Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Congress Keynote      Modernizing IT to Meet Business Wants      Ten Cool Things to do with your IT Department    17 May 2...
Agenda       The three roles of IT       IT‟s new ACT       Ten ways to ACT       Recommendations2                    ...
What IS the role of IT in the organisation?       Is IT just EDP?       Is IT‟s role to keep the lights on and the wheel...
What do CEOs want?         Deliver IT without fuss,         get involved in business improvement         and give us appro...
Keep up the momentumBusiness Momentum                                                 IT without fuss                    M...
And do the important IT    Business Momentum                                                Information                   ...
Turn that sideways                                                   Information     Business Momentum                    ...
What IT really does        IT without fuss   Improve    Information                          business   leadership        ...
Getting from here to there is not a simple step9                                                     © Copyright Ovum. All...
IT’s role?      Is IT just EDP?      Or is it ACT? – Applied Competitive Technologies?10                                  ...
Ten things to do to get IT’s ACT together        ACT 1: The mandate        ACT 2: Business results        ACT 3: The wh...
ACT 1: The mandate        Deliver IT without fuss, get involved in business         improvements, provide appropriate lea...
ACT 2: Business results     When to talk about IT costs                                              Never                ...
ACT 2: Business results – talking about costs         Crocodiles are your friends!                       Business results...
ACT 3: The white space in organisations        Content        Process        Business measures        Benefits realisa...
ACT 4: Information leadership                                                            Manage complexity –        Manag...
ACT 5: Applied technologies                                                                      Without fuss is more     ...
ACT 6: The life-cycle                     Development                                                     Late            ...
ACT 6: The technology life-cycle (cont.)                        Go live   Breakeven     Cumulative costs19                ...
ACT 6: The technology life-cycle (cont.)     Cumulative costs20                                              © Copyright O...
ACT 6: The technology life-cycle (cont.)     Cumulative costs21                                              © Copyright O...
ACT 6: The technology life-cycle (cont.)     Cumulative costs22                                              © Copyright O...
ACT 6: The technology life-cycle (cont.)                Good enough now                             Source, then buy, then...
ACT 7: IT skills              IT Roles                                         ACT Roles                Technology        ...
ACT 8: Right-sourcing – The ACT Profile        Efficiency = Service / Cost / Risk                  Source, then buy, then...
ACT 9: Business-like IT               Revenue             Acquisition         Production               Delivery           ...
ACT 10: ACTing – implementing the idea                  Planned implementation                                100%        ...
Underlying logic to choosing IT initiatives          IT without fuss             Improve                Information       ...
Allocation               Funding &    The         finance                            Budgeting        and                 ...
Providing, planning for, allocating and managing IT financials     IT intensity    Funding &                              ...
Business     wants IT to                                                The      manage                                   ...
IT costs are meaningless without a business context     Without fuss is more important than IT     Business wants not busi...
Thank you – any questions?     Terry White: Research Director CXO Advisor     terryw@cxo-advisor.co.za     +27 11 82 573 3...
Upcoming SlideShare
Loading in …5
×

Terry White ovum 2012 keynote 2a

412 views

Published on

IT transformation from "ICT" (tech focus) to "ACT" (business focus)

