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Creating A Business
Focussed Information
Technology Strategy
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney
https://www.amazon.com/dp/1797567616
IT Strategy Needs To Be More Than Just A Collection
of Buzzwords
I Want An IT
Strategy
… And It Must
Include The
Internet of Things
…
… And Big
Data …
… And It Must Be
Agile …
… And
Aligned …
… And
Innovative…
… And
Transformational …
What About
Cloud?
And Artificial
Intelligence
And Machine
Learning?
And
Blockchain?
… And Digital …
5 November 2019 2
Some Meaningless Slide About Classical Greek
Military Terms
• Originally strategy meant generalship
• Tactics meant the organisation of military forces – taktikos
- arranging and ordering
• Strategoi (generals) could be punished, exiled or even
executed for failure to use initiative, even if they
succeeded in battle, by soldiers or the assembly *
• How many information technology strategists face a
similar fate?
• How many Chief Information Officers and consultants are
made drink hemlock if their IT strategy fails?
* See Battle of Arginusae, 406 BC
5 November 2019 3
Business And IT Disconnect – Each Speaks A
Different Language
I want: You need:
Business IT
You are not
listening to me
You are not
listening to me
5 November 2019 4
Business And IT View Of Technology
• Business functions view information technologies as means to an end and not as
ends in themselves
• IT views technologies as solutions rather than as components of an overall
business solution
• IT technology trends are very variable and depend on the ever-changing new
next best thing
• Business view of the importance of technology application remains quite
constant:
− Security
− Data
− Delivery
− Value
− Data
− Managing Suppliers
5 November 2019 5
Business And IT Disconnect – Each Speaks A
Different Language
• The IT strategy is an opportunity to resolve this
disconnection and to ensure the IT function is able to and
does respond to business needs and is trusted by the
business to provide IT solutions
5 November 2019 6
IT Strategy And Business
• Information technology is only a tool
• To be effective, it must be tightly linked to the underlying
organisation
• Organisation strategy, the strategy for the use of IT in the
organisation and the strategy for the delivery and support of IT
are interdependent and must be brought into line for optimum
operation
• The challenges to accomplishing this alignment include the
complexity and uncertainty in the business and the IT
environments, alignment issues within the business itself, and
the fit of IT with the business
• To direct architecture definition and IT decisions, a vision for IT
must be established
• Management needs to be committed to this vision.
5 November 2019 7
IT Strategy Objectives And Benefits
• The Information Technology Strategy seeks to:
− Align the priorities of IT with the priorities of the business
− Ensure that IT is capable of fulfilling its role in the business
− Align the characteristics of IT with those of the business
• The Information Technology Strategy provides benefits to
the organisation:
− Supports active management and leadership on the use of IT to
support the business strategy
− Enhances management control over IT resources
− Maximises the value contribution of IT by ensuring alignment of
the IT strategy with the business strategy
5 November 2019 8
IT Demand Drivers
Business
Trends,
Goals and
Needs are
Driving
Information
and
Technology
Demands
Create an integrated relationship with the business
Be more responsive, a quicker time to service and solution implementation and operation
Meet exacting service levels for critical services
Innovate and leverage new technologies and capabilities
Simplify and consolidate our legacy application portfolio
Optimise and automate IT operation activities
Mitigate (cyber) risks and security threats
Better sourcing - correct mix of insourcing and outsourcing and better supplier management
5 November 2019 9
Information Technology Demand And Supply
• Demand Issues - what the business
needs and wants from IT
• IT portfolio alignment
• Initiative identification and business
strategy enablement
• IT-enabled business invention
• Demand rationalisation and
prioritisation such as cost/benefit
analyses and risk assessments
• Speed of response and delivery
• Security and risk management
• Supply Issues - how the IT function
has to operate to satisfy business
demand
• IT mission alignment
• Cost and affordability constraints
• Organisational positioning
• IT governance and leadership
• Core competencies and sourcing
• Practical constraints
5 November 2019 10
IT Strategy – Key Questions
Why Do We Need An IT Strategy?
• Business Drivers and Changes
• Objectives
• Scope
• Desired Outcomes
• Gaps/Problems/Inefficiencies
• Capabilities
What Needs Are We Looking To Fulfil?
What Problems Are We Looking To
Solve? What Opportunities Are We
Looking to Address?
• Business Needs and Opportunities
• IT Function Needs
• IT Function Issues, Problems and Gaps
• IT Opportunities
How Will The IT Strategy Address
These
Needs/Problems/Opportunities?
• Capabilities
• IT Function Structure
• Operating Model
• Staffing And Roles
What Will We Do To Define and
Implement The Strategy to Achieve
The Identified Needs?
• People
• Skills and Abilities
• Tools, Methodologies, Techniques
• Measures
• Processes
• Commitment
5 November 2019 11
IT Function and Business Strategy Feedback
• The IT function can both respond to the business
strategy and assist in the development of the business
strategy by demonstrating the potential of IT to the
business
HowWhat
How What
Translate the What of
business requirements into
the How of technology and
process
Translate the What of new
technologies into the How
of the application to the
business
5 November 2019 12
IT Function As A Lens
IT Function Needs to Mediate
Between the Business and
Suppliers/ Technologies/Delivery
Acting as a Lens Focussing Business
Needs On To Appropriate Solutions
Business
Objectives
and
Requirements
Service
Operations
and Provision
Technology
Landscape
Supplier
Ecosystem
Solution
Delivery
5 November 2019 13
IT Strategy
• Develop IT strategy and architecture for the deployment and implementation,
management and operation of IT solutions throughout the organisation in a cost-
effective manner
− Doing things better
− Doing better things
• Process of defining a strategy or direction and making decisions on allocating
resources to pursue this strategy including capital and people
• Create a blueprint that guides delivery of applications and information related to
an organisation's activities
• The end result is a Strategic IT Plan
5 November 2019 14
IT Strategy Scope Checklist
IT Strategy Scope
Static Components
Run The Business
Change The Business
IT Value Chain
Structural Elements
Capabilities List of Key Capabilities
IT Function Structure
Operating Model
Roles and Staffing
Structure
Skills and Abilities
Tools, Methodologies,
Techniques
Commitment and Value
Processes
Staffing And Roles
Organisation Change
Change Domains
Change Enablers and
Indicators
Dynamic Components
Specific Initiatives
Required To Achieve
Business Strategy
Generic Enabling
Initiatives
List of Key Initiatives
Specific Initiatives List of Key Initiatives
Implementation
Options and Plan
5 November 2019 15
IT Strategy Scope Checklist
• Scope checklist defines the possible subjects to analyse
and define as part of the IT strategy engagement
• Use the scope checklist to agree the topics to be covered
• These items map to IT strategy elements described later
5 November 2019 16
IT Strategy – Core Principles
• Recommend that IT define a core set of principles/policies:
− IT strategy will be developed and maintained in line with market
analysis and key stakeholder requirements and IT strategy to be
aligned with the organisation’s vision
− IT delivers core services to cost and quality standards
− IT as a function is controlled and compliant to industry standards
− Security will be embedded in IT
− IT enables flexible service delivery to users
− IT supports business growth
− IT supports and enables compliance in the wider organisation
− IT budgets will be developed and maintained for new services or
improved IT Services
5 November 2019 17
Business And IT Strategy – Responding To Demands
And Changes
New
Business
Models
Competition
Service Focus and
Customer
Expectations Increased
Pace of
Change
Increased
Regulation
Business and
Technology
Changes
Business and
Technology
Changes
Increased Pace
of Change
Assist With The
Design of New
Business Models
Identify Technology Trends
That Offer Opportunities or
Represent Challenges
Identify
Opportunities for
Efficiencies
Translate
Innovation into
Business
Solutions
Support
Business
Solutions
Business
Objectives
Business
Operational
Model
IT Strategy
Delivery
IT
Governance,
Management ,
Support
And
Operations
Business
Strategy
Business
IT
Strategy
IT Function
Strategy
5 November 2019 18
IT Strategy In A Wider Organisation Context
• IT strategy cannot be developed
without reference to the overall
business strategy
• Its development is not a
standalone activity
• The IT strategy must reference the
business strategy in order to
formulate and implement the
major goals and initiatives of the
business and to respond to
business demands and internal
and external changes
Business
Objectives
Business
Operational
Model
IT
Function
Solution
Implementation
and
Delivery
Management
And
Operations
Business
Processes
Required
Operational
Business
Systems
Business
Strategy
Solution
Design/
Selection/
Sourcing
Business
IT
Strategy
IT
Function
Strategy
IT
Function
Structure
Required
IT Operational
Processes
Required IT
Infrastructure
Business
Systems
Infrastructural
Systems
Design/
Selection/
Sourcing
IT Function
Resourcing and
Management
5 November 2019 19
IT Strategy In Context – Components And Linkages
• Business Strategy – the business or organisation must
create an overall strategy for its operations defining what
it does and what it seeks to achieve. The business strategy
provides the context in which all other activities take
place.
• Business Objectives – the business strategy is translated
into a number of objectives that must be achieved in
order to realise the business strategy.
• Business Operational Model – an organisational structure
and operating needs to be defined in order to achieve the
defined set of objectives.
• Business Processes – the operational business processes
needed to actualise the achievement of the defined
objectives must be defined and implemented.
• Required Operational Business Systems – the set of
business systems required to operate the previously
identified and defined business processes are described.
• Business IT Strategy – the organisation needs to define an
overall information technology strategy that encompasses
the solutions, systems and applications needed to operate
the business processes.
• IT Function Strategy – the organisation’s information
technology function must define its own strategy to
achieve the wider organisation’s business IT strategy. This
must include the information technology function
structures and business processes.
• IT Function Structure, Capabilities, Operating
Model, Approaches, Standards – the IT function
designs its structure, operating model, the required
capabilities and sets of standards and approaches
in order to deliver the IT function strategy and the
wider business IT strategy
• IT Function Resourcing And Management – the IT
function implements its structure and put in place
the required resources and management
• Required IT Operational Processes – the IT function
agrees and defines the set of operational business
processes need to operate
• Required IT Infrastructure Business Systems – the
set of internal infrastructural IT applications needed
to implement the IT business processes are
identified
• Infrastructural Systems Design/Selection/Sourcing
– the set of internal infrastructural IT applications
are sourced
• Solution Implementation And Delivery – the
solutions are implemented and transitioned to
production
• Solution Design/Selection/Sourcing – the set of
previously identified business solutions are sourced
• Management And Operations – the implemented
solutions are operated and managed in production
5 November 2019 20
Core And Extended Activities Of An IT Strategy
• Individual core and
extended elements
can be grouped into
sets of actions,
activities and
functions
Business
Objectives
Business
Operational
Model
IT
Function
Solution
Implementation
and
Delivery
Management
And
Operations
Business
Processes
Required
Operational
Business
Systems
Business
Strategy
Solution
Design/
Selection/
Sourcing
Business
IT
Strategy
IT
Function
Strategy
IT
Function
Structure
Required
IT Operational
Processes
Required IT
Infrastructure
Business
Systems
Infrastructural
Systems
Design/
Selection/
Sourcing
IT Function
Resourcing and
Management
5 November 2019 21
Core And Extended Groups Of Activities Of IT
Strategy
IT Strategy Implementation
and IT Function Operations,
Tools and Processes
Business Processes and
Business Solutions
IT Function Structure and
Operating Model
Business Strategy and Objectives
Business IT Strategy and IT
Strategy
• Individual core and
extended elements
can be grouped into
sets of actions,
activities and
functions
5 November 2019 22
Components Of IT Strategy
• IT strategy will have a number of components
• Static or structural changes to the IT function
• Dynamic changes relating to initiatives, programmes or projects
− Enabling/infrastructural/common initiatives
− Specific business-lead initiatives
IT Strategy Definition
Static Components Structural Elements
Dynamic
Components
Specific Initiatives
Required To Achieve
Business Strategy
Generic Enabling
Initiatives
Specific Initiatives
5 November 2019 23
Components Of IT Strategy
IT Strategy Implementation
and IT Function Operations,
Tools and Processes
Business Processes and
Business Solutions
IT Function Structure and
Operating Model
Business Strategy and Objectives
Business IT Strategy and IT
Strategy
• This shows the
context of the static
and dynamic
components of the IT
strategy
Specific Initiatives
Generic Enabling
Initiatives
Structural Elements
IT Strategy Definition
5 November 2019 24
Staffing And
Roles
Operating
Model
Elements Of Static Component Of An IT Strategy
• Structural Elements
− Capabilities – skills and abilities the
IT function should possess and be
able to use effectively and
efficiently
− IT Function Structure – the
organisation and arrangement of
the sub-functions and their
responsibilities and relationships
− Operating Model – how the IT
function work and delivers value
and the processes it implements
and operates
− Staffing And Roles – the numbers
of people, their roles,
responsibilities, expected skills,
experience and abilities, workload,
reporting structures and expected
ways of operating
IT Function
Structure
Capabilities
5 November 2019 25
Interrelationships Of Structural IT Strategy Elements
IT Function
Structure
Capabilities
Staffing And
Roles
Operating
Model
Staff Must
Have Skills to
Provide IT
Function
Capabilities
Operating
Model Defines
How the
Personnel
Work and the
Processes they
Operate to
Delivery Value
IT Function Structure
Must be Populated
with Staff in Defined
Roles
Staff Must
Have Skills to
Provide IT
Function
Capabilities
Operating
Model
Breathes Life
into the
Function
Structure
Operating Model Defines
How Capabilities are Used
5 November 2019 26
Interrelationships Of Structural IT Strategy Elements
• The interrelationships between these elements show that
the IT strategy must be developed as an entirety rather
than individual elements be worked on
• The resulting strategy and its implementation plan must
also be taken together
• The definition of these elements will assist in developing
the subsequent strategy implementation plan
5 November 2019 27
Specific Initiatives In IT Strategy
• There will be two sets of specific initiatives to be
incorporated into the IT strategy
1. General initiatives to improve the operation and efficiency of
the IT function or that are shared across multiple business
functions, such as:
• Digital transformation
• Supplier management
• Business engagement and agile
• Data transformation
• Cloud transition and application replatforming
• Process automation
2. Specific initiatives required to achieve the business strategy
and objectives
• Portfolio of specific programmes and initiatives
5 November 2019 28
IT Strategy And Change
• The design and implementation of the IT strategy will
involve changes to the organisation:
− Changes in the way the business and the IT function engage with
each other
− Changes in the way the IT function is structured and operated
• The IT strategy is not developed in isolation
− It must address how to transition the existing IT function structure
and operating model to the target defined by the strategy
− This transition will (need to) occur in stages
5 November 2019 29
IT Strategy Implementation Stages And Steps
Where We Are Now Where We Want To Be
Improvement Leading To Better IT
Outcomes
Strategy Needs to Analyse and
Define the Options for Transition
Stage 1
Stage 2 Stage 3
Stage 4
5 November 2019 30
Change Domains Of Organisation Or Business
Function • These six core change domains are divided into two
groups: those relating to the business and those
relating to information technology
• Business-Oriented Change Areas
− Location and Offices – existing and new locations and
facilities of the organisation, their types and functions and
the principles that govern the selection of new locations
− Business Processes – current and future business process
definitions, requirements, characteristics, performance
− Organisation and Structure – organisation resources and
arrangement, business unit, function and team structures
and composition, relationships, reporting and
management, roles and skills
• Technology-Oriented Change Areas
− Technology, Infrastructure and Communications – current
and future technical infrastructure including security,
constraints, standards, technology trends, characteristics,
performance requirements
− Applications and Systems – current and future
applications and systems, characteristics, constraints,
assumptions, requirements, design principles, interface
standards, connectivity to business processes
− Information and Data – data and information
architecture, data integration, master and reference data,
data access and management, data security and privacy
• These six core change domains affect the organisation
or business function
• There is a seventh change domain for changes that
occur outside the organisation such as the external
business landscape that the organisation must react
to
Domains of
Organisation
Change
Location and
Offices
Business
Processes
Technology,
Infrastructure
and
Communications
Applications and
Systems
Information and
Data
Organisation and
Structure
5 November 2019 31
Extended Change Domain
• In addition to the core
change domains, there
is an extended change
domain involving the
operating landscape
outside the scope of the
business function
• This involves those
external parties that
interact with the
business function –
other business
functions, partners,
suppliers, customers –
the impact on them
from changes to the
organisation
Domains of
Organisation
Change
Location and
Offices
Business
Processes
Technology,
Infrastructure
and
Communications
Applications and
Systems
Information and
Data
Organisation and
Structure
Organisation Operating
Environment and Business
Landscape
5 November 2019 32
Change Domains
• Change domain model can be used to assist with the
definition of the scope of the:
− Business strategy
− Overall organisation IT strategy
− IT function IT strategy
− IT function operating model
• The failure to manage the human side of changes relating
to the IT strategy can be a major contributor to the
reasons why IT strategies fail
5 November 2019 33
Change Enablers And Indicators
Employees at all levels are encouraged and lead to develop and share the skills
and knowledge to work in new ways
Capabilities
Employees throughout the IT function are willing to embrace new ways to think,
behave, and perform
Commitment
Employees at all levels are involved in change and share information and
information is shared with them in a timely manner
Communication
The work environment and the employee values and behaviours can adapt to
new situations and encourage employee performance
Culture
The IT function leadership team is aligned with the overall direction of the
business and is engaged in driving behaviours and practices to achieve change
Leadership
Organisational structures including roles, responsibilities and relationships are
designed to support organisational flexibility and performance
Structure
Processes, incentives and management practices recognise, reward and
reinforce the achievement of goals and the demonstration of good behaviours
Performance
5 November 2019 34
Change Enablers And Indicators
• Being good at change means being good at the enablers of
change
• Assessing how good you are at each change enabler is an
indicator of how good you will be at achieving change
• You need to honestly assess how good you are at these
change enablers and to get better at the ones where you
are lacking
5 November 2019 35
Change Enablers And Indicators Assessment
Employees at all levels are encouraged and lead to develop and share the skills
and knowledge to work in new ways
Capabilities
Employees throughout the IT function are willing to embrace new ways to think,
behave, and perform
Commitment
Employees at all levels are involved in change and share information and
information is shared with them in a timely manner
Communication
The work environment and the employee values and behaviours can adapt to
new situations and encourage employee performance
Culture
The IT function leadership team is aligned with the overall direction of the
business and is engaged in driving behaviours and practices to achieve change
Leadership
Organisational structures including roles, responsibilities and relationships are
designed to support organisational flexibility and performance
Structure
Processes, incentives and management practices recognise, reward and
reinforce the achievement of goals and the demonstration of good behaviours
Performance
5 November 2019 36
Interrelated Business And IT Strategies
• There are three interrelated strategies affected by the
organisation core change domain model
1. Business Strategy
• Defines the strategic goals, imperatives and initiatives to direct the
business
• Business strategy is the principal driver of IT strategy
• IT strategy is developed to support the business strategy
• IT can also provide opportunities to reshape the business strategy
2. Organisation IT Strategy
• Defines the strategic direction of information technology within the
organisation required to support and achieve business strategy.
