This presentation introduces the 6 principles documented in the book The Technology Garden, which presents how to deliver enterprise IT sustainably and with maximum business value.

1. The S Word Putting services at the heart of IT-Business alignment Jon Collins, Service Director Freeform Dynamics Ltd [email_address] July 2007 www.freeformdynamics.com

5. Built-to-last IT diminishes in effectiveness over time Effective Partially effective Ineffective Over time, key change events impact effectiveness Effectiveness

6. The Nordic CIO view: IT benefits of alignment IT is increasingly business-driven

7. “ As an IT leader you can’t expect to take part in investment discussions as a peer unless you can demonstrate that you’ve got the basics right” - CIO, global FMCG supplier 1

9. Bottom-up vs Top-down Making everything “just work” Making a real difference to business IT as bottleneck IT as foundation IT as differentiator INCREASED EFFICIENCY INCREASED EFFECTIVENESS

10. Moving from technologies to services Email Internet Application Desktop Server Network VS TECHNOLOGY COMPONENTS SERVICES

11. “ Really engaging with the business is a problem … getting ahead in IT has for too long been about knowing all about messaging middleware and not enough about being able to frame solutions to problems in terms of business strategy ” - Senior IT executive, global software company 2

12. A common language is essential IT Business ? “ Investment prioritised in terms of business need” “ Systems that deliver value to the business” “ Clear direction from the business about focus, strategy” “ Collaborative approach to implementing business change” A common, agreed representation of business activity, goals + A common, agreed view of how current and future IT provides structured services to support the business in this context

14. Enterprise architecture is a key SUPPORTING element Enterprise Architecture process The wrong way The right way Stakeholder Stakeholder Stakeholder Stakeholder Stakeholder Stakeholder Enterprise Architecture process Stakeholder Stakeholder Stakeholder Stakeholder Stakeholder Stakeholder

15. “ Most IT guys are quite happy to be seen as ‘passive’ IT suppliers who just do their best. But this doesn’t fit with what the business leadership really wants from IT – they want IT to help with innovation and drive the business forward. ” - CIO, European Railway company 3

17. Service managers, EA Practice and the Governance Board Business team Demand information Feedback Service provider Service provider Service provider Filtered, aggregated demand and feedback Governance board EA practice Investment input Project management conversations Project management conversations Service manager

18. “ Often, projects that should be funded to support key business objectives are sidelined in favour of ‘pet projects’” - IT Director, major financial institution 4

21. “ You can’t enforce centralisation and control; you have to accept the complex organisation, and look to influence instead of control” - Director of IT, global investment bank 5

23. Different domains, different optimisations Strategy Management Execution Service1 Service 2 … … Service n

24. Central criterion is value delivery to the business Value Tangible benefits Cumulative value t0 Development costs Time Balance the requirement for short-term and longer-term value delivery

25. Hard decisions - shooting the dogs Bad Good Fit with service requirements Non-differentiating Differentiating Domain value Kill Transform Improve Maintain

26. “ Communicating your aims and objectives effectively to technology suppliers, pressing them to deliver what you need as a business imperative from technology, in a manner which isn't always textbook, has been our biggest problem. ” - IT Director, UK Payments Service Provider 6

27. Management consultants and other business advisors IT consulting firms, industry analysts and other pundits Realities of the current business environment Realities of the current IT environment Priorities, goals and objectives Systems & resource constraints Latest business ideas and fashions Latest technology ideas and fashions The reconciliation challenge

29. Applying the Principles

30. Goals build on each other Gain trust from the business Understand and reflect the business Engage the business Drive the business “ Trusted IT service delivery” “ Differentiated business support from IT” “ IT service management IN the business” “ Appropriate change and transformation” Stages reflect the maturity of the IT-business relationship

31. Core competencies for better alignment IT Governance Trusted service delivery capabilities Differentiated business support from IT IT service/relationship management IN the business Appropriate change and transformation Portfolio mgt BPM ITSM Capacity planning (people) Service engineering Capacity planning (infrastructure) “ Agile IT organisation” “ Agile IT capabilities” “ Agile srevice delivery” “ IT just works” Operational business engagement Enterprise architecture Strategic business engagement

32. Different stages, different priorities The IT organisation must get the basics right Create a common language Foster relationships with key IT suppliers Manage IT as a business-driven portfolio Work towards shared goals and objectives Establish a peer relationship between business and IT *** * * * * Gain the trust of the business * *** *** *** *** ** Understand and reflect the business * *** *** ** *** *** Engage the business * *** ** *** *** *** Drive the business ** *** * ** Key: Highly important Somewhat important Less important

34. Thank You Jon Collins, Service Director Freeform Dynamics Ltd [email_address] July 2007 www.freeformdynamics.com