Does IT matter? The Challenges of IT-Management for European Universities

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1 Does IT matter? The Challenges of IT-Management for European Universities Professor Dr. Arno Müller Köllner Chaussee Elmshorn Tel.: Mail:

2 Agenda Framework for IT-Management Overview Strategic Impact of Information Technology The presidents view on IT Identifying the relevant IT-Projects The View of the CIO - Managing the Project Portfolio Implementation Strategy The view of the project manager - process driven or IT-driven approach Prof. Dr. A. Müller Seite 2

3 Agenda Framework for IT-Management Overview Strategic Impact of Information Technology The presidents view on IT Identifying the relevant IT-Projects The View of the CIO - Managing the Project Portfolio Implementation Strategy The view of the project manager - process driven or IT-driven approach Prof. Dr. A. Müller Seite 3

4 Our Understanding of IT IT Processes are the basis for success! IT is an enabler for process improvement Understanding Strategy improves defines Processes increases Prof. Dr. A. Müller Seite 4

5 Framework for IT-Management IT-Strategie Does IT matter? Strategic Impact of IT Process Management Process driven implementation IT-Portfolio Selecting the relevant projects Risik Management SOX, Project definition and evaluation Application Mgt. Support Infrastructure Performance Measurement IT-Projects IT-Operation Hotline Helpdesk, SPOC Project Management Total Cost of Ownership Asset Management Balanced Scorecard Use of IT Systems Service Levels, ITIL, Outsourcing Prof. Dr. A. Müller Seite 5

6 Agenda Framework for IT-Management Overview Strategic Impact of Information Technology The presidents view on IT Identifying the relevant IT-Projects The View of the CIO - Managing the Project Portfolio Implementation Strategy The view of the project manager - process driven or IT-driven approach Prof. Dr. A. Müller Seite 6

7 What is IT? IT is a Commodity I use IT as denoting all the technology hardware and software used to storage, process and transport information in digital form. The meaning of IT does not encompass the information itself or the talent of the people using the technology. Carr (HBS) 2004 IT is a strategic instrument IT is one of six key assets (human, financial, physical, intellectual property, relationships and IT) that must be governed to create value. IT is an essential ingredient for business competitiveness. Weill, Ross (MIT) 2004 Prof. Dr. A. Müller Seite 7

8 The strategic impact of IT depends on Strategic Impact of IT Performance of IT - Chances Consequence of down time - Risk Chances and Risk for the Organization Prof. Dr. A. Müller Seite 8

9 Chances of IT in Higher Education Better Quality of Education E-Learning Student support systems Campus Management Lower Cost of Processes Lower cost in support processes More money for core processes Automated work flows E-Collaboration of students Better Research Quality Improved International Networking Research is data processing! Simulation and calculation systems Better documentation of results Higher attractivness for scientists! Video Conferencing E-Collaboration of students and researchers Allways connected research communities Prof. Dr. A. Müller Seite 9

10 IT-Risk in Higher Education Portfolio-Risik Waste of money for irrelevant IT-Systems Late implementation of relevant Systems Operation-Risik Missing IT-Security No financial benefit High Cost in IT_Departement Unexpectedly high down-times Lack of evaluation Not compatible with other ITsystems Project-Risik Insufficient personnel resources Neglect of the documentation shift of milestones Outsourcing-Risik Dependence on the outsourcing partner No effective contractual sanction mechanisms during default Mistakes in change management Insolvency of the partner Prof. Dr. A. Müller Seite 10

11 IT-Strategy-Test Profile Phase 1: IT-Strategy Test Unternehmen: Ansprechpartner: Musterunternehmen Frau Mustermann IT-Attraktivität Potenzial IT-Kosten-Senkung 19 hoch Potenzial Prozesskosten-Senkung 22 hoch IT-Chancen Potenzial Kundenbindung Potenzial Umsatzerweiterung hoch mittel Chancen gesamt 78 hoch Portfolio-Risiken 16 mittel Projekt-Risiken 21 hoch IT-Risiken Betriebs-Risiken Outsourcing-Risiken hoch sehr hoch Risiken gesamt 81 hoch IT-Reifegrad IT-Strategie IT-Prozesse 1,0 IT-Grundsätze 23 1,0 IT-Infrastruktur / / -Architektur 33 1,0 IT-Anwendungen 18 1,0 IT-Investitionen 26 1,0 Entscheidungsprozesse Technologie & Projektmgmt 28 1,0 Technologie Projekt- und Change-Management & Projektmgmt 24 1,0 Technologie Nutzung der der IT IT &/ Projektmgmt / IT-Betrieb 21 1,0 Messung des des Nutzens der der IT IT 18 Fortgeschrittene Spezialisten Einsteiger Fortgeschrittene Spezialisten Fortgeschrittene Fortgeschrittene Einsteiger IT-Reifegrad 191 Fortgeschrittene Prof. Dr. A. Müller Seite 11

