IT	  Governance	  Subbu	  Murthy	  	  	                                uGovernIT™,	  Inc.	  	  Confiden2al	  ©	  
Wikipedia	  	  Information technology governance is a subsetdiscipline of corporate governance focused oninformation techn...
A	  CIO	  View	  	          The scope of IT Governance includes all        technology components (IT infrastructure,      ...
The	  Big	  IT	  Challenge	                                          Customers	  (users)	  always	  have	  issues/changes	...
Three	  Certain7es	  In	  Life	          We	  know	  the	  first	  two	          certain2es,	  the	  third	  is	           ...
Goal	  of	  IT	  Governance	          Verifying	  that	  I.T.	          dollars	  are	  spent	          on	  the	  right	 ...
CIOs	  are	  faced	  with	  3	  Concurrent	  Ac7vity	  Streams	  	                                                        ...
How	  do	  BIG	  CIOs	  cope	  with	  this?	                    	  They	  spend	                         Mega	  $	  on	   ...
These	  solu7ons	  are	  not	  prac7cal	  for	  the	  innova7ve	  SMB	  CIOs	                        •            The	  to...
SMB	  IT	           Governance	  From	           a	  Change	  Agent	           Perspec7ve	  10	                           ...
Who	  manages	  IT	  for	  SMBs?	                                        10	  to	  500	                                   ...
On-­‐Demand	  CIO	  Services	  are	  gaining	  Trac7on	                          There	  is	  a	  large	  pool	  of	  expe...
On-­‐Demand	  CIO/CTO	  Services	  Model	  	  13	                                                  uGovernIT™,	  Inc.	  	 ...
SMB	  IT	           Governance	           From	  a	  Process	           Perspec7ve	  14	                                uG...
The	  Keep	  IT	  Simple	  Approach	                                                                                      ...
IT	  Governance	  Framework	  (1)	           Maturity	  	           Level	                                                ...
Another	  Maturity	  Framework	  (2)	  	                                                                                  ...
SMB	  IT	           Governance	           From	  a	  Tool	           Perspec7ve	  18	                             uGovernI...
Tool	  Perspec7ve:	  Need	  for	  an	  Integrated	  Solu7on	                          A	  complete	  solution	  that	  is	...
Governance	  Architecture	                                                          This	  component	  helps	  configure	  ...
Tool	  should	  provide	  integrated	  dashboards	       Open	  Service	  Requests	                                       ...
Tool	  should	  provide	  three	  lenses	                                                   Ops	                          ...
Tool	  should	  provide	  assessment	  frameworks	                                                                     Pri...
Control	  Objec7ves	  for	  Informa7on	  &	  related	  Technology	  (CoBIT)	           Information Systems Audit and Contr...
Commihee	  of	  Sponsoring	  Organiza7ons	  (COSO)	           This model for evaluating internal controls is from the     ...
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IT Governance Overview


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IT Governance Overview

  1. 1. IT  Governance  Subbu  Murthy       uGovernIT™,  Inc.    Confiden2al  ©  
  2. 2. Wikipedia    Information technology governance is a subsetdiscipline of corporate governance focused oninformation technology (IT) systems and theirperformance and risk management. The risinginterest in IT governance is partly due tocompliance initiatives, for instance Sarbanes-Oxley in the USA and Basel II in Europe, but moreso because of the need for greater accountabilityfor decision-making around the use of IT in thebest interest of all stakeholders. uGovernIT™,  Inc.    Confiden2al  ©  
