Despite years of emphasising the need for IT and business alignment, the disconnect between business and IT continues. IT focuses too much of pure technology. However, business expectations cam be unrealistic, based on part on IT not explaining itself to the business. IT technology trends are not relevant the business. The business is concerned with the results of investment in IT and sees technology as means to an end and not as ends in themselves. IT needs to structure itself so alignment pervades the entire IT function. IT must embed business alignment in the way it operates to ensure it remains relevant to the business. IT needs to mediate between the business and suppliers and technologies, acting as a lens focussing business needs on appropriate solutions. The gulf is between business and IT seems to be getting wider. Failure to ensure this alignment may lead to the business bypassing IT and going straight to suppliers and service providers. Disintermediation of IT is central to the business plans of many internet-based service providers. Failure to systematise alignment will expose IT to the danger of becoming irrelevant.

1. Don’t Mention The “A”
Word – Trends In Continuing
Business And IT
Misalignment
Alan McSweeney

2. Business View Of IT Trends Vs. IT View Of Trends
•
AICPA – Survey of members from 2001 on initiatives in IT
that are of concern to their nearly 400,000 members
− http://www.aicpa.org/INTERESTAREAS/INFORMATIONTECHNOLO
GY/RESOURCES/TOPTECHNOLOGYINITIATIVES/TOP10TECHNOLO
GIESARCHIVE
Gartner – well known analyst company
• Two very different views of information technology trends
•
− Business-oriented
− Technology-oriented
•
IT tends to be concerned with technology trends for
themselves rather than their application to business –
internal focus
January 27, 2014
2

3. Business And IT Disconnect – Speaking A Different
Language
Business
You are not
listening to
me
I want:
January 27, 2014
You are not
listening to
me
IT
You need:
3

4. AICPA IT Initiatives Survey 2011-2013 Results
2013
Managing And Retaining Data
1
2
3
4
5
6
7
8
9
10
2012
2011
Securing The IT Environment
Control And Use Of Mobile
Devices
Securing The IT Environment
Managing And Retaining Data
Information Security
Managing Vendors And Service
Managing Risk And
Data Retention Policies And
Providers
Compliance
Structure
Managing IT Risks And Compliance
Ensuring Privacy
Remote Access
Ensuring Privacy
Leveraging Emerging
Staff And Management
Technologies
Training
Managing System Implementations
Managing System
Process Documentation And
Implementation
Improvements
Preventing And Responding To
Enabling Decision Support And Saving And Making Money
Computer Fraud
Managing Performance
W/Technology
Governing And Managing IT Investment Governing And Managing IT
Technology Cost Controls
And Spending
Investment/Spending
Enabling Decision Support And
Preventing And Responding To
Budget Processes
Analytics
Fraud
Leveraging Emerging Technologies Managing Vendors And Service
Project Management &
Providers
Deployment Of New Systems
January 27, 2014
4

5. Gartner View of IT Trends 2009-2014
2014
2013
2012
2011
Media Tablets and
Cloud Computing Cloud Computing
1 Mobile Device Battles
Beyond
2
Mobile Applications
and HTML5
3
Personal Cloud
4 Enterprise App Stores
5 The Internet of Things
6
Hybrid IT and Cloud
Computing
7
Strategic Big Data
8
Actionable Analytics
9
In Memory
Computing
10
Integrated
Ecosystems
January 27, 2014
2010
2009
Virtualization
Green IT
Mobile-Centric
Mobile
Advanced
Applications and Applications and
Cloud Computing
Analytics
Interfaces
Media Tablets
Social
Contextual and
Servers — Beyond
Social User
Communications Client Computing
Blades
Experience
and Collaboration
Web-Oriented
Internet of Things
Video
IT for Green
Architectures
App Stores and Next Generation
Reshaping the
Enterprise
Marketplaces
Analytics
Data Center
Mashups
Next-Generation
Specialized
Social Analytics Social Computing
Analytics
Systems
Social Software
In-Memory
Context-Aware Security – Activity
and Social
Computing
Computing
Monitoring
Networking
Storage Class
Unified
Big Data
Flash Memory
Memory
Communications
Extreme LowUbiquitous
Virtualization for
Business
Energy Servers
Computing
Availability
Intelligence
Fabric-Based
Mobile
Cloud Computing Infrastructure and
Green IT
Applications
Computers
Unified
Communications
Business Process
Modeling
Metadata
Management
Virtualization 2.0
Mashup &
Composite Apps
Web Platform &
WOA
Computing Fabric
Real World Web
Social Software
5

6. Business And IT View Of Technology
•
•
•
•
Business views 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 everchanging new next best thing
Business view of the importance of technology application remains
quite constant:
−
−
−
−
−
−
Security
Data
Delivery
Value
Data
Managing Suppliers
January 27, 2014
6

