Lesson 71-1© 2015 Pearson Education, Inc. Publishing

Lesson 7
1-1
© 2015 Pearson Education, Inc. Publishing
as Prentice Hall
Chapter 19
19-2© 2015 Pearson Education, Inc. Publishing as Prentice Hall
© 2015 Pearson Education, Inc. Publishing as Prentice Hall
The target architecture continuously
evolves, so the technology roadmap must
be an ongoing process.
Technology has many masters, such as
vendors, standards-setting boards, and
trading partners.
Unexpected roadblocks may occur.
19-3

Without it companies run the risk of
making sub-optimal technology decisions.
“Plans are nothing, planning is
everything”.
The planning process tells an organization
what they did where, where they failed,
and how to improve.
A technology roadmap limits the range of
technology decisions.
19-4
A technology roadmap is the collective
vision of the opportunities for technology
to serve a business.
A technology roadmap is a mechanism for
the identification, justification, planned
evolution, and orchestration of technology
to enhance business performance.
19-5
Achieves business goals by identifying the
gap between the business plan and the
current technological environment.

Reduces complexity by reducing the
number and variety of technological
choices.
Enhances interoperability of business
functionality across lines of business.
19-6
Increases flexibility
Increases speed of implementation
through common standards,
methodologies and technology platforms.
Preserves investments in new and existing
systems by basing them on long-term
considerations.
Responds to market changes by building
from an established framework.
19-7
Focuses IT investment dollars
Simplifies the response to new legislation
Reduces difficulties associated with
deployment of new technologies by
utilizing fewer technologies, common
platforms, and similar development
approaches

19-8
Provides a common design point that
facilitates end-to-end integration of
reusable components and applications.
Builds a consistent and cohesive
technology base that can create a critical
mass of skills dedicated to select
technologies.
19-9
Provides the ability to move forward in
planned phases by providing an orderly
evolution of each technology through a
life cycle approach
Consolidates global solutions by
synchronizing local technologies into the
global roadmap
Lowers the cost of development and
maintenance by increasing reusability of
components
19-10

Seven Important Activities are derived from the
Gap between the Current Technology and the
Business Plan:
1. Guiding Principles
2. Assess Current Technology
3. Analyze Gap
4. Evaluate Technology Landscape
5. Describe Future Technology
6. Outline Migration Strategy
7. Establish Governance
19-11
© 2015 Pearson Education, Inc. Publishing as Prentice Hall 19-
12
Figure 19.1
Establish a statement of the role and
purpose of technology within the
business.
Define how technology supports the
business.
Define the overall type of technology
support to be delivered with a sense of
performance.
19-13

Establish investment boundaries. “We
will invest in technology at a rate
necessary to sustain our business growth”
Outline the role of technology for the
organization. “We will adopt a ‘fast
follower’ strategy, aggressively adopting
proven, architecturally compliant
technologies.”
19-14
Outline the role of technology within
the industry. “Technology is a core
business competency.”
Reinforce the role of standards. “All
components will adhere to open industry
standards.”
19-15
Specify the role of support. “We will
assist employees with technology
problems that occur via call centers,

desktop support, self-help, and/or service-
level agreements.”
Outline development preference. “We
will buy first, build second.”
19-16
Establish expectations. “Service levels
and availability are outlined for all
production systems.”
Adherence to regulatory standards.
“We will be security and privacy
compliant.”
Specify timeframe. “The ‘future’ in our
technology roadmap has a three-to-five-
year horizon.”
19-17
Outline the current technologies and their
state.
At a minimum indentify the business
process area, vendor, level of support,
dependencies, criticality, and life cycle.
Assign a technology owner who is
responsible for each technology domain
including acquisition, maintenance,
vendor relationship management, training,

and documentation.
19-18
Perform a gap analysis between the
current technology and what is needed.
Identify the required technology.
Build technology in anticipation of
business change and growth.
Bridge the gap between business being
driven by innovation and growth and IT
benefits being derived from standards and
reusability.
19-19
Firms must invest in R & D to keep
abreast of new technologies.
The size of this investment should be
driven by how critical IT is to the
business.
The roadmap should articulate how large
this investment will be, how it will be
enacted, who is responsible, and provide
guidelines to assist this initiative.
19-20

Describe the technologies to be adopted
in the future.
The roadmap should include the logic that
was used to recommend these
technologies to permit constructive input
from business managers to challenge
these recommendations.
The roadmap should include all
assumptions.
19-21
Outline a Migration Strategy to get from
the current technology to the future
technology platform.
Two common strategies are the gradual
evolution and the big-bang.
A major challenge is to assign priorities to
technology components that need to be
changed.
19-22
Define an established process to

determine who is responsible for
creating/updating the technology
roadmap and who approves changes to
the roadmap.
Distinguish between strategic architecture
governance and tactical architecture
governance.
19-23
1. Be bold and innovative when planning
the roadmap.
2. Align technology with the business.
3. Secure support for the roadmap.
4. Don’t forget the people.
5. Control, measure, and communicate
progress.
19-24
Migrate from production-centric to
process-centric applications architecture
using service-based architecture.
Deploy component-based applications to
minimize costs.
Utilize components based on industry

standards.
Utilize middleware to minimize application
changes.
19-25
The purpose of the technology roadmap is
to guide the development of technology in
an organization.
The technology roadmap communicates
the role that technology will play in
advancing business goals.
19-26
Chapter 20
20-27© 2015 Pearson Education, Inc. Publishing as Prentice
Hall
28
Past:
SD involved creating customized software
applications for an individual organization.

Today:
SD still means custom building but development
also includes selecting, implementing, and
integrating packaged software solutions, smaller
reusable software components across a variety of
platforms with a variety of development tools.
The same (and sometimes more complex) problems!!
Development projects are still perceived
to take too long, cost too much and
deliver limited business value (Korzaan 2009).
SD success rates shows that only 32%
were successful (e.g., on time, on budget,
and with the required features and
functions), while 44% were not (Standish Group
2010).
20-29
SD continues to be plagued by the
challenge of measuring “productivity.”
“We are still expected to deliver business
value with increasing speed and
efficiency.”

20-30
1. Adopting new development
approaches:
- incorporate flexibility into SD;
incremental design, iterative, spiral.
– SD becomes process
orchestration, combining various software
components into an application container.
– acquiring packaged software
from the cloud (e.g., software-as-a-service)
and integrate it into processes.
20-31
2. Enhancing the waterfall methodology:
most practical for large SD projects because
of the engineering principles.
have been improved by using Capability
Maturity Model Integration (CMMI) to move
to a more managed and standardize results.

20-32
3. Improved governance:
mechanisms based on economic disciplines that
accept uncertainties involved in SD and adapt and
steer projects through the risks, variances, and
moving targets involved (Royce 200).
become a further significant governance issue for all
systems initiatives.
20-33
4. Changing resourcing strategies:

developers to supplement in-house
development continuously grows.
new internal business, technical and data
architecture, business analysis, and project
management skills.
20-34
Business involvement – Business
leaders still pay only lip service to their
responsibilities. Business users need more
engagement in every aspect of the SD
process (e.g., governance, analysis,
testing, change management).
20-35
Analysis– can be an obstacle to
productivity and effectiveness by failing to:

projects.
20-36
Testing– takes between 20 and 40 percent
of development effort and resources.
Frequent delays occur in the process, usually
by the quality assurance and business user
groups due to the lack of a holistic view of
the business as a whole.
20-37
No a single SD approach fits all - the
ongoing challenge is to find the right
balance between structure and
consistency and speed and flexibility.
Poor communication - between IT and
business tends to create
misunderstanding and conflicts that can
inhibit projects.