3. IT Business Function IT Strategy
• Defines the strategic direction of the IT function to develop, deploy,
operate, manage and support the IT systems needed by the business
• Includes processes and supporting technology
5 November 2019 37
Two IT Strategies
• There will be two IT
strategies that will
comprise the overall IT
strategy, each with
different sets of
organisation changes:
1. Overall Organisation
IT Strategy – how the
organisation will use
IT to achieve its
objectives
2. Internal IT Function
IT Strategy – what
the IT function will do
and how it will
structure itself to
deliver on the wider
overall organisation
IT strategy
IT Function IT Strategy
Locations
and Offices
Systems and
Applications
Business
Processes
Technology
Organisation
Information
and Data
5 November 2019 38
Change Profiles Of Interrelated Strategies
IT Function IT Strategy
Locations
and Offices
Systems and
Applications
Business
Processes
Technology
Organisation
Information
and Data
Organisation IT Strategy
Locations
and Offices
Systems and
Applications
Business
Processes
Technology
Organisation
Information
and Data
Business Strategy
Locations
and Offices
Systems and
Applications
Business
Processes
Technology
Organisation
Information
and Data
Focus of change is on the business-
related areas
Focus of change is on the technology-
related areas
Changes are needed across all areas
5 November 2019 39
IT Function Operating Model
5 November 2019 40
IT Function Operating Model
• The IT function operating model is concerned with:
− The internal structure and operation of the IT function
− How the IT function delivers business value
• How it will achieve its internal strategy and so how it will assist with the
delivery of the wider organisation IT strategy and ultimately the business
strategy
• The operating model can be complex and so should be
divided into its constituent components, showing their
interactions
• The implementation of the operating model will change in
response to internal and external pressures
− So the operating model must be able to accommodate
appropriate change
5 November 2019 41
Activities Of The IT Function
• Doing – Run The Business
− Business as usual activities
(BAU) related to administering
and operating production IT
systems and providing service
to users
• Managing The Doing – Run
The Business
− Managing the BAU function
and its service delivery
• Doing – Change the Business
− Implementing projects and
delivering new services and
systems
• Managing The Doing –
Change The Business
− Managing the projects and
associated changes
Change The
Business
Run the
Business
Doing
Managing The
Doing
5 November 2019 42
Activities Of The IT Function
• Not all activities are of equal weight
• Balance between activities and required resources and expenditure depends on
many factors:
− Maturity of IT function and organisation
− Level of change
− Historical legacy of under or over investment in IT
− Growth profile
− Market changes
• However, Run The Business will always dominate IT resources and activities
• But Change The Business activities get disproportionately large and undeserved
attention to the detriment of Run The Business activities
• The IT strategy cannot ignore the Run The Business/Business As Usual activities
of the IT function
5 November 2019 43
Average Relative Balance Of Resources And Cost
Across Activity Areas
• The actual balance
between Run The
Business and Change
The Business activities
will differ for every
organisation
• The operating model
defined in the IT
strategy needs to
ensure that it reflects
the correct balance of
activities
− IT strategy is not all
about change
− It is mostly about
ensuring existing
operations are efficient
and effective
Doing – Run The
Business
Doing – Change
the Business
Managing The
Doing– Change
The Business Managing The
Doing – Run The
Business
5 November 2019 44
Activities Across Doing And Managing The Doing
Focus on architecture and
design aspects of existing
services
Focus on architecture,
design, selection,
development and delivery
aspects of new projects and
services
Focus on management
processes associated with
the operation and delivery
of existing services
Focus on management
processes associated with
the architecture, design,
selection, development and
delivery aspects of new
projects and services
Existing
Programmes,
Projects and
Services
New
Programmes,
Projects and
Services
Focus on the prerequisites
and foundations for strategy,
architecture and design
across IT function and
solution lifecycle
Focus on the prerequisite
and foundation
management processes
across IT function and
solution lifecycle
Fundamental
Organisational
Requirements
DOING
MANAGINGTHEDOING
5 November 2019 45
IT Function Pillars
• Architecture and
Realisation (“Doing”)
− Strategy
− Design
− Development
− Implementation
• Management and
Processes (“Managing
the Doing”)
− Business Change
− Programmes
− Projects
− Operations
IT Function Pillars
Architecture and
Realisation
Vision and Strategy
Architecture
Development, Customisation
and Configuration
Implementation and
Deployment
Operation and Control
Management and Processes
Enterprise Management
Programme and Portfolio
Management
Project Management
Service Management
Architecture Management
5 November 2019 46
Architecture And Realisation Pillar
• Vision and Strategy
− Creates the business vision defines the direction for subsequent information technology initiatives
− Internal and external requirements and processes are analysed
− Allows prioritisation of the business and information system areas that will addressed in subsequent stages
− Ensures that all further work is aligned with the vision and strategy
• Architecture
− Designed to translate the Vision and Strategy into an implementable, operable and supportable structure
− Architecture can encompass both enterprise and specific solution areas
− Scope, requirements and functionality of the business processes and the associated information systems are specified
− Architecture is concerned with both business and information technology in parallel
− Constituent projects and changes to deliver the architecture are identified
• Development, Customisation and Configuration
− Selects, designs, builds, customises and tests the elements of the solution
− Includes some or all of customised development, package customisation and system enhancement.
− Development activities related to business change and technical infrastructure are addressed
• Implementation and Deployment
− Takes the solution components and creates a fully operable system, complete with data and business process changes
− Includes integration testing, pilot, data conversion documented procedures, training, and operational readiness and
acceptance
• Operation and Control
− Creates and implements practices for ensuring defined service levels for the operation, maintenance, and support of the
new or modified systems
5 November 2019 47
Management And Processes Pillar
• Enterprise Management
− Involves establishing business objectives, monitoring achievement against targets and making necessary
corrections
• Programme and Portfolio Management
− Directs and manages programmes and portfolios of initiatives and undertakings offerings to balance
benefits, costs, resources and risks in a strategic context and ensuring benefits realisation
− Establish the competency within an organisation to provide this service internally or manage its provision
by external agents
• Project Management
− Concentrates on the effective and efficient processes required to identify, coordinate, and continuously
focus people and resources on achieving project objectives and commitment within time, cost, resource
and quality controls
− Enables organisations to deliver both the simple and complex initiatives and to perform projects capably
• Service Management
− Controls and manages the operational services phases of the overall initiative life cycle
− Service request management handles requests from users
− Manages their fulfilment and includes logging, performing initial analysis, monitoring, prioritising,
measuring, and closing
− Service delivery management directs and manages services to ensure that the end-user receives the
agreed service
• Architecture Management
− Concerned with the business, technical, and operational procedures and processes needed to ensure and
maintain integrated enterprise and solution architecture during the implementation of the solution and
its subsequent operation
5 November 2019 48
Mapping Doing And Managing The Doing Pillars To
The Functional Activities
• Two high-level
views of IT function
structure
1. Doing/ Managing
the Doing
2. Architecture and
Realisation/
Management and
Processes
1. This represents a
summary view of
the structure of
the IT function
IT Function Pillars
Architecture and
Realisation
Vision and Strategy
Architecture
Development, Customisation
and Configuration
Implementation and
Deployment
Operation and Control
Management and Processes
Enterprise Management
Programme and Portfolio
Management
Project Management
Service Management
Architecture Management
Fundamental
Processes and
Competencies
Implementation
of New Projects
and Services
Operation of
Existing Services
5 November 2019 49
IT Function Operating Model
• The size and structure of the IT function operating model
depends on the expected workload and its profile –
existing operations and new services
• Operating model includes service delivery model and
business engagement model
• There is considerable overlap between the design and
specification of the operating model and the other
structural elements of the IT strategy
5 November 2019 50
Dimensions Of Operating Model – 1
Structure
How the Function is Organised To
Operate and Where the Roles and
Capabilities Will Reside
Roles and
Staffing
What Roles Will Exist Within the
Function Structure with the
Required Capabilities
5 November 2019 51
Dimensions Of Operating Model – 2
Commitment and Value
End-to-end Implementation and
Operation From Request To Response
to Deliver Results and Create Value and
Measure Delivery
Tools,
Methodologies,
Techniques
Tools and Skills and Experience in
Their Use to Perform Work
5 November 2019 52
Structure
Dimensions Of Operating Model
• Six dimensions to the core IT function
operating model
1. Roles and Staffing
2. Structure
3. Skills and Abilities
4. Tools, Methodologies, Techniques
5. Processes
6. Commitment and Value
• Together these combine to
form a complete view of the
target operating model
+ = Commitment
and Value
Tools,
Methodologies,
Techniques
Roles and
Staffing
5 November 2019 53
Interconnected Aspects Of Operating Model
• The IT function operating
model will be a combination
of a structure with
capabilities implemented
and operated consistently
by repeatable processes
and filled by people with
roles using tools,
techniques and
methodologies to
perform the required
workload in order to deliver
on and measure
commitments and
generate value for the
organisation
IT
Function
Operatin
g Model
Roles and
Staffing
Structure
Capabilities
Tools,
Methodologi
es,
Techniques
Commitment
and Value
Processes
5 November 2019 54
Interconnected Aspects Of Operating Model
Structure
Capabilities Will Be
Operated Through
Defined Processes
Personnel Will Have
Skills to Deliver
Capabilities
Personnel Will
Operate
Within
Structure
Processes Will
Be Supported
By Tools
Personnel Will
Use Tools and
Methodologies
Processes
Roles and
Staffing
Commitment
and Value
Tools,
Methodologies,
Techniques
Skills and
Abilities
Personnel Will
Operate
Processes
Commitment Will
Use Processes to
Deliver and
Measure Value
Personnel
Will Deliver
Value
Capabilities Will
Be Embedded in
Structure
Methodologies
Will Support The
Delivery of Value
Skills and
Abilities
Will Enable The
Delivery of Value
5 November 2019 55
Target Operating Model Gaps
• There will be gaps between the current and target operating model
• The IT strategy must define the target operating model and how to move from the
current to the target
IT Function
Operating
Model
Roles and
Staffing
Structure
Capabilities
Tools,
Methodologies,
Techniques
Commitment
and Value
Processes
IT Function
Operating
Model
Roles and
Staffing
Structure
Capabilities
Tools,
Methodologies,
Techniques
Commitment
and Value
Processes
= Size of Gap
5 November 2019 56
Core And Extended Operating Model
• Extended operating
model is the context in
which the IT function
operates
− Interactions with
other business units
− Interactions with
external partners and
customers
− Interactions with
suppliers
• These are sources of
demands on the IT
function
• IT function operating
model must embed
capabilities, skills,
people and processes
to handle this
extended operating
environment
IT Function
Operating
Model
Roles and
Staffing
Structure
Capabilities
Tools,
Methodologies,
Techniques
Commitment
and Value
Processes
Partners
and
Customers
Other
Business
Units
Suppliers
5 November 2019 57
Strategy And Its Implementation
• The IT strategy and its implementation cannot be
separated
• The IT strategy must be implementable, operable,
maintainable, supportable and successfully deliver benefits
to the IT function and the wider business
5 November 2019 58
IT Function Capabilities
5 November 2019 59
IT Function Capabilities And Areas of Competence
• Key areas where the IT function needs to maintain significant levels
of competence, skill and experience and practise
• General sets of skills required of the IT function
• Transcend specific technical and technology skills and trends
− Technology change is a constant
• It is about having the overarching skills to handle change, adopt
suitable and appropriate new technologies and deliver a service and
value to the underlying business
• Not all activity areas require all the key capabilities
• Use this to identify what is important for your IT function based on
your current and desired/necessary activity profile
• Quantify gaps in your skills levels in competence areas
• Use this to define programme of improvement and increased
capability
5 November 2019 60
IT Function Capabilities And Areas Of Competence
• This is just one view of the required capabilities of the IT function
• These capabilities will be closely related to the initiatives contained in the IT
strategy
1. IT Leadership and Governance
2. Strategic and Business Planning
3. Demand and Supply Management,
Capacity Forecasting and Planning
4. Sourcing and Supplier Management,
Acquisition, Procurement
5. Innovation
6. Accounting, Funding, Financing, Budgeting
and Planning
7. Programme Management, Portfolio
Management, Project Management
8. Relationship Management and Business
Engagement
9. Organisation Design and Planning
10. Enterprise Architecture
11. Infrastructure, Networks and
Communication
12. Business and Process Analysis
13. Solution Architecture and Design
14. Benefits Assessment and Realisation
15. Service Provisioning, Service Delivery
and Service Management
16. Testing
17. Security, Continuity and Disaster
Recovery
18. Solution Development and Delivery
19. People Asset Management
20. Knowledge Asset Management
21. User Experience Design
22. Change and Change Management
What the IT function needs to be good at:
5 November 2019 61
IT Capabilities By Doing/Managing The Doing
Activity Area
Capability Doing Managing the Doing
Run The
Business
Change The
Business
Run The
Business
Change The
Business
IT Leadership and Governance l l
Strategic and Business Planning l l
Demand and Supply Management, Capacity Forecasting and Planning l l l l
Sourcing and Supplier Management, Acquisition, Procurement l l l l
Innovation l l l l
Accounting, Funding, Financing, Budgeting and Planning l l l l
Programme Management, Portfolio Management, Project
Management
l l l l
Relationship Management and Business Engagement l l
Organisation Design and Planning l l
Enterprise Architecture l l
Infrastructure, Networks, Cloud Architectures and Communications l l
Business and Process Analysis and Design l l
Solution Architecture and Design l l
Benefits Assessment and Realisation l l
Service Provisioning, Service Delivery and Service Management l l
Testing l l
Security, Continuity and Disaster Recovery l l
Solution Development and Delivery l
People Asset Management l l l l
Data, Information, Knowledge Asset Management l l l l
User Experience Design l
Change and Change Management l l l l
5 November 2019 62
IT Function Capabilities And Areas Of Competence
• Use current levels of
competence and
importance of
competency across all
activity areas to
identify those areas at
which getting better
will yield the greatest
return
• Classify by