  3. 3. A  CIO  View     The scope of IT Governance includes all technology components (IT infrastructure, telecommunications, software applications) and resources (IT personnel, user-IT teams) necessary to effectively develop and manage technology initiatives and resources within the Enterprise. The principal objective of the governance process is to enable the Enterprise achieve its business objectives.3   uGovernIT™,  Inc.    Confiden2al  ©  
  4. 4. The  Big  IT  Challenge   Customers  (users)  always  have  issues/changes   that  require  IT  technical  resources.       Business  changes,  technology  changes,  regulatory   changes  and  new  ideas  constantly  create  new   project  requests.       Budget  challenges,  backlogged  work  requests  and   the  need  to  incessantly  innovate  make  resource   alloca2ons  challenging.      4   uGovernIT™,  Inc.    Confiden2al  ©  
  5. 5. Three  Certain7es  In  Life   We  know  the  first  two   certain2es,  the  third  is   HR   known  to  every  IT   Finance   professional!   Marke2ng   Opera2ons   Compliance   There  is  always  more   Internal  IT  Projects   work  than  available  $    5   uGovernIT™,  Inc.    Confiden2al  ©  
  6. 6. Goal  of  IT  Governance   Verifying  that  I.T.   dollars  are  spent   on  the  right   projects,  and  just   as  importantly,  at   the  right  2me  6   uGovernIT™,  Inc.    Confiden2al  ©  
  7. 7. CIOs  are  faced  with  3  Concurrent  Ac7vity  Streams     “Keep  it  running”    Changes  to  opera2ons/problems  are   Business   managed  via  service  requests   As  Usual   Innovate   Op7mize   “Increase  Revenues”   “Do  More  With  Less”    These  are  typically  your  strategic    These  projects  are  typically   ini7a7ves  implemented  to  get  the   improvements  that  drive  efficiency   best  value   to  the  way  business  operates  7   uGovernIT™,  Inc.    Confiden2al  ©  
  8. 8. How  do  BIG  CIOs  cope  with  this?    They  spend   Mega  $  on   PMOs  to  manage   tools  and  staff:   projects,  support   Budge2ng  &   not  just  one-­‐ staff  to  analyze   Planning  System   2me  costs  but   performance  and   high  recurring   generate  reports   expenses   Resource   Management   Asset   Management   Tools  for  managing   customer  support,   services,  projects  and  a   Project   Management   separate  tool  for   Integra2ng  Data   &  Building  Analy2cs   Technical   Services   Customer  Support  8   uGovernIT™,  Inc.    Confiden2al  ©  
  9. 9. These  solu7ons  are  not  prac7cal  for  the  innova7ve  SMB  CIOs   •  The  tools  are  expensive  to  acquire  and   1   expensive  to  maintain   •  The  tools  and  the  associated  Governance   2   processes  are  complex  and  onerous   •  The  tools  need  custom  integra2on  to  get   3   the  whole  picture   •  The  tools  are  complex  and  need  the   4   services  of  specialized  staff    9   uGovernIT™,  Inc.    Confiden2al  ©  
  10. 10. SMB  IT   Governance  From   a  Change  Agent   Perspec7ve  10   uGovernIT™,  Inc.    Confiden2al  ©  
  11. 11. Who  manages  IT  for  SMBs?   10  to  500   100  to  5000   employees   employees   S   M   IT  Expenditures   <$500K   <  $3M   $3M+   Who  manages  IT?   CFO   I.T.  Director   CIO   COO  11   uGovernIT™,  Inc.    Confiden2al  ©  
  12. 12. On-­‐Demand  CIO  Services  are  gaining  Trac7on   There  is  a  large  pool  of  experienced  CIOs  who  area   ready  to  bring  their  expertise  to  help  SMBs   Retainer  models  ensure  that  there  is  a  fixed   cost  but  CIOs  understand  the  workload   fluctuations  typical  of  SMB  needs   Strategy  and  developing  the  IT  Blueprint   for  a  SMB,  and  managing  it  does  not   require  a  full-­‐time  CIO   Costs  are  typically  a  fourth  of  the  cost   of  captive  full-­‐time  CIO  12   uGovernIT™,  Inc.    Confiden2al  ©  
  13. 13. On-­‐Demand  CIO/CTO  Services  Model    13   uGovernIT™,  Inc.    Confiden2al  ©  
  14. 14. SMB  IT   Governance   From  a  Process   Perspec7ve  14   uGovernIT™,  Inc.    Confiden2al  ©  
