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GOVERNANCE
and The Challenge of
AUTONOMOUS IT
How to use this notebook
The following series of notes is not a fast read,
not a slide show, and not an ebook.
The sequenc...
A Glossary of entities
An Enterprise is a set of resources and relationships that creates a proprietary environment
for bu...
The landscape of IT presence
ENTERPRISE
BUSINESS
COMPANY
ORGANIZATION
BUSINESS
COMPANY
ORGANIZATION
COMPANY
ORGANIZATION O...
Who Cares?
IT is a resource. Business people who think about IT think mainly about what it takes to get
the right kind of ...
Governance and Direction of IT
Governing the enterprise creates a culture from
the environment of the business and attends...
Business Value
What is “Value”?
Value comes from a specific kind of result.
The result is a difference that has been made.
Value is the i...
Influencing and directing Value for business
In a given context, value can be a benefit. Directors guide value. The main i...
A Glossary of Stake-holding
A stake is the dependency on a condition in which an investment has been made
Capital is the t...
Entities
MANAGED CONDITIONS
Stakeholders’ Perspective
RESOURCES
RELATIONSHIPS
RESPONSIBILITIES
PROCESSES
Capital investmen...
Entities
(dependent variables)
configurations
Executive Perspective
Executives protect
stakeholders. Stakeholders
include ...
(dependent variables)
configurations
Systems Perspective
Business effectiveness is normally
predicated on systematic activ...
Entities
INDEPENDENT VARIABLES
(dependent variables)
configurations
Landscape of
Governance presence
RESOURCES
RELATIONSHI...
Aligning Business and IT
A Glossary of IT Stakes
An objective is a measurable target future state
A need is a circumstance of insufficient means or...
The Governance Scenario
Stakeholders in the business expect business opportunities to be cultivated and protected.
The rel...
What is IT Governance?
“The primary focus of IT governance is the stewardship of IT resources on behalf of
various stakeho...
Resource Alignment
What is “appropriate” utilization?
Capability and performance distinguish a business’s competency and h...
The Challenge of Directing IT
IT stakeholders look for beneficial conservation of their IT stake, by “cultivating and
prot...
Pressure of Performance Management
Performance Management supplies an idea of what kind of outcomes are appropriate to
(i....
Pressure of independently developing systems
The optimization of IT resources for stakeholders requires an up-to-date unde...
How Governance is Done
The Semantics of “Governance”
All concepts of governance appeal to a common agreement that guidance and control are
necess...
Example: Resource stewardship framework
A framework identifies requisite areas of responsibility and guides their coordina...
Example: “Corporate” governance of IT
Purpose: “to ensure that the organisation's IT sustains and extends the organisation...
Example: Governance Standards
ISO 38500 defines the Corporate Governance of IT as “the system by which the current and
fut...
Levels of Governance
Beneficial opportunity is the general goal of every business. Each business pursues its
selected oppo...
Company-level Governance
COBIT5 – GOVERNANCE: HIGH LEVEL CONTROL OBJECTIVES
Evaluate, Direct and Monitor (EDM)
EDM01 Ensure Governance Framework Se...
COBIT5 – GOVERNANCE: HIGH LEVEL CONTROL OBJECTIVES
Evaluate, Direct and Monitor (EDM)
EDM01 Ensure Governance Framework Se...
IT-level Governance
IT organization stakes
The IT organization centralizes performance management of IT services and quality
management of IT ...
Operational Propriety:
Responsibilities compared
• Oversight
• Accountability of needed value from administering operation...
Optimization Requirement and Risk
For the business, the goal of optimization is to maintain opportunity, not to maximize
p...
IT Governance of technology
Governance is intended to optimize IT utilization. As the primary objective of optimization,
p...
Optimization Standards
Whether produced or acquired, capability generates the viability of opportunity.
Opportunity in the...
Timely, Compatible, IT-based Capability
Broker – business advocate
Agent – provider advocate
Capability is a reliable avai...
Plan and Control of Alignment
GUIDE – set business path for IT to follow
• IT utilization must be strategically oriented t...
Plan and Control of Alignment
DIRECT – produce IT for operations in accordance with the guidance
• Policy presumes that de...
Key Distinctions of Common
Broker-Agent Topics
TOPICS Business
Processes
Services Portfolio Platform Sourcing Funding
Stra...
Operational basis of Business Capability
Reconciling the I.T. “oversight” semantics of the Dept. of Education, Gartner, an...