7. AICPA Top 10 IT Initiatives 2005-2013
2013
2012
1
Managing And
Retaining Data
Securing The IT
Environment
2
Securing The IT
Environment
Managing And
Retaining Data
Information
Security
3
Managing
Vendors And
Service Providers
Managing Risk
And Compliance
Data Retention
Policies And
Structure
4
Managing IT Risks
Ensuring Privacy
And Compliance
Remote Access
Leveraging
Emerging
Technologies
2011
Control And Use
Security Of Data
Of Mobile Devices
Staff And
Management
Training
5
Ensuring Privacy
6
Managing System Managing System
Implementations Implementation
7
Preventing And
Responding To
Computer Fraud
8
Governing And
Managing IT
Investment And
Spending
9
Enabling Decision
Support And
Analytics
Preventing And
Responding To
Fraud
Budget Processes
10
Leveraging
Emerging
Technologies
Managing
Vendors And
Service Providers
Project
Management &
Deployment Of
New Systems
January 27, 2014
2010
Process
Documentation
And
Improvements
Enabling Decision
Saving And
Support And
Making Money
Managing
W/Technology
Performance
Governing And
Technology Cost
Managing IT
Controls
Investment/
Spending
Connectivity and
Communications
2009
2008
2008
Information
Security
Management
Information
Security
Management
Privacy
Management
IT Governance
Information
Security
Management
Identity And
Access
Management
Business
Conforming To
Backup, Disaster Secure Data File
Continuity
Assurance And
Storage,
Recovery/
Management And
Compliance
Transmission And
Business
Disaster Recovery
Standards
Exchange
Continuity
Planning
Business Process
Improvement,
Privacy
Privacy
Secure Electronic
Work Flow And
Management
Management
Collaboration
Process Exception
Alerts
Business Process Disaster Recovery
Planning And
Improvement,
Mobile And
Document
Business
Workflow And
Remote
Management and
Continuity
Process Exception
Computing
Workflow
Management
Alerts
2006
2005
Information
Security
Information
Security
Assurance And
Compliance
Applications
Electronic
Document
Management
Disaster And
Business
Continuity
Planning
Data Integration
IT Governance
Spam Technology
Privacy
Management
Disaster Recovery
Collaboration And
Messaging
Technologies
Laptop Security /
Encryption
Training And
Competency
Identity And
Access
Management
IT Governance
Digital Identity
And
Authentication
Technologies
Small Business
Software
Identity And
Access
Management
Conforming To
Assurance And
Compliance
Standards
Securing And
Controlling
Information
Distribution
Wireless
Technologies
Wireless
Technologies
Mobile Devices
Improved
Application And
Data Integration
Business
Intelligence
Mobile And
Remote
Computing
Application And
Data Integration
Authentication
Technologies
Tax Software
Document, Forms,
Content And
Knowledge
Management
Mobile And
Remote
Computing
Electronic
Archiving And
Data Retention
Paperless Digital
Technologies
Storage
Technologies
Document, Forms,
Content And
Knowledge
Management
Document,
Content And
Knowledge
Management
Spyware Detection
And Removal
Learning And
Training
Competency
Server
Electronic Data
Virtualization And
Retention Strategy
Consolidation
7

8. Importance of Security, Privacy, Continuity
2013
2012
1
Managing And
Retaining Data
Securing The IT
Environment
2
Securing The IT
Environment
Managing And
Retaining Data
Information
Security
3
Managing
Vendors And
Service Providers
Managing Risk
And Compliance
Data Retention
Policies And
Structure
4
Managing IT Risks
Ensuring Privacy
And Compliance
Remote Access
5
Ensuring Privacy
6
Managing System Managing System
Implementations Implementation
7
Preventing And
Responding To
Computer Fraud
8
Governing And
Managing IT
Investment And
Spending
9
Enabling Decision
Support And
Analytics
Preventing And
Responding To
Fraud
Budget Processes
10
Leveraging
Emerging
Technologies
Managing
Vendors And
Service Providers
Project
Management &
Deployment Of
New Systems
January 27, 2014
Leveraging
Emerging
Technologies
2011
2010
Control And Use
Security Of Data
Of Mobile Devices
Staff And
Management
Training
Process
Documentation
And
Improvements
Enabling Decision
Saving And
Support And
Making Money
Managing
W/Technology
Performance
Governing And
Technology Cost
Managing IT
Controls
Investment/
Spending
Connectivity and
Communications
2009
2008
2008
Information
Security
Management
Information
Security
Management
Privacy
Management
IT Governance
Information
Security
Management
Identity And
Access
Management
Business
Backup, Disaster Secure Data File
Conforming To
Continuity
Recovery/
Assurance And
Storage,
Management And
Business
Compliance
Transmission And
Disaster Recovery
Continuity
Standards
Exchange
Planning
Business Process
Improvement,
Secure Electronic
Privacy
Privacy
Work Flow And
Collaboration
Management
Management
Process Exception
Alerts
Business Process Disaster Recovery
Improvement,
Planning And
Mobile And
Document
Workflow And
Business
Remote
Management and
Process Exception
Continuity
Computing
Workflow
Alerts
Management
2006
2005
Information
Security
Information
Security
Assurance And
Compliance
Applications
Electronic
Document
Management
Disaster And
Business
Continuity
Planning
Data Integration
IT Governance
Spam Technology
Privacy
Management
Disaster Recovery
Collaboration And
Messaging
Technologies
Laptop Security /
Encryption
Training And
Competency
Identity And
Access
Management
IT Governance
Digital Identity
And
Authentication
Technologies
Small Business
Software
Identity And
Access
Management
Conforming To
Assurance And
Compliance
Standards
Securing And
Controlling
Information
Distribution
Wireless
Technologies
Wireless
Technologies
Mobile Devices
Improved
Application And
Data Integration
Business
Intelligence
Mobile And
Remote
Computing
Application And
Data Integration
Authentication
Technologies
Tax Software
Document, Forms,
Content And
Knowledge
Management
Mobile And
Remote
Computing
Electronic
Archiving And
Data Retention
Paperless Digital
Technologies
Storage
Technologies
Document, Forms,
Content And
Knowledge
Management
Document,
Content And
Knowledge
Management
Spyware Detection
And Removal
Learning And
Training
Competency
Server
Electronic Data
Virtualization And
Retention Strategy
Consolidation
8

