ITSM Conference, Dubai, UAE 2009


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This is my Keynote presentation in this years, IIR ITSM Conference which was held in March, 2009

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ITSM Conference, Dubai, UAE 2009

  1. 1. CIO Exclusive And Strategic Overview The Winning Formula For Successful IT Business Integration Tariq Elsadik
  2. 2. The Agenda The Scene Statistics Opportunities Approach
  3. 3. According to the IMF The Global economic slowdown is so sever that the world economy will contract for the first time is 60 years
  4. 4. 1. Change is the only Constant 2. Change isn’t only about the Big things, but about a series of little things 3. Change is disruptive but at the same time presents opportunities The Whole of Science is nothing more than a refinement of everyday thinking
  5. 5. IT Budgets are under increased Pressure A. Nimble but…Transforming an organization is always challenging B. Change Drivers … External = Urgent (Macro) vs Internal = More Time. C. Expectations of service will not reduce, but support for investment, training, D. people development will. Business / IT Alignment … is still very much an Open Issue E. Increasing the Increasing the Increasing the understanding and probability of likelihood of success transparency of selecting those of executing the costs, risks and investments with the selected investments benefits highest potential (Project Mastery) return Passion to get things done and challenge the status quo
  6. 6. • IT and business executives today face a bewildering array of quality disciplines to help them manage processes within their organizations. • There are Pros and Cons to each. Source: Gartner
  7. 7. Transforming an organization is always challenging Barriers to Overcome 1. Business strategies are unclear / non existent 2. Lack of business engagement 3. Missing business skills in IT 4. Lack of a performance measurement system Slide 7
  8. 8. The Scene Statistics Opportunities Approach
  9. 9. As enterprises face a challenging economic environment, IT spending budgets will be essentially flat with a planned increase of 0.16 percent in 2009, according to results from the 2009 CIO (1,527) survey by Gartner RANK RANK Top 10 Business Priorities Top 10 Technology Priorities Business process improvement 1 Business intelligence 1 Reducing enterprise costs 2 Enterprise applications (ERP, CRM &others) 2 Improving enterprise workforce 3 Servers and storage technologies 3 effectiveness (virtualization) Attracting &retaining new customers 4 Legacy application modernization 4 Increasing the use of information/analytics 5 Collaboration technologies 5 Creating new products or services 6 Networking, voice and data communications 6 (innovation) Targeting customers and markets more 7 Technical infrastructure 7 effectively Managing change initiatives 8 Security technologies 8 Expanding current customer relationships 9 Service-oriented applications and 9 architecture Expanding into new markets & geographies 10 Document management 10 Slide 9
  10. 10. In 2007, PricewaterhouseCoopers (PwC) was commissioned by the IT Governance Institute (ITGI) to conduct the third global survey on IT governance, resulting in this IT Governance Global Status Report—2008.
  11. 11. ‘How would you describe the level of engagement by business management in the governance of IT-enabled business initiatives?’
  12. 12. Thinking about your overall corporate strategy or vision, how important do you consider IT to be to the successful delivery of this strategy or vision?
  13. 13. How frequently is IT included on your organization's board agenda?
  14. 14. Non-IT People in the sample have a much more positive view of IT
  15. 15. Take Home: When all aspects of the problem are taken into account, the most important problems are: 1. Staffing Issues 2. Service Delivery 3. Proving the Value of IT
  16. 16. Observation: It is clear that the most pragmatic/practical practices are indeed the most popular.
  17. 17. What (IT governance) solutions/frameworks do you use or are you considering using?’
  18. 18. The Scene Statistics Opportunities Approach
  19. 19. Are we getting Are we doing the benefits from the the right things? investments we make? The Strategic Question: Is the investment? The Value Question: Do we have?  In line with our vision  A clear and shared understanding of the  Consistent with our businesses principles expected benefits  Contributing to our strategic goals  Clear accountability for realizing the benefits  Providing optimal value, at affordable cost, at  Relevant metrics  An effective benefits realization process an acceptable level of risk
  20. 20. Are we doing Are we getting them the right them done way? well? The Architecture Question: Is the investment? The Delivery Question: Do we have?  In line with our architecture  Effective and disciplined service  Consistent with our architectural principles management  In line with other initiatives  Competent and available technical and business resources to deliver the required capabilities