  15. 15. The  Keep  IT  Simple  Approach   Problem  Management   R E Q U E S T S   S E R V I C E   Service  Management   How  do  I?   Service  Fulfillment   I  have  a   Change  Management   problem   I  need  something   New  Project  Request   R E Q U E S T S   P R O J E C T   Task  Management   New  Project     Review  &     Project  Implementa2on     Request   Approval  Process   &  Delivery  Process   Project  Management   User-­‐IT   IT  Steering   IT  Steering  Commijee   PMO   Governance     Commijee   M A N A G E M E N T   Asset   Asset   Es2mate   Catalog   Acquisi2on   Budget   Budget  Review   Asset  Management   R E S O U R C E   Resource  Management   Asset     Budget     Asset   Management   Asset   Variance   Management   Budget   Budget  Management   Disposi2on   Alloca2on   Tracking   Approval   Analy2cs  &  Dashboards   Resource   Asset   Budget   U2liza2on   Alloca2on   Management  15   uGovernIT™,  Inc.    Confiden2al  ©  
  16. 16. IT  Governance  Framework  (1)   Maturity     Level   Transforma2ona Efficiency   Effec2veness   l   Design,  develop  and   Align  resource   Technology   Design,  develop  and   deliver  technology   deliver  IT  Services     priori2es  to  business   Management   ini2a2ves   needs   Plan  and  budget   User       Con2nuously  evolve   Triage  and  sequence   with  focus  on   services  to  meet   projects  to  meet   Benefit   user  needs     business  needs   effec2ve  resource   u2liza2on   Business       Develop  and  meet   Con2nuously  evolve   Con2nuously  evolve   SLAs  to  improve   capabili2es  to   to  innovate  and  add   Benefit   performance   deliver  innova2on   business  value  16   uGovernIT™,  Inc.    Confiden2al  ©  
  17. 17. Another  Maturity  Framework  (2)     Increases  Revenues   I   IT  is  focused  on    gaining  a   IT  is  mature  and  provides  the   compe22ve  edge.    IT   enterprise  compe22ve   Investments  are  focused  on   advantage  and  opera2onal   revenue  enhancements  while   efficiencies.   minimizing  risk.   Smaller  projects  which  can   Leaders   Trailblazers   produce  high  value  can  get   Efficiency  may  sacrificed   lost  in  the  priority  shuffle.  IT   leading  to  higher  budgets  than   is  innova2ve  but  could  add   necessary.     more  risk.   Increases  Efficiency   Reduces  Risk   E   R   IT  is  focused  on    just   IT  is  focused  on  saving  costs  by   maintaining  systems  and   enabling  the  enterprise  to  be   reducing  exposure.    Typically  IT   efficient.   is  limited  to  back-­‐office   IT  tends  to  innovate  less  and   Thrims   Laggards   opera2ons.   could  lead  to  obsolescence.     User  projects  do  not  get   IT  is  rarely  used  to  build  a   priority.    IT  is  rarely  used  to   compe22ve  edge.   build  a  compe22ve  edge.   M17   uGovernIT™,  Inc.    Confiden2al  ©  
  18. 18. SMB  IT   Governance   From  a  Tool   Perspec7ve  18   uGovernIT™,  Inc.    Confiden2al  ©  
  19. 19. Tool  Perspec7ve:  Need  for  an  Integrated  Solu7on   A  complete  solution  that  is  fully   integrated  and  costs  a  lot  less   Out  of  the  box,  it  should  have   the  features,  content  and   reports  CIOs  need   It  should  be  based  on  best   practices  such  as  ITIL  and  other   standards  but  must  be  simple   to  use  and  practical   It  must  be  flexible  and   configurable  to  meet  the  needs   today  and  grow  to  meet  the   needs  tomorrow  19   uGovernIT™,  Inc.    Confiden2al  ©  
  20. 20. Governance  Architecture   This  component  helps  configure  the   Configurator   Governance  to  enterprise  specific  needs.   Workflow   Pre-­‐built  Work  flows  can  be  configured  and   Processor   adapted  to  enterprise  business  process.   Content   Pre-­‐built  policies,  procedures,  rules,  service   levels  can  be  customized  to  meet  enterprise   Manager   specific  requirements.   Analy2cs  can  help  managers  and  execu2ves   Analy7cs   measure  and  manage  resource  u2liza2on,   efficiency  and  effec2veness.  20   uGovernIT™,  Inc.    Confiden2al  ©  