20-38
1. Optimize the bigger picture
2. Adopt more flexible processes
3. Reduce complexity
4. Enhance success metrics
5. Create a smarter development environment
20-39
Optimize the bigger picture – SD should be
seen as only one part of an overall business and
technical effort to deliver value to the enterprise.
aligned.
reassessed and streamlined.
must be developed.
20-40

Adopt more flexible processes - “just
enough” waterfall development methodology
should be the goal. Organizations have developed
tailoring tools that helps determine the levels of
oversight and control according to the level of
risk involved.
20-41
Reduce complexity – Standardization
wherever possible reduces complexity and makes
development more straightforward. “Multiple
technologies, platforms, languages and tools
mean more complex software engineering.” (said
one manager)
20-42
Enhance success metrics – Metrics for SD
should be design to accomplish four goals and
used selectively for different audiences:
-in

20-43
Create a smarter development
environment – Collaboration and knowledge
sharing initiatives (e.g., knowledge repositories,
document-sharing software, communities of
practice) facilitate relationship building, and
ensure there is a single version of the “truth”
available to everyone on a project team.
20-44
Look for and address bottlenecks
Focus on outcomes
Clarify roles and responsibilities
Simplify the development environment
Simplify testing

20-45
SD is still a very complex process and
organizations’ ongoing challenge to
overcome the dilemma of development
productivity.
SD process improvements are more likely
to result from persistent and iterative
analysis of what works and what doesn’t
in each particular context.
20-46
Chapter 21
Hall
The amount of information today is
overwhelming.
The average knowledge worker spends
more than one quarter of their day
searching for information. (Kontzer,2003)
Information has considerable value.
Good information management practices

+ excellent Systems yields strong financial
performance. (Kettinger and Marchand 2011)
21-48
Information embedded in workflows is
valuable.
Transforming tacit knowledge into explicit
knowledge results in structural capital.
Financial accountability legislation has driven
the need for greater information integrity.
New technologies create new information
opportunities and at the same time, new
business opportunities.
21-49
More Efficient Business Operations –
Dashboards combine transaction, process
and supply-chain metrics to give a more
detailed view of operations.
Dashboards provide drill-down, highlight
problem areas and integrate information
from several systems.
21-50

Mobile and E-Business – Forced
organizations to resolve internal data
inconsistencies, identify information gaps,
and deal with inadequate information
offerings.
The Web has enabled more efficient
transactions, expanded supply chains, and
offer new services.
21-51
Internal Self-Service –is driving a
complete reanalysis of what information is
collected and how it is presented,
navigated, and used internally.
“Portals and online self-service make
administrative problem areas more visible.
They also force managers to simplify
policies and procedures.”
21-52

Unstructured Information Delivery –
records management, library management
and document management have caused a
convergence of structured and unstructured
information.
IT must now develop taxonomies,
navigation, and access methods for
unstructured information and integration into
work processes delivered where needed.
21-53
Business Intelligence – Includes both
data mining and external competitor
information.
Data mining requires IT to understand the
context of how information will be used.
Data Warehouse technologies are a key to
supporting this environment.
21-54
Behavior Change – Increasing more
sophisticated metrics and scorecards are
used to measure corporate performance.

People pay attention to what is measured.
Highlighting key information helps staff
focus.
21-55
Careful attention to the social and
behavioral dimensions of how work is
done.
Information integration is a challenge,
mostly for global enterprises and large
organizations with strategic alliances.
12-56
© 2015 Pearson Prentice Hall
Political judgment
Information analysis
Workflow analysis
Information access
Business rules for
information use

Usability
Information
navigation
21-57
Data custodianship
Storage
Integration
Presentation
Security
Administration
Personalization and
multilingual
presentations
Document indexing
and searching
21-58

Unstructured content
management and
workflow
Network and server
infrastructure for
information
hosting/staging
Team collaboration
software
21-59
60
Figure 21.1 The Information Management Lifecycle
Capture – Includes all activities in
identifying information for possible use.
May include digitizing documents.
Will require capturing external business
intelligence information.
21-61

Organize – Involves indexing, classifying
and linking sources together.
Involves taxonomy creation (systematic
categorization by keyword or term).
Facilitates ease of access.
21-62
Process – Leverages the value of
information using new information-
delivery technologies.
Involves analyzing vast amounts of
information into structural capital that is
valued by businesspeople.
21-63
Maintain – All information must be
assessed as to its meeting the business
needs.

Standards and principles must be
established for information retention,
preservation, and disposal.
21-64
Approach information delivery as an
iterative development project. No one
gets it right the first time.
Separate data from function to create
greater flexibility.
Buy data models and enhance them. This
will save many person-years of effort.
21-65
Use middleware to translate data from
one system to another. This is especially
true for companies using multiple
packaged systems with their own
embedded data models.
Evolve towards a real-time single-source
customer information file. This will
support privacy and ease new integrated
product and service offerings.

21-66
Design information delivery from the end
user (whether external customer,
employee, or supplier) backward. This
substantially reduces internal in-fighting
and focuses attention on what is really
important.
21-67
The Internet of things – This includes
the ability to track and remotely monitor a
product at any point in time (e.g., radio
frequency identification (RFID) and
wireless communications). This massive
influx of information will create challenges
in the coming decade.
21-68
Network-centric Operations – It will
soon be possible to collect, create,

distribute, and exploit information across
any platform. This will be enabled by:
- Sensor grids
- High quality information
- Value-added command and control
processes
21-69
Self-synchronizing Systems –
Information will support self-
synchronization of complex work activities
without management intervention.
Feedback Loops – Feedback
mechanisms will requires new metrics for
factors such as transparency, information
sharing, and trust.
21-70
Informal Information Management –
Information delivery mechanisms of the
future will look to organize and leverage
informal information kept by knowledge
workers.

21-71
It is only recently that businesses have
discovered the power and potential of
information within the IT community.
New technologies and channels make it
possible to access information cheaply
and easily.
Information is being used to drive
different types of value in the
organization.
21-72
Running head: SOCIAL HISTORY
SOCIAL HISTORY
Social History
Kiara Bonds
Walden University

Name: George TibiisDate: 20th January, 2020
Social History
Prepared By:
Presenting Problem
George Tiblis is a 16 year old refugee from Syria. His parents
and sister died in a bombing attack in his village located in
northern Syria about two years ago. He came to America as part
of a Christian mission rescue and was immediately put into
foster care. He lived with the foster family for a year and
managed to get a high school education but has had difficulties
with fitting in and adapting to the routine and lifestyle. He
made the decision of leaving his foster family and since then, he
has been staying in different shelters or sleeping in public
buildings, if not hitchhiking around the country.
When questioned, George confesses that he is depressed and has
not had an easy time adapting to the new American culture
introduced to him. He has had difficulty in making friends
because of his refugee status and country of origin, stating that
most of his peers view him as a threat because of the
stereotypical nature revolving around the Muslim religion and
terrorism. He claims that the teachers in his former school
would treat him differently from other children, a factor that
affected his academic performance. He has also not healed from
the deaths in his family, describing the event as horrific and
unfair. He blames himself for his family’s death, wishing there
is much he could have done to help them. George admits he
needs help but does not know where and how to get it.
Family of Origin
George lost his family in a bombing attack in his village in
Northern Syria. He describes the tragic event as horrific and
wishes that he could have done more to save his family. He
admits that at times he wishes that he died alongside his family;
he would not be going through the pain and difficulty that he is
under now. Syria is a warzone, and his family was the little
hope that he had of a future. He remembers how his father
would teach him metalwork, hoping that one day, after the war

ends, he and his father would open a shop to sell their ideas. He
is not sure if he has any other family aside from those he lost,
since they were always on the move for a number of years,
escaping the outcome of the war.
Birth and Childhood
George was born in Syria and recalls having a good childhood
in a once peaceful Syria. He would play with his sister and look
up at airplanes that flew past their house, envisioning how one
day they would tour the world with their parents as a way of
thanking them for all the sacrifices they made. He describes
how their village was once a beautiful place, with friendly faces
and hope for a good life. He bitterly recalls how the war started.
How one death became hundreds; the endless gunshots and
bombings, and the sleepless nights. He had hoped that America
would give him a new start, but cannot help but notice the
negative reactions he receives from those he narrates his story
to, hence why he keeps moving from shelter to shelter, until he
can find a place to call home.
Significant Relationships
Given his refugee status, it has not been easy for George to get
a job. He does not understand why but he keeps getting turned
down. Occasionally, he does casual jobs that usually do not last
more than a day, but gives him enough money to get a decent
meal. George does not have a girlfriend; he says that a
relationship is the last thing he needs until he gets his life in
check. The trauma he has been through makes him wary of
engaging in any relationship; he fears loss.
Lesson 5
1-1

as Prentice Hall
Chapter 12
New business models (e.g., Amazon,
iTunes).
New products and services (e.g., tablets,
mobile banking).
New or improved processes (e.g., ERP,
supply chain).
Cost savings (e.g., self-service, offshore
sourcing).
12-3
Comes about through organizational
change
Frequently involves experimentation
Is necessary for long-term organizational
survival
12-4