− Importance
− Current Skill Level
− Improvement Benefit if
Skill Improved
• Targeted investment of
resources
• Get good at what
matters
• Get the biggest bang
for your buck
Capabilities To
Target For
Improvement
5 November 2019 63
IT Function Structure
5 November 2019 64
Generic Structure Of An IT Function
• The following describes a generalised and idealised view of the
structure, organisation and set of logical sub-functions within an IT
function
• Organisational view rather than capability view
− Capabilities must ultimately reside in or across sub-functions
• Actual optimum implementation depends on the size and profile of
the organisation
• Not all sub-functions relevant to all organisations
• Not all sub-functions have the same importance for all organisations
• Not all sub-functions are at the same level of operational
effectiveness for all organisations
• Logical sub-functions can be combined or split further
• A model that explicitly includes proactive linkage to the business and
the delivery of business requirements
5 November 2019 65
IT Function - Generic Logical Organisation Structure
IT Governance
Business
Relationship
and
Engagement
Service Lifecycle Management
Service and Solution Delivery Service Operations
IT Management
Business
Relationship
Management
Business
Analysis and
Consulting
Solution
Architecture
Demand
Management
Program and
Project
Management
IT Process and
Quality
Management
IT Resource
Management
Asset and
License
Management
Technology
Selection and
Management
Acquisition,
Sourcing and
Supplier
Management
Test
Management
Service
Planning
Operations
Management
IT Strategy
IT Enterprise
Architecture
management
IT Governance
and
Leadership
IT Financial
Management
IT Service and
Sourcing
Strategy
IT Innovation
Management
IT Security
Management
Configuration
and Asset
Management
Change
Management
Continuity and
Availability
Management
Capacity
Management
Service Level
Management
Release
Management
Service
Catalog
Management
Takeover and Management
Operations
Co-ordination and Risk
Management
Support Function
Incident
Management
Service
Request
Management
Problem Management
Facilities and Device Management
Monitoring
and Alerting
Solution Design, Development, Implementation
and Integration
Infrastructure and Communications
Implementation
Transition to
Production
Analysis Design Realisation Test
Service and Solution Support
Analysis Design Realisation Test
Service and Solution Support
Business
Readiness and
Organisation
Change
Infrastructure,
Networks
Management
Data,
Information,
Knowledge
Management
5 November 2019 66
External IT And Business Alignment
IT GovernanceBusiness
Relationship
and
Engagement
Service Lifecycle Management
Service and Solution Delivery Service Operations
IT Management
Business-facing
sub-functions
5 November 2019 67
Internal IT And Business Alignment
IT GovernanceBusiness
Relationship
and
Engagement
Service Lifecycle Management
Service and Solution Delivery Service Operations
IT Management
Business-facing
sub-functions
mediate
between
business and
technology and
service delivery
and operation
5 November 2019 68
IT Function Structure And Alignment
IT GovernanceBusiness
Relationship
and
Engagement
Service Lifecycle Management
Service and Solution Delivery Service Operations
IT Management
Alignment is not
just about being
aligned at the
Business
Relationship and
Engagement and IT
Governance levels
Alignment means
following through
throughout the IT
function
5 November 2019 69
IT Governance Sub-Functions
IT Governance
IT Strategy
IT Enterprise
Architecture
management
IT Governance
and
Leadership
IT Financial
Management
IT Service and
Sourcing
Strategy
IT Innovation
Management
IT Security
Management
Defines strategy for IT function for both the IT function and how IT delivers on the overall business
strategy
Manages the definition and maintenance of overall enterprise IT architecture
including systems and application standards and operational framework
Implements IT governance and maintains leadership of the IT function
Manages the process for defining how services and solutions
should be acquired and managed
Manages IT application and infrastructure security standards
Manages the process for bringing new ideas to an appropriate
implementation to generate value
Manages the IT budget, finances, financial
reporting and control standards, cost-benefit
analysis
5 November 2019 70
Business Relationship and Engagement Sub-
Functions
Business
Relationship
and
Engagement
Business
Relationship
Management
Business
Analysis and
Consulting
Solution
Architecture
Demand
Management
Manages the relationship with the business and escalations , the identification of
work, helps the business navigate IT processes and acts as the voice of the
business to IT
Offers business analysis and consulting services to translate business needs into a
structured set of requirements to enable the business understand its needs
Defines business-oriented solutions based on structured business requirements
that comply with IT delivery and operational standards
Manages the demand from the business for resources and ensures the business
can accommodate the associated change
Business
Readiness and
Organisation
Change
Ensures the organisation is ready and able to accept the changes required of new
or changed application
5 November 2019 71
IT Management Sub-Functions
Manages the IT operation
Plans for the introduction of new services
Manages data,
defines data
standards
Manages IT
infrastructure
Manages delivery of programs and projects, manages standards and ensures consistency
Ensures quality of IT processes
Manages IT people resources, induction, training, development, standards
Manages IT assets and software licenses
IT Management
Program and
Project
Management
IT Process and
Quality
Management
IT Resource
Management
Asset and
License
Management
Technology
Selection and
Management
Acquisition,
Sourcing and
Supplier
Management
Test
Management
Service
Planning
Operations
Management
Infrastructure,
Networks
Management
Data,
Information,
Knowledge
Management
Manages process for selecting suitable
technologies
Manages and implements service and
supplier acquisition
Manages testing
5 November 2019 72
Service Lifecycle Management Sub-Functions
Service Lifecycle Management
Configuration
Management
Change
Management
Continuity and
Availability
Management
Capacity
Management
Service Level
Management
Release
Management
Service Catalog
Management
Ensures capacity of IT assets
Manages and implements release to production process
Implements and manages network of service level agreements
Manages business continuity, disaster recovery
and system and application availability
Manages catalog of IT services
Manages configuration of installed assets
Manages the delivery of change
5 November 2019 73
Service and Solution Delivery Sub-Functions
Service and Solution Delivery
Solution Design, Development,
Implementation and Integration
Infrastructure and Communications
Implementation
Transition
to
Production
Analysis Design Realisation Test
Service and Solution Support
Analysis Design Realisation Test
Service and Solution Support
Transitions new
systems and
changes to
production and
manages handover
to support, ensures
new systems are
operable and
supportable
Implements
support
arrangements for
new services and
solutions
Designs, develops and
implements new solutions
and changes and ensures
integration with existing
systems
Designs, develops and
implements IT
infrastructure and
communications networks
5 November 2019 74
Service Operations Sub-Functions
Service Operations
Takeover and Management
Operations
Co-ordination and Risk
Management
Support Function
Incident
Management
Service Request
Management
Problem Management
Facilities and Device Management
Monitoring and
Alerting
Operates application
and infrastructure
support function and
processes
Manages and operates IT
infrastructure, equipment
and communications
network
Takes over the support and
operation of new systems
and applications,
implements support
arrangements
Resolves recurring
problems to improve
support efficiency
5 November 2019 75
IT Function – Target Organisation Structure
• Use the generic structure as a basis to create a target IT
function structure
• Then identify the gaps between the current and target
structure
• The strategy can both identify the gaps and create a plan
for their remediation
5 November 2019 76
Status Heatmap Of Sub-Functions
IT Governance
Business
Relationship
and
Engagement
Service Lifecycle Management
Service and Solution Delivery Service Operations
IT Management
Business
Relationship
Management
Business
Analysis and
Consulting
Solution
Architecture
Demand
Management
Program and
Project
Management
IT Process and
Quality
Management
IT Resource
Management
Asset and
License
Management
Technology
Selection and
Management
Acquisition,
Sourcing and
Supplier
Management
Test
Management
Service
Planning
Operations
Management
IT Strategy
IT Enterprise
Architecture
management
IT Governance
and Leadership
IT Financial
Management
IT Service and
Sourcing
Strategy
IT Innovation
Management
IT Security
Management
Configuration
Management
Change
Management
Continuity and
Availability
Management
Capacity
Management
Service Level
Management
Release
Management
Service Catalog
Management
Takeover and Management
Operations
Co-ordination and Risk
Management
Support Function
Incident
Management
Service Request
Management
Problem Management
Facilities and Device Management
Monitoring and
Alerting
Solution Design, Development, Implementation
and Integration
Infrastructure and Communications
Implementation
Transition to
Production
Analysis Design Realisation Test
Service and Solution Support
Analysis Design Realisation Test
Service and Solution Support
Business
Readiness and
Organisation
Change
Infrastructure,
Networks
Management
Data,
Information,
Knowledge
Management
5 November 2019 77
View Of Status Of Sub-Functions
= Fully Implemented and Operational
= Partially Implemented and Operational
= Not Implemented and Operational
• Use this as a view of what areas you need to get better
at
• Match with importance to identify high priority
functions to address first
5 November 2019 78
Sample View - What IT Is Good At
IT Governance
Business
Relationship
and
Engagement
Service Lifecycle Management
Service and Solution Delivery Service Operations
IT Management
Business
Relationship
Management
Business
Analysis and
Consulting
Solution
Architecture
Demand
Management
Program and
Project
Management
IT Process and
Quality
Management
IT Resource
Management
Asset and
License
Management
Technology
Selection and
Management
Acquisition,
Sourcing and
Supplier
Management
Test
Management
Service
Planning
Operations
Management
IT Strategy
IT Enterprise
Architecture
management
IT Governance
and Leadership
IT Financial
Management
IT Service and
Sourcing
Strategy
IT Innovation
Management
IT Security
Management
Configuration
Management
Change
Management
Continuity and
Availability
Management
Capacity
Management
Service Level
Management
Release
Management
Service Catalog
Management
Takeover and Management
Operations
Co-ordination and Risk
Management
Support Function
Incident
Management
Service Request
Management
Problem Management
Facilities and Device Management
Monitoring and
Alerting
Solution Design, Development, Implementation
and Integration
Infrastructure and Communications
Implementation
Transition to
Production
Analysis Design Realisation Test
Service and Solution Support
Analysis Design Realisation Test
Service and Solution Support
Business
Readiness and
Organisation
Change
Infrastructure,
Networks
Management
Data,
Information,
Knowledge
Management
5 November 2019 79
Sample View - What IT Is Average At
IT Governance
Business
Relationship
and
Engagement
Service Lifecycle Management
Service and Solution Delivery Service Operations
IT Management
Business
Relationship
Management
Business
Analysis and
Consulting
Solution
Architecture
Demand
Management
Program and
Project
Management
IT Process and
Quality
Management
IT Resource
Management
Asset and
License
Management
Technology
Selection and
Management
Acquisition,
Sourcing and
Supplier
Management
Test
Management
Service
Planning
Operations
Management
IT Strategy
IT Enterprise
Architecture
management
IT Governance
and Leadership
IT Financial
Management
IT Service and
Sourcing
Strategy
IT Innovation
Management
IT Security
Management
Configuration
Management
Change
Management
Continuity and
Availability
Management
Capacity
Management
Service Level
Management
Release
Management
Service Catalog
Management
Takeover and Management
Operations
Co-ordination and Risk
Management
Support Function
Incident
Management
Service Request
Management
Problem Management
Facilities and Device Management
Monitoring and
Alerting
Solution Design, Development, Implementation
and Integration
Infrastructure and Communications
Implementation
Transition to
Production
Analysis Design Realisation Test
Service and Solution Support
Analysis Design Realisation Test
Service and Solution Support
Business
Readiness and
Organisation
Change
Infrastructure,
Networks
Management
Data,
Information,
Knowledge
Management
5 November 2019 80
Sample View - What IT Is Poor At
IT Governance
Business
Relationship
and
Engagement
Service Lifecycle Management
Service and Solution Delivery Service Operations
IT Management
Business
Relationship
Management
Business
Analysis and
Consulting
Solution
Architecture
Demand
Management
Program and
Project
Management
IT Process and
Quality
Management
IT Resource
Management
Asset and
License
Management
Technology
Selection and
Management
Acquisition,
Sourcing and
Supplier
Management
Test
Management
Service
Planning
Operations
Management
IT Strategy
IT Enterprise
Architecture
management
IT Governance
and Leadership
IT Financial
Management
IT Service and
Sourcing
Strategy
IT Innovation
Management
IT Security
Management
Configuration
Management
Change
Management
Continuity and
Availability
Management
Capacity
Management
Service Level
Management
Release
Management
Service Catalog
Management
Takeover and Management
Operations
Co-ordination and Risk
Management
Support Function
Incident
Management
Service Request
Management
Problem Management
Facilities and Device Management
Monitoring and
Alerting
Solution Design, Development, Implementation
and Integration
Infrastructure and Communications
Implementation
Transition to
Production
Analysis Design Realisation Test
Service and Solution Support
Analysis Design Realisation Test
Service and Solution Support
Business
Readiness and
Organisation
Change
Infrastructure,
Networks
Management
Data,
Information,
Knowledge
Management
5 November 2019 81
IT Function Structure – Planning To Address The
Gaps
One element of the IT strategy is both to
define the target structure, identify the
gaps between the current and target
structure and to define how to move from
the As-Is to the To-Be structure
5 November 2019 82
IT Function Roles And Staffing
5 November 2019 83
IT Function Roles And Staffing
• IT function must ultimately be operated by people with defined roles with
defined responsibilities at defined skill and experience levels
• Required roles and skills depend on:
− IT function structure and required capabilities and associated implementation and
operational processes
− Volume of work
− Approach to staffing and balance of permanent and contingent
− Budget available
• Look to use existing role definition frameworks to assist with structure,
staffing and role specification definition work to reduce effort
− Skills Framework for the Information Age (SFIA) - http://www.sfia-online.org/
• Three level model – category, sub-category, skill
− European e-Competence Framework (ECF) - http://www.ecompetences.eu/
• Five dimension model – area, competency, required proficiency, knowledge required, skills
− Use these frameworks to assist with matching skills to roles
− Frameworks contain detailed role specifications
− Adapt the frameworks to meet the organisation’s specific needs
− There is an overlap between these frameworks and the key IT function capabilities
covered earlier
5 November 2019 84
SFIA (Skills Framework For The Information Age)
• Seven skill levels for each role area:
1. Follow
2. Assist
3. Apply
4. Enable
5. Ensure, Advise
6. Initiate, Influence
7. Set Strategy, Inspire, Mobilise
• Five attributes used to classify
each skill level
1. Autonomy
2. Influence
3. Complexity
4. Knowledge
5. Business Skills
Skill Level Attributes
Autonomy Influence Complexity Knowledge Business Skills
Follow
Assist
Apply
Enable
Ensure, Advise
