insights evaluating_itCfo insights evaluating_it
Cfo insights evaluating_it
 
The Economist Intelligence Unit
The Economist Intelligence UnitThe Economist Intelligence Unit
The Economist Intelligence Unit
 
Chap11 Developing Business It Strategies[1]
Chap11 Developing Business It Strategies[1]Chap11 Developing Business It Strategies[1]
Chap11 Developing Business It Strategies[1]
 
Outcome-Focused IT Delivery: The Next Step in the Continuous Improvement Journey
Outcome-Focused IT Delivery: The Next Step in the Continuous Improvement JourneyOutcome-Focused IT Delivery: The Next Step in the Continuous Improvement Journey
Outcome-Focused IT Delivery: The Next Step in the Continuous Improvement Journey
 
Gartner using itfm_to_improve_biz_results_2012
Gartner using itfm_to_improve_biz_results_2012Gartner using itfm_to_improve_biz_results_2012
Gartner using itfm_to_improve_biz_results_2012
 
MAKING SENSE OF IT GOVERNANCE
MAKING SENSE OF IT GOVERNANCEMAKING SENSE OF IT GOVERNANCE
MAKING SENSE OF IT GOVERNANCE
 
Managing IT as a Business.pptx
Managing IT as a Business.pptxManaging IT as a Business.pptx
Managing IT as a Business.pptx
 
CIO Support Services Framework Part I of II - Andy Blumenthal
CIO Support Services Framework Part I of II - Andy BlumenthalCIO Support Services Framework Part I of II - Andy Blumenthal
CIO Support Services Framework Part I of II - Andy Blumenthal
 
IT Governance - Core Concepts for Business Managers
IT Governance - Core Concepts for Business ManagersIT Governance - Core Concepts for Business Managers
IT Governance - Core Concepts for Business Managers
 
Ilta 2005 successful technology begins outside the computer room by dave cu...
Ilta 2005 successful technology begins outside the computer room   by dave cu...Ilta 2005 successful technology begins outside the computer room   by dave cu...
Ilta 2005 successful technology begins outside the computer room by dave cu...
 
Report on IT Auditing and Governance_Ta_Hoang_Thang
Report on IT Auditing and Governance_Ta_Hoang_ThangReport on IT Auditing and Governance_Ta_Hoang_Thang
Report on IT Auditing and Governance_Ta_Hoang_Thang
 
IT value Frameworks- VAL-IT COBIT 5 and KPMG
IT value Frameworks- VAL-IT COBIT 5 and KPMGIT value Frameworks- VAL-IT COBIT 5 and KPMG
IT value Frameworks- VAL-IT COBIT 5 and KPMG
 
Artificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdf
Artificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdfArtificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdf
Artificial-Intelligence-Adoption for SME v1.0 Rev SFT.pdf
 

More from Vishal Sharma

Generative AI - The New Reality: How Key Players Are Progressing
Generative AI - The New Reality: How Key Players Are Progressing Generative AI - The New Reality: How Key Players Are Progressing
Generative AI - The New Reality: How Key Players Are Progressing Vishal Sharma
 
ABB Aus FY23 Results
ABB Aus FY23 ResultsABB Aus FY23 Results
ABB Aus FY23 ResultsVishal Sharma
 
Digital Transformation - M2M to IoT
Digital Transformation - M2M to IoTDigital Transformation - M2M to IoT
Digital Transformation - M2M to IoTVishal Sharma
 
Next Generation Digital Transformation
Next Generation Digital TransformationNext Generation Digital Transformation
Next Generation Digital TransformationVishal Sharma
 
Vodafone India - Why Govt. of India Intervened
Vodafone India - Why Govt. of India IntervenedVodafone India - Why Govt. of India Intervened
Vodafone India - Why Govt. of India IntervenedVishal Sharma
 
OPTUS Australia Dec 22 Results
OPTUS Australia Dec 22 ResultsOPTUS Australia Dec 22 Results
OPTUS Australia Dec 22 ResultsVishal Sharma
 
TPG Telecom Feb FY 23 Results
TPG Telecom Feb FY 23 Results TPG Telecom Feb FY 23 Results
TPG Telecom Feb FY 23 Results Vishal Sharma
 
State of Global IT Services and Software Industry - 2023
State of Global IT Services and Software Industry - 2023State of Global IT Services and Software Industry - 2023
State of Global IT Services and Software Industry - 2023Vishal Sharma
 
Global Telecom Industry Overview - 2023
Global Telecom Industry Overview - 2023 Global Telecom Industry Overview - 2023
Global Telecom Industry Overview - 2023 Vishal Sharma
 
Future of Cloud 2022 - Grow and Be Green
Future of Cloud 2022 - Grow and Be GreenFuture of Cloud 2022 - Grow and Be Green
Future of Cloud 2022 - Grow and Be GreenVishal Sharma
 
Future of Cloud 2022
Future of Cloud 2022Future of Cloud 2022
Future of Cloud 2022Vishal Sharma
 
NBN - Economies of Scale vs Scope
NBN - Economies of Scale vs ScopeNBN - Economies of Scale vs Scope
NBN - Economies of Scale vs ScopeVishal Sharma
 
NBN and 5G - Threat or Complement
NBN and 5G - Threat or Complement NBN and 5G - Threat or Complement
NBN and 5G - Threat or Complement Vishal Sharma
 
Inflation Impact on IT and Levers to Destress Balance Sheet
Inflation Impact on IT and Levers to Destress Balance SheetInflation Impact on IT and Levers to Destress Balance Sheet
Inflation Impact on IT and Levers to Destress Balance SheetVishal Sharma
 
Sales Trigger Spectrum with Cloud Adoption Curve
 Sales Trigger Spectrum with Cloud Adoption Curve Sales Trigger Spectrum with Cloud Adoption Curve
Sales Trigger Spectrum with Cloud Adoption CurveVishal Sharma
 
Telecom Industry - Revitalise for Revenue Generation
Telecom Industry -  Revitalise for Revenue GenerationTelecom Industry -  Revitalise for Revenue Generation
Telecom Industry - Revitalise for Revenue GenerationVishal Sharma
 
Post COVID B2B Sales Planning and Execution
Post COVID  B2B Sales Planning and Execution Post COVID  B2B Sales Planning and Execution
Post COVID B2B Sales Planning and Execution Vishal Sharma
 

More from Vishal Sharma (20)

Generative AI - The New Reality: How Key Players Are Progressing
Generative AI - The New Reality: How Key Players Are Progressing Generative AI - The New Reality: How Key Players Are Progressing
Generative AI - The New Reality: How Key Players Are Progressing
 