9. Importance of Data
2013
2012
1
Managing And
Retaining Data
Securing The IT
Environment
2
Securing The IT
Environment
Managing And
Retaining Data
Information
Security
3
Managing
Vendors And
Service Providers
Managing Risk
And Compliance
Data Retention
Policies And
Structure
4
Managing IT Risks
Ensuring Privacy
And Compliance
Remote Access
Leveraging
Emerging
Technologies
5
Ensuring Privacy
6
Managing System Managing System
Implementations Implementation
7
Preventing And
Responding To
Computer Fraud
8
Governing And
Managing IT
Investment And
Spending
9
Enabling Decision
Support And
Analytics
Preventing And
Responding To
Fraud
10
Leveraging
Emerging
Technologies
Managing
Vendors And
Service Providers
January 27, 2014
2011
2010
Control And Use
Security Of Data
Of Mobile Devices
Staff And
Management
Training
Connectivity and
Communications
2009
2008
2008
Information
Security
Management
Information
Security
Management
Privacy
Management
IT Governance
Information
Security
Management
Identity And
Access
Management
Business
Backup, Disaster Secure Data File
Conforming To
Continuity
Recovery/
Storage,
Assurance And
Management And
Business
Transmission And
Compliance
Disaster Recovery
Continuity
Exchange
Standards
Planning
Business Process
Improvement,
Privacy
Privacy
Secure Electronic
Work Flow And
Management
Management
Collaboration
Process Exception
Alerts
Business Process Disaster Recovery
Planning And
Document
Improvement,
Mobile And
Business
Management and
Workflow And
Remote
Continuity
Workflow
Process Exception
Computing
Management
Alerts
2006
2005
Information
Security
Information
Security
Assurance And
Compliance
Applications
Electronic
Document
Management
Disaster And
Business
Continuity
Planning
Data Integration
IT Governance
Spam Technology
Privacy
Management
Disaster Recovery
Collaboration And
Messaging
Technologies
Laptop Security /
Encryption
Training And
Competency
Identity And
Access
Management
IT Governance
Digital Identity
And
Authentication
Technologies
Small Business
Software
Identity And
Access
Management
Conforming To
Assurance And
Compliance
Standards
Securing And
Controlling
Information
Distribution
Wireless
Technologies
Wireless
Technologies
Mobile Devices
Improved
Application And
Data Integration
Business
Intelligence
Mobile And
Remote
Computing
Application And
Data Integration
Authentication
Technologies
Budget Processes
Tax Software
Document, Forms,
Content And
Knowledge
Management
Mobile And
Remote
Computing
Electronic
Archiving And
Data Retention
Paperless Digital
Technologies
Storage
Technologies
Project
Management &
Deployment Of
New Systems
Server
Virtualization And
Consolidation
Electronic Data
Retention
Strategy
Document, Forms,
Content And
Knowledge
Management
Document,
Content And
Knowledge
Management
Spyware Detection
And Removal
Learning And
Training
Competency
Process
Documentation
And
Improvements
Enabling Decision
Saving And
Support And
Making Money
Managing
W/Technology
Performance
Governing And
Technology Cost
Managing IT
Controls
Investment/
Spending
9