Initiate, Influence
Set Strategy, Inspire,
Mobilise
5 November 2019 85
SFIA – Levels 1 And 2
Strategy And Architecture
Information Strategy
Advice And Guidance
Business Strategy And Planning
Technical Strategy And Planning
Change And Transformation
Business Change Implementation
Business Change Management
Development And Implementation
Systems Development
User Experience
Installation And Integration
Delivery And Operation
Service Design
Service Transition
Service Operation
Skills And Quality
Skill Management
People Management
Quality And Conformance
Relationships And Engagement
Stakeholder Management
Sales And Marketing
5 November 2019 86
SFIA – Levels 1, 2 And 3
Strategy And
Architecture
Information
Strategy
Enterprise IT
Governance
Strategic
Planning
Information
Governance
Information
Systems
Coordination
Information
Security
Information
Assurance
Analytics
Data
Visualisation
Information
Content
Publishing
Advice And
Guidance
Consultancy
Specialist
Advice
Business
Strategy And
Planning
Demand
Management
IT
Management
Financial
Management
Innovation
Research
Business
Process
Improvement
Knowledge
Management
Enterprise
And Business
Architecture
Business Risk
Management
Sustainability
Technical
Strategy And
Planning
Emerging
Technology
Monitoring
Continuity
Management
Network
Planning
Solution
Architecture
Data
Management
Methods And
Tools
Change And
Transformatio
n
Business
Change
Implementati
on
Portfolio
Management
Programme
Management
Project
Management
Portfolio,
Programme
And Project
Support
Business
Change
Management
Business
Analysis
Business
Modelling
Requirements
Definition
And
Management
Organisationa
l Capability
Development
Organisation
Design And
Implementati
on
Change
Implementati
on Planning
And
Management
Business
Process
Testing
Benefits
Management
Development
And
Implementatio
n
Systems
Development
Systems
Development
Management
Systems
Design
Software
Design
Programming
/ Software
Development
Real-Time/
Embedded
Systems
Development
Animation
Development
Data
Modelling
And Design
Database
Design
Network
Design
Testing
Safety
Engineering
Information
Content
Authoring
User
Experience
User
Research
User
Experience
Analysis
User
Experience
Design
User
Experience
Evaluation
Installation
And
Integration
Systems
Integration
And Build
Porting/Soft
ware
Configuration
Hardware
Design
Systems
Installation/
Decommissio
ning
Delivery And
Operation
Service
Design
Availability
Management
Service Level
Management
Service
Transition
Service
Acceptance
Configuration
Management
Asset
Management
Change
Management
Release And
Deployment
Service
Operation
System
Software
Capacity
Management
Security
Administratio
n
Penetration
Testing
Radio
Frequency
Engineering
Application
Support
IT
Infrastructure
Database
Administratio
n
Storage
Management
Network
Support
Problem
Management
Incident
Management
Facilities
Management
Skills And
Quality
Skill
Management
Learning And
Development
Management
Competency
Assessment
Learning
Design And
Development
Learning
Delivery
Teaching And
Subject
Formation
People
Management
Performance
Management
Resourcing
Professional
Development
Quality And
Conformance
Quality
Management
Quality
Assurance
Measurement
Conformance
Review
Safety
Assessment
Digital
Forensics
Relationships
And
Engagement
Stakeholder
Management
Sourcing
Supplier
Management
Contract
Management
Relationship
Management
Customer
Service
Support
Sales And
Marketing
Marketing
Selling
Sales Support
Product
Management
5 November 2019 87
European e-Competence Framework (ECF)
• Five ECF dimensions:
1. Five high-level competency areas
2. 40 competencies within competency
areas
3. Required proficiency area for each
competency – five possible levels
1. Contributes, performs work and acts under
guidance
2. Acts systematically and organises work
3. Exploits specialist knowledge and applies
creativity and accounts for own and others
actions
4. Provides leadership and takes responsibility
and exploits wide ranging specialist
knowledge
5. Applies strategic thinking and organisational
leadership and makes strategic decisions
4. Knowledge required for competency
5. Skills required for competency
Dimension 1 –
Competency
Area
Dimension 2 -
Competency
Dimension 3 –
Competency
Proficiency Level
Dimension 4 –
Competency
Knowledge
Dimension 5 –
Competency
Skills
5 November 2019 88
European e-Competence Framework (ECF) –
Dimensions 1 And 2
ECF Framework
A. Plan
A.1. IS and Business
Strategy Alignment
A.2. Service Level
Management
A.3. Business Plan
Development
A.4. Product / Service
Planning
A.5. Architecture
Design
A.6. Application
Design
A.7. Technology
Trend Monitoring
A.8. Sustainable
Development
A.9. Innovating
B. Build
B.1. Application
Development
B.2. Component
Integration
B.3. Testing
B.4. Solution
Deployment
B.5. Documentation
Production
B.6. Systems
Engineering
C. Run
C.1. User Support
C.2. Change Support
C.3. Service Delivery
C.4. Problem
Management
D. Enable
D.1. Information
Security Strategy
Development
D.2. ICT Quality
Strategy
Development
D.3. Education and
Training Provision
D.4. Purchasing
D.5. Sales Proposal
Development
D.6. Channel
Management
D.7. Sales
Management
D.8. Contract
Management
D.9. Personnel
Development
D.10. Information
and Knowledge
Management
D.11. Needs
Identification
D.12. Digital
Marketing
E. Manage
E.1. Forecast
Development
E.2. Project and
Portfolio
Management
E.3. Risk
Management
E.4. Relationship
Management
E.5. Process
Improvement
E.6. ICT Quality
Management
E.7. Business Change
Management
E.8. Information
Security
Management
E.9. IS Governance
5 November 2019 89
ECF Example – Competency - IS and Business
Strategy Alignment – Dimensions 3 – 5
Dimension1–Area
Plan
Dimension2-Competency
IS and Business
Strategy Alignment
Dimension3–ApplicableCompetencyLevels
Level 4 - Provides
Leadership And Takes
Responsibility And
Exploits Wide Ranging
Specialist Knowledge
Level 5 - Applies Strategic
Thinking And
Organisational Leadership
And Makes Strategic
Decisions
Dimension4–CompetencyKnowledge
K1 - Business Strategy
Concepts
K2 - Trends And
Implications Of ICT Internal
Or External Developments
For Typical Organisations
K3 - The Potential And
Opportunities Of Relevant
Business Models
K4 - The Business Aims And
Organisational Objectives
K5 - The Issues And
Implications Of Sourcing
Models
K6 - The New Emerging
Technologies (e.g.
Distributed Systems,
Virtualisation, Mobility,
Data Sets)
K7 - Architectural
Frameworks
K8 - Security
Dimension5–CompetencySkills
S1 - Analyse Future Developments In
Business Process And Technology
Application
S2 - Determine Requirements For
Processes Related To ICT Services
S3 - Identify And Analyse Long Term User
/ Customer Needs
S4 - Contribute To The Development Of
ICT Strategy And Policy, Including ICT
Security And Quality
S5 - Contribute To The Development Of
The Business Strategy
S6 - Analyse Feasibility In Terms Of Costs
And Benefits
S7 - Review And Analyse Effects Of
Implementations
S8 - Understand The Impact Of New
Technologies On Business (e.g. Open /
Big Data, Dematerialisation
Opportunities And Strategies)
S9 - Understand The Business Benefits Of
New Technologies And How This Can Add
Value And Provide Competitive
Advantage (e.g. Open / Big Data,
Dematerialisation Opportunities And
Strategies)
S10 - Understand The Enterprise
Architecture
S11 - Understand The Legal and
Regulatory Landscape In Order To Factor
Into Business Requirements
5 November 2019 90
Skills Status Heatmap
Strategy And
Architecture
Information
Strategy
Enterprise IT
Governance
Strategic
Planning
Information
Governance
Information
Systems
Coordination
Information
Security
Information
Assurance
Analytics
Data
Visualisation
Information
Content
Publishing
Advice And
Guidance
Consultancy
Specialist
Advice
Business
Strategy And
Planning
Demand
Management
IT
Management
Financial
Management
Innovation
Research
Business
Process
Improvement
Knowledge
Management
Enterprise
And Business
Architecture
Business Risk
Management
Sustainability
Technical
Strategy And
Planning
Emerging
Technology
Monitoring
Continuity
Management
Network
Planning
Solution
Architecture
Data
Management
Methods And
Tools
Change And
Transformation
Business
Change
Implementati
on
Portfolio
Management
Programme
Management
Project
Management
Portfolio,
Programme
And Project
Support
Business
Change
Management
Business
Analysis
Business
Modelling
Requirements
Definition
And
Management
Organisationa
l Capability
Development
Organisation
Design And
Implementati
on
Change
Implementati
on Planning
And
Management
Business
Process
Testing
Benefits
Management
Development
And
Implementatio
n
Systems
Development
Systems
Development
Management
Systems
Design
Software
Design
Programming
/ Software
Development
Real-Time/
Embedded
Systems
Development
Animation
Development
Data
Modelling
And Design
Database
Design
Network
Design
Testing
Safety
Engineering
Information
Content
Authoring
User
Experience
User Research
User
Experience
Analysis
User
Experience
Design
User
Experience
Evaluation
Installation
And
Integration
Systems
Integration
And Build
Porting/Softw
are
Configuration
Hardware
Design
Systems
Installation/
Decommissio
ning
Delivery And
Operation
Service
Design
Availability
Management
Service Level
Management
Service
Transition
Service
Acceptance
Configuration
Management
Asset
Management
Change
Management
Release And
Deployment
Service
Operation
System
Software
Capacity
Management
Security
Administratio
n
Penetration
Testing
Radio
Frequency
Engineering
Application
Support
IT
Infrastructure
Database
Administratio
n
Storage
Management
Network
Support
Problem
Management
Incident
Management
Facilities
Management
Skills And
Quality
Skill
Management
Learning And
Development
Management
Competency
Assessment
Learning
Design And
Development
Learning
Delivery
Teaching And
Subject
Formation
People
Management
Performance
Management
Resourcing
Professional
Development
Quality And
Conformance
Quality
Management
Quality
Assurance
Measurement
Conformance
Review
Safety
Assessment
Digital
Forensics
Relationships
And
Engagement
Stakeholder
Management
Sourcing
Supplier
Management
Contract
Management
Relationship
Management
Customer
Service
Support
Sales And
Marketing
Marketing
Selling
Sales Support
Product
Management
5 November 2019 91
Skills Status Heatmap
• IT strategy should define the target personnel numbers across
the required skills levels
• Create a skills heatmap based on factor such as:
− Number of roles and skills levels required compared to actual numbers
and roles
− Relevance of role to the organisation
• Use this to identify the important roles to fill
• IT strategy should identify the staffing and skill level gaps and
define a plan to address them in the context of other strategy
elements:
− IT function structure
− Capabilities
− Operating model
5 November 2019 92
Creating The IT Strategy
5 November 2019 93
IT Strategy – Bringing The Static/Structural Elements
Together
Capabilities
IT Function Structure
Operating Model
Staffing And Roles
IT
Strategy
5 November 2019 94
IT Strategy – Identifying And Filling The Static/Structural Gaps
Capabilities
IT Function Structure
Operating Model
Staffing And RolesGaps
5 November 2019 95
Strategy Development – High-Level Steps
Direction– What Are We
Looking For? What Is The Scope?
How Much Change Can/Will Be
Tolerated? How Much Time Do
We Have?
Collection- Definition of
Scope and Collection of
Information on Current Situation
and Options Available
Collation- Aggregate,
Consolidate and Reconcile
Collected Information
Interpretation-
Analyse and Interpret
Information, Define And
Document Options, Make
Recommendations
Dissemination-
Distribute and Present Draft
Analysis, Incorporate Feedback,
Distribute and Present Final
Version
5 November 2019 96
Strategy Development – High-Level Steps
• Work cannot be done in isolation without referral to the
sponsor
• The strategy development process should be iterative –
interim results and conclusions should be presented
• Constant communication and adjustment is important
• Direction may change based on the information collected
and analysis generated
5 November 2019 97
IT Strategy And IT Value Chain
• The IT value chain is the set of activities and their supporting structures and
processes performed by the IT function to enable the business operate successfully
• The IT strategy should seek to explicitly define the IT value chain showing how the IT
function will work with the wider organisation to achieve business value
Information Technology Strategy
Information Technology Function
(IT Function Structure, Capabilities, Roles and Staffing, Operating Model)
Information Technology Governance
Information Technology Operations, Processes and Engagement
Provide
Information
Technology
Solutions
Optimise
Information
Technology
Operations
Engage
With and
Respond
to Business
Needs
Actively
Offer
Business
New
Solutions
Focus on
Delivering
Value
to the
Organisation
Enable
and
Support
Business
Outcomes
5 November 2019 98
IT Value Creation
Value Creation
3
Intermediate
High
Low
4
Advanced
2
Basic
5
Optimising
1
Initial
IT enables and drives business value creation and business
opportunities
IT is fully aligned with business strategy and anticipates business needs
IT focuses on business value creation
Value oriented IT management using various industry best practices
IT directly contributes to business value creation in some areas
IT turns toward focusing on business value creation, but is mostly
understood as service provider
IT mainly provides services allowing business to create value
IT focuses on delivering solutions for business needs, but not a value
creator on its own
IT disconnected from business value creation
IT is not an integral part of value creation
IT Value Contribution
Increasing
contribution
to business
value as the
IT
organisation
increases its
capabilities
and process
repeatability
Organisation must be able to translate
IT capabilities into business value contribution
5 November 2019 99
IT Strategy Creation Indicative Workplan
Information Technology
Strategy Creation
Start Information
Technology Strategy
Meet with Project
Sponsor
Develop Project
Definition and Scope
Identify Project Team
Define Project
Communications and
Reporting
Prepare Project Plan
and Arrange Logistics
Agree Timescale and
Deliverables
Agree Business
Engagement Approach
Assemble Project Team
Analyse Business
Situation
Review Business
Strategy
Conduct Interviews
with Business
Representatives
Create Preliminary
Business Strategy
Framework
Review Business
Posture
Analyse Business
Processes
Understand and Define
Required Specific IT
Initiatives
Align and Integrate
Business Strategy
Framework
Analyse IT Situation
Review Expenditure and
Develop Cost Model
Define Current IT
Function Structure
Define Current IT
Function Operating
Model
Define Current IT Roles
and Staffing
Define Current IT
Function Capabilities
Profile Suppliers
Review Technology
Posture
Characterise Existing
Governance Structure
and Management
Processes
Review Business User
Relationship with IT
Assess Current
Operating Environment
Review Best Practices
Identify Current Issues
and Gaps
Identify Business Plans
Identify Technology and
Industry Trends
Create Leverage Model
Determine Technology
Impact on Business
Strategy
Assess Portfolios and
Identify Opportunities
Develop Future Vision
Develop Vision for
Enterprise IT Domains
Develop Vision for IT
Business Area
Define Future IT
Function Operating
Model
Define Future IT
Function Operating
Model
Define Future IT
Function Structure
Define Future IT
Function Roles and
Staffing
Define Future IT
Function Capabilities
Define Specific IT
Initiatives
Assess Gaps, Evaluate
Options, and Analyse
Tradeoffs
Compare Current
Situation to Desired
Future State
Develop Change
Options
Group Change Options
into Scenarios and
Analyse Tradeoffs
Conclude Information
Technology Strategy
Conduct Executive
Tradeoff Review
Select Change Scenario
to Recommend
Document Strategy
Strategy Checklist
Review and Finalise
Strategic Plan
5 November 2019 100
IT Strategy Creation Workplan
• Seven phases with review gate at the end of each phase
• Structured approach with defined activities and tasks
Start Information
Technology Strategy
The project planning activities are the foundation for a successful Information Technology Strategy project. Once the organisation has accepted the Information
Technology Strategy approach, this activity produces the Project Definition that provides guidance for the project to go forward. After the Project Definition has been
accepted, the project manager plans the work in detail, completes the logistics arrangements and forms the team.