Sustaining Innovation – improves a
product or service for existing customers.
Disruptive Innovation – targets
noncustomers and delivers a product or
service that differs from the current
product portfolio. It must create and
capture new value.
12-5
Continuous Change – Frequent,
relentless and endemic to the firm.
Punctuated Equilibrium – assumes
long periods of incremental change,
interrupted by brief periods of radical
change.
12-6
Innovation in an organization lies at the
intersection of the answer to three

significant questions:
What is viable in the marketplace?
What is desirable to the business?
What is possible with technology?
12-7
8
Figure 12.1 The Organization’s Strategic for Innovation with
Technology
1. Ideation
2. Advocacy
3. Proof of Concept
4. Trial or Pilot
5. Transition or “go to market”
10-9

10
Communication of value is essential to
ensuring innovation is sustainable. From
this perspective, value has two
components:
1. Is it desirable?
2. Does it build our innovative capabilities?
10-11
Motivate: Establish rewards for innovation.
Support: Create infrastructure to sustain
innovation.
Direct: Manage innovation strategically.
12-12
Experimentation is risky.

Incentives and rewards must be provided
to support experimentation.
Good ideas can come from any source.
12-13
Infrastructure is needed to support IT
innovation and experimentation.
Some organizations create formal centers
(or laboratories).
Intranets are being used to solicit new
ideas.
Financial support is frequently provided
through internal venture support.
12-14
Innovation centers’ strategies:
Insulate – Create innovation centers
where all lines of business can come
together to address common problems.
Seeks to take advantage of synergy.
Incubate – Innovation centers are placed
within lines of business. Seeks to focus on
specific problems or opportunities.

12-15
Strategic IT experimentation must be
directed to ensure it is relevant.
Link innovation to customer value.
Link experimentation to core business
processes.
Use venture funds to guide strategic
initiatives.
12-16
1. Strike the correct balance.
2. Create a sustainable process.
3. Provide adequate resources.
4. Reassess IT processes and practices.
12-17
Focus on achievable targets.

Don’t rush to market.
Be careful with “cool” technology.
Learn by design.
Link innovation to business strategy.
10-18
Incubate innovation.
Collaborate with vendors.
Integrate business and IT.
Send clear messages.
Manage the process.
Promoting learning agility.
10-19
Organizations are starting to grasp the
scope of continuous change that is being
ushered in by technology and the

innovative ideas that come with it.
“Innovation” is what is to come; thus
addressing it thoughtfully and
intentionally is the best way to ensure
that an organization is ready for the
future. 12-20
Chapter 13
13-21
22
Social media is the largest component of
(online) data for organizations, but it is not
valuable if not analyzed. Hence, the key
question is:
“How can we use insights from the data we
collect to improve our interactions with
customers, suppliers or employees” (La Valle et al.
2011)
13-23

Wikis
Blogs
Videos
3D user interface / visualization
Presence awareness
Instant messaging, Twitter
Social networking communities (e.g.,
Facebook, LinkedIn)
Reputation systems
Gamified data
13-24
Companies can then use data to:
Respond more quickly to the market by
making faster decisions.
Make patterns more evident, such as
problems with a new product.
Facilitate innovation in products and services,
based on customer and other types of
feedback.

Improve reputation and brand awareness.
13-25
Sensing – detection location
Mass visibility – combination of real-
time sensing of multiple entities and
relationships.
Experimentation – integration of real-
time sensing and generate and gather
data quickly.
Coordination – combination of real-time
sensing to adjust behavior.
13-26
27
Governance
Business
Strategy for
Data New Skills
and Tools
Improved
Data and

Information
Capabilities Social
Media
and Big
Data Use
Business
Value
What are the biggest drivers of our profits?
How can we increase customer loyalty?
Do we have information that is easy to use
and useful?
Dashboards, visualization, trend analysis and
simulations and traditional reports are
technologies to make information more
understandable and actionable.
13-28
Determine what data to collect and how to

get it:
• Transition from siloed data to integrated data.
• Organize data and capture context and meaning.
Data Have four dimensions (Merchand et al. 2000):
• Unstructured
• Structured
• Internal
• External
13-29
Three level of analytics maturity in organizations:
Aspirational – support finance and supply
chain management.
Experienced – support holistic strategy,
marketing, and operations.
Transformational – day-to-day strategy and
operations in a planned and coordinated
fashion.

13-30
Companies should have three sets of
competencies for dealing with big data
(Laney and white 2014; McAfee and Brynjolfsson 2012):
Information management expertise
Business analytic expertise
An analytic-oriented culture
13-31
This process begins by asking the following:
Do we know what data people have
socialized around our business and our
product?
Do we have an inventory of the data streams
in our ecosystem and those surrounding us?
13-32

Have we thought about the data streams we
produce? Could they be valuable outside our
organization?
How many of our organizational systems
could be architected easily to provide data in
real time?
Are we keeping an eye on the changing
value of our digital assets?
13-33
The answers to these questions can be used to
develop new strategic opportunities, such as:
Data generation – create new products.
Aggregation – create a data platform.
Service – create new and/or improve services.
Efficiency – optimize internal operations.
Analytics – develop superior
insight/knowledge.

13-34
35
Short business horizons
Business leaders have shorter time horizon
in their thinking than IT and are often not
prepared to anticipate new technologies.
Resources
Social computing requires support and
facilitation to make it effective.
36
Changing the culture
Organizational behavior must change if the
value of social computing is to be realized.
Initial adoption rates are usually high but
continuous participation often drops off.
37
The Vision The IT Manager’s Challenge

Blurred process & org. boundaries
Collaboration and sharing
Situational applications
Mass participation and accessibility
Transient information
Supports social behavior
Innovation and creativity
Viral
Dynamic
Situational roles
Social governance and etiquette
Collective intelligence; bottom-up
innovation
Anywhere/anytime connectivity
Ad hoc applications and inquiries
Firewalls and structured processes
Intellectual property and privacy protection
Maintaining transactional applications and
operational integrity
Authentication and authorization
Creating a permanent record
Support business behavior
Efficient use of resources
Secure
Backup
Regulatory accountabilities
Organizational governance and policy
Top-down business strategy
Managed data environments
Controlled communication
Scalable applications

38
1. Focus – Identify specific problems and
then use data and/or social media to
solve them.
1. Develop business-savvy IT staff –
Promote business-IT rotation programs,
and hire power users into IT.
39
3. Become a “data factory” – Work to
improve data quality, usability, and
integration.
4. Listening and engaging– Build
deliverables that will engage customers
with the company and provide superior
customer service.
40
5. Consider hiring a graphic designer –
Support IT in developing intuitive and
easy interface designs and efforts.
6. Support actions that improve use –
Communicate the link between use and

value to keep teams focused on
usefulness and ease of use in social
media/big data applications.
41
Social technologies and big data will
create new information platforms on
which ideas that we never dreamed of
will surface.
Companies should adopt these
technologies in an evolutionary fashion
rather than in a “big bang”.
Chapter 14
14-42
While all organizations give their customer
an “experience” – either positive or
negative – few as yet have committed the
time and resources to analyze, manage,
and improve it on an ongoing and holistic
basis (Davies and Thompson 2009).