12 Strategic IT-Matrix external View Chances high Turnaround Mode Highest Attractivness of IT Strategic Mode Highest strategic impact of IT Support Mode Factory Mode low IT doesn t matter 1990 IT as Infrastructure (Concentration on risk management) Position of University low high Risik Prof. Dr. A. Müller Seite 12

13 Strategic IT-Matrix external View Chances high Turnaround Mode Highest Attractivness of IT Strategic Mode Highest strategic impact of IT Support Mode Factory Mode low IT doesn t matter IT as Infrastructure (Concentration on risk management) low high Risik Prof. Dr. A. Müller Seite 13

14 Agenda Framework for IT-Management Overview Strategic Impact of Information Technology The presidents view on IT Identifying the relevant IT-Projects The View of the CIO - Managing the Project Portfolio Implementation Strategy The view of the project manager - process driven or IT-driven approach Prof. Dr. A. Müller Seite 14

15 Managing the Project-Portfolio Project management means: Portfolio management means: Efficient realization of the selected projects Selecting the really relevant projects Prof. Dr. A. Müller Seite 15

16 Project Portfolio- Cycle Planning new projects shifted projects On going Projects Risk of Shifting Business Alignment Profitability Resource plan Projects finished terminated rejected Realization Project- Review Reporting Controlling On going Projects Prof. Dr. A. Müller Seite 16

17 Benefits of the Project Portfolio Business Alignment of the IT projects Stronger adjustment of the IT projects at the business goals P l a n u n g u n d S t e u e r u n g d e s P r o j e k t p o r t f o l i o s verschobene neue laufende Risiko der Verschiebung Business Alignment Profitability Ressourcenplan Standardized and objective decision making for new IT projects transparent evaluation parameters for the prioritization of IT projects Effective use of limited resources (employees, budget) MPM Selecting the IT-projects with the highest strategic and financial impact Benefit Prof. Dr. A. Müller Seite 17

18 Standardization of the Project Request IT-Projekt / Steckbrief Projekttitel Projektüberblick Kurzbeschreibung / Projektstruktur Zeitplan Start Dauer Owner P l a n u n g u n d S t e u e r u n g d e s P r o j e k t p o r t f o l i o s verschobene neue laufende Risiko der Verschiebung Business Alignment Profitability Ressourcenplan Sponsor Projektleiter Budget freigegeben Ja Wirtschaftlichkeit Ressourcenbedarf Softwareentwicklung Zollsysteme Transportanwendungen Infrastruktur Kundenintegration Nein Net Present Value Capital Expenditure MPM Business Alignment Betroffene BU Seefracht Luftfracht Kontraktlogistik Landlogistik Stabsbereich crossover Risiken Kernprozess Abwicklung Kundenanbindung Controlling Personal Einkauf Projekt- Skizze Opportunitätsrisiken legal, security, compliance necessity strategic and corporate guidelines customer pressure / competition technical or contractor forces Wirkung auf den Kundennutzen sehr gering sehr hoch Begründung Wirkung beim Endkunden Das Projekt bewirkt bei unseren Kunden... keinen Effekt Begeisterung Begründung Prof. Dr. A. Müller Seite 18

19 Evaluation of the IT-Projects IT Project Overall Score P l a n u n g u n d S t e u e r u n g d e s P r o j e k t p o r t f o l i o s verschobene neue laufende Risiko der Verschiebung Business Alignment Profitability Ressourcenplan % weighting Business Alignment Does the IT project focus on the right division and support the relevant process with focus on students and scientists needs? MPM % weighting Opportunity Risk What level of risk do we take, if we delay this project? Project- Evaluation % weighting Profitability Estimate of cost reduction, sales increase and capital expenditure Prof. Dr. A. Müller Seite 19

20 Evaluation of the IT-Projects - Case IT Project Overall Score % weighting Business Alignment P l a n u n g u n d S t e u e r u n g d e s P r o j e k t p o r t f o l i o s verschobene neue laufende Risiko der Verschiebung Business Alignment Profitability Ressourcenplan % weighting % weighting Shifting Risk Profitability influence on process optimization improvement of the satisfaction of the students increase of the research ability strategic impact - image legal, security, compliance necessity strategic and corporate guidelines political pressure technical or contractor forces financial benefit cost reduction MPM Project- Evaluation Prof. Dr. A. Müller Seite 20

