The Business IT Alignment theme. Jurriaan Horowitz

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1 The Business IT Alignment theme Jurriaan Horowitz

2 Agenda Biz/IT issues and solution models Business IT Alignment (BITA) Service IT Improvement Strategy Slide 2

3 Agenda Biz/IT issues and solution models Business IT Alignment (BITA) Service IT Improvement Strategy Slide 3

4 IT industry trends that drive the bita theme CEO vs CIO alignment issues CEO CIO A B C D E F G H Source: Morgan Chambers A Budget reduction B Improving control of IT spend C Standardization of systems & technologies / processes D Consolidation of systems and technologies E Migration to new systems / increase business flexibility and responsiveness F Integrate date and processes / integrate acquisitions, enable divestments G Implementing enterprise applications H Access new knowledge and skills Slide 4

5 The Business IT Problem Strategy Organization Process Control Slide 5

6 Sarbanes-Oxley Slide 6

7 Sarbanes-Oxley Signed into law on July 30, 2002 Address corporate accountability issues by improving quality of corporate reporting SEC voted on May 2003 to implement SOX Slide 7

8 CobiT CobiT Control Objectives for IT and related Technology is an IT Governance, Control framework and maturity model Originally an Auditor s tool Oriented towards risk mitigation Comprehensive, standardized set of guidelines that establishes what formal IS processes, practices and controls should be in place, and the minimum results they should predictably deliver. Slide 8

9 ITIL and CobiT Key Issue What best practices will drive integrated Service to manage the service impact on the enterprise Tactical Guideline CobiT is a complementary framework to ITIL. Enterprises that wish to put their ITIL program into the context of a wider control and governance framework could use CobiT Slide 9

10 How Process Controls Work Objectives Results Production Stay compliant Inputs Process Outputs Process and control evaluation KPI s : Process improvement and optimization Slide 10

11 Agenda Setting the Context Business IT Alignment (BITA) Service IT Improvement Strategy Slide 11

12 Business Planning VISION MISSION SWOT STRATEGIC OBJECTIVES TACTICAL & OPERATIONAL GOALS Slide 12

13 Business IT Alignment Corporate Vision Corporate Mission Corporate SWOT IT Vision IT Mission IT SWOT Are we working towards achieving our vision? Are we operating within the purpose and scope? Corporate Strategies & Goals IT Strategic Goals IT Tactical Goals IT Operational Goals What needs to be measured? What needs to be measured? What needs to be measured? Business Objectives IT Objectives Performance Indicators Slide 13

14 Environment Organization Corporate or Processes 3 4 Business Support Processes 2 IT Processes 1 Innovation, Development, Knowledge Transfer Processes Inputs, materials, data, etc. Primary Business Processes Products and Services Source: ITIL The Business Perspective On Your IT Infrastructure; Understanding And Improving

15 Agenda Setting the Context Business IT Alignment (BITA) Service IT Improvement Strategy Slide 15

16 The Philosophy of IT Service 7 / 32 IT Business Slide 16

17 Service : Balance IT Customer Perceived Quality IT supplier Service Quality Deal = Deal Price Costs Performance Slide 17

18 Agenda Setting the Context Business IT Alignment (BITA) Service IT Improvement Strategy Slide 18

19 Business Process Improvement Model VISION And MISSION Where are we now? Analysis Where do we want to be? Goals And Objectives How do we get there? Process Improvement Plans Are we improving? Did we get to where we wanted to be? Measurements And Tracking Source: ITIL The Business Perspective On Your IT Infrastructure; Understanding And Improving Slide 19

20 Process Maturity Input Process Improving Proactive Controlled Monitored 2 Not identified Output 0 Not performed IPW Stadia Model tm : Process improvement Slide 20

21 Implementing IT Service Initial training Assess & Re-assess Analyze Unfreeze Create awareness and train Subject Matter Experts (SME) Program Refreeze Reconfigure Train organization on new process & technology reinforce awareness Design and implement the change Slide 21

22 Eight Steps to Transformational Change 1. Establishing a sense of urgency 2. Creating the guiding coalition 3. Developing a vision and strategy 4. Communicating the change vision 5. Empowering broad-based action 6. Generating short-term wins 7. Consolidating gains and producing more change 8. Anchoring new approaches in the culture Dr. John Kotter Slide 22

23 4. Are We Improving?

24 Kaplan And Norton: Balanced Scorecard Financial Perspective To succeed financially, how should we appear to our shareholders? Customer Perspective To achieve our vision, how should we appear to our customers? Vision And Strategy Internal Business Processes Perspective To achieve our vision, what business processes must we excel at? Source: The Balanced Scorecard - Translating Strategy Into Action by Robert Kaplan and David Norton Learning And Growth Perspective To achieve our vision, how will we sustain our ability to change and improve? Slide 24

25 Balanced Scorecard For IT: ITIL Financial Goals Performance Indicators Customer Goals Performance Indicators Ability to control IT costs Economy of IT Value of IT -Accuracy of IT cost forecasts -Competitiveness of IT costs to the business -Costs of IT used in value adding business activities versus costs of IT used in overhead activities Quality of IT services Reliability of IT services Performance of IT services Support of hands-on users -Availability of IT services (in IT users perceptions) -Compliance to SLAs; Number and severity of IT -Service disruptions -On-time IT service delivery (defined by customer) -Number of registered user complaints about IT Innovation Goals Performance Indicators Internal Goals Performance Indicators Business productivity Service culture Flexibility -Annual business turnover vs. cost of running the business -Improvements in business turnover ascribable to IT -Reduction in business costs ascribed to IT -Number of business -Improvements initiated by or with help from IT -Average lead-time of successful IT implementation Change control Economy of IT Value of IT -Percentage of first time right IT changes -Hours spent on IT matters by business managers vs. total -Hours of IT use by business staff -Number of reported security violations Slide 25

26 What is the ROI for an ITSM Project? Benefits differ organization by organization, an assessment will deliver the answer for your specific organization On average the payback period is less then 90 days TCO reduces by 10% over time Do not forget to take into account the business savings as those are the ultimate justification Slide 26

27 Benefits That Drive ROI Reduce Incidents by 30% 80% Reduction in Mean Time to Repair Reduce Cycle Time For Changes By 25% Advance No Fault Changes by 25% Reduce Emergency Changes By 50% Reduce Over Capacity by 15% Increase Availability by 10% Decrease Time to Market Slide 27

28 Any Questions? Jurriaan Horowitz Slide 28

29 Slide 29

30 The IPW -model Introduction Information ICT valuing Commercial Policy HRM Strategy Architecture Finance Strategic Sourcing Supplier Portfolio Strategic Supplier processes Page 49 Relationship 27 / 32 Service Level Supplier planning Service Development Service Planning Business planning Functional Demand Service Build & Test Service Design Security Continuity Availability Financial Capacity Supply Contract Business Support Application Incident Problem Change Purchase Operation Support Services Operations Configuration Operations Release Supplier Operations Business Operations BITA Service Desk BITA Business Domain Business ICT Alignment Domain (BITA) ICT Domain Supplier ICT Alignment Domain (SITA) Supplier Domain Slide 30

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