14-43
Customer encountering new products,
services and experiences…are growing less
loyal to their brands…Reputations can be
built and burned by opinions shared online,
“texted” by friends, bloggers and advocacy
groups. CEOs told us they need to re-ignite
customer interest and loyalty or risk losing
ground to competitors (Kortsen 2011).
14-44
Excellent customer experience positively
impacts an organization’s bottom line.
Customer experience can be a strong
company differentiator –both positive and
negatively –thereby affecting sales.
14-45
Consistency and reliability – Products
and services that deliver consistently

across channels, over time, and as
promised.
Knowledge and data – Knowledge
about customers’ experiences in order to
better understand and act to improve
them.
14-46
Timeliness – The longer it takes to
accomplish a customer service, the less
likely a customer will be satisfied.
Innovation– IT can help the
organization improve its customer
experience and become a strategic
differentiator.
14-47
48
Cumulative
Customer
Experience
Perceptions

&
Expectations
Rational
experiences
Demo-
graphics
Consistency,
Reliability,
Timeliness,
Knowledge,
Innovation
Feedback &
Action
Product
Price
Channel
Promotion
Process
IT is a significant component of the customer
experience. Examples of these technologies
are:

Customer relationship management (CRM).
Interactive voice recognition (IVR).
Online and mobile self-service applications.
Underpinning technologies (e.g., master data
management, knowledge management,
metrics, analytics).
14-49
However, the use of technology by no means
guarantees a positive customer experience.
Technology often substitutes people resulting
in a less satisfying or negative experience.
Technology should be used to create more
meaningful and positive experiences.
14-50
1. Visioning – The ability to envision a
more creative customer experience.
2. Customer focus –The business and IT
functions need to come more
customercentric. This will redefine large
parts of business process and systems.

14-51
3. Designing for utilization – Three key
aspects with IT projects in customer
experience: “it must be useful”, “it must
be useable”, “it must be used”.
4. Data management–The delivery of
complete, current, and accurate data is
central to the ability to provide high-
quality customer service with IT.
14-52
5. Delivery– Execution is where it all
comes together. It is important to have
both good technology and
knowledgeable and caring staff, who are
themselves supported and empowered
by good technology.
14-53
Have a central management. Appointing a

single senior executive with responsibility
to improve customer experience provides
executive sponsorship.
Have a clear customer relationship
management strategy and value
proposition.
14-54
Follow an integrated business and IT
strategy to develop a roadmap for
improving the customer experience. “One
view of the customer and one common
set of business rules”.
Identify and develop new capabilities to
deal with customers, not just business
users.
14-55
Keep working away at the basics –
common data, integration across
applications and channels and reliability.
These are essential to delivering a
consistent experience!

14-56
57
Customer experience is today recognized
as being critical to organizations’ current
and future success.
IT plays an integral part in almost all
customer experience initiatives.
IT function should become more
customercentric – customer in mind!
Chapter 15
Hall
A set of information manipulation
practices, such as query mining,
reporting, and interactivity that is linked
to but separate from information
management practices (including master
data management, information
architecture data, data quality, data
integration).

(Bitterer 2010)
12-59
An evolving ecosystem around the data
vision.
Organizational capability that could be
used to bring the right data, information,
knowledge, and intelligence to bear on a
business problem, opportunity, or
decision.
12-60
Anticipate the future, instead of reacting to
the past.
Empower employees’ memory, insight.
Sense what is happening in the
organization’s environment.
Connect internal and external functions and
resources.
Question the status quo and create new
opportunities.
Focus on the most relevant information.
12-61

62
• Transaction data
• Internal structured data
• Internal unstructured
data
• External structured data
• Master data
• External unstructured
data
• Real time data
• IM strategy and
principles
• Enterprise information-
architecture
• Metadata
• Data management

• Data integration
• Data quality
• Data administration
• Reports
• Dashboards
• Data mining
• Information – enhanced
processes
• Queries
• Graphics and
visualization
• Real-time analysis
• Historical, current, and
predictive analysis
• Information – enhanced
products and services
Data Information
Management

Intelligence
Creation
1. The explosion of data – Amount and
type of data are increasing exponentially.
It is essential to be able to use IT tools
and skills to capture, manage, and
exploit these new forms of information.
12-63
2. Changing information needs –
Increased pressures to deliver “just-in-
time” information to make better and
faster decisions.
3. Competitiveness – Organizations that
are “sophisticated exploiters of data and
analytics” are three times more likely to
be top performers (Hopkins et al. 2010).
12-64

Perspective – Changing organizational
mind-sets and culture regarding data is
the biggest challenge.
Lack of business knowledge – “We
don’t know what we don’t know and it’s
difficult to be perceptive about BI without
a full range of knowledge”.
12-65
Lack of sponsorship – In spite of the
demand for better information, businesses
have been slow to invest in BI.
Silo thinking – This thinking has been
exacerbated by the lack of governance
and enterprise perspective and has
resulted in fragmentation and duplication
of data.
12-66
Lack of BI skills – BI sits between the
IT function and business and requires
both business and technical skills, a
combination that is hard to find.

12-67
1. BI strategy and planning – BI plans
and strategies need to be inclusive at the
high level. BI must integrate both with
other business strategies and with the
technology and information architectures
used by IT to guide its work.
12-68
2. Data acquisition and management –
The ‘holy grail’ of IT is to have a single
authoritative source for all data.
Duplicate data, multiple data marts, and
inflexible data warehouse cannot
incorporate new forms of data.
12-69
3. Information management – This
involves improving the value that can be
obtained from data by developing a
framework within which information can

be developed from it (e.g., data
integration, information architecture,
data integration, aggregation, quality,
privacy).
12-70
4. Intelligence delivery – This delivery
cannot be done in a structured way
because the business environment is too
dynamic. While IT can provide the data,
the tools to manipulate it, and the
mechanisms to present it, the right
questions or doing the right analysis still
need to happen.
12-71
Learn from the past – Learning about
how people utilize knowledge for action
and then using this as the basis for
improving an organization’s intelligence is
critical for successful BI.
12-72

Have a strategy for continuous
improvement – Successful BI initiatives
consistently anticipate the need to
maintain and improve the quality and type
of information provided.
12-73
Focus – BI initiatives are challenging;
therefore, a clear focus on targeted
difficult points where BI can make a
difference is essential. Successful
initiatives take “a relentless focus on a
very limited set of burning business
questions to guide users to BI-enabled
decisions with maximum impact” (Roberts and
Meehan 2010).
12-74
Cross-functional governance –
Effective governance processes (e.g., data
governance, BI governance) are central to
BI success. BI governance is needed to
focus BI and develop a plan for its
evolution.

12-75
Acquire new IT and analytics skills –
IT staff need the skills to bridge the gap
between traditional business and technical
areas of expertise. Examples of skills
include: analytical to test hypotheses, to
predict future trends, and to discover new
patterns; visualization and simulation
skills.
12-76
Take process views – The key to
success is to focus on a process that really
matters to the business and to design the
analytic capabilities needed to enhance it.
Move from the inside out – BI is still
maturing and should be implemented as an
experimental approach. It should grow
organically rather than as one-time
initiative.
12-77

Tell stories to articulate value – The
value of BI is still difficult to document
with quantitative benefits. Thus, the value
is best articulated qualitatively.
Watch out for implementation–
Access to intelligence is not enough,
managers need “practical wisdom” to make
prudent judgments.
12-78
BI is not a new idea, but it is one that
constantly gets renewed due to new
powerful technologies and constantly-
increasing data.
The holistic view of BI includes both IT
foundations of data and information
management and the uses to which these
can deliver value.
15-79
IT has the opportunity to take a

leadership role in BI, but its ability to do
so will depend on how much it
understands about the business and the
integration of technical and business
knowledge.
15-80
Lesson 6
1-1
as Prentice Hall
Chapter 16
16-2
3
Virtual interaction is becoming the rule of
today’s workplace.
Today, a large percentage of employees
accomplish their daily work done through

collaboration technologies (e.g., e-mail,
instant messaging, video conferencing,
Twitter, Facebook).
4
Business and IT managers still struggle to
quantify the real value of collaboration
technologies.
Collaborative software represents one-fifth
of most organizations’ technology budgets,
but business leaders are still uncertain of
its business value.
5
Top-line
value
Cost savings Effectiveness
Accessibility
of people
Accessibility
of
information
Flexibility