Postscript
References to example related content
Governance in IT Operations
IT operations management (ITOM) software is intended to
represent all the tools needed to mana...
Management Standards
• ITC Standard
• Strategy and Governance defines the direction and the way of managing ICT.
• Its sig...
Autonomous IT: Decisions
• Machine Learning and Intelligent Systems
• Machine learning plays an increasingly important rol...
Autonomous IT: Processes
• The Internet of Things
• From clothes that monitor our movements to smart homes and cities, the...
Autonomous IT: Infrastructure
• Cloud Computing:
By 2022, cloud will be more entrenched and more computing workloads will ...
©2014 Malcolm Ryder / Archestra Research
mryder@malcolmryder.com
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Governance and Autonomous IT

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IT is an increasingly autonomous force challenging the past conventions and future expectations of how the enterprise asserts itself. Does the organization have to restrain IT, or will IT redefine how the organization can be an enterprise?

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Governance and Autonomous IT

  1. 1. GOVERNANCE and The Challenge of AUTONOMOUS IT
  2. 2. How to use this notebook The following series of notes is not a fast read, not a slide show, and not an ebook. The sequence of notes provides a line of thought that continues to be open to development by the influence of ongoing new empirical observations. No dependencies on other external studies are included or necessary in this notebook. All text and images in the notebook are copyrighted. ©2014 Malcolm Ryder / archestra research
  3. 3. A Glossary of entities An Enterprise is a set of resources and relationships that creates a proprietary environment for business operations A Business is a set of relationships and responsibilities associated by a model for commerce A Company is a set of responsibilities and processes organized to run as operations An Organization is a set of processes and resources executed by a workgroup as production IT is a set of tools provided for manipulating information as a property or resource in thinking, communications and production. As an entity, IT increasingly can be self-evolving, self-containing, self-directing, and packaged – giving it varying degrees and forms of practical autonomy versus supervised development, provision, usage and retention. © 2014 Malcolm Ryder / archestra research
  4. 4. The landscape of IT presence ENTERPRISE BUSINESS COMPANY ORGANIZATION BUSINESS COMPANY ORGANIZATION COMPANY ORGANIZATION ORGANIZATION Multiple businesses derived within the enterprise Multiple companies in the business Multiple organizations of the company Proprietary environment of the business We know, from real life, that as an ecological fact, any entity on a given level of this hierarchy can outlive any entity on the level below it. © 2014 Malcolm Ryder / archestra research
  5. 5. Who Cares? IT is a resource. Business people who think about IT think mainly about what it takes to get the right kind of IT “implemented” for the right reason. The primary reason is always the same: to exploit automation in a way that increases the chance of producing business benefits, yet decreases the chance of production being detrimental. That combination is the generic formula for “value” to the business. If production was a no-risk proposition, all businesses would try many more ways to get what they want. Productivity risk is a huge driver of selective IT implementation. Automation makes production failure seem unlikely, or at least seem less likely. But the effects of automation are not always beneficial. Changes in goals, strategy, or circumstances affecting opportunity can make implemented automation, and/or its source, a resistor instead of a facilitator. Knowing what IT is doing, and knowing what it takes to change it, is in the best interest of parties that are responsible for goals, strategy and circumstances.
  6. 6. Governance and Direction of IT Governing the enterprise creates a culture from the environment of the business and attends to prime directives constraining the business. Governing the business directs the activity of commerce and attends to primary objectives. Governing the company creates the operations perspective that predisposes meaningful decisions regarding the influences of IT. Governing the organization protects stakeholders having the above dependencies on I.T. → Increasingly, IT dominates both the recognition and the constitution of the culture → Increasingly, IT formulates and tracks the activity → Increasingly, IT executes and supervises the organization of responsibilities and processes run as operations. → Increasingly, IT utilization reflects organizational-level decisions instead of company-level decision-making. Governors direct resources throughout the chain of influences on producing benefits. Meanwhile, IT challenges past conventions and drives future expectations
  7. 7. Business Value
  8. 8. What is “Value”? Value comes from a specific kind of result. The result is a difference that has been made. Value is the importance of the difference, not just the difference per se. The same difference may have different meaning in different circumstances. Because of that, a single difference can have multiple values. A specified value is determined by the circumstances in which the difference occurs. Value – the significance of a difference – is recognized in a context. In the context, the significance may be positive (opportunity of benefit) or negative (risk of detriment). Therefore, value may be positive or negative.