  • Be the first to comment

Terry White ovum 2012 keynote 2a

  1. 1. Congress Keynote Modernizing IT to Meet Business Wants Ten Cool Things to do with your IT Department 17 May 2011 Terry White: Research Director CXO Advisor terryw@cxo-advisor.co.za +27 11 82 573 38871 © Copyright Ovum. All rights reserved.
  2. 2. Agenda  The three roles of IT  IT‟s new ACT  Ten ways to ACT  Recommendations2 © Copyright Ovum. All rights reserved.
  3. 3. What IS the role of IT in the organisation?  Is IT just EDP?  Is IT‟s role to keep the lights on and the wheels turning?  How much time does IT spend doing technology?  And how much doing business?  Should the CIO be on the Board?3 © Copyright Ovum. All rights reserved.
  4. 4. What do CEOs want? Deliver IT without fuss, get involved in business improvement and give us appropriate leadership4 © Copyright Ovum. All rights reserved.
  5. 5. Keep up the momentumBusiness Momentum IT without fuss Mass = staff, branches, geography etc. Speed = how fast and how dependent on continuity Direction = vision, mission, objectives Hygiene factor Ticket to the game 5 © Copyright Ovum. All rights reserved.
  6. 6. And do the important IT Business Momentum Information Leadership IT without fuss6 © Copyright Ovum. All rights reserved.
  7. 7. Turn that sideways Information Business Momentum Leadership IT without fuss IT without Improve Information fuss business leadership results7 © Copyright Ovum. All rights reserved.
  8. 8. What IT really does IT without fuss Improve Information business leadership results Technology delivery 76% 22% 2% IT without fuss Improve Information business leadership results What the CEO wants 60% 20% 20%8 © Copyright Ovum. All rights reserved.
  9. 9. Getting from here to there is not a simple step9 © Copyright Ovum. All rights reserved.
  10. 10. IT’s role? Is IT just EDP? Or is it ACT? – Applied Competitive Technologies?10 © Copyright Ovum. All rights reserved.
  11. 11. Ten things to do to get IT’s ACT together  ACT 1: The mandate  ACT 2: Business results  ACT 3: The white space in organisations  ACT 4: Information leadership  ACT 5: Applied technologies  ACT 6: The technology life-cycle  ACT 7: IT skills  ACT 8: Outsourcing  ACT 9: Business-like IT  ACT 10: ACTing – implementing the idea11 © Copyright Ovum. All rights reserved.
  12. 12. ACT 1: The mandate  Deliver IT without fuss, get involved in business improvements, provide appropriate leadership  IT‟s posture: What business understands and what IT understands  It is a communication and clarity problem, not a mandate problem  And it is a trust problem Demonstrate Business wants not competence business needs Business Meet focus Manage commitments goodwill12 Next: Business results © Copyright Ovum. All rights reserved.
  13. 13. ACT 2: Business results When to talk about IT costs Never Also never  The way to ACT is via business performance  Not as librarians13 © Copyright Ovum. All rights reserved.
  14. 14. ACT 2: Business results – talking about costs  Crocodiles are your friends! Business results define IT performance IT costs are meaningless without a business context Year 1 Year 2 Year 3 Next year14 Next: White Space © Copyright Ovum. All rights reserved.
  15. 15. ACT 3: The white space in organisations  Content  Process  Business measures  Benefits realisation Involved in business not  Portfolio management delivering systems15 Next: Information Leadership © Copyright Ovum. All rights reserved.
  16. 16. ACT 4: Information leadership Manage complexity –  Management is: meaning and  POEM attention  Plan  Organise  Execute  Monitor / Measure Appropriate leadership is  Leadership is the management of: framed by the  Meaning organisation  Attention  Self  Trust16 Next: Applied Technology © Copyright Ovum. All rights reserved.
  17. 17. ACT 5: Applied technologies Without fuss is more Business Focus Getting to 20% important than IT • Introduce strict IT governance • Standardise your operations • Automate all your operations, to reduce the Business IT is seen to be need for IT involvement expectations active business partners who do • Outsource: This is a complex answer as it the IT without makes the “without fuss” part of IT someone fuss else‟s problem – but it requires strong supplier management Current IT spends most • Manage IT like a business: Business will business of its time doing only have confidence in IT‟s abilities if they perception behind the see IT run like a business, using business of IT IT scenes activity disciplines and techniques Focus • What else?17 Next: The life-cycle © Copyright Ovum. All rights reserved.
  18. 18. ACT 6: The life-cycle Development Late life Early life Monthly costs Running18 © Copyright Ovum. All rights reserved.
  19. 19. ACT 6: The technology life-cycle (cont.) Go live Breakeven Cumulative costs19 © Copyright Ovum. All rights reserved.
  20. 20. ACT 6: The technology life-cycle (cont.) Cumulative costs20 © Copyright Ovum. All rights reserved.