21 IT-Project Portfolio (Case) Score unternehmerische Bedeutung Hauptmenü Projekt Portfolio Textmanagement SMC Marketing-Datenbank SKU Bewertung SMC Internationalisierung Abrechnung Service-Agenturen SW für Planung AD-Gebiete Management Scorecard Vorläufiges Datenblatt Reform Leistungsbericht Frachtabrechnung Basisdaten Logistik TPM Qualifikationsübersicht Marktanteile Integrierte Planungskette Devisen- und Zins-Management SW für Konsolidierung Web Conferencing Microsoft Netzwerk Migration P l a n u n g u n d S t e u e r u n g d e s P r o j e k t p o r t f o l i o s verschobene neue laufende Risiko der Verschiebung Business Alignment Profitability MPM Portfolio Analysis Ressourcenplan Score wirtschaftliche Bedeutung Prof. Dr. A. Müller Seite 21

22 Excel Prototype Project Portfolio P l a n u n g u n d S t e u e r u n g d e s P r o j e k t p o r t f o l i o s verschobene neue laufende Risiko der Verschiebung Business Alignment Profitability Ressourcenplan MPM Tool Prof. Dr. A. Müller Seite 22

23 Agenda Framework for IT-Management Overview Strategic Impact of Information Technology The presidents view on IT Identifying the relevant IT-Projects The View of the CIO - Managing the Project Portfolio Implementation Strategy The view of the project manager - process driven or IT-driven approach Prof. Dr. A. Müller Seite 23

24 Two different approaches to IT-Implementation IT-driven Approach Identify the Problem Search for IT- System Select famous product Implement Process follows IT Permanent Change of System and Process Process Driven Approach Identify the Problem Analyze the processes Search for IT- Solutions to improve the processes Specify the relevant IT-Functions Search for IT-System Implement and improve the processes Prof. Dr. A. Müller Seite 24

25 Comparison of Cost and Benefits Cost IT-driven Approach Benefits Process Driven Approach Process Driven Approach IT-driven Approach Time Time After the first year: Process driven approach leads to lower cost and higher benefits Prof. Dr. A. Müller Seite 25

26 A traditional IT-Project Concept Development Implementation IT IT P r o j e c t Prof. Dr. A. Müller Seite 26

27 Integrated IT- and Process Management Problem Analysis Concept Development Implementation Continuous Improvement IT P r o j e c t Process IT P r o c e s s M a n a g e m e n t Prof. Dr. A. Müller Seite 27

28 Framework of the Process driven approach Problem Analysis Concept Development Implementation Continuous Improvement IT P r o j e c t M a n a g e m e n t & C u l t u r e People Orga. IT P r o c e s s M a n a g e m e n t Process C h an g e M a n a g e m e n t Prof. Dr. A. Müller Seite 28

29 Method: House of IT-Functions Output processes Which output (products/services) is generated? priorities Output House 1 IT functions Which processes are related to this output? priorities processes House 2 Which IT functions are required for optimal process performance? ERP priorities Process oriented selection of the future IT-system Prof. Dr. A. Müller

30 Process oriented management of the IT-landscape What is to do to manage IT? I already have Process modells Asset- Management Configuration Management Database ITIL-Processes Ticketing- System Prof. Dr. A. Müller Seite 30

31 Integrated database Process and Configuration Management Business Services Hardware (Server) Business Processes Application Software Roles & Persons Prof. Dr. A. Müller Seite 31

32 P-CMDB prototype modell (Conceptual model) Business Process 1 n Consists of Business Service n Owned by Processual refinement m 1 n Sub- Process Consists of Transitive assignment Sub-Processes Software Systems n Software System Consists of m Software generalization / refinement Frontend Application SW Process Step n supported by m Application Software Type of Middleware Backend Interface Assignment n m Runs on Database Connectivity Server Prof. Dr. A. Müller Seite 32

33 Requirements of a process orientated CMDB Prof. Dr. A. Müller Seite 33

34 IT-Database Access Prototyp macht WAS WER WOMIT? Eingabe / Zuordnung von Prozessen, Organisations-einheiten und IT-Systemen Prof. Dr. A. Müller Seite 34

35 Extended CMDB Prototype - benefit Transparency: Mutual dependencies and interactions between Business Services, Processes, IT-Systems, and Roles / Contact persons are documented in detail. Availability: required information about Business Services, Processes, Roles & Responsibilities, and Technology are available in one comprehensive database. Multidimensionality: entrance in DB content can be made from individual point of view (Business Services, Processes, Roles, and IT) and required abstraction level. Detection of missing roles and responsibilities: roles, responsibilities, and contact persons can be assigned on arbitrary detail level. Unallocated or vacant roles and responsibilities can be detected efficiently. Integrated information base for several application fields: These dimensions and mutual dependencies define the kernel for systematic migration management, quality management, risk management, business process management and more. Prof. Dr. A. Müller Seite 35

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