ABB Aus FY23 Results
ABB Aus FY23 ResultsABB Aus FY23 Results
ABB Aus FY23 Results
 
TPG H2 FY23 Results
TPG H2 FY23 ResultsTPG H2 FY23 Results
TPG H2 FY23 Results
 
Digital Transformation - M2M to IoT
Digital Transformation - M2M to IoTDigital Transformation - M2M to IoT
Digital Transformation - M2M to IoT
 
Next Generation Digital Transformation
Next Generation Digital TransformationNext Generation Digital Transformation
Next Generation Digital Transformation
 
Vodafone India - Why Govt. of India Intervened
Vodafone India - Why Govt. of India IntervenedVodafone India - Why Govt. of India Intervened
Vodafone India - Why Govt. of India Intervened
 
OPTUS Australia Dec 22 Results
OPTUS Australia Dec 22 ResultsOPTUS Australia Dec 22 Results
OPTUS Australia Dec 22 Results
 
TPG Telecom Feb FY 23 Results
TPG Telecom Feb FY 23 Results TPG Telecom Feb FY 23 Results
TPG Telecom Feb FY 23 Results
 
State of Global IT Services and Software Industry - 2023
State of Global IT Services and Software Industry - 2023State of Global IT Services and Software Industry - 2023
State of Global IT Services and Software Industry - 2023
 
Global Telecom Industry Overview - 2023
Global Telecom Industry Overview - 2023 Global Telecom Industry Overview - 2023
Global Telecom Industry Overview - 2023
 
Future of Cloud 2022 - Grow and Be Green
Future of Cloud 2022 - Grow and Be GreenFuture of Cloud 2022 - Grow and Be Green
Future of Cloud 2022 - Grow and Be Green
 
Future of Cloud 2022
Future of Cloud 2022Future of Cloud 2022
Future of Cloud 2022
 
NBN - Economies of Scale vs Scope
NBN - Economies of Scale vs ScopeNBN - Economies of Scale vs Scope
NBN - Economies of Scale vs Scope
 
Inflation Spectrum
Inflation SpectrumInflation Spectrum
Inflation Spectrum
 
NBN and 5G - Threat or Complement
NBN and 5G - Threat or Complement NBN and 5G - Threat or Complement
NBN and 5G - Threat or Complement
 
Digital vs IT
Digital vs IT Digital vs IT
Digital vs IT
 
Inflation Impact on IT and Levers to Destress Balance Sheet
Inflation Impact on IT and Levers to Destress Balance SheetInflation Impact on IT and Levers to Destress Balance Sheet
Inflation Impact on IT and Levers to Destress Balance Sheet
 
Sales Trigger Spectrum with Cloud Adoption Curve
 Sales Trigger Spectrum with Cloud Adoption Curve Sales Trigger Spectrum with Cloud Adoption Curve
Sales Trigger Spectrum with Cloud Adoption Curve
 
Telecom Industry - Revitalise for Revenue Generation
Telecom Industry -  Revitalise for Revenue GenerationTelecom Industry -  Revitalise for Revenue Generation
Telecom Industry - Revitalise for Revenue Generation
 
Post COVID B2B Sales Planning and Execution
Post COVID  B2B Sales Planning and Execution Post COVID  B2B Sales Planning and Execution
Post COVID B2B Sales Planning and Execution
 

Recently uploaded

Pitch Deck Teardown: SuperScale's $5.4M Series A deck
Pitch Deck Teardown: SuperScale's $5.4M Series A deckPitch Deck Teardown: SuperScale's $5.4M Series A deck
Pitch Deck Teardown: SuperScale's $5.4M Series A deckHajeJanKamps
 
Streamlining Your Accounting A Guide to QuickBooks Migration Tools.pptx
Streamlining Your Accounting A Guide to QuickBooks Migration Tools.pptxStreamlining Your Accounting A Guide to QuickBooks Migration Tools.pptx
Streamlining Your Accounting A Guide to QuickBooks Migration Tools.pptxPaulBryant58
 
CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)
CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)
CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)CXO 2.0 Conference
 
Mist Cooling & Fogging System Company in Saudi Arabia
Mist Cooling & Fogging System Company in Saudi ArabiaMist Cooling & Fogging System Company in Saudi Arabia
Mist Cooling & Fogging System Company in Saudi Arabiaopstechsanjanasingh
 
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfCORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfLouis Malaybalay
 
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi Tube
 
Optimize Your CRM Customization and Beyond
Optimize Your CRM Customization and BeyondOptimize Your CRM Customization and Beyond
Optimize Your CRM Customization and BeyondBoundify
 
10 Tips for Great Teams CSUN Conference 2024
10 Tips for Great Teams CSUN Conference 202410 Tips for Great Teams CSUN Conference 2024
10 Tips for Great Teams CSUN Conference 2024Nate Evans
 
HOW TO START EARNING WITH AFFILIATE MARKETING
HOW TO START EARNING WITH AFFILIATE MARKETINGHOW TO START EARNING WITH AFFILIATE MARKETING
HOW TO START EARNING WITH AFFILIATE MARKETINGNATHAN SPEAKS
 
Importance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptxImportance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptxBonano Insurance
 
Wallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loanWallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loansujat8807
 
ICv2 Hobby Games White Paper 2024 - State of the Industry
ICv2 Hobby Games White Paper 2024 - State of the IndustryICv2 Hobby Games White Paper 2024 - State of the Industry
ICv2 Hobby Games White Paper 2024 - State of the IndustryDennisViau
 
A Comprehensive Case Study on the IL&FS Crisis (final).pptx
A Comprehensive Case Study on the IL&FS Crisis (final).pptxA Comprehensive Case Study on the IL&FS Crisis (final).pptx
A Comprehensive Case Study on the IL&FS Crisis (final).pptxShainaMaheshwari1
 
Record of Module Forensic photography in
Record of Module Forensic photography inRecord of Module Forensic photography in
Record of Module Forensic photography inalexademileighpacal
 
Reframing Requirements: A Strategic Approach to Requirement Definition, with ...
Reframing Requirements: A Strategic Approach to Requirement Definition, with ...Reframing Requirements: A Strategic Approach to Requirement Definition, with ...
Reframing Requirements: A Strategic Approach to Requirement Definition, with ...Jake Truemper
 
Strategic Resources Corporate Presentation - March 2024 Update
Strategic Resources Corporate Presentation - March 2024 UpdateStrategic Resources Corporate Presentation - March 2024 Update
Strategic Resources Corporate Presentation - March 2024 UpdateAdnet Communications
 