Analyse Business
Situation
The organisation’s business strategy and operating style are critical in determining the optimal IT strategy for an organisation. Understanding the business context
will help determine the appropriate level of investment, the required systems and technology infrastructure and the appropriate organisational structure and
relationship model to be employed. Alignment of all of these components with the business strategy is required for the IT function to be successful within a particular
business context.
Analyse IT Situation Develop an IT profile to understand and assess the current IT situation and underlying components. Vary the scope and the depth of assessment in each area
depending on the nature of the challenges being addressed during the Information Technology Strategy. This IT profile is used later in the gap analysis that compares
the current situation to the future-state model or to the "ideal" way to support business needs within constraints.
Assess Current
Operating Environment
Here the business and IT information is consolidated. The analysis of the current IT situation in conjunction with the business situation has provided enough
information to assess the situation and identify areas that are deficient or misaligned and therefore require change. As opportunities and capabilities are analysed,
additional understanding of areas already explored will be generated leading to update the outputs created in earlier activities.
Develop Future Vision The vision of the desired future IT condition consists of a set of prioritised IT business uses (the organisation’s IT demand portfolio for systems, information, and
technology) and a set of IT business area capabilities and processes (the IT operating model or supply portfolio) sufficient to deliver the high-priority business uses.
The Information Technology Strategy consists of the changes to the current supply and demand condition necessary to realise the vision. This definition of the
demand and supply portfolios may also suggest updates to the outputs created in earlier activities.
Assess Gaps, Evaluate
Options, and Analyse
Tradeoffs
Use the gathered information to evaluate how effectively the organisation's IT function can support the business direction. Consider strategies for gap closure, best
practices information, relative importance of closing particular gaps, and organisation culture. The evaluation of options and analysis of tradeoffs may also suggest
updates to work products created in earlier activities.
This is an iterative process that starts informally as other activities are being performed. The options are formally documented in this activity.
Few organisations can execute many simultaneous changes. Concentrate on the few high-leverage changes that are most likely to close the important gaps.
Conclude Information
Technology Strategy
The Information Technology Strategy project is concluded by reviewing tradeoffs among options, selecting the most favourable scenario and finalising the strategic
plan and the strategy report. The selection and documentation of the favoured scenario may also imply updates to outputs created in earlier activities.
5 November 2019 101
IT Strategy Checklist
5 November 2019 102
IT Strategy Scope
Static Components
Run The Business
Change The Business
IT Value Chain
Structural Elements
Capabilities List of Key Capabilities
IT Function Structure
Operating Model
Roles and Staffing
Structure
Skills and Abilities
Tools, Methodologies,
Techniques
Commitment and Value
Processes
Staffing And Roles
Organisation Change
Change Domains
Change Enablers and
Indicators
Dynamic Components
Specific Initiatives
Required To Achieve
Business Strategy
Generic Enabling
Initiatives
List of Key Initiatives
Specific Initiatives List of Key Initiatives
Implementation
Options and Plan
IT Strategy Checklist
• These are subjects that must be addressed within the IT
strategy
• Use the checklist to validate the topics have been
adequately and appropriately covered
5 November 2019 103
More Information
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney
https://www.amazon.com/dp/1797567616
5 November 2019 104

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Creating A Business Focussed Information Technology Strategy

  • 1. Creating A Business Focussed Information Technology Strategy Alan McSweeney http://ie.linkedin.com/in/alanmcsweeney https://www.amazon.com/dp/1797567616
  • 2. IT Strategy Needs To Be More Than Just A Collection of Buzzwords I Want An IT Strategy … And It Must Include The Internet of Things … … And Big Data … … And It Must Be Agile … … And Aligned … … And Innovative… … And Transformational … What About Cloud? And Artificial Intelligence And Machine Learning? And Blockchain? … And Digital … 5 November 2019 2
  • 3. Some Meaningless Slide About Classical Greek Military Terms • Originally strategy meant generalship • Tactics meant the organisation of military forces – taktikos - arranging and ordering • Strategoi (generals) could be punished, exiled or even executed for failure to use initiative, even if they succeeded in battle, by soldiers or the assembly * • How many information technology strategists face a similar fate? • How many Chief Information Officers and consultants are made drink hemlock if their IT strategy fails? * See Battle of Arginusae, 406 BC 5 November 2019 3
  • 4. Business And IT Disconnect – Each Speaks A Different Language I want: You need: Business IT You are not listening to me You are not listening to me 5 November 2019 4
  • 5. Business And IT View Of Technology • Business functions view information technologies as means to an end and not as ends in themselves • IT views technologies as solutions rather than as components of an overall business solution • IT technology trends are very variable and depend on the ever-changing new next best thing • Business view of the importance of technology application remains quite constant: − Security − Data − Delivery − Value − Data − Managing Suppliers 5 November 2019 5
  • 6. Business And IT Disconnect – Each Speaks A Different Language • The IT strategy is an opportunity to resolve this disconnection and to ensure the IT function is able to and does respond to business needs and is trusted by the business to provide IT solutions 5 November 2019 6
  • 7. IT Strategy And Business • Information technology is only a tool • To be effective, it must be tightly linked to the underlying organisation • Organisation strategy, the strategy for the use of IT in the organisation and the strategy for the delivery and support of IT are interdependent and must be brought into line for optimum operation • The challenges to accomplishing this alignment include the complexity and uncertainty in the business and the IT environments, alignment issues within the business itself, and the fit of IT with the business • To direct architecture definition and IT decisions, a vision for IT must be established • Management needs to be committed to this vision. 5 November 2019 7
  • 8. IT Strategy Objectives And Benefits • The Information Technology Strategy seeks to: − Align the priorities of IT with the priorities of the business − Ensure that IT is capable of fulfilling its role in the business − Align the characteristics of IT with those of the business • The Information Technology Strategy provides benefits to the organisation: − Supports active management and leadership on the use of IT to support the business strategy − Enhances management control over IT resources − Maximises the value contribution of IT by ensuring alignment of the IT strategy with the business strategy 5 November 2019 8
  • 9. IT Demand Drivers Business Trends, Goals and Needs are Driving Information and Technology Demands Create an integrated relationship with the business Be more responsive, a quicker time to service and solution implementation and operation Meet exacting service levels for critical services Innovate and leverage new technologies and capabilities Simplify and consolidate our legacy application portfolio Optimise and automate IT operation activities Mitigate (cyber) risks and security threats Better sourcing - correct mix of insourcing and outsourcing and better supplier management 5 November 2019 9
  • 10. Information Technology Demand And Supply • Demand Issues - what the business needs and wants from IT • IT portfolio alignment • Initiative identification and business strategy enablement • IT-enabled business invention • Demand rationalisation and prioritisation such as cost/benefit analyses and risk assessments • Speed of response and delivery • Security and risk management • Supply Issues - how the IT function has to operate to satisfy business demand • IT mission alignment • Cost and affordability constraints • Organisational positioning • IT governance and leadership • Core competencies and sourcing • Practical constraints 5 November 2019 10
  • 11. IT Strategy – Key Questions Why Do We Need An IT Strategy? • Business Drivers and Changes • Objectives • Scope • Desired Outcomes • Gaps/Problems/Inefficiencies • Capabilities What Needs Are We Looking To Fulfil? What Problems Are We Looking To Solve? What Opportunities Are We Looking to Address? • Business Needs and Opportunities • IT Function Needs • IT Function Issues, Problems and Gaps • IT Opportunities How Will The IT Strategy Address These Needs/Problems/Opportunities? • Capabilities • IT Function Structure • Operating Model • Staffing And Roles What Will We Do To Define and Implement The Strategy to Achieve The Identified Needs? • People • Skills and Abilities • Tools, Methodologies, Techniques • Measures • Processes • Commitment 5 November 2019 11
  • 12. IT Function and Business Strategy Feedback • The IT function can both respond to the business strategy and assist in the development of the business strategy by demonstrating the potential of IT to the business HowWhat How What Translate the What of business requirements into the How of technology and process Translate the What of new technologies into the How of the application to the business 5 November 2019 12
  • 13. IT Function As A Lens IT Function Needs to Mediate Between the Business and Suppliers/ Technologies/Delivery Acting as a Lens Focussing Business Needs On To Appropriate Solutions Business Objectives and Requirements Service Operations and Provision Technology Landscape Supplier Ecosystem Solution Delivery 5 November 2019 13
  • 14. IT Strategy • Develop IT strategy and architecture for the deployment and implementation, management and operation of IT solutions throughout the organisation in a cost- effective manner − Doing things better − Doing better things • Process of defining a strategy or direction and making decisions on allocating resources to pursue this strategy including capital and people • Create a blueprint that guides delivery of applications and information related to an organisation's activities • The end result is a Strategic IT Plan 5 November 2019 14
  • 15. IT Strategy Scope Checklist IT Strategy Scope Static Components Run The Business Change The Business IT Value Chain Structural Elements Capabilities List of Key Capabilities IT Function Structure Operating Model Roles and Staffing Structure Skills and Abilities Tools, Methodologies, Techniques Commitment and Value Processes Staffing And Roles Organisation Change Change Domains Change Enablers and Indicators Dynamic Components Specific Initiatives Required To Achieve Business Strategy Generic Enabling Initiatives List of Key Initiatives Specific Initiatives List of Key Initiatives Implementation Options and Plan 5 November 2019 15
  • 16. IT Strategy Scope Checklist • Scope checklist defines the possible subjects to analyse and define as part of the IT strategy engagement • Use the scope checklist to agree the topics to be covered • These items map to IT strategy elements described later 5 November 2019 16
  • 17. IT Strategy – Core Principles • Recommend that IT define a core set of principles/policies: − IT strategy will be developed and maintained in line with market analysis and key stakeholder requirements and IT strategy to be aligned with the organisation’s vision − IT delivers core services to cost and quality standards − IT as a function is controlled and compliant to industry standards − Security will be embedded in IT − IT enables flexible service delivery to users − IT supports business growth − IT supports and enables compliance in the wider organisation − IT budgets will be developed and maintained for new services or improved IT Services 5 November 2019 17
  • 18. Business And IT Strategy – Responding To Demands And Changes New Business Models Competition Service Focus and Customer Expectations Increased Pace of Change Increased Regulation Business and Technology Changes Business and Technology Changes Increased Pace of Change Assist With The Design of New Business Models Identify Technology Trends That Offer Opportunities or Represent Challenges Identify Opportunities for Efficiencies Translate Innovation into Business Solutions Support Business Solutions Business Objectives Business Operational Model IT Strategy Delivery IT Governance, Management , Support And Operations Business Strategy Business IT Strategy IT Function Strategy 5 November 2019 18
  • 19. IT Strategy In A Wider Organisation Context • IT strategy cannot be developed without reference to the overall business strategy • Its development is not a standalone activity • The IT strategy must reference the business strategy in order to formulate and implement the major goals and initiatives of the business and to respond to business demands and internal and external changes Business Objectives Business Operational Model IT Function Solution Implementation and Delivery Management And Operations Business Processes Required Operational Business Systems Business Strategy Solution Design/ Selection/ Sourcing Business IT Strategy IT Function Strategy IT Function Structure Required IT Operational Processes Required IT Infrastructure Business Systems Infrastructural Systems Design/ Selection/ Sourcing IT Function Resourcing and Management 5 November 2019 19
  • 20. IT Strategy In Context – Components And Linkages • Business Strategy – the business or organisation must create an overall strategy for its operations defining what it does and what it seeks to achieve. The business strategy provides the context in which all other activities take place. • Business Objectives – the business strategy is translated into a number of objectives that must be achieved in order to realise the business strategy. • Business Operational Model – an organisational structure and operating needs to be defined in order to achieve the defined set of objectives. • Business Processes – the operational business processes needed to actualise the achievement of the defined objectives must be defined and implemented. • Required Operational Business Systems – the set of business systems required to operate the previously identified and defined business processes are described. • Business IT Strategy – the organisation needs to define an overall information technology strategy that encompasses the solutions, systems and applications needed to operate the business processes. • IT Function Strategy – the organisation’s information technology function must define its own strategy to achieve the wider organisation’s business IT strategy. This must include the information technology function structures and business processes. • IT Function Structure, Capabilities, Operating Model, Approaches, Standards – the IT function designs its structure, operating model, the required capabilities and sets of standards and approaches in order to deliver the IT function strategy and the wider business IT strategy • IT Function Resourcing And Management – the IT function implements its structure and put in place the required resources and management • Required IT Operational Processes – the IT function agrees and defines the set of operational business processes need to operate • Required IT Infrastructure Business Systems – the set of internal infrastructural IT applications needed to implement the IT business processes are identified • Infrastructural Systems Design/Selection/Sourcing – the set of internal infrastructural IT applications are sourced • Solution Implementation And Delivery – the solutions are implemented and transitioned to production • Solution Design/Selection/Sourcing – the set of previously identified business solutions are sourced • Management And Operations – the implemented solutions are operated and managed in production 5 November 2019 20
  • 21. Core And Extended Activities Of An IT Strategy • Individual core and extended elements can be grouped into sets of actions, activities and functions Business Objectives Business Operational Model IT Function Solution Implementation and Delivery Management And Operations Business Processes Required Operational Business Systems Business Strategy Solution Design/ Selection/ Sourcing Business IT Strategy IT Function Strategy IT Function Structure Required IT Operational Processes Required IT Infrastructure Business Systems Infrastructural Systems Design/ Selection/ Sourcing IT Function Resourcing and Management 5 November 2019 21
  • 22. Core And Extended Groups Of Activities Of IT Strategy IT Strategy Implementation and IT Function Operations, Tools and Processes Business Processes and Business Solutions IT Function Structure and Operating Model Business Strategy and Objectives Business IT Strategy and IT Strategy • Individual core and extended elements can be grouped into sets of actions, activities and functions 5 November 2019 22
  • 23. Components Of IT Strategy • IT strategy will have a number of components • Static or structural changes to the IT function • Dynamic changes relating to initiatives, programmes or projects − Enabling/infrastructural/common initiatives − Specific business-lead initiatives IT Strategy Definition Static Components Structural Elements Dynamic Components Specific Initiatives Required To Achieve Business Strategy Generic Enabling Initiatives Specific Initiatives 5 November 2019 23
  • 24. Components Of IT Strategy IT Strategy Implementation and IT Function Operations, Tools and Processes Business Processes and Business Solutions IT Function Structure and Operating Model Business Strategy and Objectives Business IT Strategy and IT Strategy • This shows the context of the static and dynamic components of the IT strategy Specific Initiatives Generic Enabling Initiatives Structural Elements IT Strategy Definition 5 November 2019 24
  • 25. Staffing And Roles Operating Model Elements Of Static Component Of An IT Strategy • Structural Elements − Capabilities – skills and abilities the IT function should possess and be able to use effectively and efficiently − IT Function Structure – the organisation and arrangement of the sub-functions and their responsibilities and relationships − Operating Model – how the IT function work and delivers value and the processes it implements and operates − Staffing And Roles – the numbers of people, their roles, responsibilities, expected skills, experience and abilities, workload, reporting structures and expected ways of operating IT Function Structure Capabilities 5 November 2019 25
  • 26. Interrelationships Of Structural IT Strategy Elements IT Function Structure Capabilities Staffing And Roles Operating Model Staff Must Have Skills to Provide IT Function Capabilities Operating Model Defines How the Personnel Work and the Processes they Operate to Delivery Value IT Function Structure Must be Populated with Staff in Defined Roles Staff Must Have Skills to Provide IT Function Capabilities Operating Model Breathes Life into the Function Structure Operating Model Defines How Capabilities are Used 5 November 2019 26
  • 27. Interrelationships Of Structural IT Strategy Elements • The interrelationships between these elements show that the IT strategy must be developed as an entirety rather than individual elements be worked on • The resulting strategy and its implementation plan must also be taken together • The definition of these elements will assist in developing the subsequent strategy implementation plan 5 November 2019 27