  21. 21. Tool  should  provide  integrated  dashboards   Open  Service  Requests   Project  Status   Resource  Management   Budget  Management   Low   233   On  Track   23   Employee 93   Budget   $2463K   Medium   121   Minor  Issues   14   s   Consultants   54   Actuals   $2445K   High   168   Major  Issues   8   Vendors   179   Variance   $18K   Open  Request  Types   New  Project  Requests   Top  3  Resource  Centric   Selected  Budget  Costs   Issues   145   Pending  Review   7   Projects  Project  A   25   PC  Purchases   $120K   Services   329   Pending  Approval   4   Project  B   14   Consultant  Costs   $85K   Changes   38   Pending  Start   3   Project  C   13   Somware   $55K   Maintenance   Closed  (past  month)   Task  Lists   Resource  Hours   Costs  (current  month)   Issues   160   Open   45   Infrastructure   385   Infrastructure   $400K   Services   229   New   19   Apps  Support   619   Apps  Support   $522K   Changes   18   Closed   7   Projects   548   Projects   $748K   Other   368   Other   $468K   Service  Requests  (past  6  months)   Project  Costs  (past  6  months)   Resource  U2liza2on   IT  Costs  (past  6  months)   4   34%   29%   3   19%   18%   2   1   Infra-­‐                Apps              Projects      Other   Mar      Apr        May        Jun      Jul    Aug   Structure  Support   uGovernIT™,  Inc.    Confiden2al  ©   uGovernIT™,  Inc.    Confiden2al  ©   uGovernIT™,  Inc.    Confiden2al  ©   uGovernIT™,  Inc.    Confiden2al  ©  21   CIO  View   uGovernIT™,  Inc.    Confiden2al  ©  
  22. 22. Tool  should  provide  three  lenses   Ops   Lens   Services   Lens   Project   Lens  22   uGovernIT™,  Inc.    Confiden2al  ©  
  23. 23. Tool  should  provide  assessment  frameworks   Priority  1   Priority  2     Priority  3   Project     ABC   Project     High   BI   Priority  2   Priority  3   Defer   Business  Value   Project     AVG   Medium   Priority  3   Priority  3   Defer   Project     Project     Low   PMM   XYZ   Low   Medium   High   Project  Cost  23   uGovernIT™,  Inc.    Confiden2al  ©  
  24. 24. Control  Objec7ves  for  Informa7on  &  related  Technology  (CoBIT)   Information Systems Audit and Control Association (ISACA) is a set of guidelines and supporting toolset for IT Governance that is accepted worldwide. It’s used by auditors and companies as a way to integrate technology to implement controls and meet specific business objectives. The  Informa7on  Technology  Infrastructure  Library  (ITIL)   ITIL from the government of the United Kingdom offers eight sets of management procedures in eight books: service delivery, service support, service management, infrastructure management, software asset management, business perspective, security management and application management. ITIL is a good fit for organizations concerned about operations.24   uGovernIT™,  Inc.    Confiden2al  ©  
  25. 25. Commihee  of  Sponsoring  Organiza7ons  (COSO)   This model for evaluating internal controls is from the Committee of Sponsoring Organizations of the Treadway Commission. It includes guidelines on many functions, including human resource management, inbound and outbound logistics, external resources, information technology, risk, legal affairs, the enterprise, marketing and sales, operations, all financial functions, procurement and reporting. This is a more business-general framework that is less IT-specific than the others. Capability  Maturity  Model  Integra7on  (CMMI)     The Capability Maturity Model Integration method, created by a group from government, industry and Carnegie-Mellon’s Software Engineering Institute, is a process improvement approach that contains 22 process areas. It is divided into appraisal, evaluation and structure. CMMI is particularly well- suited to organizations that need help with application development, lifecycle issues and improving the delivery of products throughout the lifecycle.25   uGovernIT™,  Inc.    Confiden2al  ©