  9. 9. Influencing and directing Value for business In a given context, value can be a benefit. Directors guide value. The main interest of directors is to create a reliable “delivery” of value within the desired context. The main enablers of delivery are the investments and operations that allow appropriate outcomes to be produced on request, providing values. Investments and operations share a point of view: that operational outcomes are subject to certain ways of using resources and the relationships that channel them. The resources and relationships are the environment from which value is derived. Investment creates and sustains the environment. Operations produce value from it. To obtain the intended value, direction is applied to influence operations. Actual value delivered involves affects on assets in three ways recognizable as ROI: • Diminishes prior assets • Modifies prior assets • Adds to prior assets The directorial challenge is to allow substantive value to be created and recognized both for current and future priorities.
  10. 10. A Glossary of Stake-holding A stake is the dependency on a condition in which an investment has been made Capital is the tangible and intangible assets available to commit to a goal as investments Constraints are non-discretionary conditions imposed on ongoing opportunities Administration is policy-based decision-making about the distribution (including access) of resources for production and support Performance is the measureable degree of intended value that is delivered
  11. 11. Entities MANAGED CONDITIONS Stakeholders’ Perspective RESOURCES RELATIONSHIPS RESPONSIBILITIES PROCESSES Capital investment: • Financial • Political • Social • Material Administration: • Labor • Systems • Technology Assets Constraints: • Legal • Contractual • Community • Industrial Performance Mgmt: • Targets • Effects • Tasks Stakeholders in the business-related entities are dependent on how things are enabled and controlled. © 2014 Malcolm Ryder / archestra research
  12. 12. Entities (dependent variables) configurations Executive Perspective Executives protect stakeholders. Stakeholders include suppliers, partners, managers, workers and clients of the activity and conditions generating business opportunities and capabilities. IT increasingly dominates the activity and conditions… © 2014 Malcolm Ryder / archestra research
  13. 13. (dependent variables) configurations Systems Perspective Business effectiveness is normally predicated on systematic activity and on the coordinated manageability of the systems. Coordination drives acknowledgement of requirements and objectives across the systems, supporting “in-common” alignment. Failed acknowledgement allows or even generates systemic misalignment that weakens overall effectiveness. © 2014 Malcolm Ryder / archestra research
  14. 14. Entities INDEPENDENT VARIABLES (dependent variables) configurations Landscape of Governance presence RESOURCES RELATIONSHIPS RESPONSIBILITIES PROCESSES Capital investment: • Financial • Political • Social • Material Administration: • Labor • Systems • Technology Assets Constraints: • Legal • Contractual • Community • Industrial Performance Mgmt: • Targets • Effects • Tasks © 2014 Malcolm Ryder / archestra research
  15. 15. Aligning Business and IT
  16. 16. A Glossary of IT Stakes An objective is a measurable target future state A need is a circumstance of insufficient means or state for an objective A requirement is a specified characteristic demanded of a provided action, item or condition Demand is a level of requested receipt of a deliverable Capability is reliable availability of a functionality Fulfillment is a process of meeting demand by delivering supply Effectiveness is the degree to which a method’s targeted level of output is achieved Quality is a degree of compatibility provided with satisfying a requirement Assurance is a promise of guaranteeing intended effect Ensure is an activity guaranteeing intended effect A service is an operations output that is deliverable on demand under terms of agreement A resource is an asset designated for attaining an objective
  17. 17. The Governance Scenario Stakeholders in the business expect business opportunities to be cultivated and protected. The relationship of the business to other entities, and of itself and those entities to the environment, is in effect the ecology of those opportunities. Cultivation and protection of that ecology falls under governance. In that environment, the activity that it fosters, including generating and maintaining the relationships, falls under two general categories of assessment: performance, and capability. In turn, the activity can alter the environment as well as conserve it. Today, IT predetermines the ecology of business operations by dominating both performance and capability. IT is used to create, execute and control most of the critical modes of interaction that produce and exploit the opportunities needed by a business. Governance needs to “manage” that ecology.