  • 28. Specific Initiatives In IT Strategy • There will be two sets of specific initiatives to be incorporated into the IT strategy 1. General initiatives to improve the operation and efficiency of the IT function or that are shared across multiple business functions, such as: • Digital transformation • Supplier management • Business engagement and agile • Data transformation • Cloud transition and application replatforming • Process automation 2. Specific initiatives required to achieve the business strategy and objectives • Portfolio of specific programmes and initiatives 5 November 2019 28
  • 29. IT Strategy And Change • The design and implementation of the IT strategy will involve changes to the organisation: − Changes in the way the business and the IT function engage with each other − Changes in the way the IT function is structured and operated • The IT strategy is not developed in isolation − It must address how to transition the existing IT function structure and operating model to the target defined by the strategy − This transition will (need to) occur in stages 5 November 2019 29
  • 30. IT Strategy Implementation Stages And Steps Where We Are Now Where We Want To Be Improvement Leading To Better IT Outcomes Strategy Needs to Analyse and Define the Options for Transition Stage 1 Stage 2 Stage 3 Stage 4 5 November 2019 30
  • 31. Change Domains Of Organisation Or Business Function • These six core change domains are divided into two groups: those relating to the business and those relating to information technology • Business-Oriented Change Areas − Location and Offices – existing and new locations and facilities of the organisation, their types and functions and the principles that govern the selection of new locations − Business Processes – current and future business process definitions, requirements, characteristics, performance − Organisation and Structure – organisation resources and arrangement, business unit, function and team structures and composition, relationships, reporting and management, roles and skills • Technology-Oriented Change Areas − Technology, Infrastructure and Communications – current and future technical infrastructure including security, constraints, standards, technology trends, characteristics, performance requirements − Applications and Systems – current and future applications and systems, characteristics, constraints, assumptions, requirements, design principles, interface standards, connectivity to business processes − Information and Data – data and information architecture, data integration, master and reference data, data access and management, data security and privacy • These six core change domains affect the organisation or business function • There is a seventh change domain for changes that occur outside the organisation such as the external business landscape that the organisation must react to Domains of Organisation Change Location and Offices Business Processes Technology, Infrastructure and Communications Applications and Systems Information and Data Organisation and Structure 5 November 2019 31
  • 32. Extended Change Domain • In addition to the core change domains, there is an extended change domain involving the operating landscape outside the scope of the business function • This involves those external parties that interact with the business function – other business functions, partners, suppliers, customers – the impact on them from changes to the organisation Domains of Organisation Change Location and Offices Business Processes Technology, Infrastructure and Communications Applications and Systems Information and Data Organisation and Structure Organisation Operating Environment and Business Landscape 5 November 2019 32
  • 33. Change Domains • Change domain model can be used to assist with the definition of the scope of the: − Business strategy − Overall organisation IT strategy − IT function IT strategy − IT function operating model • The failure to manage the human side of changes relating to the IT strategy can be a major contributor to the reasons why IT strategies fail 5 November 2019 33
  • 34. Change Enablers And Indicators Employees at all levels are encouraged and lead to develop and share the skills and knowledge to work in new ways Capabilities Employees throughout the IT function are willing to embrace new ways to think, behave, and perform Commitment Employees at all levels are involved in change and share information and information is shared with them in a timely manner Communication The work environment and the employee values and behaviours can adapt to new situations and encourage employee performance Culture The IT function leadership team is aligned with the overall direction of the business and is engaged in driving behaviours and practices to achieve change Leadership Organisational structures including roles, responsibilities and relationships are designed to support organisational flexibility and performance Structure Processes, incentives and management practices recognise, reward and reinforce the achievement of goals and the demonstration of good behaviours Performance 5 November 2019 34
  • 35. Change Enablers And Indicators • Being good at change means being good at the enablers of change • Assessing how good you are at each change enabler is an indicator of how good you will be at achieving change • You need to honestly assess how good you are at these change enablers and to get better at the ones where you are lacking 5 November 2019 35
  • 36. Change Enablers And Indicators Assessment Employees at all levels are encouraged and lead to develop and share the skills and knowledge to work in new ways Capabilities Employees throughout the IT function are willing to embrace new ways to think, behave, and perform Commitment Employees at all levels are involved in change and share information and information is shared with them in a timely manner Communication The work environment and the employee values and behaviours can adapt to new situations and encourage employee performance Culture The IT function leadership team is aligned with the overall direction of the business and is engaged in driving behaviours and practices to achieve change Leadership Organisational structures including roles, responsibilities and relationships are designed to support organisational flexibility and performance Structure Processes, incentives and management practices recognise, reward and reinforce the achievement of goals and the demonstration of good behaviours Performance 5 November 2019 36
  • 37. Interrelated Business And IT Strategies • There are three interrelated strategies affected by the organisation core change domain model 1. Business Strategy • Defines the strategic goals, imperatives and initiatives to direct the business • Business strategy is the principal driver of IT strategy • IT strategy is developed to support the business strategy • IT can also provide opportunities to reshape the business strategy 2. Organisation IT Strategy • Defines the strategic direction of information technology within the organisation required to support and achieve business strategy. 3. IT Business Function IT Strategy • Defines the strategic direction of the IT function to develop, deploy, operate, manage and support the IT systems needed by the business • Includes processes and supporting technology 5 November 2019 37
  • 38. Two IT Strategies • There will be two IT strategies that will comprise the overall IT strategy, each with different sets of organisation changes: 1. Overall Organisation IT Strategy – how the organisation will use IT to achieve its objectives 2. Internal IT Function IT Strategy – what the IT function will do and how it will structure itself to deliver on the wider overall organisation IT strategy IT Function IT Strategy Locations and Offices Systems and Applications Business Processes Technology Organisation Information and Data 5 November 2019 38
  • 39. Change Profiles Of Interrelated Strategies IT Function IT Strategy Locations and Offices Systems and Applications Business Processes Technology Organisation Information and Data Organisation IT Strategy Locations and Offices Systems and Applications Business Processes Technology Organisation Information and Data Business Strategy Locations and Offices Systems and Applications Business Processes Technology Organisation Information and Data Focus of change is on the business- related areas Focus of change is on the technology- related areas Changes are needed across all areas 5 November 2019 39
  • 40. IT Function Operating Model 5 November 2019 40
  • 41. IT Function Operating Model • The IT function operating model is concerned with: − The internal structure and operation of the IT function − How the IT function delivers business value • How it will achieve its internal strategy and so how it will assist with the delivery of the wider organisation IT strategy and ultimately the business strategy • The operating model can be complex and so should be divided into its constituent components, showing their interactions • The implementation of the operating model will change in response to internal and external pressures − So the operating model must be able to accommodate appropriate change 5 November 2019 41
  • 42. Activities Of The IT Function • Doing – Run The Business − Business as usual activities (BAU) related to administering and operating production IT systems and providing service to users • Managing The Doing – Run The Business − Managing the BAU function and its service delivery • Doing – Change the Business − Implementing projects and delivering new services and systems • Managing The Doing – Change The Business − Managing the projects and associated changes Change The Business Run the Business Doing Managing The Doing 5 November 2019 42
  • 43. Activities Of The IT Function • Not all activities are of equal weight • Balance between activities and required resources and expenditure depends on many factors: − Maturity of IT function and organisation − Level of change − Historical legacy of under or over investment in IT − Growth profile − Market changes • However, Run The Business will always dominate IT resources and activities • But Change The Business activities get disproportionately large and undeserved attention to the detriment of Run The Business activities • The IT strategy cannot ignore the Run The Business/Business As Usual activities of the IT function 5 November 2019 43
  • 44. Average Relative Balance Of Resources And Cost Across Activity Areas • The actual balance between Run The Business and Change The Business activities will differ for every organisation • The operating model defined in the IT strategy needs to ensure that it reflects the correct balance of activities − IT strategy is not all about change − It is mostly about ensuring existing operations are efficient and effective Doing – Run The Business Doing – Change the Business Managing The Doing– Change The Business Managing The Doing – Run The Business 5 November 2019 44
  • 45. Activities Across Doing And Managing The Doing Focus on architecture and design aspects of existing services Focus on architecture, design, selection, development and delivery aspects of new projects and services Focus on management processes associated with the operation and delivery of existing services Focus on management processes associated with the architecture, design, selection, development and delivery aspects of new projects and services Existing Programmes, Projects and Services New Programmes, Projects and Services Focus on the prerequisites and foundations for strategy, architecture and design across IT function and solution lifecycle Focus on the prerequisite and foundation management processes across IT function and solution lifecycle Fundamental Organisational Requirements DOING MANAGINGTHEDOING 5 November 2019 45
  • 46. IT Function Pillars • Architecture and Realisation (“Doing”) − Strategy − Design − Development − Implementation • Management and Processes (“Managing the Doing”) − Business Change − Programmes − Projects − Operations IT Function Pillars Architecture and Realisation Vision and Strategy Architecture Development, Customisation and Configuration Implementation and Deployment Operation and Control Management and Processes Enterprise Management Programme and Portfolio Management Project Management Service Management Architecture Management 5 November 2019 46
  • 47. Architecture And Realisation Pillar • Vision and Strategy − Creates the business vision defines the direction for subsequent information technology initiatives − Internal and external requirements and processes are analysed − Allows prioritisation of the business and information system areas that will addressed in subsequent stages − Ensures that all further work is aligned with the vision and strategy • Architecture − Designed to translate the Vision and Strategy into an implementable, operable and supportable structure − Architecture can encompass both enterprise and specific solution areas − Scope, requirements and functionality of the business processes and the associated information systems are specified − Architecture is concerned with both business and information technology in parallel − Constituent projects and changes to deliver the architecture are identified • Development, Customisation and Configuration − Selects, designs, builds, customises and tests the elements of the solution − Includes some or all of customised development, package customisation and system enhancement. − Development activities related to business change and technical infrastructure are addressed • Implementation and Deployment − Takes the solution components and creates a fully operable system, complete with data and business process changes − Includes integration testing, pilot, data conversion documented procedures, training, and operational readiness and acceptance • Operation and Control − Creates and implements practices for ensuring defined service levels for the operation, maintenance, and support of the new or modified systems 5 November 2019 47
  • 48. Management And Processes Pillar • Enterprise Management − Involves establishing business objectives, monitoring achievement against targets and making necessary corrections • Programme and Portfolio Management − Directs and manages programmes and portfolios of initiatives and undertakings offerings to balance benefits, costs, resources and risks in a strategic context and ensuring benefits realisation − Establish the competency within an organisation to provide this service internally or manage its provision by external agents • Project Management − Concentrates on the effective and efficient processes required to identify, coordinate, and continuously focus people and resources on achieving project objectives and commitment within time, cost, resource and quality controls − Enables organisations to deliver both the simple and complex initiatives and to perform projects capably • Service Management − Controls and manages the operational services phases of the overall initiative life cycle − Service request management handles requests from users − Manages their fulfilment and includes logging, performing initial analysis, monitoring, prioritising, measuring, and closing − Service delivery management directs and manages services to ensure that the end-user receives the agreed service • Architecture Management − Concerned with the business, technical, and operational procedures and processes needed to ensure and maintain integrated enterprise and solution architecture during the implementation of the solution and its subsequent operation 5 November 2019 48
  • 49. Mapping Doing And Managing The Doing Pillars To The Functional Activities • Two high-level views of IT function structure 1. Doing/ Managing the Doing 2. Architecture and Realisation/ Management and Processes 1. This represents a summary view of the structure of the IT function IT Function Pillars Architecture and Realisation Vision and Strategy Architecture Development, Customisation and Configuration Implementation and Deployment Operation and Control Management and Processes Enterprise Management Programme and Portfolio Management Project Management Service Management Architecture Management Fundamental Processes and Competencies Implementation of New Projects and Services Operation of Existing Services 5 November 2019 49
  • 50. IT Function Operating Model • The size and structure of the IT function operating model depends on the expected workload and its profile – existing operations and new services • Operating model includes service delivery model and business engagement model • There is considerable overlap between the design and specification of the operating model and the other structural elements of the IT strategy 5 November 2019 50
  • 51. Dimensions Of Operating Model – 1 Structure How the Function is Organised To Operate and Where the Roles and Capabilities Will Reside Roles and Staffing What Roles Will Exist Within the Function Structure with the Required Capabilities 5 November 2019 51
  • 52. Dimensions Of Operating Model – 2 Commitment and Value End-to-end Implementation and Operation From Request To Response to Deliver Results and Create Value and Measure Delivery Tools, Methodologies, Techniques Tools and Skills and Experience in Their Use to Perform Work 5 November 2019 52
  • 53. Structure Dimensions Of Operating Model • Six dimensions to the core IT function operating model 1. Roles and Staffing 2. Structure 3. Skills and Abilities 4. Tools, Methodologies, Techniques 5. Processes 6. Commitment and Value • Together these combine to form a complete view of the target operating model + = Commitment and Value Tools, Methodologies, Techniques Roles and Staffing 5 November 2019 53
  • 54. Interconnected Aspects Of Operating Model • The IT function operating model will be a combination of a structure with capabilities implemented and operated consistently by repeatable processes and filled by people with roles using tools, techniques and methodologies to perform the required workload in order to deliver on and measure commitments and generate value for the organisation IT Function Operatin g Model Roles and Staffing Structure Capabilities Tools, Methodologi es, Techniques Commitment and Value Processes 5 November 2019 54
  • 55. Interconnected Aspects Of Operating Model Structure Capabilities Will Be Operated Through Defined Processes Personnel Will Have Skills to Deliver Capabilities Personnel Will Operate Within Structure Processes Will Be Supported By Tools Personnel Will Use Tools and Methodologies Processes Roles and Staffing Commitment and Value Tools, Methodologies, Techniques Skills and Abilities Personnel Will Operate Processes Commitment Will Use Processes to Deliver and Measure Value Personnel Will Deliver Value Capabilities Will Be Embedded in Structure Methodologies Will Support The Delivery of Value Skills and Abilities Will Enable The Delivery of Value 5 November 2019 55
  • 56. Target Operating Model Gaps • There will be gaps between the current and target operating model • The IT strategy must define the target operating model and how to move from the current to the target IT Function Operating Model Roles and Staffing Structure Capabilities Tools, Methodologies, Techniques Commitment and Value Processes IT Function Operating Model Roles and Staffing Structure Capabilities Tools, Methodologies, Techniques Commitment and Value Processes = Size of Gap 5 November 2019 56
  • 57. Core And Extended Operating Model • Extended operating model is the context in which the IT function operates − Interactions with other business units − Interactions with external partners and customers − Interactions with suppliers • These are sources of demands on the IT function • IT function operating model must embed capabilities, skills, people and processes to handle this extended operating environment IT Function Operating Model Roles and Staffing Structure Capabilities Tools, Methodologies, Techniques Commitment and Value Processes Partners and Customers Other Business Units Suppliers 5 November 2019 57