10. Importance of Cost and Implementation
2013
2012
1
Managing And
Retaining Data
Securing The IT
Environment
2
Securing The IT
Environment
Managing And
Retaining Data
2011
Control And Use
Security Of Data
Of Mobile Devices
Information
Security
3
Managing
Managing Risk
Vendors And
And Compliance
Service Providers
Data Retention
Policies And
Structure
4
Managing IT Risks
Ensuring Privacy
And Compliance
Remote Access
5
6
7
8
Ensuring Privacy
Leveraging
Emerging
Technologies
Managing System Managing System
Implementations Implementation
Staff And
Management
Training
Process
Documentation
And
Improvements
Enabling Decision
Saving And
Support And
Making Money
Managing
W/Technology
Performance
Governing And
Governing And
Technology Cost
Managing IT
Managing IT
Controls
Investment/
Investment And
Spending
Spending
Preventing And
Responding To
Computer Fraud
9
Enabling Decision
Support And
Analytics
Preventing And
Responding To
Fraud
10
Leveraging
Emerging
Technologies
Managing
Vendors And
Service Providers
January 27, 2014
2010
Budget Processes
Connectivity and
Communications
2009
2008
2008
Information
Security
Management
Information
Security
Management
Privacy
Management
IT Governance
Information
Security
Management
Identity And
Access
Management
Business
Conforming To
Backup, Disaster Secure Data File
Continuity
Assurance And
Storage,
Recovery/
Management And
Compliance
Transmission And
Business
Disaster Recovery
Standards
Exchange
Continuity
Planning
Business Process
Improvement,
Privacy
Privacy
Secure Electronic
Work Flow And
Management
Management
Collaboration
Process Exception
Alerts
Business Process Disaster Recovery
Planning And
Improvement,
Mobile And
Document
Business
Workflow And
Remote
Management and
Continuity
Process Exception
Computing
Workflow
Management
Alerts
2006
2005
Information
Security
Information
Security
Assurance And
Compliance
Applications
Electronic
Document
Management
Disaster And
Business
Continuity
Planning
Data Integration
IT Governance
Spam Technology
Privacy
Management
Disaster Recovery
Collaboration And
Messaging
Technologies
Laptop Security /
Encryption
Training And
Competency
Identity And
Access
Management
IT Governance
Digital Identity
And
Authentication
Technologies
Small Business
Software
Identity And
Access
Management
Conforming To
Assurance And
Compliance
Standards
Securing And
Controlling
Information
Distribution
Wireless
Technologies
Wireless
Technologies
Mobile Devices
Improved
Application And
Data Integration
Business
Intelligence
Mobile And
Remote
Computing
Application And
Data Integration
Authentication
Technologies
Tax Software
Document, Forms,
Content And
Knowledge
Management
Mobile And
Remote
Computing
Electronic
Archiving And
Data Retention
Paperless Digital
Technologies
Storage
Technologies
Document,
Content And
Knowledge
Management
Spyware Detection
And Removal
Learning And
Training
Competency
Project
Document, Forms,
Server
Management &
Content And
Electronic Data
Virtualization And
Deployment Of
Knowledge
Retention Strategy
Consolidation
New Systems
Management
10

11. Difference Between How The Business Feels IT Should
Spend Budget And How The Budget Is Actually Spent
•
Business view of how it wants the proportion of IT
expenditure to be allocated and how spending is actually
allocated
What the Business Wants
What the Business Gets
25%
5%
50%
35%
15%
Maintain The Momentum Of The Business Through Existing Business Systems
Contribute To Improving Business Results
Provide IT Direction And Management That Is Aligned To The Needs Of The Business
January 27, 2014
70%
Maintain The Momentum Of The Business Through Existing Business Systems
Contribute To Improving Business Results
Provide IT Direction And Management That Is Aligned To The Needs Of The Business
11

12. Difference Between How The Business Feels IT
Should Spend Budget And How It Is Actually Spent
•
Reasons for differences lie with both sides
•
Each side does not fully understand the other or explain
itself properly to the other
January 27, 2014
12

13. Spending - Maintain The Momentum Of The
Business Through Existing Business Systems
•
•
Business has unrealistic view of how much it costs to keep IT
function operational
IT does not automate operations to drive operational costs
down
What the Business Wants
What the Business Gets
25%
5%
50%
35%
15%
Maintain The Momentum Of The Business Through Existing Business Systems
Contribute To Improving Business Results
Provide IT Direction And Management That Is Aligned To The Needs Of The Business
January 27, 2014
70%
Maintain The Momentum Of The Business Through Existing Business Systems
Contribute To Improving Business Results
Provide IT Direction And Management That Is Aligned To The Needs Of The Business
13

14. Contribute To Improving Business Results
•
•
IT is poor at delivery and proactive provision of advice and
consulting
Business expects too much without understanding the resource
consequences of these expectations
What the Business Wants
What the Business Gets
25%
5%
50%
35%
15%
70%
Maintain The Momentum Of The Business Through Existing Business Systems
Maintain The Momentum Of The Business Through Existing Business Systems
Contribute To Improving Business Results
Contribute To Improving Business Results
Provide IT Direction And Management That Is Aligned To The Needs Of The Business Provide IT Direction And Management That Is Aligned To The Needs Of The Business
January 27, 2014
14

15. Provide IT Direction And Management That Is
Aligned To The Needs Of The Business
•
•
IT is not providing the leadership and direction the business feels it
wants
Business has unrealistic expectation of the amount of IT spending
should be or needs to be allocated to leadership and direction
What the Business Wants
What the Business Gets
25%
5%
50%
35%
15%
Maintain The Momentum Of The Business Through Existing Business Systems
Contribute To Improving Business Results
Provide IT Direction And Management That Is Aligned To The Needs Of The Business
January 27, 2014
70%
Maintain The Momentum Of The Business Through Existing Business Systems
Contribute To Improving Business Results
Provide IT Direction And Management That Is Aligned To The Needs Of The Business
15

16. Continuing Disconnect Between IT And Business
•
IT’s role is to mediate between the business and
technologies and suppliers
•
Needs to maintain an external focus on fulfilling business
needs and requirements
•
IT needs to act as a lens focussing business needs on
appropriate technology and supplier solutions
•
Gulf is between business and IT seems to be getting wider
January 27, 2014
16