Bus Eth ch3 ppt.ppt business ethics and corporate social responsibilities ppt
Bus Eth ch3 ppt.ppt business ethics and corporate social responsibilities pptBus Eth ch3 ppt.ppt business ethics and corporate social responsibilities ppt
Bus Eth ch3 ppt.ppt business ethics and corporate social responsibilities pptendeworku
 
"InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age""InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age"Adharsh45
 
Business Models and Business Model Innovation
Business Models and Business Model InnovationBusiness Models and Business Model Innovation
Business Models and Business Model InnovationMichal Hron
 
pitchdeck ORPC 2019 data info turine.pdf
pitchdeck ORPC 2019 data info turine.pdfpitchdeck ORPC 2019 data info turine.pdf
pitchdeck ORPC 2019 data info turine.pdflebob12
 

Recently uploaded (20)

Pitch Deck Teardown: SuperScale's $5.4M Series A deck
Pitch Deck Teardown: SuperScale's $5.4M Series A deckPitch Deck Teardown: SuperScale's $5.4M Series A deck
Pitch Deck Teardown: SuperScale's $5.4M Series A deck
 
Streamlining Your Accounting A Guide to QuickBooks Migration Tools.pptx
Streamlining Your Accounting A Guide to QuickBooks Migration Tools.pptxStreamlining Your Accounting A Guide to QuickBooks Migration Tools.pptx
Streamlining Your Accounting A Guide to QuickBooks Migration Tools.pptx
 
CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)
CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)
CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)
 
Mist Cooling & Fogging System Company in Saudi Arabia
Mist Cooling & Fogging System Company in Saudi ArabiaMist Cooling & Fogging System Company in Saudi Arabia
Mist Cooling & Fogging System Company in Saudi Arabia
 
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdfCORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
CORPORATE SOCIAL RESPONSIBILITY - FINAL REQUIREMENT.pdf
 
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptxAirOxi -  Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
AirOxi - Pioneering Aquaculture Advancements Through NFDB Empanelment.pptx
 
Optimize Your CRM Customization and Beyond
Optimize Your CRM Customization and BeyondOptimize Your CRM Customization and Beyond
Optimize Your CRM Customization and Beyond
 
10 Tips for Great Teams CSUN Conference 2024
10 Tips for Great Teams CSUN Conference 202410 Tips for Great Teams CSUN Conference 2024
10 Tips for Great Teams CSUN Conference 2024
 
HOW TO START EARNING WITH AFFILIATE MARKETING
HOW TO START EARNING WITH AFFILIATE MARKETINGHOW TO START EARNING WITH AFFILIATE MARKETING
HOW TO START EARNING WITH AFFILIATE MARKETING
 
Importance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptxImportance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptx
 
Wallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loanWallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loan
 
ICv2 Hobby Games White Paper 2024 - State of the Industry
ICv2 Hobby Games White Paper 2024 - State of the IndustryICv2 Hobby Games White Paper 2024 - State of the Industry
ICv2 Hobby Games White Paper 2024 - State of the Industry
 
A Comprehensive Case Study on the IL&FS Crisis (final).pptx
A Comprehensive Case Study on the IL&FS Crisis (final).pptxA Comprehensive Case Study on the IL&FS Crisis (final).pptx
A Comprehensive Case Study on the IL&FS Crisis (final).pptx
 
Record of Module Forensic photography in
Record of Module Forensic photography inRecord of Module Forensic photography in
Record of Module Forensic photography in
 
Reframing Requirements: A Strategic Approach to Requirement Definition, with ...
Reframing Requirements: A Strategic Approach to Requirement Definition, with ...Reframing Requirements: A Strategic Approach to Requirement Definition, with ...
Reframing Requirements: A Strategic Approach to Requirement Definition, with ...
 
Strategic Resources Corporate Presentation - March 2024 Update
Strategic Resources Corporate Presentation - March 2024 UpdateStrategic Resources Corporate Presentation - March 2024 Update
Strategic Resources Corporate Presentation - March 2024 Update
 
Bus Eth ch3 ppt.ppt business ethics and corporate social responsibilities ppt
Bus Eth ch3 ppt.ppt business ethics and corporate social responsibilities pptBus Eth ch3 ppt.ppt business ethics and corporate social responsibilities ppt
Bus Eth ch3 ppt.ppt business ethics and corporate social responsibilities ppt
 
"InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age""InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age"
 
Business Models and Business Model Innovation
Business Models and Business Model InnovationBusiness Models and Business Model Innovation
Business Models and Business Model Innovation
 
pitchdeck ORPC 2019 data info turine.pdf
pitchdeck ORPC 2019 data info turine.pdfpitchdeck ORPC 2019 data info turine.pdf
pitchdeck ORPC 2019 data info turine.pdf
 