  • 58. Strategy And Its Implementation • The IT strategy and its implementation cannot be separated • The IT strategy must be implementable, operable, maintainable, supportable and successfully deliver benefits to the IT function and the wider business 5 November 2019 58
  • 59. IT Function Capabilities 5 November 2019 59
  • 60. IT Function Capabilities And Areas of Competence • Key areas where the IT function needs to maintain significant levels of competence, skill and experience and practise • General sets of skills required of the IT function • Transcend specific technical and technology skills and trends − Technology change is a constant • It is about having the overarching skills to handle change, adopt suitable and appropriate new technologies and deliver a service and value to the underlying business • Not all activity areas require all the key capabilities • Use this to identify what is important for your IT function based on your current and desired/necessary activity profile • Quantify gaps in your skills levels in competence areas • Use this to define programme of improvement and increased capability 5 November 2019 60
  • 61. IT Function Capabilities And Areas Of Competence • This is just one view of the required capabilities of the IT function • These capabilities will be closely related to the initiatives contained in the IT strategy 1. IT Leadership and Governance 2. Strategic and Business Planning 3. Demand and Supply Management, Capacity Forecasting and Planning 4. Sourcing and Supplier Management, Acquisition, Procurement 5. Innovation 6. Accounting, Funding, Financing, Budgeting and Planning 7. Programme Management, Portfolio Management, Project Management 8. Relationship Management and Business Engagement 9. Organisation Design and Planning 10. Enterprise Architecture 11. Infrastructure, Networks and Communication 12. Business and Process Analysis 13. Solution Architecture and Design 14. Benefits Assessment and Realisation 15. Service Provisioning, Service Delivery and Service Management 16. Testing 17. Security, Continuity and Disaster Recovery 18. Solution Development and Delivery 19. People Asset Management 20. Knowledge Asset Management 21. User Experience Design 22. Change and Change Management What the IT function needs to be good at: 5 November 2019 61
  • 62. IT Capabilities By Doing/Managing The Doing Activity Area Capability Doing Managing the Doing Run The Business Change The Business Run The Business Change The Business IT Leadership and Governance l l Strategic and Business Planning l l Demand and Supply Management, Capacity Forecasting and Planning l l l l Sourcing and Supplier Management, Acquisition, Procurement l l l l Innovation l l l l Accounting, Funding, Financing, Budgeting and Planning l l l l Programme Management, Portfolio Management, Project Management l l l l Relationship Management and Business Engagement l l Organisation Design and Planning l l Enterprise Architecture l l Infrastructure, Networks, Cloud Architectures and Communications l l Business and Process Analysis and Design l l Solution Architecture and Design l l Benefits Assessment and Realisation l l Service Provisioning, Service Delivery and Service Management l l Testing l l Security, Continuity and Disaster Recovery l l Solution Development and Delivery l People Asset Management l l l l Data, Information, Knowledge Asset Management l l l l User Experience Design l Change and Change Management l l l l 5 November 2019 62
  • 63. IT Function Capabilities And Areas Of Competence • Use current levels of competence and importance of competency across all activity areas to identify those areas at which getting better will yield the greatest return • Classify by − Importance − Current Skill Level − Improvement Benefit if Skill Improved • Targeted investment of resources • Get good at what matters • Get the biggest bang for your buck Capabilities To Target For Improvement 5 November 2019 63
  • 64. IT Function Structure 5 November 2019 64
  • 65. Generic Structure Of An IT Function • The following describes a generalised and idealised view of the structure, organisation and set of logical sub-functions within an IT function • Organisational view rather than capability view − Capabilities must ultimately reside in or across sub-functions • Actual optimum implementation depends on the size and profile of the organisation • Not all sub-functions relevant to all organisations • Not all sub-functions have the same importance for all organisations • Not all sub-functions are at the same level of operational effectiveness for all organisations • Logical sub-functions can be combined or split further • A model that explicitly includes proactive linkage to the business and the delivery of business requirements 5 November 2019 65
  • 66. IT Function - Generic Logical Organisation Structure IT Governance Business Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Business Relationship Management Business Analysis and Consulting Solution Architecture Demand Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Technology Selection and Management Acquisition, Sourcing and Supplier Management Test Management Service Planning Operations Management IT Strategy IT Enterprise Architecture management IT Governance and Leadership IT Financial Management IT Service and Sourcing Strategy IT Innovation Management IT Security Management Configuration and Asset Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management Service Catalog Management Takeover and Management Operations Co-ordination and Risk Management Support Function Incident Management Service Request Management Problem Management Facilities and Device Management Monitoring and Alerting Solution Design, Development, Implementation and Integration Infrastructure and Communications Implementation Transition to Production Analysis Design Realisation Test Service and Solution Support Analysis Design Realisation Test Service and Solution Support Business Readiness and Organisation Change Infrastructure, Networks Management Data, Information, Knowledge Management 5 November 2019 66
  • 67. External IT And Business Alignment IT GovernanceBusiness Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Business-facing sub-functions 5 November 2019 67
  • 68. Internal IT And Business Alignment IT GovernanceBusiness Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Business-facing sub-functions mediate between business and technology and service delivery and operation 5 November 2019 68
  • 69. IT Function Structure And Alignment IT GovernanceBusiness Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Alignment is not just about being aligned at the Business Relationship and Engagement and IT Governance levels Alignment means following through throughout the IT function 5 November 2019 69
  • 70. IT Governance Sub-Functions IT Governance IT Strategy IT Enterprise Architecture management IT Governance and Leadership IT Financial Management IT Service and Sourcing Strategy IT Innovation Management IT Security Management Defines strategy for IT function for both the IT function and how IT delivers on the overall business strategy Manages the definition and maintenance of overall enterprise IT architecture including systems and application standards and operational framework Implements IT governance and maintains leadership of the IT function Manages the process for defining how services and solutions should be acquired and managed Manages IT application and infrastructure security standards Manages the process for bringing new ideas to an appropriate implementation to generate value Manages the IT budget, finances, financial reporting and control standards, cost-benefit analysis 5 November 2019 70
  • 71. Business Relationship and Engagement Sub- Functions Business Relationship and Engagement Business Relationship Management Business Analysis and Consulting Solution Architecture Demand Management Manages the relationship with the business and escalations , the identification of work, helps the business navigate IT processes and acts as the voice of the business to IT Offers business analysis and consulting services to translate business needs into a structured set of requirements to enable the business understand its needs Defines business-oriented solutions based on structured business requirements that comply with IT delivery and operational standards Manages the demand from the business for resources and ensures the business can accommodate the associated change Business Readiness and Organisation Change Ensures the organisation is ready and able to accept the changes required of new or changed application 5 November 2019 71
  • 72. IT Management Sub-Functions Manages the IT operation Plans for the introduction of new services Manages data, defines data standards Manages IT infrastructure Manages delivery of programs and projects, manages standards and ensures consistency Ensures quality of IT processes Manages IT people resources, induction, training, development, standards Manages IT assets and software licenses IT Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Technology Selection and Management Acquisition, Sourcing and Supplier Management Test Management Service Planning Operations Management Infrastructure, Networks Management Data, Information, Knowledge Management Manages process for selecting suitable technologies Manages and implements service and supplier acquisition Manages testing 5 November 2019 72
  • 73. Service Lifecycle Management Sub-Functions Service Lifecycle Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management Service Catalog Management Ensures capacity of IT assets Manages and implements release to production process Implements and manages network of service level agreements Manages business continuity, disaster recovery and system and application availability Manages catalog of IT services Manages configuration of installed assets Manages the delivery of change 5 November 2019 73
  • 74. Service and Solution Delivery Sub-Functions Service and Solution Delivery Solution Design, Development, Implementation and Integration Infrastructure and Communications Implementation Transition to Production Analysis Design Realisation Test Service and Solution Support Analysis Design Realisation Test Service and Solution Support Transitions new systems and changes to production and manages handover to support, ensures new systems are operable and supportable Implements support arrangements for new services and solutions Designs, develops and implements new solutions and changes and ensures integration with existing systems Designs, develops and implements IT infrastructure and communications networks 5 November 2019 74
  • 75. Service Operations Sub-Functions Service Operations Takeover and Management Operations Co-ordination and Risk Management Support Function Incident Management Service Request Management Problem Management Facilities and Device Management Monitoring and Alerting Operates application and infrastructure support function and processes Manages and operates IT infrastructure, equipment and communications network Takes over the support and operation of new systems and applications, implements support arrangements Resolves recurring problems to improve support efficiency 5 November 2019 75
  • 76. IT Function – Target Organisation Structure • Use the generic structure as a basis to create a target IT function structure • Then identify the gaps between the current and target structure • The strategy can both identify the gaps and create a plan for their remediation 5 November 2019 76
  • 77. Status Heatmap Of Sub-Functions IT Governance Business Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Business Relationship Management Business Analysis and Consulting Solution Architecture Demand Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Technology Selection and Management Acquisition, Sourcing and Supplier Management Test Management Service Planning Operations Management IT Strategy IT Enterprise Architecture management IT Governance and Leadership IT Financial Management IT Service and Sourcing Strategy IT Innovation Management IT Security Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management Service Catalog Management Takeover and Management Operations Co-ordination and Risk Management Support Function Incident Management Service Request Management Problem Management Facilities and Device Management Monitoring and Alerting Solution Design, Development, Implementation and Integration Infrastructure and Communications Implementation Transition to Production Analysis Design Realisation Test Service and Solution Support Analysis Design Realisation Test Service and Solution Support Business Readiness and Organisation Change Infrastructure, Networks Management Data, Information, Knowledge Management 5 November 2019 77
  • 78. View Of Status Of Sub-Functions = Fully Implemented and Operational = Partially Implemented and Operational = Not Implemented and Operational • Use this as a view of what areas you need to get better at • Match with importance to identify high priority functions to address first 5 November 2019 78
  • 79. Sample View - What IT Is Good At IT Governance Business Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Business Relationship Management Business Analysis and Consulting Solution Architecture Demand Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Technology Selection and Management Acquisition, Sourcing and Supplier Management Test Management Service Planning Operations Management IT Strategy IT Enterprise Architecture management IT Governance and Leadership IT Financial Management IT Service and Sourcing Strategy IT Innovation Management IT Security Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management Service Catalog Management Takeover and Management Operations Co-ordination and Risk Management Support Function Incident Management Service Request Management Problem Management Facilities and Device Management Monitoring and Alerting Solution Design, Development, Implementation and Integration Infrastructure and Communications Implementation Transition to Production Analysis Design Realisation Test Service and Solution Support Analysis Design Realisation Test Service and Solution Support Business Readiness and Organisation Change Infrastructure, Networks Management Data, Information, Knowledge Management 5 November 2019 79
  • 80. Sample View - What IT Is Average At IT Governance Business Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Business Relationship Management Business Analysis and Consulting Solution Architecture Demand Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Technology Selection and Management Acquisition, Sourcing and Supplier Management Test Management Service Planning Operations Management IT Strategy IT Enterprise Architecture management IT Governance and Leadership IT Financial Management IT Service and Sourcing Strategy IT Innovation Management IT Security Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management Service Catalog Management Takeover and Management Operations Co-ordination and Risk Management Support Function Incident Management Service Request Management Problem Management Facilities and Device Management Monitoring and Alerting Solution Design, Development, Implementation and Integration Infrastructure and Communications Implementation Transition to Production Analysis Design Realisation Test Service and Solution Support Analysis Design Realisation Test Service and Solution Support Business Readiness and Organisation Change Infrastructure, Networks Management Data, Information, Knowledge Management 5 November 2019 80
  • 81. Sample View - What IT Is Poor At IT Governance Business Relationship and Engagement Service Lifecycle Management Service and Solution Delivery Service Operations IT Management Business Relationship Management Business Analysis and Consulting Solution Architecture Demand Management Program and Project Management IT Process and Quality Management IT Resource Management Asset and License Management Technology Selection and Management Acquisition, Sourcing and Supplier Management Test Management Service Planning Operations Management IT Strategy IT Enterprise Architecture management IT Governance and Leadership IT Financial Management IT Service and Sourcing Strategy IT Innovation Management IT Security Management Configuration Management Change Management Continuity and Availability Management Capacity Management Service Level Management Release Management Service Catalog Management Takeover and Management Operations Co-ordination and Risk Management Support Function Incident Management Service Request Management Problem Management Facilities and Device Management Monitoring and Alerting Solution Design, Development, Implementation and Integration Infrastructure and Communications Implementation Transition to Production Analysis Design Realisation Test Service and Solution Support Analysis Design Realisation Test Service and Solution Support Business Readiness and Organisation Change Infrastructure, Networks Management Data, Information, Knowledge Management 5 November 2019 81
  • 82. IT Function Structure – Planning To Address The Gaps One element of the IT strategy is both to define the target structure, identify the gaps between the current and target structure and to define how to move from the As-Is to the To-Be structure 5 November 2019 82
  • 83. IT Function Roles And Staffing 5 November 2019 83
  • 84. IT Function Roles And Staffing • IT function must ultimately be operated by people with defined roles with defined responsibilities at defined skill and experience levels • Required roles and skills depend on: − IT function structure and required capabilities and associated implementation and operational processes − Volume of work − Approach to staffing and balance of permanent and contingent − Budget available • Look to use existing role definition frameworks to assist with structure, staffing and role specification definition work to reduce effort − Skills Framework for the Information Age (SFIA) - http://www.sfia-online.org/ • Three level model – category, sub-category, skill − European e-Competence Framework (ECF) - http://www.ecompetences.eu/ • Five dimension model – area, competency, required proficiency, knowledge required, skills − Use these frameworks to assist with matching skills to roles − Frameworks contain detailed role specifications − Adapt the frameworks to meet the organisation’s specific needs − There is an overlap between these frameworks and the key IT function capabilities covered earlier 5 November 2019 84
  • 85. SFIA (Skills Framework For The Information Age) • Seven skill levels for each role area: 1. Follow 2. Assist 3. Apply 4. Enable 5. Ensure, Advise 6. Initiate, Influence 7. Set Strategy, Inspire, Mobilise • Five attributes used to classify each skill level 1. Autonomy 2. Influence 3. Complexity 4. Knowledge 5. Business Skills Skill Level Attributes Autonomy Influence Complexity Knowledge Business Skills Follow Assist Apply Enable Ensure, Advise Initiate, Influence Set Strategy, Inspire, Mobilise 5 November 2019 85
  • 86. SFIA – Levels 1 And 2 Strategy And Architecture Information Strategy Advice And Guidance Business Strategy And Planning Technical Strategy And Planning Change And Transformation Business Change Implementation Business Change Management Development And Implementation Systems Development User Experience Installation And Integration Delivery And Operation Service Design Service Transition Service Operation Skills And Quality Skill Management People Management Quality And Conformance Relationships And Engagement Stakeholder Management Sales And Marketing 5 November 2019 86