17. IT Needs To Deliver Business-Oriented
Solutions
IT
Supplier
Ecosystem
Business
Technology
Landscape
27 January 2014
IT Needs to Mediate Between the
Business and Suppliers/ Technologies,
Acting as a Lens Focussing Business
Needs on Appropriate Solutions
IT Needs To
Focus
Appropriate
Services on
Appropriate
Suppliers and
Technologies
17

18. Bringing The Gap Between IT And The Business
•
Both business and IT
must work to close the
gap
January 27, 2014
18

19. AICPA Technology Initiatives Survey 2012
2012
Lack of business confidence in
getting the basics of IT governance,
management and delivery right
62%
1 - Securing The IT Environment
61%
2 - Managing And Retaining Data
65%
← Priority →
3 - Managing Risk And Compliance
62%
4 - Ensuring Privacy
34%
5 - Leveraging Emerging Technologies
52%
6 - Managing System Implementation
7 - Enabling Decision Support And
Managing Performance
46%
8 - Governing And Managing IT
Investment/Spending
56%
60%
9 - Preventing And Responding To Fraud
10 - Managing Vendors And Service
Providers
56%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
← Confidence in Level of Achievement →
January 27, 2014
19

20. AICPA Technology Initiatives Survey 2013
2013
55%
1 - Managing And Retaining Data
51%
2 - Securing The IT Environment
← Priority →
3 - Managing Vendors And Service
Providers
47%
4 - Managing IT Risks And Compliance
47%
Continuing lack
of business
confidence in
getting the
basics of IT
governance,
management
and delivery
right
45%
5 - Ensuring Privacy
6 - Managing System Implementations
44%
7 - Preventing And Responding To
Computer Fraud
44%
8 - Governing And Managing IT
Investment And Spending
38%
9 - Enabling Decision Support And
Analytics
37%
27%
10 - Leveraging Emerging Technologies
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
← Confidence in Level of Achievement →
January 27, 2014
20

21. Managing Suppliers - 2012
Only average view of the
performance of the key role of
managing suppliers
2012
62%
1 - Securing The IT Environment
61%
2 - Managing And Retaining Data
65%
← Priority →
3 - Managing Risk And Compliance
62%
4 - Ensuring Privacy
34%
5 - Leveraging Emerging Technologies
52%
6 - Managing System Implementation
7 - Enabling Decision Support And
Managing Performance
46%
8 - Governing And Managing IT
Investment/Spending
56%
60%
9 - Preventing And Responding To Fraud
10 - Managing Vendors And Service
Providers
56%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
← Confidence in Level of Achievement →
January 27, 2014
21

22. Managing Suppliers - 2013
Importance of supplier management
increasing and level of confidence
decreasing
2013
55%
1 - Managing And Retaining Data
51%
2 - Securing The IT Environment
← Priority →
3 - Managing Vendors And Service
Providers
47%
4 - Managing IT Risks And Compliance
47%
45%
5 - Ensuring Privacy
6 - Managing System Implementations
44%
7 - Preventing And Responding To
Computer Fraud
44%
8 - Governing And Managing IT
Investment And Spending
38%
9 - Enabling Decision Support And
Analytics
37%
27%
10 - Leveraging Emerging Technologies
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
← Confidence in Level of Achievement →
January 27, 2014
22

23. Delivering IT Innovation - 2012
2012
Important but very low confidence
of delivery
62%
1 - Securing The IT Environment
61%
2 - Managing And Retaining Data
65%
← Priority →
3 - Managing Risk And Compliance
62%
4 - Ensuring Privacy
34%
5 - Leveraging Emerging Technologies
52%
6 - Managing System Implementation
7 - Enabling Decision Support And
Managing Performance
46%
8 - Governing And Managing IT
Investment/Spending
56%
60%
9 - Preventing And Responding To Fraud
10 - Managing Vendors And Service
Providers
56%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
← Confidence in Level of Achievement →
January 27, 2014
23

24. Delivering IT Innovation - 2013
2013
Lower level of importance but even
lower confidence of delivery
55%
1 - Managing And Retaining Data
51%
2 - Securing The IT Environment
← Priority →
3 - Managing Vendors And Service
Providers
47%
4 - Managing IT Risks And Compliance
47%
45%
5 - Ensuring Privacy
6 - Managing System Implementations
44%
7 - Preventing And Responding To
Computer Fraud
44%
8 - Governing And Managing IT
Investment And Spending
38%
9 - Enabling Decision Support And
Analytics
37%
27%
10 - Leveraging Emerging Technologies
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
← Confidence in Level of Achievement →
January 27, 2014
24

25. Business Intelligence - 2012
2012
After years of BI and related
technologies being available and
implemented, there is still a low level of
confidence
62%
1 - Securing The IT Environment
61%
2 - Managing And Retaining Data
65%
← Priority →
3 - Managing Risk And Compliance
62%
4 - Ensuring Privacy
34%
5 - Leveraging Emerging Technologies
52%
6 - Managing System Implementation
7 - Enabling Decision Support And
Managing Performance
46%
8 - Governing And Managing IT
Investment/Spending
56%
60%
9 - Preventing And Responding To Fraud
10 - Managing Vendors And Service
Providers
56%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
← Confidence in Level of Achievement →
January 27, 2014
25

