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Align IT and Enterprise Operating Models.pdf
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Gartner Webinars Gartner delivers actionable,
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Gartner, Inc. and/or its affiliates. All rights reserved. RESTRICTED DISTRIBUTION Enhance your webinar experience Ask a Question Download Attachments Watch Again
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Gartner, Inc. and/or its affiliates. All rights reserved. RESTRICTED DISTRIBUTION Connect with Gartner Unlock Execution Success: Align IT and Enterprise Operating Models Joanne Kopcho VP Analyst Monika Sinha VP Analyst
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4 © 2023
Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. “Companies that sustain value leadership within their industries will be run by executives who … understand the importance of focusing the business on its value discipline and who push relentlessly to advance the organization’s operating model.” Behind Every Great Strategy Is An Operating Model “Customer Intimacy and Other Value Disciplines” - “Michael Treacy and Fred Wiersema :- HBR, January-February 1993
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5 © 2023
Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. Digital Execution is a Challenge for the Enterprise n varies, Gartner CIO Research Circle members, excluding ‘not sure’ Q.. How would the top leader of your business or government characterize these aspects of the digital technology investments? Source: Gartner 2022 Overcoming the barriers to digital execution Percentages May Not Add to Sum Due to Rounding 43% 59% 52% 0% 50% 100% Speed to launch (n=93) Speed to complete (n=94) Speed to realize value (n=94) Evaluating Speed of Key Phases in Digital Technology Investment Lifecycle Percentage of Respondents Reporting these Aspects of Digital Execution are Below Stakeholder Expectations
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RESTRICTED DISTRIBUTION 6 ©
2023 Gartner, Inc. and/or its affiliates. All rights reserved. The Three Foundations of a Business Architecture A Business Model reflects why and what value the entity will create and deliver to its customers. An Enterprise Operating Model reflects how the entity delivers the targeted value. A Strategy Framework reflects the entity’s strategy, strategic and operational plans for where and when it will capture value for itself. Resources Governance
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. Four Components of the Enterprise Operating Model An Enterprise Operating Model reflects how the entity creates and delivers value. Resources Value Streams Governance Business Capabilities Business Capabilities The necessary actions to create and deliver the organization’s value proposition (or mission). Governance Guiding principles, decision rights and responsibilities, and forums and processes to ensure the entity performs optimally and conforms with appropriate regulations. Resources All the human, physical, digital and financial resources necessary to execute your value streams Value Streams The collective set of value- adding activities that support each business capability
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. The IT Operating Model is Part of the EOM! Source: A Key to Unlock Execution Success: Align IT and Enterprise Operating Models
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. Shape the ITOM to Align to the Strategy
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. Use Strategy to Connect EOM and ITOM
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. ITOM Supports and Enables Execution Source: “Defining and Applying I&T Conceptual Delivery Models” (G00721864)
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. Delivering at Various Speeds and Service Layers Strategic Services New Competitive Advantage Core Services Current Competitive Advantage/ unique Process Run Services Support Current operations Project Delivery - + Governance + - Change Product Delivery
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. ITOM Shapes the Organizational Structure Centralized COEs Federated IT Service Teams & Shared Service Business Led IT Workday Oracle QA PMO DBA Architect Network E-Comm Legacy Production Recruit ment FP&A Procure ment Order Management Network DevOps Cloud QA PMO HCM Integration A A A A A B B B B B C C C C Legacy Data Fabric Application Composition Platform Integration UX Security Development Extension Customer Experience Supply Chain Optimization Workforce Mgmt Shared Service
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. In other words, evolving the Operating Model will Scaling Digital Execution Shared Infrastructure Shared Applications (e.g., ERP) Digital Product Line B Shared Platforms (Digital Foundations) Traditional IT services Digital Product LineA IT Staff Business Unit Staff Customers Fusion/Cross- Functional Staff “Digital IT” Staff (Digital Business Platform Focus)
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. Extending or Adding a Value Proposition Impacts Capabilities Extend today’s value with portfolio insights Add value with a personal advisor
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. Business Capabilities Link and Operationalize the Strategy
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. Refactor Selective Capabilities Into Composable Building Blocks Differentiating Capabilities Core Capabilities Commodity Capabilities
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. Blue Cross NC’s Capability-Based Planning Process Steps
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. Deliver Leadership Value to Improve Performance of IT
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. Enterprise Aligned IT Strategic Vision Communicate IT Strategies connected to tackling business challenges in order to deliver business goals Bimodal Execution Foster experimental processes that will generate new norms that enable the organization to meet strategic outcome Transformation Leadership Recognize predictable defensive patterns of response that operate at the individual and systemic levels within IT Customer Service Mindset Build an IT culture that values diverse views and relies less on centralized decision rights and the genius of the few Now 2023 Now 2023 Now 2023 Now 2023 Profile 1: From a Traditional CIO to Service Optimized CIO Identify and Close Leadership Gaps Peter "Building his strategy and influencing role on a great record of saving money and improving delivery" Focus of development
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. Influence Enterprise Strategic Vision Observe what is going on. Stay inquisitive even when taking action. Develop more than one interpretation of interventions Scale Business/ Technology Delivery Distinguish technical problems from adaptive challenges that require continuous innovation and new patterns of behavior Enterprise Transformational Leadership Communicate plans in a way that enable everyone to understand what I have in mind, why the plan is important and how they can help carry it out. Enterprise Value Mindset Inspire others to relentlessly seize opportunities while increasing appetite to deal with ambiguity Now 2023 Now 2023 Now 2023 Now 2023 Identify and Close Leadership Gaps Katie "Technology Isn't Driving Business Transformation. Behaviors Are." Focus of development Profile 2: From Service Optimized to Value Based CIO
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2023 Gartner, Inc. and/or its affiliates. All rights reserved. Enterprise Strategic Vision Set visionary strategic enterprise direction with CEO, understanding my role within the organization is fluid Enterprise Execution Keep the business outcomes at the center of people's attention. Wrestle with normative questions of value, purpose, and process Transformational Leadership Engage people in distinguishing what is essential to preserve in the organization's heritage from what is expendable New Business Models or Mission Mindset Inspire enterprise culture of disruptive exploration that also faces the fear of loss those ideas generate Now 2023 Now 2023 Now 2023 Now 2023 Identify and Close Leadership Gaps Lynne "Respected executive vision and passion for using digital to create value" Focus of development Profile 3: Value Based to Digital Business Leader
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Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. 1 2 3 Determine how shifting ITOM execution will impact the Enterprise Support and lead the definition of Business Architecture and Capabilities Build a collaborative role within the enterprise strategy Recommendations 1 2 3
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