  18. 18. What is IT Governance? “The primary focus of IT governance is the stewardship of IT resources on behalf of various stakeholders whose ranking is established by the organisation's governing body.”* “Stewardship is an ethic that embodies the responsible planning and management of resources.”* Governance coordinates the assurance of stewardship. • Responsibility is for ensuring appropriate resource utilization • Planning and management coordinate propriety. • A framework of governance provides explicit supportive guidance of the coordination. * definition supplied via Wikipedia
  19. 19. Resource Alignment What is “appropriate” utilization? Capability and performance distinguish a business’s competency and health, and establish its presence. The presence of a business in its environment is characterized by its forms and behaviors among other businesses and customers. Investment in IT utilization is a critical success factor of implementing the forms and behaviors of the business. The logic of the “IT investments” is based on aligning IT-enabled capability and performance to the requirements and benefits of business stakeholders. The investment’s dependency on that alignment is the “stake” that the investor has in the utilized IT. RESOURCE
  20. 20. The Challenge of Directing IT IT stakeholders look for beneficial conservation of their IT stake, by “cultivating and protecting” the investment made. The cultivation and protection is organized as the directorial influence of governance. “IT Governance” is most strongly challenged by two huge forces. The additional challenge is any combined instances of performance pressure (from unchanged perspectives) and discontinuity (from innovation). Performance management intentionally imposes a certain concept of effectiveness on the acknowledgement of operational outcomes, while discouraging other perspectives. Technology and service innovation intentionally obsolete prior incumbent systems and standards, while often not bringing compensating management or realignment with its occurrence. The other is the increasingly pervasive development of Autonomous IT – capabilities as driven by ongoing technology and services innovation. One of them is Return on Investment (ROI), as driven by current practices of performance management.
  21. 21. Pressure of Performance Management Performance Management supplies an idea of what kind of outcomes are appropriate to (i.e., planned for) business goals. Typically, its “propriety” is based on relevance to productivity for profit. Profit supplies the justification for investments being made. In less-than-ideal circumstances, alternative objectives to profit exist but, conventionally, are frequently suppressed as justifications for investment. The impact on investments is twofold: • investments not correlating with profit outcomes stop being used as incentives for management • Profitable outcomes with no longer-term benefit are distractions that drive a wedge between current priorities and attention to future opportunity The exceptions to the above are “business models” that define non-profit gains as the primary business benefits. In effect, these models declare certain capabilities (for example: service types, or market share growth) as the business goal of stakeholders. The governance requirement, therefore, is to apply a clear and appropriate business model to the interpretation and alignment of any means (whether internal or external) of enabling capabilities.
  22. 22. Pressure of independently developing systems The optimization of IT resources for stakeholders requires an up-to-date understanding of what becomes a “resource”, how it becomes a resource, and who decides to incorporate the resource, in the functions that require commitments of IT. Independently developing systems have lifecycle dynamics that are external to corporate internal administration. They may arrive, grow, change, or leave without direction or control of the business or its IT organization, including without their permission or support. Automation and autonomous providers are equally challenging in this regard; they both need to be vetted and subscribed. Systems Path to value: Governable via administration: Accelerating challenges: Example business functions affected: Information both inhabiting and monitoring technology policy Cloud access Analytics Provisioning (sourcing) Technology producing both information and processing architecture Market innovations Open source Engineering (r&d) Workgroups leveraging both information and technology methods Crowd sourcing Social networking Production (services) © 2014 Malcolm Ryder / archestra research
  23. 23. How Governance is Done
  24. 24. The Semantics of “Governance” All concepts of governance appeal to a common agreement that guidance and control are necessary. Unfortunately, governance is an idea that has a confusingly wide variety of definitions. Variants originate in standards bodies (institutional), consultancies (domain experts), academia (research), and “organic” practice (empirical experience). The variations in definition risk complicating governance by failing to provide uniformity in its implementation. But the same variations allow its practice to identify and leverage many existing management activities if the activities can be given proper sustained orientation. Most interpretations of “guidance” or “control” try to address several of the following characteristics of deciding, prescribing, and validating IT uses: Guidance & Control As A … Necessity Type Authority Responsibility Accountability Decision Prescription Validation © 2014 Malcolm Ryder / archestra research