26. Business Intelligence - 2013
Level of confidence reducing
2013
55%
1 - Managing And Retaining Data
51%
2 - Securing The IT Environment
← Priority →
3 - Managing Vendors And Service
Providers
47%
4 - Managing IT Risks And Compliance
47%
45%
5 - Ensuring Privacy
6 - Managing System Implementations
44%
7 - Preventing And Responding To
Computer Fraud
44%
8 - Governing And Managing IT
Investment And Spending
38%
9 - Enabling Decision Support And
Analytics
37%
27%
10 - Leveraging Emerging Technologies
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
← Confidence in Level of Achievement →
January 27, 2014
26

27. Generic Structure Of An IT Function
IT Governance
IT Strategy
Business
Relationship
and
Engagement
Business
Relationship
Management
Business
Analysis and
Consulting
Solution
Architecture
IT Enterprise
Architecture
management
Business
Readiness and
Organisation
Change
January 27, 2014
IT Service and
Sourcing
Strategy
IT Financial
Management
IT Security
Management
Program and
Project
Management
IT Process and
Quality
Management
IT Resource
Management
Asset and
License
Management
Design
Realisation
Takeover and Management
Test
Co-ordination and Risk
Management
Operations
Service and Solution Support
Transition to
Production
Infrastructure and Communications
Implementation
Design
Realisation
Test
Management
Service Operations
Solution Design, Development, Implementation
and Integration
Analysis
Infrastructure,
Networks
Management
Acquisition,
Sourcing and
Supplier
Management
Technology
Selection and
Management
Service and Solution Delivery
Data,
Information,
Knowledge
Management
Service
Planning
IT Innovation
Management
IT Management
Analysis
Demand
Management
IT Governance
and
Leadership
Operations
Management
Support Function
Monitoring and
Alerting
Test
Incident
Management
Service Request
Management
Problem Management
Service and Solution Support
Facilities and Device Management
Service Lifecycle Management
Service
Catalog
Management
Configuration
Management
Change
Management
Continuity and
Availability
Management
Capacity
Management
Service Level
Management
Release
Management
27

28. Generic Structure Of An IT Function
•
•
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 reside in organisation 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
January 27, 2014
28

29. Matching Key IT Skills and Capabilities To
Organisation Functions
Capability
IT
Business
IT
Service Service
Service
Governance Relationship Management and Operations Lifecycle
and
Solution
Management
Engagement
Delivery
IT Leadership and Governance
Strategic and Business Planning
Demand and Supply Management, Capacity Forecasting
and Planning
Sourcing and Supplier Management, Acquisition,
Procurement
Innovation
Accounting, Funding, Financing, Budgeting and Planning
Programme Management, Portfolio Management, Project
Management
Relationship Management and Business Engagement
Organisation Design and Planning
Enterprise Architecture
Infrastructure, Networks and Communications
Business and Process Analysis and Design
Solution Architecture and Design
Benefits Assessment and Realisation
Service Provisioning, Service Delivery and Service
Management
Testing
Security, Continuity and Disaster Recovery
Solution Development and Delivery
People Asset Management
Data, Information, Knowledge Asset Management
User Experience Design
Change and Change Management
January 27, 2014
29

30. Sub-Function Importance To Organisation
IT Governance
IT Strategy
Business
Relationship
and
Engagement
Business
Relationship
Management
Business
Analysis and
Consulting
Solution
Architecture
IT Enterprise
Architecture
management
Business
Readiness and
Organisation
Change
27 January 2014
IT Financial
Management
IT Service and
Sourcing
Strategy
IT Security
Management
Program and
Project
Management
IT Process and
Quality
Management
IT Resource
Management
Asset and
License
Management
Design
Realisation
Takeover and Management
Test
Co-ordination and Risk
Management
Operations
Service and Solution Support
Transition to
Production
Infrastructure and Communications
Implementation
Design
Realisation
Test
Management
Service Operations
Solution Design, Development, Implementation
and Integration
Analysis
Infrastructure,
Networks
Management
Acquisition,
Sourcing and
Supplier
Management
Technology
Selection and
Management
Service and Solution Delivery
Data,
Information,
Knowledge
Management
Service
Planning
IT Innovation
Management
IT Management
Analysis
Demand
Management
IT Governance
and
Leadership
Operations
Management
Support Function
Monitoring and
Alerting
Test
Incident
Management
Service Request
Management
Problem Management
Service and Solution Support
Facilities and Device Management
Service Lifecycle Management
Service
Catalog
Management
Configuration
Management
Change
Management
Continuity and
Availability
Management
Capacity
Management
Service Level
Management
Release
Management
30

31. View Of Importance Of Sub-Functions
= Very Important
= Important
= Less Important
•
Use this as a view of what areas you to prioritise getting
better at
January 27, 2014
31

32. External IT and Business Alignment
Business-facing
sub-functions
Business
Relationship
and
Engagement
IT Governance
IT Management
Service and Solution Delivery
Service Operations
Service Lifecycle Management
January 27, 2014
32