Executive Overview of IT Strategy and Capability Maturity Framework

  • 2. Contents 1 Welcome to the Innovation Value Institute 3 Introducing the IT Capability Maturity Framework 7 Key Capabilities Marking Increasing IT Maturity 11 Critical Capabilities Underpinning the IT-CMF 16 References 17 About IVI Innovation Value Institute, IT Capability Maturity Framework, and IT-CMF are trademarks of the Innovation Value Institute. Many of the designations used by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the Institute was aware of a trademark claim, the designations have been printed with initial capital letters or all in capital letters. Copyright © 2012 Innovation Value Institute — Martin Curley Eighth Printing: January 2012 Authors: Martin Curley and Jim Kenneally Document Design: Unthink Document Editing: Thomas Keogan, TeKcomm Correspondence regarding this document should be directed to the Innovation Value Institute, National University of Ireland, Maynooth, County Kildare, Ireland. Email: ivi@nuim.ie Phone: + 353 1 708 6931 Fax: + 353 1 708 6916
  • 3. Too often, these executives report that they lack adequate knowledge and the tools that will allow them to manage IT in a sustainable, coherent fashion while optimizing the value contribution to the business. There is a gaping hole waiting to be filled by a unifying, value-based management approach—an approach that focuses on both process and outcome, and that acts as a unifying lens for existing IT frameworks and for improving management practices where current knowledge or practices are often poor or non-existent. This document presents an executive overview of the IT Capability Maturity Framework™ (IT-CMF™). The IT-CMF is a live document that we will continually update and improve using an open innovation approach. We are excited about the research agenda here at the Innovation Value Institute (IVI). This research will amalgamate leading academic theory with the best of corporate and public sector experience to foster innovation in the management and usage of IT to optimize business value. We intend to be a centre of excellence for IT Management and IT-driven business value and innovation through the development and use of our IT-CMF, which is at the heart of our research agenda. Please join us on the journey and help drive a structural change in the profession and industry with respect to how IT creates value. Brian Donnellan and Martin Curley, Co-Directors Welcome to the Innovation Value Institute Many executives are struggling to optimize the way they manage and measure the business value of IT investments. In addition, there are many competing and conflicting demands such as security, compliance, innovation, business agility, and budget pressures that make the job of the CIO difficult. 01
  • 4. Figure 1 Macro-Capabilities of the IT-CMF Managing IT like a Business Managing the IT Budget Managing IT for Business Value Managing the IT Capability
  • 5. We call our model the Information Technology Capability Maturity Framework™ (IT-CMF™) to emphasize that it is similar to, but different from a classic Capability Maturity Model. The IT-CMF was developed based on the synthesis of leading academic research and industry practitioner experience using a design science research paradigm. It provides a generally reusable solution or design pattern that CIOs can use in their own specific context and environment to improve IT capability and value contribution. Curley has shared elements of the framework and empirically tested them in workshops with CIOs around the world. The IT-CMF is an emerging blueprint of the key processes encapsulated in the IT capability of an organization. A core function of the IT-CMF is to act as an assessment tool and a management system with associated improvement roadmaps to help continuously improve, develop and manage the IT capability in support of optimized value delivery. The top-down approach taken with the IT-CMF makes its major purposes and usage more clear to executives and line-of-business managers. The fine-grained detail of its maturity levels, capabilities, characteristics, and critical capabilities provides increasingly specific advice to IT professionals. Systematically improving the maturity of critical capabilities can improve the overall efficiency and effectiveness of the IT capability in delivering value to an organization. A detailed survey of 50 worldwide IT executives showed improved IT maturity to be a good predictor of improved value from the IT capability. IVI will reference and, where possible, complement existing standards and best practice frameworks such as ITIL, CMMI, CoBIT, which are typically targeted at specific processes that enable the overall IT capability. We expect that the IT-CMF will also be of use in the field of services innovation. At the top level, the IT-CMF comprises four key strategic areas of IT management, as shown in Figure 1. We call these broad strategic areas macro-capabilities in order to emphasize their complexity and their particular importance in managing IT for business value. When the IT organization engine shown in Figure 1 is in operation, IT leaders set strategies for managing IT like a business. Like a business, IT has customers, products, and services; and aims to return business value on investments that are made in new and ongoing systems. The result of a business-like strategy setting is a budget, and the next step in IT operations is managing the IT budget. Projects and ongoing operations must be funded and financed. In more sophisticated IT organizations, portfolios of IT projects and programmes are managed and monitored such that resources continue to be allocated within the budget and that they are in alignment with the company’s overall strategies and objectives. The budget fuels the mission of the IT organization, which is managing the IT capability of the organization. This macro-capability comprises the value-generating activities of an IT business. All businesses have some assets and a value chain which they use to generate value. Similarly, the IT capability consists of assets and an associated value chain. There are assets of several types to be managed, including infrastructure, people, relationships, and knowledge. For example, infrastructure assets require maintaining an agile and reliable infrastructure of networks, storage systems, shared processors, personal workstations, and software systems. Introducing the IT Capability Maturity Framework Since its creation in the 1980s to stimulate improvements in software development, the Capability Maturity Model has inspired reuse in many other areas of management. At the Innovation Value Institute™, we intend to refine and extend a framework originally developed by Martin Curley in his 2004 book, Managing IT for Business Value, and subsequently enhanced in his further research. 02/03
  • 6. The IT organization intends that IT capability will provide business value. Measurements are needed to confirm that goals are met, which leads us to the final macro-capability: managing IT for business value. While in the past IT often reported response times and other technical operating measures, it is our contention that today’s IT organization should develop and deploy measures of business value. What is important is whether an IT investment impacts the bottom line. Moreover, the IT organization needs to actively manage IT investments to ensure that value is realized. The fundamental metric of business value is dollars, euros, or yuan, or in the case of public sector organizations, the quality of service that is efficiently delivered to customers, citizens, and stakeholders. The estimate may be based on improvements in inventory turns, growth in market share, or avoidance of costs due to IT efficiency and IT automation. But, at the end of the day, to understand IT’s return on investment—that is, the business value contribution of IT—we will need to use a monetary metric or a public sector service outcome. The cycle is complete, as Figure 1 on page 2 shows, when business value outcomes inform IT leaders, who then study the results, revise their business plans, and set new goals, objectives, strategies, and tactics. It is the hallmark of a maturity model approach that excellence is achieved incrementally. As Table 1 shows, the IT-CMF is a blueprint for incremental improvement across the four macro-capabilities. There are five maturity levels, and the initial level is always