Potential business value from collaboration
6
Top-line value
The collaboration across an organization
and with customers, suppliers, and other
third parties, that will strengthen the ability
to identify new business opportunities.
7
Cost savings
Collaborative technologies facilitate the
work of global and virtual teams by
compressing work flows, reducing
development costs, increasing
communication and improving coordination.
8
Effectiveness
Collaborative technology is useful in

integrating remote and mobile workers
seamlessly into a team.
It enables them to more effectively juggle
a variety of commitments.
9
Accessibility of people
Collaborative technology facilitates the
access to a broader range of skills,
capabilities, resources and services.
10
Accessibility of information
Collaboration and its associated
technologies make information much more
accessible than before (e.g., information
repositories).
11
Flexibility

Flatter, more networked, and collaborative
structures create a leadership environment
that facilitates timely decision making and
fluid workforces.
12
Who is
Collaborating?
What are they
Collaborating
on?
How are they
Collaborating?
Where are they
Collaborating?
C
O
M
P
L
E
X
I
T
Y
Individuals

Internal Teams
Communities
of Interest
Organizations
Customers
and others
Transactions
Routine Activities
Ad hoc, un-
structured initiatives
Innovation
Dynamic, real time
strategies
On-site
Virtual
Mobile
Global
Electronic
communication
Electronic
conferencing

Electronic
content creation
& management
Electronic
management
13
People
• Strong communication skills are essential.
Managers should create a collaborative
environment, instead of solely monitoring
productivity.
Program
• Collaboration needs to be part of a coherent
program to create and capture value, not just a
series of stand-alone efforts.
Processes
• Processes that support innovations and
collaborative teams need to be developed.
Platforms
• These are the tools, technologies, and standards
that enable people to share data and to work
together.

14
Communication
-- Collaborative technology (i.e., from voice
mail to video) enables communication.
-- A single technology spectrum should
support communication rather than
separate components.
-- Communication technology should be
ubiquitous, reliable, secure, and integrated.
15
Information access and management
-- An improved information processing
capability includes accurate and visible
information, manipulability,
exchangeability and ease of information
transfer.
-- An optimal number of databases, data
management platforms, and intranets
support this access.

16
Security and risk
-- IT function should ensure the balance
between the openness required by
collaboration and the risks involved.
-- Security must become more granular and
principles based (i.e., developing policy
on how to use social networking).
17
Technology integration
-- The more IT can achieve integration
of data, applications, hardware, and
software, the easier it will be to provide
the information and tools needed to
facilitate collaboration.
18
1. Develop a coherent vision
2. Plan for adaptation
3. Start with specific fundamentals

4. Establish principles of behavior
5. Gradually move beyond the firewall
19
1. Develop a coherent vision
-- Includes what the business wants to
accomplish with collaboration and what
types of technology would best support it.
-- Includes a unified strategy and business
models, tools and experiments.
20
2. Plan for adaptation
-- IT function needs to develop the “flexing
skills” to cope with dynamic collaboration.
-- The management of collaboration needs to
be multidisciplinary and responsive to
change.

21
3. Start with specific fundamentals
-- The start point for collaboration often lies
in two specific fundamentals, information
management and access. The organization
should assess the existing gaps that
hinder these fundamentals (e.g., office
spaces).
22
4. Establish principles of behavior
-- Includes the development of a code
of conduct to govern electronic
communication and collaboration
(e.g., policies and practices to achieve
an effective work-life balance).
23
5. Gradually move beyond the firewall
-- Includes the identification of what
information can and cannot be shared
outside the organization’s boundaries.

24
Collaboration is a complex concept with
uncertain benefits and requires major
organizational changes.
Effective collaboration does not depend
solely on implementing more collaborative
software, but it requires a proactive and
holistic strategy that integrates business
goals and technology potential.
Chapter 17
17-25
26
APM is the ongoing management process
of categorization, assessment, and
rationalization of the IT application
portfolio.
APM allows organizations to identify which
applications to maintain, invest in, replace,
or retire (i.e., avoid maintaining
applications quagmire).

27
Built-over-time application systems that
support the key operations of the
organization.
They are often obsolete and unsupported
by any vendor; host to countless
“workarounds”; remain poorly
undocumented; are often duplicated.
28
More than 80% of IT spending is used in
these applications.
Line-of-business managers are reluctant to
change these applications to avoid the
agony of change.
They restrict the enterprise vision of IT.
29
This perspective evaluates the existing
applications (i.e., the applications portfolio)
against a set of potential applications that

can be used across business units (i.e., the
project portfolio).
Investment Portfolio Management Application Portfolio
Management
Professional management but the client owns the
portfolio
Professional management but the business owns the
portfolio.
Personal financial portfolio balanced across
investments in: equities, fixed income, cash.
Application portfolio balanced across investments in:
new applications, currency (maintenance,
enhancements, upgrades), retiring/decommissioning.
Client directs investment where needed (e.g., 50%
equities, 40% fixed, 10% cash).
Business directs investments where needed (e.g.,
40% new applications, 30% currency, 30%
decommissioning).
Client provides direction on diversity across
investments (e.g., investment in one fund would
exclude/augment investment in other funds).
Business provides direction on diversity of investment
(e.g., investment in one business capability might

exclude/augment investment in another).
Client receives quarterly updates on its portfolio
health and an annual report.
Business receives quarterly updates on application
portfolio health and an annual report.
New investments are evaluated on their impact on
the overall portfolio as well as on their own merits.
New applications are evaluated on their impact on
the overall portfolio as well as on their own merits.
2-30
31
Application portfolio – identifying the
value of existing applications against
corporate profitability, stability, usability,
and technical obsolescence.
32
Project portfolio – identifying the value
of future spending on applications,
attempting to balance IT cost-reduction
efforts and investments to develop new IT
capabilities.

33
Visibility into where money is being spent,
which provides the baseline to measure
value creation.
Prioritization of applications across multiple
dimensions – value to the business, urgency,
and financial return.
A mechanism to ensure that applications
map directly to business objectives.
34
To deliver value with APM, three interrelated
capabilities are needed:
Capability 1: Strategy and governance.
Capability 2: Inventory management.
Capability 3: Reporting and rationalization.
35

“If strategy is the destination, then governance is the map”
Application portfolio governance answers this:
What decisions need to be made?
Who should make these decisions?
How are these decisions made?
36
Positioning APM within an enterprise IT governance framework
37
Common barriers during initial phases of APM:
Lack of accountability in the governance
process (i.e., what governance practices
should be applied).
Application assessments are not taken
seriously.
Business managers lack awareness and
accountability.
38

Identification of applications to be included in
the portfolio to be managed (e.g., limiting the
portfolio to business-critical applications).
The inventory is determined by the strategy
and governance outlined in capability #1.
39
The identification can start by gathering the
following information about applications:
General application information (i.e.,
functionality).
Application categorization (e.g., business
capability provided, life cycle status)
40
Technical condition (e.g., development
language, operating system, architecture).
Business value (e.g., business criticality,
user base, effectiveness).
Support cost (i.e., maintenance and
upgrades).