  21. 21. Vision / Mission / Business Goals President / CxO Objective: Define a Set of Top Objectives to be cascaded throughout the organization Strategy for Success Alignment Leadership Layer Top Down / Bottom up Objective: Define set of Objectives relevant to strategy and cascade to relevant areas BU Strategies Alignment Top Down / Bottom up Units Objective: Define set of Objectives relevant to strategy Co. / Unit and cascade to relevant areas Department 1 Department 2 Department n Slide 23
  22. 22. Interaction Environment Suppliers / Customers Flow Market Interact with Business Services Environment Business Governed by Business Processes Executed by Business People Enabled by Environment IT Services IT Developed Through Applications Processes People Infrastructure Enterprise Spread
  23. 23. The decisions you make today about IT Investments can only suggest one thing… ??? No Yes That you are in fact, practicing a form of IT Governance So, the key question is: Can you today, afford to have IT Governance by Default or Bad IT Governance by Design?
  24. 24. The CIO span of influence and accountabilities have been changing and expanding. Yet, perhaps the greatest opportunity to be an invaluable strategic partner lies ahead Operational Excellence Operational Excellence Success Principles Customer Product 1 - The Efficient Management Of People Intimacy Leadership 2 - The Management Of Efficient Processes 3 - Dedication To Measurement Systems 4 - Management Of Customer Expectations
  25. 25. The Scene Statistics Opportunities Approach
  26. 26. A from/to map – Strategic The IT Balanced Self Assessment outcomes define charts the Scorecard defines the start the destination course drives change Business Goals and Objectives Strategy – Strategy Map Business Model Value Discipline Slide 28
  27. 27. A from/to map – Strategic The IT Balanced Self Assessment outcomes define charts the Scorecard defines the start the destination course drives change Understand IT’s current capabilities Prepare a gap analysis Identify those specific competencies & Capabilities that IT must acquire Slide 29
  28. 28. A from/to map – Strategic The IT Balanced Self Assessment outcomes define charts the Scorecard defines the start the destination course drives change What Changes? COBIT From To How Manage IT Human PO7 Operationally Managing Personnel development/Growth Investment Resources focused on and Turnover in People hiring Standard Service Levels Defined DS1 Inconsistent Managed and measureable ITIL ISO20000 Focused on business value of investments Val IT IT Investment PO5 Focused on cost Management of operations Slide 30
  29. 29. A from/to map – Strategic The IT Balanced Self Assessment outcomes define charts the Scorecard defines the start the destination course drives change Value Perspective • IT Business Alignment • IT Budget User Perspective • Improved Knowledge Transfer • Drive Process Improvement Process Excellence • Key to the success of any IT Shop • Consistent and cost effective service delivery Future Orientation • Gaining new skills and expertise • Developing sound business knowledge Slide 31
  30. 30. Business Environment Project-Based All IT resources are centralized under a single reporting structure with centralized resource Leadership Support allocation (staffing). The organizational structure is built around resource pools. Line managers are replaced by resource managers. Centralized Decision Business Resources drivers IT is centralized under a single enterprise CIO. All IT systems and budgets reside at the Making corporate level. Process Decentralized Organization Culture IT is decentralized by business unit, operating group, subsidiary, or geography. Each of these Businesshas its own CIO, IT organization, and IT budget. There is little or no attempt to entities Reduce costs coordinate across units or with corporate. Corporate IT supports the corporate HQ staff and Goals Learning & Feedback IT perhaps some enterprise wide applications. Sustain market share Innovation IT Structure Value Federated Business Operating customer satisfaction Value Improve Execution Strategy IT takes on a hybrid structure. A centralized IT organization supports all infrastructure and Model Blueprint Statements Technologywide applications, usually in a shared services environment. Individual business units Delivery Model/Tool Grow revenue enterprise (IT Goals) Trends maintain their own applications development organizations and budgets for BU- specific systems. Enable new products and/or services Source: Forester Research - 2005 Performance Measures Risk Management Slide 32
  31. 31. Mindsets have shifted! No one said it better than a C-level business executive from the travel and entertainment industry: “I do not want IT solutions to be just about productivity and efficiency gains. If we are not productive and efficient at this point, we are in the wrong business. I need my IT colleagues to be real business partners and bring solutions that will enable our company to win new business, convert more prospects to customers, increase our market share, and get into the new markets. I need IT to be a true business partner, not a cost centre.”
  32. 32. Slide 34