unmanaged. /// At the initial level, there is no strategy, no budget, no clear operating plan, and no measures of outcome in monetary or service terms. This level of maturity is often called chaos. The IT organization is six months behind schedule on important programmes, system outages are common, and line-of-business managers have no faith in IT. /// At the basic level, the IT organization is starting to become organized. IT is a cost centre with, for example, a budget; and IT begins to deliver technology more reliably. The concept of tracking direct and indirect expenses emerges with a focus on total cost of ownership. /// The intermediate level shows further improvements. Taking into account total cost of ownership, the IT organization formally begins considering the return on IT investments. A potential project requires a business case. IT operational expertise and efficiency begins to flourish, and the unit cost of delivering IT services begins to drop. /// There is still room to grow and, at the advanced level, IT becomes an investment centre returning measured business value. IT services are delivered in partnership with IT’s customers, who are their business colleagues in manufacturing, distribution, marketing, and finance. /// The optimizing level describes ongoing year- on-year improvements to maintain and improve the business value contributions of IT. The successful IT organization finds itself in a virtuous circle as cost savings provide resources for innovative IT solutions which, in turn, improve business value contributions. IT’s track record of delivering solutions that exhibit information or execution superiority over competing organizations means IT is recognized as a core competency and perhaps as an entrepreneurial value centre. Table 1 IT Capability Maturity Framework Maturity Levels Macro-Capabilities Managing IT like a Business Managing the IT Budget Managing the IT Capability Managing IT for Business Value Optimizing Value centre Budget amplification Corporate core competency Optimized value Advanced Investment centre Expanded funding options Strategic business partner Options and portfolio management Intermediate Service centre Systemic cost reduction Technology expert ROI and business case Basic Cost centre Predictable performance Technology supplier Total cost of ownership Initial Unmanaged Unmanaged Unmanaged Unmanaged Source: Martin Curley (2007)
  • 7. Mission of the Innovation Value Institute With the IT-CMF revealed, we can expand on the Innovation Value Institute mission statement to say that the Institute’s work is to build infrastructure that enables IT organizations to measure their maturity across four macro-capabilities and to identify exactly which process skills and competencies they should focus on next. One implication of the IT-CMF is that growth is incremental. A second message emanating from the IT-CMF is that growth must be balanced across the four macro-capabilities. Imagine excellence in budgeting with no IT operational competence. A disaster. Similarly, the absence of business value assessment competence disables the strategizing needed to run IT like a business. Whilst IT organizations may be better at one or other of the macro-capabilities, most will find that they will be at about the same level across the four capabilities. The IT-CMF in a Business Context As the IT organization becomes more business- like, its leadership will find that they are no longer cost centre managers isolated from the rest of the company and the outside world. As Figure 2 illustrates, IT Capability is in the centre of the company’s activities and shares responsibility for generating business value with the company’s strategists and with the company’s business operations managers. Companies may aggressively posture IT as a key competitive weapon and a distinguishing feature of their products and services. IT could be on the short list of capabilities for which the company must excel in order to succeed. In other cases, IT may play a less significant or less visible role—and be an important but non-distinguishing feature. In these senses, IT posture is reflected in the relationship between business strategy and IT capability. IT adds value through two primary mechanisms: ensuring business continuity and enabling business change. Existing IT solutions primarily enable business continuity to support value generation from existing business operations, whilst new IT investments are likely to be targeted to deliver business change that creates new value through improved business efficiency or effectiveness. We define IT capability as the focused strategic deployment of IT resources and competencies in support of the organization’s goals. As such, IT capability is a bridge between the company’s business strategy and its business operations. In essence, IT capability is what IT can do for the business. IT must be precisely aligned with and tightly coupled to both of these business functions in order to provide business value. For example, when the company’s strategy highlights high quality customer care, the IT organization needs to provide solid support to the business organization for customer care systems. The entire company is embedded in a business context which is often turbulent. Market conditions, regulatory responsibilities, and competition are examples of elements in the business context. Changes in these elements affect overall business strategy most sharply. Many of these changes quickly have an impact on IT’s strategy. An agile IT organization that is capable of shifting focus is, therefore, of critical importance to the company as a whole. For example, when a hot market emerges in the manufacturing sector, a company’s focus may well be to increase output at any cost, with the goal of attaining mindshare and marketshare for a new product. When a market shifts to price competition, as is especially common in more mature markets, the company must produce cost- effective output. Seasonal markets will affect the company’s capacity requirements. World events can also create and destroy markets or change customer requirements and appetites. In financial market terms, the posture of the organization with respect to IT can be either bullish, bearish, or neutral at different points in time. There will be some times when only the most critical IT systems will be affordable and other times when the IT organization will be asked to deploy capacity rapidly. Our concern with business context underscores a fundamental characteristic of the IT-CMF. As IT capabilities improve, IT will transform itself into a central part of most companies’ businesses. To do so will require improved IT maturity, as described in Table 1 on page 4. This transformation will also require leaders who have a greater degree of situational awareness—ongoing knowledge of the business context in which the company is embedded—whilst also having the technical acumen to know where technology can be applied in order to provide competitive advantage. Figure 2 IT Capability in Context 04/05
  • 9. Key Capabilities Marking Increasing IT Maturity We are half way along a path which leads to the research that the Innovation Value Institute is undertaking. At this juncture, let us consider where we have been and where we are going. 06/07 Where We Have Been The IT-CMF comprises four key capabilities. These four macro-capabilities work together to manage IT capability and deliver business value. We know what the four capabilities are and how they interoperate in a high-level, control loop fashion—with IT budget being a primary input that fuels the IT capability to deliver value, and with overall control provided through managing IT like a business. We identified the levels of maturity using a single, summarized term for each of the levels in each of the macro-capabilities. For example, Expanded Funding Options describes the advanced level for the macrocapability called Managing the IT Budget. Where We Are Going As we drill down, the next category of question is ‘What competencies are needed to achieve excellence in the four macro-capabilities?’ For our example, Expanded Funding Options, exactly which capabilities and characteristics are needed to achieve this level of maturity when managing the budget? The answers to questions of this nature take our thinking about the IT-CMF to a finer grain size. Finer, but not fine enough. Our final discussion will break down the macro-capabilities into critical capabilities—that is, a specific set of repeatable integrated activities that leverage behaviour, actions, methods, and metrics needed to deliver specific outcomes in support of value creation. This strategy provides us with specified descriptions of what the IT organization needs to know and do. The research of the Innovation Value Institute comprises systematic exploration of ways to improve these critical capabilities. Broadly stated, the research agenda will answer the question, ‘How can IT organizations perform each of these critical capabilities well, better, and best, in support of value creation?’ Inspect Table 2 and Table 3 on page 8, and Table 4 and Table 5 on page 9 to gain an understanding of the characteristics that are defined in terms of capability and outcome maturity within the four IT-CMF macro-capabilities. These characteristics, along with the capabilities of the IT-CMF, enrich our understanding of the maturity levels and set the stage for the following discussion of critical capabilities.