41
A set of standard parameter-driven reports
should complement the application inventory.
Reports help to monitor the status of all
existing applications so that management
can ascertain the health of the portfolio
applications.
42
Reports should
compare
applications on the
basis of business
value, technical
condition, and cost.
43
The reports should provide information to
meet the needs of various stakeholders.
IT
organization

• Mapping and assessing business
functionality against applications
Risk, audit,
and security
teams
• Assessing regulatory compliance and
risk management
Business
teams
• Assessing the costs and business value
of the applications used
44
Balance demand and supply – regulate
enhancements and releases for APM
reporting.
Look for quick wins – identify immediate and
visible wins that impact the bottom line.
Capture data at key life stages – capture
data in the approval, testing, production,
modification and retirement of applications.
45

Tie APM to TCO initiatives together.
The information captured by the APM
initiative should support the total cost of
ownership (TCO).
Provide an application “end-state” view.
Current and future information about
applications are key for business planning.
46
Communicate APM benefits.
Communicating the goal of the APM initiative,
the results, and the next stages are essential
for the effectiveness of the APM.
47
APM promises significant benefits to
adopting organizations.
The benefits require the development of
three mutually reinforcing capabilities:
Development of a strategy but reinforced with
governance procedures.

portfolio with the strategy.
Lesson 4
1-1
as Prentice Hall
Chapter 10
Historical view – it was a low-key activity
focused on delivering projects and
keeping applications up and running.
Today’s view – it has become much
broader and complex, and it is recognized
as an integral part of any technology-
based work.
10-3

Harm constituencies both within and
outside companies.
Damage corporate reputations.
Dampens an organization’s ability to
compete.
10-4
5
C
R
I
M
I
N
A
L
I
N
T
E
R

F
E
R
E
N
C
E
Legal/ Hazards Third
Regulatory Parties
External Risk
Operations Information Systems
Development
People Processes Culture Controls
Governance
Internal Risk
ENTERPRISE
RISK
Figure 10.1 A Holistic View of IT-based Risk
Third parties (i.e., partners, software
vendors, service providers, suppliers,
customers).
Hazards (i.e., disasters, pandemics,
geopolitical upheavals).

Legal and regulatory issues (i.e., failure to
adhere to the laws and regulations).
10-6
Information risks (i.e., privacy, quality,
accuracy, and protection).
People risks (i.e., poorly designed business
process, failure to adapt business
processes).
Cultural risks (i.e., risk aversion and lack or
risk awareness).
Control (i.e., ineffective controls).
Governance (i.e., ineffective structure,
roles).
10-7
Viruses
Hackers
Organized crime
Industrial spies
Terrorists

10-8
1. Focus on what’s important :
• RM is not about anticipating all risks but
about attempting to reduce significant risks to
a manageable level (Slywotzky and Drzik 2005).
• RM should not be about saying “no” to a risk,
but how to say “yes” – thereby building a
more agile enterprise (Caldwell and Mogul 2006).
10-9
2. Expect changes over time:
• RM actions should be continuous, iterative,
and structured.
• Mandatory risk assessment should be
implemented at different key stages.
• Ongoing reviews and process of evaluation
need to be adapted (Coles and Moulton 2003).
10-10

3. View risk from multiple levels and
perspectives:
• RM assessments need to include root cause
and multifaceted analyses.
• Monitoring and adapting to new international
standards and laws, completing overall health
checks, and analysis of potential risks are new
dimensions of risk.
10-11
12
The goal of a risk management framework
(RMF) is to ensure that the right risks are
being addresses at the right levels.
The RMF guides the development of risk
policies and integrates appropriate risk
standards and processes into existing
practices (e.g., the SDLC).
13

Risk category
Policies and
standards
Risk type
Risk
ownership
Risk
mitigation
Risk
reporting and
monitoring
14
The general area of enterprise risk
involved (e.g., criminal, operations, third
party, etc.).
15
It includes the general principles for
guiding risk decisions.
The principles identify any standards that
should apply to each risk category (i.e.,

SAI Global is an international standard).
16
Each risk should be identified and labeled
with a generic name and definition, ideally
linked to a business impact.
17
Each type of risk should have an owner,
either in IT or in the business.
Owners and stakeholders should have clear
responsibilities and accountabilities.
Major risks can be owned by committees
(i.e., enterprise risk committee or risk
review council).
18
Each type of risk should be associated with
controls, practices, and tools for
addressing it effectively.
The goal of the framework is to provide

means by which risks can be managed
consistently, effectively, and appropriately.
19
Risk metrics should be reported in a way
the organization understands (e.g., high,
medium, low).
Risk monitoring is an ongoing process
because levels and types of risks are
changing continually.
20
Look beyond technical risk
Develop a common language of risk
Simplify the presentation
Right size
21
Standardize the technology base

Rehearse
Clarify roles and responsibilities
Automate where appropriate
Educate and communicate
IT risk is involved in many types of business
risks and therefore should be managed
holistically.
An integrated risk management framework
helps organizations understand risk and
make better decisions associated with it.
10-22
Chapter 11
Hall
24
Although information delivery may be the
responsibility of IT, information management

(IM) requires a true partnership between IT and
the business.
IT is involved with every aspect of IM, but
information is the heart and soul of the
business, and its management cannot be
delegated exclusively to IT.
1. Compliance
2. Operational effectiveness and efficiency
3. Strategy
11-25
26
Figure 11.1 IM is Fundamental to Organizational Success –
Both IT
Effectiveness and Individual Performance
Stage One: Develop an IM policy.
Stage Two: Articulate operational components.

Stage Three: Establish information stewardship.
Stage Four: Build information standards.
11-27
A policy outlines the terms of reference
for making decisions about information.
A policy provides guidance for
accountabilities, quality, security, privacy,
risk tolerances, and prioritization of efforts
for IM.
A policy should be established at a very
senior management level.
11-28
29
Figure 11.2 Operational Components of an IM Framework
Clearly articulate IM roles and

responsibilities.
Information stewards are responsible for
meaning, accuracy, timeliness,
consistency, validity, completeness,
privacy and security, and compliance of
information.
Information stewards should be business
people.
11-30
Standards ensure quality, accuracy and
control goals can be met.
Use metadata repositories to cross-
reference models, processes, and
programs that reference information.
Standards help reduce information
redundancy.
11-31
Standards require……
A unique name and definition.
Data elements, examples, and character
length (e.g., name prefix).

Implementation requirements.
Spacing and order.
11-32
Culture and Behavior
Information Risk Management
Information Value
Privacy
Knowledge Management
The Knowledge-Doing Gap
11-33
Integrity – defines the information usage
boundaries.
Formality – enables accurate and
consistent information.
Control – once information is trusted, it
can be used to develop integrated
performance criteria and measures.
11-34

Transparency – describes the level of trust
to speak about errors.
Sharing – exchange of sensitive and non-
sensitive information amongst employees.
Proactiveness – creates an alertness to
picking up new information about
business conditions.
11-35
Determine internal and external
interdependencies.
Determine level of information security
needed and cost to implement.
Develop an information security strategy.
11-36
37
Information
Protection

Center
Risk
Management
Standards
Education &
Awareness
Compliance
Identity
Management
IM VALUE PROPOSITION
SHOULD ADDRESS:
Strategic
Tactical
Operational
Information Value is
difficult to quantify.
It takes time for an
IM Investment to pay
off.
IM Value is a
subjective
assessment.

11-38
Privacy regulations affect current and
long-term IM initiatives.
Organizations must be in compliance with
many new privacy regulations.
Many countries now require a chief
privacy officer who helps the organization
ensure IM practices for data quality and
accuracy, retention, and security.
11-39
40
+ Context
+ Judgment
+ Intuition
KnowledgeInformation
Knowledge is a fluid mix of framed experience, values,
contextual information,
and expert insight that provides a framework for evaluating and
incorporating
new experiences and information. It originates and is applied in

the minds of
knowers……Thomas Davenport and Larry Prusak (1998)
Knowledge is the capability to take effective action
=
It is assumed that better information will
lead to better decisions.
There needs to be a clear link between
desired actions and the acquisition and
packaging of specific information.
11-41
Start with what you have.
Ensure cross-functional coordination
among all stakeholders.
Get the right incentives.
Establish and model sound information
values.
11-42

Strategy
People
Processes
Technology and Architecture
Culture and Behaviors
Governance
11-43
External Environment
Strategic Planning
Information Life Cycle
Planning
Program Integration
Performance Monitoring
11-44
Roles and Responsibilities
Training and Support
Subject-Matter Experts
Relationship Management
11-45

Project Management
Change Management
Risk Management
Business Continuity
Information Life Cycle
- Collect, create and capture
- Use and dissemination
- Maintenance, protection, and preservation
- Retention and disposition
11-46
IM Tools
Technology Integration
Information Life Cycle Organization
Data Standards
11-47
Leadership
IM Awareness
Incentives
IM Competencies