  • 87. SFIA – Levels 1, 2 And 3 Strategy And Architecture Information Strategy Enterprise IT Governance Strategic Planning Information Governance Information Systems Coordination Information Security Information Assurance Analytics Data Visualisation Information Content Publishing Advice And Guidance Consultancy Specialist Advice Business Strategy And Planning Demand Management IT Management Financial Management Innovation Research Business Process Improvement Knowledge Management Enterprise And Business Architecture Business Risk Management Sustainability Technical Strategy And Planning Emerging Technology Monitoring Continuity Management Network Planning Solution Architecture Data Management Methods And Tools Change And Transformatio n Business Change Implementati on Portfolio Management Programme Management Project Management Portfolio, Programme And Project Support Business Change Management Business Analysis Business Modelling Requirements Definition And Management Organisationa l Capability Development Organisation Design And Implementati on Change Implementati on Planning And Management Business Process Testing Benefits Management Development And Implementatio n Systems Development Systems Development Management Systems Design Software Design Programming / Software Development Real-Time/ Embedded Systems Development Animation Development Data Modelling And Design Database Design Network Design Testing Safety Engineering Information Content Authoring User Experience User Research User Experience Analysis User Experience Design User Experience Evaluation Installation And Integration Systems Integration And Build Porting/Soft ware Configuration Hardware Design Systems Installation/ Decommissio ning Delivery And Operation Service Design Availability Management Service Level Management Service Transition Service Acceptance Configuration Management Asset Management Change Management Release And Deployment Service Operation System Software Capacity Management Security Administratio n Penetration Testing Radio Frequency Engineering Application Support IT Infrastructure Database Administratio n Storage Management Network Support Problem Management Incident Management Facilities Management Skills And Quality Skill Management Learning And Development Management Competency Assessment Learning Design And Development Learning Delivery Teaching And Subject Formation People Management Performance Management Resourcing Professional Development Quality And Conformance Quality Management Quality Assurance Measurement Conformance Review Safety Assessment Digital Forensics Relationships And Engagement Stakeholder Management Sourcing Supplier Management Contract Management Relationship Management Customer Service Support Sales And Marketing Marketing Selling Sales Support Product Management 5 November 2019 87
  • 88. European e-Competence Framework (ECF) • Five ECF dimensions: 1. Five high-level competency areas 2. 40 competencies within competency areas 3. Required proficiency area for each competency – five possible levels 1. Contributes, performs work and acts under guidance 2. Acts systematically and organises work 3. Exploits specialist knowledge and applies creativity and accounts for own and others actions 4. Provides leadership and takes responsibility and exploits wide ranging specialist knowledge 5. Applies strategic thinking and organisational leadership and makes strategic decisions 4. Knowledge required for competency 5. Skills required for competency Dimension 1 – Competency Area Dimension 2 - Competency Dimension 3 – Competency Proficiency Level Dimension 4 – Competency Knowledge Dimension 5 – Competency Skills 5 November 2019 88
  • 89. European e-Competence Framework (ECF) – Dimensions 1 And 2 ECF Framework A. Plan A.1. IS and Business Strategy Alignment A.2. Service Level Management A.3. Business Plan Development A.4. Product / Service Planning A.5. Architecture Design A.6. Application Design A.7. Technology Trend Monitoring A.8. Sustainable Development A.9. Innovating B. Build B.1. Application Development B.2. Component Integration B.3. Testing B.4. Solution Deployment B.5. Documentation Production B.6. Systems Engineering C. Run C.1. User Support C.2. Change Support C.3. Service Delivery C.4. Problem Management D. Enable D.1. Information Security Strategy Development D.2. ICT Quality Strategy Development D.3. Education and Training Provision D.4. Purchasing D.5. Sales Proposal Development D.6. Channel Management D.7. Sales Management D.8. Contract Management D.9. Personnel Development D.10. Information and Knowledge Management D.11. Needs Identification D.12. Digital Marketing E. Manage E.1. Forecast Development E.2. Project and Portfolio Management E.3. Risk Management E.4. Relationship Management E.5. Process Improvement E.6. ICT Quality Management E.7. Business Change Management E.8. Information Security Management E.9. IS Governance 5 November 2019 89
  • 90. ECF Example – Competency - IS and Business Strategy Alignment – Dimensions 3 – 5 Dimension1–Area Plan Dimension2-Competency IS and Business Strategy Alignment Dimension3–ApplicableCompetencyLevels Level 4 - Provides Leadership And Takes Responsibility And Exploits Wide Ranging Specialist Knowledge Level 5 - Applies Strategic Thinking And Organisational Leadership And Makes Strategic Decisions Dimension4–CompetencyKnowledge K1 - Business Strategy Concepts K2 - Trends And Implications Of ICT Internal Or External Developments For Typical Organisations K3 - The Potential And Opportunities Of Relevant Business Models K4 - The Business Aims And Organisational Objectives K5 - The Issues And Implications Of Sourcing Models K6 - The New Emerging Technologies (e.g. Distributed Systems, Virtualisation, Mobility, Data Sets) K7 - Architectural Frameworks K8 - Security Dimension5–CompetencySkills S1 - Analyse Future Developments In Business Process And Technology Application S2 - Determine Requirements For Processes Related To ICT Services S3 - Identify And Analyse Long Term User / Customer Needs S4 - Contribute To The Development Of ICT Strategy And Policy, Including ICT Security And Quality S5 - Contribute To The Development Of The Business Strategy S6 - Analyse Feasibility In Terms Of Costs And Benefits S7 - Review And Analyse Effects Of Implementations S8 - Understand The Impact Of New Technologies On Business (e.g. Open / Big Data, Dematerialisation Opportunities And Strategies) S9 - Understand The Business Benefits Of New Technologies And How This Can Add Value And Provide Competitive Advantage (e.g. Open / Big Data, Dematerialisation Opportunities And Strategies) S10 - Understand The Enterprise Architecture S11 - Understand The Legal and Regulatory Landscape In Order To Factor Into Business Requirements 5 November 2019 90
  • 91. Skills Status Heatmap Strategy And Architecture Information Strategy Enterprise IT Governance Strategic Planning Information Governance Information Systems Coordination Information Security Information Assurance Analytics Data Visualisation Information Content Publishing Advice And Guidance Consultancy Specialist Advice Business Strategy And Planning Demand Management IT Management Financial Management Innovation Research Business Process Improvement Knowledge Management Enterprise And Business Architecture Business Risk Management Sustainability Technical Strategy And Planning Emerging Technology Monitoring Continuity Management Network Planning Solution Architecture Data Management Methods And Tools Change And Transformation Business Change Implementati on Portfolio Management Programme Management Project Management Portfolio, Programme And Project Support Business Change Management Business Analysis Business Modelling Requirements Definition And Management Organisationa l Capability Development Organisation Design And Implementati on Change Implementati on Planning And Management Business Process Testing Benefits Management Development And Implementatio n Systems Development Systems Development Management Systems Design Software Design Programming / Software Development Real-Time/ Embedded Systems Development Animation Development Data Modelling And Design Database Design Network Design Testing Safety Engineering Information Content Authoring User Experience User Research User Experience Analysis User Experience Design User Experience Evaluation Installation And Integration Systems Integration And Build Porting/Softw are Configuration Hardware Design Systems Installation/ Decommissio ning Delivery And Operation Service Design Availability Management Service Level Management Service Transition Service Acceptance Configuration Management Asset Management Change Management Release And Deployment Service Operation System Software Capacity Management Security Administratio n Penetration Testing Radio Frequency Engineering Application Support IT Infrastructure Database Administratio n Storage Management Network Support Problem Management Incident Management Facilities Management Skills And Quality Skill Management Learning And Development Management Competency Assessment Learning Design And Development Learning Delivery Teaching And Subject Formation People Management Performance Management Resourcing Professional Development Quality And Conformance Quality Management Quality Assurance Measurement Conformance Review Safety Assessment Digital Forensics Relationships And Engagement Stakeholder Management Sourcing Supplier Management Contract Management Relationship Management Customer Service Support Sales And Marketing Marketing Selling Sales Support Product Management 5 November 2019 91
  • 92. Skills Status Heatmap • IT strategy should define the target personnel numbers across the required skills levels • Create a skills heatmap based on factor such as: − Number of roles and skills levels required compared to actual numbers and roles − Relevance of role to the organisation • Use this to identify the important roles to fill • IT strategy should identify the staffing and skill level gaps and define a plan to address them in the context of other strategy elements: − IT function structure − Capabilities − Operating model 5 November 2019 92
  • 93. Creating The IT Strategy 5 November 2019 93
  • 94. IT Strategy – Bringing The Static/Structural Elements Together Capabilities IT Function Structure Operating Model Staffing And Roles IT Strategy 5 November 2019 94
  • 95. IT Strategy – Identifying And Filling The Static/Structural Gaps Capabilities IT Function Structure Operating Model Staffing And RolesGaps 5 November 2019 95
  • 96. Strategy Development – High-Level Steps Direction– What Are We Looking For? What Is The Scope? How Much Change Can/Will Be Tolerated? How Much Time Do We Have? Collection- Definition of Scope and Collection of Information on Current Situation and Options Available Collation- Aggregate, Consolidate and Reconcile Collected Information Interpretation- Analyse and Interpret Information, Define And Document Options, Make Recommendations Dissemination- Distribute and Present Draft Analysis, Incorporate Feedback, Distribute and Present Final Version 5 November 2019 96
  • 97. Strategy Development – High-Level Steps • Work cannot be done in isolation without referral to the sponsor • The strategy development process should be iterative – interim results and conclusions should be presented • Constant communication and adjustment is important • Direction may change based on the information collected and analysis generated 5 November 2019 97
  • 98. IT Strategy And IT Value Chain • The IT value chain is the set of activities and their supporting structures and processes performed by the IT function to enable the business operate successfully • The IT strategy should seek to explicitly define the IT value chain showing how the IT function will work with the wider organisation to achieve business value Information Technology Strategy Information Technology Function (IT Function Structure, Capabilities, Roles and Staffing, Operating Model) Information Technology Governance Information Technology Operations, Processes and Engagement Provide Information Technology Solutions Optimise Information Technology Operations Engage With and Respond to Business Needs Actively Offer Business New Solutions Focus on Delivering Value to the Organisation Enable and Support Business Outcomes 5 November 2019 98
  • 99. IT Value Creation Value Creation 3 Intermediate High Low 4 Advanced 2 Basic 5 Optimising 1 Initial IT enables and drives business value creation and business opportunities IT is fully aligned with business strategy and anticipates business needs IT focuses on business value creation Value oriented IT management using various industry best practices IT directly contributes to business value creation in some areas IT turns toward focusing on business value creation, but is mostly understood as service provider IT mainly provides services allowing business to create value IT focuses on delivering solutions for business needs, but not a value creator on its own IT disconnected from business value creation IT is not an integral part of value creation IT Value Contribution Increasing contribution to business value as the IT organisation increases its capabilities and process repeatability Organisation must be able to translate IT capabilities into business value contribution 5 November 2019 99
  • 100. IT Strategy Creation Indicative Workplan Information Technology Strategy Creation Start Information Technology Strategy Meet with Project Sponsor Develop Project Definition and Scope Identify Project Team Define Project Communications and Reporting Prepare Project Plan and Arrange Logistics Agree Timescale and Deliverables Agree Business Engagement Approach Assemble Project Team Analyse Business Situation Review Business Strategy Conduct Interviews with Business Representatives Create Preliminary Business Strategy Framework Review Business Posture Analyse Business Processes Understand and Define Required Specific IT Initiatives Align and Integrate Business Strategy Framework Analyse IT Situation Review Expenditure and Develop Cost Model Define Current IT Function Structure Define Current IT Function Operating Model Define Current IT Roles and Staffing Define Current IT Function Capabilities Profile Suppliers Review Technology Posture Characterise Existing Governance Structure and Management Processes Review Business User Relationship with IT Assess Current Operating Environment Review Best Practices Identify Current Issues and Gaps Identify Business Plans Identify Technology and Industry Trends Create Leverage Model Determine Technology Impact on Business Strategy Assess Portfolios and Identify Opportunities Develop Future Vision Develop Vision for Enterprise IT Domains Develop Vision for IT Business Area Define Future IT Function Operating Model Define Future IT Function Operating Model Define Future IT Function Structure Define Future IT Function Roles and Staffing Define Future IT Function Capabilities Define Specific IT Initiatives Assess Gaps, Evaluate Options, and Analyse Tradeoffs Compare Current Situation to Desired Future State Develop Change Options Group Change Options into Scenarios and Analyse Tradeoffs Conclude Information Technology Strategy Conduct Executive Tradeoff Review Select Change Scenario to Recommend Document Strategy Strategy Checklist Review and Finalise Strategic Plan 5 November 2019 100
  • 101. IT Strategy Creation Workplan • Seven phases with review gate at the end of each phase • Structured approach with defined activities and tasks Start Information Technology Strategy The project planning activities are the foundation for a successful Information Technology Strategy project. Once the organisation has accepted the Information Technology Strategy approach, this activity produces the Project Definition that provides guidance for the project to go forward. After the Project Definition has been accepted, the project manager plans the work in detail, completes the logistics arrangements and forms the team. Analyse Business Situation The organisation’s business strategy and operating style are critical in determining the optimal IT strategy for an organisation. Understanding the business context will help determine the appropriate level of investment, the required systems and technology infrastructure and the appropriate organisational structure and relationship model to be employed. Alignment of all of these components with the business strategy is required for the IT function to be successful within a particular business context. Analyse IT Situation Develop an IT profile to understand and assess the current IT situation and underlying components. Vary the scope and the depth of assessment in each area depending on the nature of the challenges being addressed during the Information Technology Strategy. This IT profile is used later in the gap analysis that compares the current situation to the future-state model or to the "ideal" way to support business needs within constraints. Assess Current Operating Environment Here the business and IT information is consolidated. The analysis of the current IT situation in conjunction with the business situation has provided enough information to assess the situation and identify areas that are deficient or misaligned and therefore require change. As opportunities and capabilities are analysed, additional understanding of areas already explored will be generated leading to update the outputs created in earlier activities. Develop Future Vision The vision of the desired future IT condition consists of a set of prioritised IT business uses (the organisation’s IT demand portfolio for systems, information, and technology) and a set of IT business area capabilities and processes (the IT operating model or supply portfolio) sufficient to deliver the high-priority business uses. The Information Technology Strategy consists of the changes to the current supply and demand condition necessary to realise the vision. This definition of the demand and supply portfolios may also suggest updates to the outputs created in earlier activities. Assess Gaps, Evaluate Options, and Analyse Tradeoffs Use the gathered information to evaluate how effectively the organisation's IT function can support the business direction. Consider strategies for gap closure, best practices information, relative importance of closing particular gaps, and organisation culture. The evaluation of options and analysis of tradeoffs may also suggest updates to work products created in earlier activities. This is an iterative process that starts informally as other activities are being performed. The options are formally documented in this activity. Few organisations can execute many simultaneous changes. Concentrate on the few high-leverage changes that are most likely to close the important gaps. Conclude Information Technology Strategy The Information Technology Strategy project is concluded by reviewing tradeoffs among options, selecting the most favourable scenario and finalising the strategic plan and the strategy report. The selection and documentation of the favoured scenario may also imply updates to outputs created in earlier activities. 5 November 2019 101
  • 102. IT Strategy Checklist 5 November 2019 102 IT Strategy Scope Static Components Run The Business Change The Business IT Value Chain Structural Elements Capabilities List of Key Capabilities IT Function Structure Operating Model Roles and Staffing Structure Skills and Abilities Tools, Methodologies, Techniques Commitment and Value Processes Staffing And Roles Organisation Change Change Domains Change Enablers and Indicators Dynamic Components Specific Initiatives Required To Achieve Business Strategy Generic Enabling Initiatives List of Key Initiatives Specific Initiatives List of Key Initiatives Implementation Options and Plan
  • 103. IT Strategy Checklist • These are subjects that must be addressed within the IT strategy • Use the checklist to validate the topics have been adequately and appropriately covered 5 November 2019 103