  • 10. Maturity Level Key Capabilities and Characteristics Value Centre - IT is a value centre and publishes value statements regularly - IT and business values are highly aligned - The IT organization uses balanced score cards to drive continuous improvement - The IT organization is strongly entrepreneurial Investment Centre - IT is focused on service and usage excellence - IT customer and supplier relationship management are excellent - Funding mechanisms are flexible - IT uses dynamic resource allocation Service Centre - IT is oriented to customers and service - Chargeback and cost accounting systems are in place - Service delivery and management practices are implemented Cost Centre - IT is a cost centre - Asset and cost centre systems are in place - IT is focused exclusively on technology and process - Some IT processes have been documented Unmanaged - There is no IT strategy - There are no defined IT processes Maturity Level Key Capabilities and Characteristics Budget Amplification - A stable IT budget supports the growth demands of the company - Budget allocations are balanced across appropriate portfolios that are based on value performance - IT intensity is actively managed and compared against other key corporate spending categories - Budget is driven by long-term organisztion and business roadmaps Expanded Funding Options - IT has attracted multiple sources of funding - Cost savings are shifted to strategic investments or to the bottom line - The IT budget is in compliance with governance and with IT usage principles - The IT budget is aligned with long-term business value Systematic Cost Reduction - Systematic cost reduction processes are in place - IT unit costs are trended and reduced annually - A dynamic baseline IT budget approach is in place Predictable Financial Performance - A defined IT budget exists - IT tracks performance against periodic financial and spending plans - Variance between actual and planned spend remains within a specified control limit Unmanaged - Financial performance is erratic - The IT budget has no clear owner - IT spend is invisible and fragmented - IT funding is not aligned with long-term business value Table 2 Managing IT like a Business Table 3 Managing the IT Budget
  • 11. Maturity Level Key Capabilities and Characteristics Strategic Core Competency - IT enables information and/or execution superiority over competition - A steady stream of solutions provides competitive advantage - IT is recognized as a differentiating core competency Strategic Business Partner - IT leadership is integrated with business leadership - IT delivers solutions that provide value in specific business areas - IT delivers key competitive capabilities in targeted areas - IT leaders understand the business and proactively propose solutions to key opportunities and problems Technical Expert - IT has a track record for delivering quality services that are reliable - The IT organization is sought out as a source of technical expertise - IT provides a reliable utility IT service that is benchmarked on performance and cost Utility or Technology Supplier - There is growing respect for the IT organization - The company views IT purely as a cost centre - IT is a cost to be continuously reduced Unmanaged - Users purchase and maintain IT systems - There is no formal IT presence - There is no integration of IT systems Maturity Level Key Capabilities and Characteristics Optimized Investment Return - IT performs sophisticated investment and portfolio analysis in order to optimize investments and spend - Returns from IT-enabled investments are equal to or greater than returns from other investment types in the company - Historical data enables accurate predictions of the value of future investments Portfolio and Options Management - IT has a proactive portfolio management programme - IT uses an options management approach to pick and manage speculative IT investments - IT weighs risk and value-at-risk as key components of business cases Simple Return-on- Investment and Business Case Disciplines - There is a disciplined use and review of business cases - IT has in place either investment governance or a business value programme - IT uses multi-metric analysis of business cases to determine best quality investments Total Cost of Ownership - IT computes total cost of ownership for major assets - IT tracks total cost of ownership regularly to ensure there is continuous cost reduction - IT computes total cost of ownership for the full life cycle Unmanaged - Decisions are based on cost, not value - There is no comprehension or measure of the value IT provides - Total cost of ownership is rampantly escalating Table 4 Managing the IT Capability Table 5 Managing IT for Business Value 08/09
  • 12. Managing IT like a Business Managing the IT Budget Managing the IT Capability Managing IT for Business Value ITG BPM BP SP DSM CFP RM AA ODP SRC IM SAI SICT EAM TIM PAM KAM RAM RDE SD SRP UTM UED PPM SUM CAM FF BGM PPP BOP TCO BAR PM IT Leadership and Governance Funding and Financing Demand and Supply Management Capacity Forecasting and Planning Accounting and Allocation Organization Design and Planning Service Analytics and Intelligence Programme and Project Management Capability Assessment and Management Research, Development, and Engineering Portfolio Planning and Prioritization Budget Oversight and Performance Analysis Benefits Assessment and Realization Figure 3 Critical Capabilities of the IT-CMF
  • 13. There is a range of different perspectives with respect to the IT-CMF’s critical capabilities in particular, and to the IT-CMF in general. /// For the stakeholders and the board of directors, IT is no longer a function of finance. Investors and directors are well aware that a keen IT strategy is a necessary enabler of enterprise success. While the board and investors will not expend effort in unnecessary overanalysis of the IT strategy, they will most certainly monitor the outcomes of IT strategy—namely the business value derived from IT. /// For the MD or CEO, IT capabilities emerged over three decades ago as both an opportunity and a risk. Across a wide spectrum of businesses, IT capability has a demonstrated ability to move markets, differentiate products, and change entire industry landscapes. While the MD may not care to know about each critical capability, he or she would want to be assured that IT is maturing and that best-known practices are in place. /// For the CIO, the challenge is to take on board- level responsibilities and participate in all facets of the company’s activities. To succeed, the CIO must both cultivate a mature, efficient, and innovative IT organization and participate in company-wide business decision-making. The CIO must also provide leadership as the IT organization becomes a hybrid of both technical and business expertise. /// For IT senior leadership, critical capabilities highlight the importance of top-level guidance. Portfolio management, for example, is a step up from project-by-project decisions. While it may have inherent difficulties, Portfolio Management recognises the value of IT. It has always been true that IT has collections of initiatives and activities. Similarly, IT’s senior leaders will need to speak the language of business while continuing to provide technology oversight to projects and programmes. /// For the IT line manager, critical capabilities immediately lead to critical skill sets. IT line managers need to assemble teams that know what to do and how to do it. The depth of necessary skills can be daunting, and the scope of skill requirements is ever-broadening. On the other hand, career paths are vastly better marked with an explicit and clear list of critical capabilities to master. Examine Table 6 on page 12 for an overview of the IT-CMF’s critical capabilities. These are the processes that enable capabilities and determine the characteristics of the four macro-capabilities. Study Table 7 on page 13, Table 8 and Table 9 on page 14, and Table 10 on page 15 to understand the critical capabilities in greater detail. Critical Capabilities Underpinning the IT-CMF For the IT-CMF, critical capabilities are the key activities and procedures that must be defined and mastered to enable an IT organization to plan and deliver IT solutions, and to measure the business value consequences of its initiatives and daily activities. 10/11