  25. 25. Example: Resource stewardship framework A framework identifies requisite areas of responsibility and guides their coordination. With IT, it is used to “identify, establish and link the mechanisms to: • oversee the use of information and related technology to create value, and • manage the risks associated with using information and technology.”* That general use of a framework fits in with a variety of other definitions of governance to start illustrating the idea of what “responsible resource optimization” means. Objectives of IT Resource Alignment Authority: Ensure Responsibility: Plan Responsibility: Manage Mechanism Deliver Benefits Oversight of Value creation Performance Operations Accountability Optimize Risk Management of associated Risk Quality Policy Control * adapted from Wikipedia entry © 2014 Malcolm Ryder / archestra research
  26. 26. Example: “Corporate” governance of IT Purpose: “to ensure that the organisation's IT sustains and extends the organisation's strategies and objectives.” * Strategy pursues benefits; objectives pursue progress. • Ensure includes responsibility and direction of decisions and practices • Operations underpin strategy • Performance underpins objectives Alignment of IT usage for business goals Ensured Benefits (strategy) Progress (objectives) Oversight of Value creation Decision rights and stakeholder representation Operational model underlying strategy Performance goals of IT management Management of associated Risk Auditing of IT management practices Operational constraints (legal, ethical, quality) Transparency and stakeholder participation * per Wikipedia entry. Here, “organisation” means business entity. © 2014 Malcolm Ryder / archestra research
  27. 27. Example: Governance Standards ISO 38500 defines the Corporate Governance of IT as “the system by which the current and future use of IT is directed and controlled. Corporate Governance of IT involves • evaluating and directing the use of IT to support the organization, and • monitoring this use to achieve plans. It includes the strategy and policies for using IT within an organization.” System view of ISO 38500 Direction of current use Direction of future use Control of current use Control of future use STRATEGY (evaluation) Performance Goals Objectives Plans POLICY (evaluation) Requirements Portfolio Administration Architecture © 2014 Malcolm Ryder / archestra research
  28. 28. Levels of Governance Beneficial opportunity is the general goal of every business. Each business pursues its selected opportunities in accordance with its managed capabilities. Under guided coordination, resources flow through practices into creating capabilities that are useful for the business. Neither level of governance above can suffice to do the job of both levels. A Company level of governance addresses the opportunity-enabling capabilities supported by IT An IT Organization level of governance addresses the capability-enabling practices that stabilize and direct the necessary usage of IT.
  29. 29. Company-level Governance
  30. 30. COBIT5 – GOVERNANCE: HIGH LEVEL CONTROL OBJECTIVES Evaluate, Direct and Monitor (EDM) EDM01 Ensure Governance Framework Setting and Maintenance EDM02 Ensure Benefits Delivery EDM03 Ensure Risk Optimisation EDM04 Ensure Resource Optimisation EDM05 Ensure Stakeholder Transparency Objectives of IT USAGE Control: Direction via: Deliver Benefits Operations Optimize Risk Policy Optimize Resource Administration Inform Stakeholder Reports “Corporate” governance An emphasis on ensuring (causing) appropriate utilization of I.T. for business outcomes means engaging the company level of activity management. Some engagement therefore regards how activity is structured. For governance, the key engagement is in the use of information “for” the stakeholder, about the utilization. © 2014 Malcolm Ryder / archestra research
  31. 31. COBIT5 – GOVERNANCE: HIGH LEVEL CONTROL OBJECTIVES Evaluate, Direct and Monitor (EDM) EDM01 Ensure Governance Framework Setting and Maintenance EDM02 Ensure Benefits Delivery EDM03 Ensure Risk Optimisation EDM04 Ensure Resource Optimisation EDM05 Ensure Stakeholder Transparency Objectives of IT USAGE Control: Evaluate Direct Monitor Deliver Benefits Performance Operations Impact Optimize Risk Quality Policy Compliance Optimize Resource Value Administration Task Inform Stakeholder Plans Reports Audits vs. Strategy vs. Statevs. Capability Ordinary governance information Available information for stakeholders must literally “reflect” outcomes. Governance attends to the impact that the usage has on the investment of the resources. The value of a resource is based in its usage. In terms of utilization, intent is reflected in evaluation, guidance is reflected in direction, and adherence is reflected in monitoring. Together they provide a view of alignment. Usage impact -> © 2014 Malcolm Ryder / archestra research
  32. 32. IT-level Governance
  33. 33. IT organization stakes The IT organization centralizes performance management of IT services and quality management of IT resources. That management, in both forms, is applied across the full lifecycle of IT’s introduction into business operations throughout its use and final exit. But stakeholders do not presume performance and quality; stakeholders presume operational propriety by their organization, and they assume that impropriety is risk. The propriety refers to the correct way to fulfill demand. The IT organization can meet the presumption by using investments to produce the service performance and resource quality itself, and then to provide it. (“Produce” means to buy, build or borrow in order to obtain.) Where the business has a dependency on the IT organization as its provider, the business is a stakeholder in the IT organization. Where the IT organization has a dependency on technology to enable its production, the organization is a stakeholder in the technology.