33. Internal IT and Business Alignment
Business-facing
sub-functions
mediate
between
business and
technology and
service delivery
and operation
Business
Relationship
and
Engagement
IT Governance
IT Management
Service and Solution Delivery
Service Operations
Service Lifecycle Management
January 27, 2014
33

34. IT Function Structure And Alignment
Alignment is not
just about being
aligned at the
Business
Relationship and
Engagement and
IT Governance
levels
Business
Relationship
and
Engagement
IT Governance
IT Management
Service and Solution Delivery
Service Operations
Alignment
means following
through
throughout the
IT function
Service Lifecycle Management
January 27, 2014
34

35. IT Function Structure And Alignment
•
Real IT and business alignment needs to pervade the entire
IT function
•
IT must embed business alignment in the way it operates
to ensure it remains relevant to the business
•
Otherwise the business will bypass IT and go straight to
suppliers and service providers
•
Disintermediation of IT is central to the business plans of
many internet-based service providers
•
Failure to systematise alignment will expose IT to the
danger of becoming irrelevant

36. IT Governance Sub-Functions
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
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
Manages the IT budget, finances, financial
reporting and control standards, cost-benefit
analysis
Manages the process for defining how services and solutions
should be acquired and managed
Manages the process for bringing new ideas to an appropriate
implementation to generate value
Manages IT application and infrastructure security standards
January 27, 2014
36

37. Business Relationship and Engagement SubFunctions
Business
Relationship
and
Engagement
Business
Relationship
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
Business
Analysis and
Consulting
Offers business analysis and consulting services to translate business needs into a
structured set of requirements to enable the business understand its needs
Solution
Architecture
Defines business-oriented solutions based on structured business requirements
that comply with IT delivery and operational standards
Demand
Management
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
27 January 2014
37

38. IT Management Sub-Functions
Manages data,
defines data
standards
Operations
Management
Service
Planning
Manages the IT operation
Data,
Information,
Knowledge
Management
Infrastructure,
Networks
Management
Plans for the introduction of new services
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
Manages IT
infrastructure
Manages testing
Manages and implements service and
supplier acquisition
Manages process for selecting suitable
technologies
Manages IT assets and software licenses
Manages IT people resources, induction, training, development, standards
Ensures quality of IT processes
Manages delivery of programs and projects, manages standards and ensures consistency
27 January 2014
38

39. Service Lifecycle Management Sub-Functions
Manages catalog of IT services
Manages configuration of installed assets
Manages the delivery of change
Service Lifecycle Management
Service
Catalog
Management
Configuration
Management
Change
Management
Continuity and
Availability
Management
Capacity
Management
Service Level
Management
Release
Management
Manages business continuity, disaster recovery
and system and application availability
Ensures capacity of IT assets
Implements and manages network of service level agreements
Manages and implements release to production process
27 January 2014
39

40. Service and Solution Delivery Sub-Functions
Designs, develops and
implements new solutions
and changes and ensures
integration with existing
systems
Service and Solution Delivery
Solution Design, Development,
Implementation and Integration
Analysis
Design
Realisation
Test
Service and Solution Support
Designs, develops and
implements IT
infrastructure and
communications networks
Infrastructure and Communications
Implementation
Analysis
Design
Realisation
Test
Transition
to
Production
Transitions new
systems and
changes to
production and
manages handover
to support, ensures
new systems are
operable and
supportable
Service and Solution Support
Implements
support
arrangements for
new services and
solutions
27 January 2014
40

41. Service Operations Sub-Functions
Takes over the support and
operation of new systems
and applications,
implements support
arrangements
Service Operations
Takeover and Management
Operations
Co-ordination and Risk
Management
Support Function
Monitoring and
Alerting
Resolves recurring
problems to improve
support efficiency
Incident
Management
Service Request
Management
Operates application
and infrastructure
support function and
processes
Problem Management
Facilities and Device Management
Manages and operates IT
infrastructure, equipment
and communications
network
27 January 2014
41

42. View Of Status Of Sub-Functions
IT Governance
IT Strategy
Business
Relationship
and
Engagement
Business
Relationship
Management
Business
Analysis and
Consulting
Solution
Architecture
IT Enterprise
Architecture
management
Business
Readiness and
Organisation
Change
January 27, 2014
IT Financial
Management
IT Service and
Sourcing
Strategy
IT Security
Management
Program and
Project
Management
IT Process and
Quality
Management
IT Resource
Management
Asset and
License
Management
Design
Realisation
Takeover and Management
Test
Co-ordination and Risk
Management
Operations
Service and Solution Support
Transition to
Production
Infrastructure and Communications
Implementation
Design
Realisation
Test
Management
Service Operations
Solution Design, Development, Implementation
and Integration
Analysis
Infrastructure,
Networks
Management
Acquisition,
Sourcing and
Supplier
Management
Technology
Selection and
Management
Service and Solution Delivery
Data,
Information,
Knowledge
Management
Service
Planning
IT Innovation
Management
IT Management
Analysis
Demand
Management
IT Governance
and
Leadership
Operations
Management
Support Function
Monitoring and
Alerting
Test
Incident
Management
Service Request
Management
Problem Management
Service and Solution Support
Facilities and Device Management
Service Lifecycle Management
Service
Catalog
Management
Configuration
Management
Change
Management
Continuity and
Availability
Management
Capacity
Management
Service Level
Management
Release
Management
42