  21. 21. ACT 6: The technology life-cycle (cont.) Cumulative costs21 © Copyright Ovum. All rights reserved.
  22. 22. ACT 6: The technology life-cycle (cont.) Cumulative costs22 © Copyright Ovum. All rights reserved.
  23. 23. ACT 6: The technology life-cycle (cont.) Good enough now Source, then buy, then – not perfect later build (SAAS, then COTS, then Bespoke) Cumulative costs23 Next: Skills to ACT © Copyright Ovum. All rights reserved.
  24. 24. ACT 7: IT skills IT Roles ACT Roles Technology Business 100% - Without fuss Leadership Supply Involvement External Focus World trends, Business Management Skills Industry trends, Strategic mgt, Technology 75% - trends IT Management Skills relationship mgt, e.g. project mgt of information, management, financial analysis, service management, vendor and contract mgt, IT assets, procurement, 50% - business skills information management, communication 25% - Business wants IT to Technical Skills manage demand e.g. languages, tools and network administration 0% -24 Next: ACT and Outsourcing © Copyright Ovum. All rights reserved.
  25. 25. ACT 8: Right-sourcing – The ACT Profile  Efficiency = Service / Cost / Risk Source, then buy, then build  Maturity – governance, „without fuss‟ (SAAS, then COTS, then  Focus Bespoke)  Paths of action – people, options Business wants IT to  Manage IT, don‟t do IT manage demand25 Next: Business-like IT © Copyright Ovum. All rights reserved.
  26. 26. ACT 9: Business-like IT Revenue Acquisition Production Delivery Sales / Marketing Finance HR HR IT IT Supply Chain Management Supply Chain Management Program Office Program Office IT ‘Revenue’ IT Production IT Demand IT Delivery Mandate Plan Management Run Model Build Business IT Finance The language wants IT IT HR of business is to manage IT for IT finance demand IT Supply Chain Management26 Next: Implementation © Copyright Ovum. All rights reserved.
  27. 27. ACT 10: ACTing – implementing the idea Planned implementation 100% Actual implementation 50% according to managers Actual implementation according outsiders 10% Adapted from Strategic Management: Alex Miller Good enough now – not perfect later  Why implementation fails:  Organisational immune system Business  Complexity decides IT  Interconnectedness priorities  Big bang – is it real? Business decides  Choose one thing what’s valuable  Do it well  Repeat  Do three in a year27 Next: Recommendations © Copyright Ovum. All rights reserved.
  28. 28. Underlying logic to choosing IT initiatives IT without fuss Improve Information Business Leadership Results Strengthen Strengthen Meaning Attention Capabilities Engine Change delivery Create Change the business Change the environment Differentiate model Business Improve Improve the business Change the strategy Improve value driven IT services Engine Looming threat Service Service the business supply service Respond to external Momentum line Regulation Broken Fix forces Run the engine Business decides Deliver IT priorities28 © Copyright Ovum. All rights reserved.
  29. 29. Allocation Funding & The finance Budgeting and Accounting language ofbusiness is finance IT Financial Demand Rationale / Service management Objectives / costing Policies Value Operational Service Management utilisation chargeback29 © Copyright Ovum. All rights reserved.
  30. 30. Providing, planning for, allocating and managing IT financials IT intensity Funding & Budgeting Allocation and drives finance Accounting funding IT Financial Demand Rationale / Service management Objectives / costing Policies Business decides Value Management Operational utilisation Service chargeback what’s valuable Managing the cost / use / value relationship30 © Copyright Ovum. All rights reserved.
  31. 31. Business wants IT to The manage language demand Allocation of Funding & Budgeting and finance Accounting business is finance Managing the IT Financial business Demand Rationale / Service Managing management costing side of IT Objectives / Policies the IT finance side of IT finance Value Operational Service Management utilisation chargeback31 © Copyright Ovum. All rights reserved.
  32. 32. IT costs are meaningless without a business context Without fuss is more important than IT Business wants not business needs Business wants IT to manage demand Good enough now – not perfect later Source, then buy, then build (SAAS, then COTS, then Bespoke) Business decides IT prioritiesBusiness results define IT performanceInvolved in business not delivering systems Business decides what’s valuable Appropriate leadership is framed by the organisation The language of business is finance IT intensity drives funding Manage complexity – meaning and attention32 © Copyright Ovum. All rights reserved.
  33. 33. Thank you – any questions? Terry White: Research Director CXO Advisor terryw@cxo-advisor.co.za +27 11 82 573 388733 © Copyright Ovum. All rights reserved.

×