  34. 34. Operational Propriety: Responsibilities compared • Oversight • Accountability of needed value from administering operations • Compares value maintained to value required • Administration • Management of duties, responsibilities, rules • Creates information needed for accountability • Management • Producing and sustaining co-operation, usually towards multiple objectives
  35. 35. Optimization Requirement and Risk For the business, the goal of optimization is to maintain opportunity, not to maximize performance. Resource optimization aligns the utilization of the resource with the stakeholder’s intended benefit. But change alters the potentials of alignment. Change can alter the degree and/or the duration of resource alignment, as well as the logic of the alignment method. Change is the critical constraint on optimization and is increasingly the primary source of risk. Managing change to a targeted outcome involves strategy, authority, and co-operation. IT Governance must itself be a business strategy for overseeing the impact of change versus opportunity.
  36. 36. IT Governance of technology Governance is intended to optimize IT utilization. As the primary objective of optimization, propriety is established by ensuring appropriate effects of IT resource usage. For stakeholders, resource optimization occurs primarily in administration. Administration is defined as “the act of managing duties, responsibilities, or rules.”* With IT, this means administration of operational systems involving: • Information (both inhabiting and monitoring technology; related to policy) • Technology (producing both information and processing; related to architecture) • Workgroups (leveraging both information and technology; related to production methods) But increasingly, these systems are developing faster outside of company control than within it. How is internal administration reconciled with self-developing or externally developing systems? * http://www.yourdictionary.com/administration
  37. 37. Optimization Standards Whether produced or acquired, capability generates the viability of opportunity. Opportunity in the business depends on how the company administers a sustained reliability of the availability of IT functionality. Administration both prescribes and constrains decisions to that effect. Administration manages the related duties, responsibilities, and rules by which reliability underpins capability. Those decisions cover purpose, scope, visibility and quality. Administered IT Resource Reliability Direction (purpose) Permission (scope) Control (visibility) Support (quality) Capability method architecture method architecture Security policy policy architecture policy Economy policy method policy method © 2014 Malcolm Ryder / archestra research
  38. 38. Timely, Compatible, IT-based Capability Broker – business advocate Agent – provider advocate Capability is a reliable availability of functionality Fulfillment is a process of meeting demand by delivering supply Effectiveness is the degree to which a method’s targeted level of output is achieved Quality is a degree of compatibility provided with satisfying a requirement Assurance is a promise of guaranteeing intended effect Ensure is an activity guaranteeing intended effect A service is an operations output that is deliverable on demand under terms of agreement. A resource is an asset designated for attaining an objective. An objective is a measurable target future state A need is a circumstance of insufficient means or state for an objective A requirement is a specified characteristic demanded of a provided action, item or condition Demand is a requested level of receipt of a deliverable Governance institutes authority to insist on co-operation. A broker-agent model of co-operation, based on agreed assurance of reliability, continually refreshes alignment.
  39. 39. Plan and Control of Alignment GUIDE – set business path for IT to follow • IT utilization must be strategically oriented to address business priorities. • Utilization is an outcome of a business deployment of IT implementation • Governance presumes the ability to constrain the deployment of IT in operations. • Accountability of deployment must directly certify its approval under business policy. GUIDE Oversight Administration Management Strategy * Deployment * * Constraints * * Policy * * Checklist of Terms of Agreement for Agent-Broker transactions © 2014 Malcolm Ryder / archestra research
  40. 40. Plan and Control of Alignment DIRECT – produce IT for operations in accordance with the guidance • Policy presumes that deployment leverages a verifiable IT implementation. • Implementation orchestrates the selection of IT resources • IT resources must be compatible with the concurrent capability to support scope of implementation • Implementation scope must require verifiable specifications that are within parameters of investment DIRECT Oversight Administration Management Implementation * Selection * * Scope * * Specification * Checklist of Terms of Agreement for Agent-Broker transactions © 2014 Malcolm Ryder / archestra research
  41. 41. Key Distinctions of Common Broker-Agent Topics TOPICS Business Processes Services Portfolio Platform Sourcing Funding Strategy * * * Deployment * * * Constraints * * * Policy * * * Implementation * * * Selection * * * * Scope * * * * Specification * * * Topics have both key differences and important overlaps; no topic is entirely exclusive of another; even differences are often a matter of priority or relative importance to decisions. © 2014 Malcolm Ryder / archestra research