43. 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
January 27, 2014
43

44. Sample View - What IT Is Good At
IT Governance
IT Strategy
Business
Relationship
and
Engagement
Business
Relationship
Management
Business
Analysis and
Consulting
Solution
Architecture
IT Enterprise
Architecture
management
Business
Readiness and
Organisation
Change
January 27, 2014
IT Financial
Management
IT Service and
Sourcing
Strategy
IT Security
Management
Program and
Project
Management
IT Process and
Quality
Management
IT Resource
Management
Asset and
License
Management
Design
Realisation
Takeover and Management
Test
Co-ordination and Risk
Management
Operations
Service and Solution Support
Transition to
Production
Infrastructure and Communications
Implementation
Design
Realisation
Test
Management
Service Operations
Solution Design, Development, Implementation
and Integration
Analysis
Infrastructure,
Networks
Management
Acquisition,
Sourcing and
Supplier
Management
Technology
Selection and
Management
Service and Solution Delivery
Data,
Information,
Knowledge
Management
Service
Planning
IT Innovation
Management
IT Management
Analysis
Demand
Management
IT Governance
and
Leadership
Operations
Management
Support Function
Monitoring and
Alerting
Test
Incident
Management
Service Request
Management
Problem Management
Service and Solution Support
Facilities and Device Management
Service Lifecycle Management
Service
Catalog
Management
Configuration
Management
Change
Management
Continuity and
Availability
Management
Capacity
Management
Service Level
Management
Release
Management
44

45. Sample View - What IT Is Average At
IT Governance
IT Strategy
Business
Relationship
and
Engagement
Business
Relationship
Management
Business
Analysis and
Consulting
Solution
Architecture
IT Enterprise
Architecture
management
Business
Readiness and
Organisation
Change
January 27, 2014
IT Financial
Management
IT Service and
Sourcing
Strategy
IT Security
Management
Program and
Project
Management
IT Process and
Quality
Management
IT Resource
Management
Asset and
License
Management
Design
Realisation
Takeover and Management
Test
Co-ordination and Risk
Management
Operations
Service and Solution Support
Transition to
Production
Infrastructure and Communications
Implementation
Design
Realisation
Test
Management
Service Operations
Solution Design, Development, Implementation
and Integration
Analysis
Infrastructure,
Networks
Management
Acquisition,
Sourcing and
Supplier
Management
Technology
Selection and
Management
Service and Solution Delivery
Data,
Information,
Knowledge
Management
Service
Planning
IT Innovation
Management
IT Management
Analysis
Demand
Management
IT Governance
and
Leadership
Operations
Management
Support Function
Monitoring and
Alerting
Test
Incident
Management
Service Request
Management
Problem Management
Service and Solution Support
Facilities and Device Management
Service Lifecycle Management
Service
Catalog
Management
Configuration
Management
Change
Management
Continuity and
Availability
Management
Capacity
Management
Service Level
Management
Release
Management
45

46. Sample View - What IT Is Poor At
IT Governance
IT Strategy
Business
Relationship
and
Engagement
Business
Relationship
Management
Business
Analysis and
Consulting
Solution
Architecture
IT Enterprise
Architecture
management
Business
Readiness and
Organisation
Change
January 27, 2014
IT Financial
Management
IT Service and
Sourcing
Strategy
IT Security
Management
Program and
Project
Management
IT Process and
Quality
Management
IT Resource
Management
Asset and
License
Management
Design
Realisation
Takeover and Management
Test
Co-ordination and Risk
Management
Operations
Service and Solution Support
Transition to
Production
Infrastructure and Communications
Implementation
Design
Realisation
Test
Management
Service Operations
Solution Design, Development, Implementation
and Integration
Analysis
Infrastructure,
Networks
Management
Acquisition,
Sourcing and
Supplier
Management
Technology
Selection and
Management
Service and Solution Delivery
Data,
Information,
Knowledge
Management
Service
Planning
IT Innovation
Management
IT Management
Analysis
Demand
Management
IT Governance
and
Leadership
Operations
Management
Support Function
Monitoring and
Alerting
Test
Incident
Management
Service Request
Management
Problem Management
Service and Solution Support
Facilities and Device Management
Service Lifecycle Management
Service
Catalog
Management
Configuration
Management
Change
Management
Continuity and
Availability
Management
Capacity
Management
Service Level
Management
Release
Management
46

47. Summary
•
•
•
•
•
•
•
•
•
•
Low confidence in IT by business stills exists
IT delivery of what the business wants is poor
IT does not explain itself well
Business can have unrealistic expectations
IT needs to structure itself for business alignment and delivery
Real IT and business alignment needs to pervade the entire IT function
IT must embed business alignment in the way it operates to ensure it remains
relevant to the business
Otherwise the business will bypass IT and go straight to suppliers and service
providers
Disintermediation of IT is central to the business plans of many internet-based
service providers
Failure to systematise alignment will expose IT to the danger of becoming
irrelevant
January 27, 2014
47

48. More Information
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney
January 27, 2014
48