Communities of Interest
11-48
Principles, Policies, and Standards
Compliance
IM Program Evaluation
Quality of Information
Security of Information
Privacy of Information
11-49
Organizations face many challenges in
implementing information management
practices.
Although IT can take a lead in developing
an information management plan, the
business area must ultimately be involved
in its implementation and the stewardship
of information within the organization.
11-50
IT GovernanceManaging IT-Based RiskThe Job of Managing
IT-Based RiskIT Risk Incidents…�(Hunter and Westerman
2007)A Holistic View of IT-Based RiskExternal Risks Come
From:Internal Risks Come From:Criminal Risks Come

From:Holistic Risk Management (RM): A PortraitHolistic Risk
Management (RM): A Portrait (continued)Holistic Risk
Management (RM): A Portrait (continued)A Risk Management
FrameworkA Basic Risk Management Framework Includes:A
Basic Risk Management Framework: Risk
CategoryA Basic Risk Management Framework: Policies and
standardsA Basic Risk Management Framework:
Risk TypeA Basic Risk Management Framework: Risk
OwnershipA Basic Risk Management Framework:
Risk MitigationA Basic Risk Management Framework: �Risk
Reporting and MonitoringActions to Improve Risk Management
CapabilitiesActions to Improve Risk Management Capabilities
(continued)ConclusionInformation Management: The Nexus of
Business and ITInformation Delivery versus Information
Management (IM)Information Management DriversThe
Foundation for Creating Business ValueFramework for
Information ManagementStage One : Develop an IM
PolicyStage Two: Articulate Operational ComponentsStage
Three: Establish Information StewardshipStage Four: Build
Information StandardsStage Four: Build Information Standards
(continued)Issues in IMCulture and BehaviorCulture and
Behavior (continued)Information Risk ManagementElements of
an Information Security StrategyInformation
ValuePrivacyKnowledge ManagementThe Knowledge-Doing
GapGetting Started in IMElements of IM Operations (Appendix
A)IM Operations Strategy ElementsIM Operations People
ElementsIM Operations Process ElementsIM Operations
Technology and Architecture ElementsIM Operations Culture
and Behavior ElementsIM Operations Governance
ElementsConclusion
Lesson 3
1-1

as Prentice Hall
Chapter 7
© 2015 Pearson Education, Inc. Publishing as Prentice Hall 7-3
“collaborative strategy in which a subset of
existing business functions are concentrated
into a new, semi-autonomous business unit
that has a management structure designed to
promote efficiency, value generation, cost
savings, and improved service for the internal
customers of the parent corporation, like
a business competing in the open
market.”(Bergeron 2003)

Involves more than just centralization or
consolidation of similar activities in one
location.
Must embrace a customer orientation.
Sufficient management discretion and
autonomy must exist within this type of
organization.
Must be run like a business in order to
deliver services to internal customers.
Shared services promise:
Parent organization’s perspective
Reduce cost and improve services.
Reduce distractions from core activities.
Potentially create an externally focused
profit center.
Shared business unit’s perspective
Increased efficiencies
Decreased personnel requirements
Improved economics of scale
Professionalism
Uniformity of service
Personnel development
Control

Shared business unit’s perspective
Becoming a disruption to the service flow
Moving work to a central location thereby
creating wasteful handoffs, rework, and /
or duplication
Instilling an “us” versus “them” mentality
within the provider-consumer relationship
Lengthening the time it takes to deliver a
service
Additional costs associated with
bureaucracy
Loss of control experienced by
independent business units
An increased communication burden
Extraordinary one-time costs at start-up
The push for shared services can come
from IT or the business.
Motivations from the business are for
example:

-- Become a “globally integrated
enterprise”
-- Outsource noncore activities
7-9
Motivations from IT are for example:
-- Cost savings and/or control
-- Drive agility
-- Create a rationalized and simplified
application portfolio
“The differences between the business
vision for shared services and the IT vision,
unless aligned, is a recipe for disaster”
7-10
11
Business Unit Business Unit Business Unit
Security Mgmt
Usage Mgmt

SLA Mgmt
Security Mgmt
Server Mgmt
Storage Mgmt
Desktop Mgmt
Network Mgmt
Multi-Tenant
Business Services
Common Business
Service Delivery
Processes
Common Supporting
IT Infrastructure
Components
Create a transparent process for goal
alignment:

The centralization process alone should
produce sufficient economy of resources
(i.e., IT goal) to enable enhanced quality
of services (i.e., business goal).
7-12
Develop a comprehensive investment
model:
-- These investment models require sophistication,
understanding, and a commitment from the business
as well as IT to make it work.
-- “Shared services model is a viable option when the
savings from reduction in staffing are greater than
the added overhead of creating a management
structure to run the shared business unit.”
7-13
Redraft the relationship with the business:
A customer service orientation must therefore be
instilled within the shared services organization to
guarantee satisfaction of the client remains the key
goal.
“Shared services model must build ”internal sales and

marketing” competencies, which require resources
focused on communicating with current and
prospective customers.
7-14
A shared service model for IT arises from
the desire of business for a more
customer-centric and responsive IT
organization.
IT shared services model can satisfy IT
and business goals but key challenges
arise during the development and
implementations of the shared service.
7-15
Chapter 8
17
Unique
Common

Standardized
Commoditized
Utility
Figure 8.1 Maturity for IT Function Delivery
Unique:
A unique IT function is one that provides strategic
(perhaps even proprietary) advantage and benefit.
Common:
This type of IT function caters to common (i.e.,
universal) organizational needs. It has little to
differentiate the business, but it provides a necessary
component (e.g., HR, financial system).
8-18
Standardized:
An IT function that not only provides common
tasks/activities but also adhere to a set of standards
developed and governed by external agencies.
Commoditized:
These functions are considered commodities similar to

oil and gas. Once attributes are stipulated, functions are
interchangeable and indistinguishable (e.g., ASPs,
network services, server farms, backup services).
8-19
Utility:
A utility function is a commodity (such as electricity)
delivered by a centralized and consolidated source (e.g.,
ISPs, other telecommunication services such as
bandwidth on demand).
8-20
21
Figure 8.2 IT Functions Ranked by Maturity Stage
In-house
Insource
Outsource
Partnership

8-22
23
Figure 8.3 Delivery Options for IT Functions
1. Flexibility:
Response time (i.e., how quickly IT functio nality can be
delivered).
Capability (i.e., the range of IT functionality).
2. Control:
Delivery (i.e., ensuring that the delivered IT function
complies with requirements).
Security (i.e., protecting intellectual assets).
8-24
1. Knowledge Enhancement:
Behind many sourcing decisions is the need to either
capture knowledge or retain it.

2. Business Exigency:
Unforeseen business opportunities arise periodically, and
firms with the ability to respond do so. That is, a quick
decision is made to seize the opportunity, and normal
decision criteria are jettisoned in order to be responsive
to the business.
8-25
Identify your core IT functions.
Create a “function sourcing” profile.
Evolve full-time IT personnel.
Encourage exploration on the whole range
of sourcing options.
Combine sourcing options strategically.
8-26
27
Core Function? IT Function In-house Insource Outsource
Partnership
Yes Business analysis ✓

Systems analysis ✓
In Future Strategy and planning ✓ ✓
In Future Data management ✓
Yes Project management ✓ ✓
Yes Architecture ✓ ✓
Application development ✓ ✓ ✓
QA and testing ✓
Now but not in
future
Networking ✓ ✓
Operating systems and services ✓
Yes Application support ✓
Data center operations ✓
Application software ✓ ✓
Hardware ✓
Table 8.3 Sample Function Delivery Profile