  42. 42. Operational basis of Business Capability Reconciling the I.T. “oversight” semantics of the Dept. of Education, Gartner, and ITIL ITOM Business issues Functions of a firm (business) Design (plan) Direct (control) Manage (align) Monitor (track) Customer requirements services/goods performance provisioning operations Business Operations methods efficiency effectiveness tasks Business Organization manufacturing facility availability support demand Business Organization production process scheduling capacity events Business Organization development environment applications quality faults Resources supply configuration assets infrastructure To ensure propriety: accountability includes oversight information; direction includes administrative information. In business, ”oversight of […] is the responsibility for making sure [ensure] that it works efficiently and correctly.”* * http://www.collinsdictionary.com/dictionary/english/oversight © 2014 Malcolm Ryder / archestra research
  43. 43. Postscript References to example related content
  44. 44. Governance in IT Operations IT operations management (ITOM) software is intended to represent all the tools needed to manage the provisioning, capacity, performance and availability of the computing, networking and application environment. Gartner divides the ITOM market into 10 major segments that include DBMS, application management, availability and performance, event, fault and log management, network management, configuration management, IT services desk and IT help desk, asset management, job scheduling and other ITOM (which refers to output management software) for tools used to manage hardware peripherals, such as printers. The objective of IT Operations Management is to monitor and control the IT services and IT infrastructure. IT Operations Management executes day-to-day routine tasks related to the operation of infrastructure components and applications. – ITIL 2007 According to the United States Department of Education, operations management is the field concerned with managing and directing the physical and/or technical functions of a firm or organization, particularly those relating to development, production, and manufacturing.* Operations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements. – Wikipedia A Survey of “Influence” on IT alignment
  45. 45. Management Standards • ITC Standard • Strategy and Governance defines the direction and the way of managing ICT. • Its significance increases when the company faces a transition or aggressively pursues growth and development. • Optimally, ICT is a change promoting engine with the ability to implement changes in a controlled manner. However, if Strategy and Governance is dysfunctional, ICT easily becomes the bottleneck for the company’s overall development. -- https://www.ictstandard.org/book/strategy-and-governance/overview
  46. 46. Autonomous IT: Decisions • Machine Learning and Intelligent Systems • Machine learning plays an increasingly important role in our lives, whether it's ranking search results, recommending products or building better models of the environment. The development of more efficient and powerful tools to support the engineering practices of machine learning is strongly needed. Tools and methods that let non-experts do a great job with their own predictive modeling are needed to truly empower users with machines that learn. • - See more at: http://www.eweek.com/database/slideshows/ieee-picks-top-23-technologies-for- 2022.html?kc=EWKNLEAU09162014STR1&dni=167411619&rni=25786451#sthash.lryoyW4T.dpuf
  47. 47. Autonomous IT: Processes • The Internet of Things • From clothes that monitor our movements to smart homes and cities, the Internet of things (IoT) knows no bounds, except for our concerns about ensuring privacy amid such convenience. The IoT is here to stay, driven by, among others, device technology advances, the opportunities created by the billions of smartphones with their rich built- in sensors, Internet connectivity to fixed facilities, increased mobile connectivity, the new functionalities it enables and business reasons, such as the desire to reduce cost through automation, reduced loss/wastage and shorter durations for supply chains, the report said. • - See more at: http://www.eweek.com/database/slideshows/ieee-picks-top-23-technologies-for- 2022.html?kc=EWKNLEAU09162014STR1&dni=167411619&rni=25786451#sthash.lryoyW4T.dpuf
  48. 48. Autonomous IT: Infrastructure • Cloud Computing: By 2022, cloud will be more entrenched and more computing workloads will run on the cloud. The real promise of cloud computing is the way that it changes the game for software development. IT administrators and developers will have the ability to create true virtual data center infrastructure substrates, where resources are connected virtually across clouds and premises, and developers are able to tap into APIs of services to mash up applications and middleware from different providers. • - See more at: http://www.eweek.com/database/slideshows/ieee-picks-top-23-technologies-for- 2022.html?kc=EWKNLEAU09162014STR1&dni=167411619&rni=25786451#sthash.lryoyW4T.dpuf
  49. 49. ©2014 Malcolm Ryder / Archestra Research mryder@malcolmryder.com

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