  • 14. Macrocapability Critical Capability Managing IT like a Business - IT Leadership and Governance - Business Process Management - Business Planning - Strategic Planning - Demand and Supply Management - Capacity Forecasting and Planning - Risk Management - Accounting and Allocation - Organization Design and Planning - Sourcing - Innovation Management - Service Analytics and Intelligence - Sustainable ICT Managing the IT Budget - Funding and Financing - Budget Management - Portfolio Planning and Prioritization - Budget Oversight and Performance Analysis Managing the IT Capability - Enterprise Architecture Management - Technical Infrastructure Management - People Asset Management - Knowledge Asset Management - Relationship Asset Management - Research, Development, and Engineering - Solutions Delivery - Service Provisioning - User Training Management - User Experience Design - Programme and Project Management - Supplier Management - Capability Assessment and Management Managing IT for Business Value - Total Cost of Ownership - Benefits Assessment and Realization - Portfolio Management Source: Martin Curley (2007) Table 6 Critical Capabilities for the IT-CMF
  • 15. Critical Capability Purpose and Results IT Leadership and Governance ITG - Provides the decision rights and accountability framework to encourage behaviours that lead to the achievement of the organization’s IT business value goals. - Top performing companies show 20% better performance when governance is aligned with enterprise goals. Business Process Management BPM - Document and manage the IT organization’s work flows and business processes. - Management of processes and work flows can substantially improve IT efficiency. Business Planning BP - Define and anticipate the company’s demands for IT capabilities and services. - Business planning identifies key objectives and areas for IT investments. Strategic Planning SP - Sets the vision, mission and objectives for the IT organization in line with the company’s overall strategies. - Business and IT strategy is aligned to ensure an effective translation of plans into IT capability requirements and business value. Demand and Supply Management DSM - Achieve a balance between supply and demand for IT services which is both efficient and sufficient. - Cost-effective and business-proficient IT systems are delivered at an optimal cost. Capacity Forecasting and Planning CFP - Anticipate the shifting needs for IT capabilities and plan to deliver them in a timely fashion. - Capacity planning provides the company with the right amount of IT resources, sometimes more and sometimes less, to meet shifting needs. Risk Management RM - Analyse threats and their potential impacts, and develop strategies to mitigate those threats. - Business continuity is ensured by systematically mitigating IT operational risk. Accounting and Allocation AA - The policies, processes and tools used for calculating and distributing the costs of IT. - A range of methods such as chargeback, transfer pricing, and allocation may be used to manage the cost of IT services and to influence the demand for IT services within an organization. Organization Design and Planning ODP - Review and reorganize as necessary the alignment between the IT organization and company needs. - Stable organizations are increasingly rare in the dynamic world of today’s business. Sourcing SRC - Identifying and forming supply agreements with vendors and internal providers. - Sourcing results in placing some enterprise activities outside the company, that is, outsourcing. Innovation Management IM - Creating, identifying, funding and measuring IT-based innovations in order to generate business value. - Companies systematically monitor their environment, adapt with new solutions, and prosper. Service Analytics and Intelligence SAI - IT performance monitoring, modelling, and analysis to establish a clear understanding of the relationship between business processes and the underlying IT infrastructure and processes – in order to sustain and optimize the delivery of IT services for business value. - The IT organization leverages this knowledge as an integral component for efficient operations and effective planning. Sustainable ICT SICT - Align IT processes and practices with the core principles of sustainability, i.e. reduce, reuse, recycle. - Adoption of IT-enabled business processes can deliver positive sustainability benefits across the enterprise and beyond. Source: Martin Curley (2007) Table 7 Critical Capabilities for Managing IT like a Business 12/13
  • 16. Critical Capability Purpose and Results Funding and Financing FF - Determine the scale, scope and sources of funding for IT, and assign financial resources to IT activities. - Find a balance between capital expenses and operating expenses to optimize total cost of ownership. Budget Management BGM - Active, ongoing review and adjustment of the IT spending plan to systematically ensure that allocated budgets are being spent effectively and are within budget parameters and the governance model. - Careful budgeting leads to continuous unit cost reduction for IT services. Portfolio Planning and Prioritization PPP - Allocate the IT budget to projects and activities based on factors such as risk management. - Historical returns data informs portfolio planning to improve the investment mix. Budget Oversight and Performance Analysis BOP - Periodic offline review of IT spending versus IT plan, which provides a stimulus for re-profiling or reprioritization of budgets. - Oversight certifies that the budget targets are being met and variance analysis improves forecasts in the future. Source: Martin Curley (2007) Critical Capability Purpose and Results Enterprise Architecture Management EAM - Provide the necessary models and practices for defining, planning and managing the business and IT capabilities by developing the business, data, application, and technical architecture of IT systems. - Achieve effectiveness and agility with technical standardization and system integration. Technical Infrastructure Management TIM - Optimize IT infrastructure (including client, network, storage, and server) to support the business - Provide an on-demand capability, which is efficient and reliable, as a platform for delivering IT services. People Asset Management PAM - Manage and train personnel to be successful contributors to the IT organization. - Create a culture where IT is customer-focused in order to provide the company with business value. Knowledge Asset Management KAM - Promote a collaborative culture and define practices and actions to guide employees in harnessing knowledge assets as part of their work. - By identifying, capturing, classifying, maintaining and sharing knowledge assets, value is leveraged throughout the organization. Relationship Asset Management RAM - Enhance the relationship between the IT organization and the company’s business units. - IT will share in the risks and rewards associated with the overall business of the company. Research, Development, and Engineering RDE - Formally investigate new information technologies and the opportunities they provide. - IT RD can deliver prototypes of innovative IT systems, white papers, or patent filings. Solutions Delivery SD - Deploy systems and solutions that efficiently address the company’s IT requirements and opportunities. - IT solutions are delivered with the cost, schedule, functionality, and quality the company needs. Service Provisioning SRP - Provide reliable IT services to support the company’s objectives and strategies. - Data centres, help desks, and service solutions are in position to support IT’s customers. Table 8 Critical Capabilities for Managing the IT Budget Table 9 Critical Capabilities for Managing the IT Capability