Develop a sourcing strategy
Use a decision framework to identify what’s core and
what’s not.
Develop a risk mitigation strategy
Ideally, an outsourcing relationship should be structured
to ensure shared risk so both parties are incented to
make it work.
8-28
Understand the cost structures
If you can’t compete in-house, you should outsource.
Ongoing cost comparisons are effective as they motivate
both parties to do their best and most cost-effective
work.
8-29
Sourcing has become an integral part of
many organizations.
IT managers have an incredible range of
available options in terms of how they
choose to source and deliver IT functions.
Based on the framework proposed,
organizations can develop more strategic,
nuanced, and methodological approaches

to IT function sourcing and management.
8-30
Chapter 9
Takes too long.
Process may be disconnected from the
business objectives.
Rigid adherence to annual plans may
inhibit responsibility for performance.
May inhibit the business needs to be
flexible.
9-32
Organizational budgeting practice
emerged in the 1920s as a tool for
managing costs and cash flows.
Present-day annual fixed plans and

budgets were established in the 1970s to
drive performance improvements.
9-33
Fiscal IT budget (i.e., those prepared
for the CFO):
-- Capital expenditures – consist of large
expenses spread over multiple years.
-- Operating Expenses – consist of the
annual costs of running the business.
9-34
Capital budgets
IT Expenditures that may be capitalized
include:
-- Project development
-- Infrastructure
-- Consulting fees
-- Major technology purchases
9-35

Functional IT budgets
Used by IT managers as spending plans
and are based on:
-- Operations costs
-- Strategic investment
9-36
Operations costs:
-- Costs to “Keep the Lights On”.
-- Includes maintenance costs, computing
and peripheral functions, in-house
support and outsourced support.
-- May include operating and capital
costs.
9-37
Strategic investment:

-- Consists of “New” technology spending.
-- May include business improvement
initiatives, business-enabling
initiatives to transform company
operations or new technology business
opportunity projects.
-- May be classified as capital or operating
costs.
9-38
Cost allocation:
-- The process of allocating IT costs to
others’ budgets.
-- Allocation may be based upon a
formula using factors such as size of
business unit, prior year spending, or
percentage of use of IT services.
-- May lead to artificiality in allocating
development resources.
9-39

1. Fiscal Discipline
2. Strategy Implementation
9-40
“IT Costs too Much”.
Demonstrating the realities of business
finance has become a significant part of
IT leadership.
IT budgets may be used to limit or
manage demand.
Used to hold IT leadership accountable for
what it spends.
9-41
Budgets link long-term goals to short-term
execution through the allocation of
resources.
Where IT dollars are spent can impact
corporate performance.
How discretionary IT dollars are spent
impacts project outcomes.
The budget process reinforces strategic
decision making.

9-42
43
Figure 9.1 A Generic IT Planning and Budgeting Process
Corporate processes:
-- Establish corporate fiscal policy.
-- Establish strategic goals.
-- Set IT spending levels.
9-44
Factors that Affect IT Spending Levels
Number of competitors
Uncertainty
Diversification of products and services
Affordability

Growth
Previous year’s spending
9-45
Set functional IT budget – determine
what is spent on IT operations and
strategic investment.
Set the fiscal IT budget – transform
the functional IT budget into operating
and capital spending categories.
9-46
1. Appoint an IT finance specialist
2. Use budgeting tools and methodologies
3. Separate operations from innovation
4. Adopt enterprise funding models
5. Adopt rolling budget cycles
9-47

1. IT finance specialist:
-- Understand IT costs and drivers.
-- Can manage the translation between
the IT functional and fiscal budget.
-- Can develop business cases for new
projects.
9-48
2. Use budgeting tools and
methodologies
-- Link IT Budgets to IT Plans.
-- Link IT Budgets to Corporate Strategic
Plans.
-- Link IT Budgets to Resource Strategies.
-- Link IT Budgets to Performance
Metrics.
9-49

3. Separate operations from
innovation:
-- Split operations costs from new project
development costs.
-- Provide visibility to business unit
managers to better understand true
costs to deliver and service new
systems and ongoing services.
9-50
4. Adopt enterprise funding models:
-- Separates centralized core IT services
from decentralized business unit
services.
-- Used to develop IT operations budgets
at an enterprise level.
9-51
5. Adopt rolling budget cycles:

-- IT Plans and budgets need updating
more than once per year.
-- Quarterly eighteen month rolling plans
enable new projects to be funded more
quickly.
9-52
The IT budget process can be a critical
lynchpin between many different
stakeholders: finance, business units,
corporate strategy, and IT.
IT budgets play a key role in
implementing strategy and controlling
costs.
9-53
Lesson 2
Chapter 4

4-1
“It is a set of beliefs that one party holds
about the other and how these beliefs are
formed from the interactions of […]
individuals as they engage in tasks
associated with an IT service” (Day 2007)
4-2
It is a multifaceted interaction of people
and processes.
It is complex. Different expectations and
accountabilities may lead to lack of trust.
It tends to cluster into patterns (e.g., IT is
a necessary evil; IT is a support but not a
partner; business and IT are partners).
IT has to keep proving itself.
The business is often disengaged from IT

work.
Business expectations of IT change
continually.
Business assumptions of IT tend to cluster.
The relationship is affected by the
interaction of many people and
processes at multiple levels.
Clarity is often lacking around
expectations and accountabilities.
There are many “disconnects”
between the two groups.
Trust
Credibility
Competence
Value
Interpersonal Interaction

Expertise – the ability to support a technical
recommendation and have up-to-date knowledge.
Financial awareness – the ability to
identify the value of IT in terms of ROI
and total cost of ownership.
Execution – the ability to understand
the business, develop a vision and
operationalize strategies.
Find ways to develop business knowledge in
all IT staff.
Link IT’s success criteria to business metrics.
Make business value an explicit criteria in all
IT decisions.
Ensure effective execution in all IT activities.
Credibility is the belief that others can be
counted on to do what they say they will do.
It is built by:

Keeping agreements.
Acting with integrity, honesty and openness.
Being responsive (e.g., delivering on time
and under budget).
10
Communicate frequently and explicitly.
Pay attention to the “little things”.
Utilize external cues to credibility.
Assess all business touch points.
11
Professionalism - can be developed by five
sets of attitudes and behaviors:
on the job)
good organization.

12
Nontechnical communication
The ability to translate and interpret needs,
not only from business to technology and
vice versa, but also between business units.
13
Social sk ills
The ability to build mutual understanding, to
enable all parties to get comfortable with one
another and to uncover hidden assumptions.
14
Management of politics and conflict
The ability to understand the role of politics
and how they can affect the IT work (i.e.,
addressing conflict and use it to deliver
creative solutions).

15
Expect professionalism.
Promote a wide variety of social interactions
at all levels.
Develop “soft skills” in IT staff.
16
The most important way to build trust is through
an effective governance:
Integrating planning, defined accountabilities,
and clarity of roles and responsibilities are key
aspects of an effective governance.
An effective governance addresses the business’
expectations of its IT function.
17
Design governance for clarity and
transparency.
Mandate the relationship.

Design IT for business expectations.
18
Business-IT relationships are complex, with
interactions of many types, at many levels,
and between both individuals and across
functional and organizational entities.
Four majors components are needed to
build a strong business-IT relationship:
competence, credibility, interpersonal skills,
and trust.
Chapter 5
5-1
Communication is a key social element of
the organizational alignment between IT
and business.
One of the most important skills IT staff
needs to develop is how to communicate
effectively with businesses.

5-2
Good communication is essential for:
the business and IT
perceptions of IT
pressures
of the business
5-3
Principle 1: The effectiveness of communication
is measured by its outcomes.
Principle 2: Communication is social behavior.
Principle 3: Shared knowledge improves
communication.
Principle 4: Mature organizations have better
communication.

5-4
Communication should be measure by its
outcomes rather than our intentions.
Communication can get distorted through
filters such as politics, culture, and
personal points of view.
Communication not only transmits ideas;
it also negotiates relationships.
How you say what you mean is just as
important as what you say.
IT staff and managers need to become
aware of the power of different linguistic
styles in communication situations.
The more IT staff
learns about the
business, the better
communication
becomes.

Shared knowledge is
the beginning of the
“virtuous circle”.
Shared Knowledge
Increased
Communication
Mutual Understanding
and “Common Sense”
Implementation
Success
THE VIRTUOUS
COMMUNICATION CYCLE
Strong organizational practices support and
reinforce good interpersonal communication.
Mature IT organizations embed appropriate
communication at the operational and
strategic level.
“You can’t be a partner unless
you’re a mature IT organization”

Lesson 71-1© 2015 Pearson Education, Inc. Publishing

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Lesson 71-1© 2015 Pearson Education, Inc. Publishing