  • 17. Critical Capability Purpose and Results User Training Management UTM - Maximize user proficiency and ensure users acquire the right skills at the right time. - Business value is maximized when excellent IT solutions are put to maximum usage. User Experience Design UED - Create solutions that increase both business productivity and satisfaction of end users. - Usefulness and ease of use are the hallmarks of a successful IT solution. Programme and Project Management PPM - Cultivate the ability to manage programmes and projects to be on time, on budget, and on target. - The costs of schedule overruns are avoided and the quality of IT solutions is matched to customer needs. Supplier Management SUM - Encourage cooperative relationships with contractors to create shared value. - Achieve more value from the company’s primary supply base. Capability Assessment and Management CAM - Create the support, reliability, repeatability, and effectiveness to assess the IT capability. - Assessment roadmaps are defined and put forward for realization to improve the organization’s capability. Source: Martin Curley (2007) Critical Capability Purpose and Results Total Cost of Ownership TCO - Track and control direct and indirect costs associated with IT infrastructure and systems. - Total cost of ownership better informs the budgeting and portfolio management processes. Benefits Assessment and Realization BAR - Establish a common business value vocabulary, and a measurement and valuation methodology to express the potential business value returns and to document the actual business value returns. - Construct high-quality business cases and manage the realization of actual benefits versus original forecasts to ensure organizations achieve business value delivery. Portfolio Management PM - Regularly examine the mix of IT projects and the allocation of resources among them. - Ensure that all proposed investments are executed within their set parameters and remain in line with business objectives. Source: Martin Curley (2007) Table 10 Critical Capabilities for Managing IT for Business Value Table 9 cont’d 14/15
  • 18. References Agarwal, R, and Sambamurthy, V. 2002. Principles and Models for Organizing the IT Function, MIS Quarterly Executive, Volume 1 (1), March: 1-16. Alter, A. 2003. Do You Have Any Faith In Your ROI Numbers? www.cioinsight.com, March 17. Alter, A. 2006. The Bitter Truth About ROI. www.cioinsight.com, August 4. Andreessen, M. 2002. Sidestepping The New IT Crisis. Tech News/CNET.com, December. Barney, JB. 1991. Firm Resources and Sustained Competitive Advantage. Journal of Management, 17;1: 99-120. Christensen, CM. 1997. The Inventor’s Dilemma: When New Technologies Cause Great Firms to Fail. Boston, MA: Harvard Business School Press. Covey, SR. 1989. The Seven Habits of Highly Effective People. Simon and Schuster. Crosby, PB. 1979. Quality is free: The Art of Making Quality Certain. McGraw Hill. Curley, M. 2007. Introducing the IT Capability Maturity Framework. Proceedings of the International Conference on Enterprise Information Systems, Portugal, June. Curley, M. 2006. The IT Transformation at Intel. MISQE, December. Curley, M. 2006. A Value Based IT Capability Maturity Framework. Intel EMEA Academic Forum, Ireland. Curley, M. 2006. IT Innovation, A New Era. Proceedings of the International Conference of Computational Science, Reading, UK. Curley, M. 2004. Managing Information Technology for Business Value. Intel Press. Curley, M. 2006. The IT transformation at Intel. MIS Quarterly Executive, Volume 5, Issue 4 (1), December: 109 - 122. de Geus, A. 1997. The Living Company: Habits of Survival in a Turbulent Business Environment. Harvard Business School Press. Dedrick, J, Gurbaxani, V, and Kraemer, KL. 2002. Information technology and economic performance: a critical review of the empirical evidence. University of California, Irvine, Center for Research in IT and Organizations (CRITO), November. Earl MJ, and Sampler, JL. 1998. Market Management to Transform the IT Organization. MIT Sloan Management Review, Summer. Eckert, A. 2002. Maximizing ROI Through User Proficiency. Insiders View, SAS.com, June. Gurbaxani, V, and Kemerer, CF. 1990. An Agency Theory View of the Management of Information Systems. Proceedings of the International Conference on Information Systems, 279-288. Humphrey, W. 1989. Managing the Software Process. Software Engineering Institute. Kohli, R, and Deveraj. 2004. Realizing the Business Value of IT Investments: An Organizational Process. MIS Quarterly Executive, Volume 3 (1), March. Marchand, DA. 2004. Reaping the Business Value of IT: Focus on Usage, Not Just Deployment, To Optimize Payback. IMD publication No. 114, November. Markus, ML, and Soh, C. 1995. How IT Creates Value, a Process Theory Synthesis. Proceedings of the 16th International Conference of Information Systems, Amsterdam, The Netherlands. Markus, ML, and Soh, C. 1993. Banking on Information Technology: Converting IT Spending Into Firm Performance. In RD Banker, RJ Kauffman and MA Mahmood (Editors), Strategic Information Technology Management: Perspectives on Organizational growth and Competitive Advantage. Harrisburg, Pennsylvania: Idea Group Publishing, pp 405-444. Mooney, JG, Gurbaxani, V, and Kraemer, K. 1995. A Process Oriented Framework for Assessing the Business Value of Information Technology. CRITO paper, UC Irvine. Paulk, MC, Curtis, B, Chrissis, MB, and Weber, C. 1993. Capability Maturity Model for Software, Version 1.1. Software Engineering Institute, CMU/SEI-93-TR-24, DTIC Number ADA263403, February. Peppard, J, and Ward, J. 2004. Beyond Strategic Information Systems: Towards An IS Capability. The Journal of Strategic Information Systems, July, pp 167-194. Ross, JW, Beath, CM, and Goodhue, DL. 1996. Developing Longterm Competitiveness Through Information Technology Assets. Sloan Management Review, Vol. 38, Fall. Ross, JW, Weill, P, and Robertson, DC. 2006. Enterprise Architecture as Strategy: Creating a Foundation for Business Execution. Harvard Business School Press. Salman, R, and Younis, N. 2005. Lessons to Management from the Control Loop Phenomenon. Transactions on Engineering, Computing and Technology. Sambamurthy, V, and Zmud, RW. 1994. It Management Competency Assessment: A Tool For Creating Business Value Through IT. Working Paper, Financial Executives Research Foundation. Sward, D. 2006. Measuring IT for Business Value. Intel Press. Tallon, P, et al. 2000. Executives’ Perspectives on the Business Value of Information Technology. A Process-Oriented Approach. Journal of Management Information Systems. Venkatraman, N. 1997. Beyond Outsourcing: Managing IT Resources as a Value Center. MIT Sloan Management Review, Spring. Weill, P. 1992. The Relationship between Investment in Information Technology and Firm Performance: A Study of the Value Manufacturing Sector. Information Systems Review, Volume 3, Number 4, pp 307-333. Weill, P. 2004. Don’t Just Lead, Govern. How Top- performing Firms Govern IT. MIS Quarterly Executive, Volume 3 (1), March. Weill, P, and Ross, J. 2004. How Top Performers Manage IT Decisions Rights for Superior Results. Harvard Business School Press. Weill, P, and Ross, J. 2004. IT Governance in One Page. MIT CISR Working Paper #349. Weill, P, and Woodham. 2002. Don’t Just Lead, Govern: Implementing Effective IT Governance. MIT Sloan CISR Working Paper #326, April.
  • 19. Innovation Value Institute (IVI) The Innovation Value Institute is a multi-disciplinary research and education establishment co-founded by the National University of Ireland Maynooth and Intel Corporation. IVI develops frameworks to assist IT and business executives to manage IT for Business Value and to deliver IT-enabled business innovation. IVI is supported by a global consortium of like-minded peers drawn from a community of public and private sector organizations, academia, analysts, professional associations, independent software vendors, and professional services organizations. Contact Us For more information on becoming a member of the IVI Consortium, please contact us at www.ivi.ie, ivi@nuim.ie or +353 (0)1 708 6931 Membership Steering Patrons National University of Ireland Maynooth Intel The Boston Consulting Group Patrons BP Chevron Cisco Ernst and Young Fujitsu Microsoft SAP