The Innovation Value Institute

Transcription

1 The Innovation Value Institute Brian Donnellan, Professor, Information System Innovation NUIM, Academic Director, IVI Sept Introduction Who are we? The innovation Value Institute a consortium of leading players interested in improving the business value that IT delivers What are we developing? Developing an industry standard for managing IT for business value, the IT capability Maturity Framework (IT-CMF) The framework covers critical processes to run an IT organisations, built on foundational learning in IT transformation at Intel, refined by academic and industry input Includes maturity curves, assessment tools, practices, outcomes and metrics to increase maturity level, case studies and illustrations of best practices Why should this interest Industry Executives? Improve practices within your organisation and deliver more business value Contribute to industry thought-leadership, share experiences with other leading companies Develop staff and expertise 2 1

2 IT value management is a key topic for CIOs Important issue for CIOs with a tangible opportunity CEO/CFO demanding better ways to demonstrate value Find it difficult to calculate ROI Budget flexibility coupled with strategic IT alignment leads to 50% greater IT payoffs 2 Executives "skeptical" of ROI from IT Metrics don't adequately capture business value Improving management practices alongside IT investment drives 20% higher IT yields 3 Do not measure business value from IT investments % of respondents 1 Growing evidence of an important gap in the IT industry Source: Industry surveys 1. CIO Insight Survey 2. CRTO research 3. LSE, IVI Survey 3 CIOs lack a framework for describing business contribution IT process frameworks Business value Financial value delivered Cash flow ROI EVA? ROCE ROE NPV Operational value of IT Customer Supplier Managerial Employee Partner Societal How to deploy service oriented architecture? How to implement best in class security? How to manage a data center? How to deploy virtualization? What is the average return from your IT investments? What is the cumulative return from your IT investments? 4 2

3 IVI is focused on realizing more business value from IT "IVI's vision is to transform organizations to consistently realise IT value from IT investment and practices... Provide new perspectives on value-based IT management... through researching, developing and disseminating an empirically proven and industry validated IT best practice model. Develop an end-to-end view of IT processes and capabilities IVI's mission is to develop a unifying approach for managing the delivery (or realisation) of Information Technology investments... Develop a roadmap to help CIOs select strategies and improve capabilities... and to validate that these approaches have a broad applicability across different industries and contexts." -Innovation Value Institute Consortium of leading industry, consulting, not-forprofit and academic organisations Collect best practice case studies across industries, understand key value drivers 5 IVI formed to create integrating framework creating new approaches, leveraging existing standards and addressing "value" gap Steering patrons IVI membership includes leading enterprises, consulting, not-for-profit, government and academic organisations. 6 3

4 Univ Limerick GMIT Univ Glasgow NUI Galway (DERI) Gothenburg T.U. Dublin City Univ Babson College Univ. of Leipzig Bonn T.U. Univ. Vienna Univ Georgia Univ of South Florida Georgia State Univ Bentley Univ Boston NUI Maynooth Univ of New South Wales 7 IVI Training and Education Professional Training Name IT-CMF Passport IT-CMF Core IT-CMF Advanced IT-CMF Expert Purpose To provide validation that the candidate has gained knowledge of the terminology, the basic concepts, and the core principles of the IT-CMF. To provide validation that in addition to knowledge and comprehension, the candidate is able to apply knowledge of IT- CMF. Available 2012 Available 2012 Academic Education Name MSc. In IT Mgmt with NUIM Business School Purpose To provide Academic accreditation for IT Management academic course. 8 4

5 High-level impact of maturity is detailed by each of the 33 individual critical processes Managing IT like a business Managing the IT budget Managing the IT capability Managing IT for business value Optimising 5 Value Centre Sustainable Economic Model Corporate Core Competency Optimised Value Advanced 4 Investment Centre Expanded Funding Options Strategic Business Partner Options and Portfolio Management Intermediate 3 Service Centre Systemic Cost Reduction Technology Expert ROI & Business Case Basic 2 Cost Centre Predictable Performance Technology Supplier TCO Initial 1 Beginning Design Pattern Generically Reusable Solution 9 IT-CMF details 4 Macro Processes to manage IT organizations for business value 10 5

6 Standardised materials provided for valuecentric assessments of each critical process Standard set of materials provided for each of the 33 critical processes $ Value of maturity Evidence and anecdotes of value delivered to companies who increased maturity Business value perspective Practices Best practices and case studies of how companies improved maturity Assessment Tool Level-by-level assessment questions to determine a company s strengths and weaknesses Maturity Curve Reference Materials Five-level maturity curve framework and supporting evidence Collection of whitepapers, academic journals, books, and consortium-submitted content Process Definition Proposed industry standard definition for a set of capabilities Assessments can be run efficiently and with low overhead through use of standardized tools and documents 11 Assessment: An objective way of assessing maturity of IT management practices... Identifying gaps and opportunities for investment and growth Managing IT Like a Business Managing the IT Budget Delivering IT Capability Realizing & Assessing Value Gaps reflect 5 opportunities for Industry investment, average growth Current maturity level LG BM BP SP DS CP RM AA OP SO RM IM PQ VA FF BM PP BO EA UM PA IC RA RD SD SP IM UA PM SM VC CA TC BR PM IP 12 Could be applied across all IT functions or in a selected set of areas 12 6

7 Very positive reactions to the work so far From contributing organisations Valuable content IVI is working on topics of great importance to our business, where innovation in IT is a way of life, and managing value is critical to our success.... I see materials here that I can bring back to my organisation immediately, today. Industry thought leadership The industry is looking to the IVI industry consortium to lead the way in researching the challenges facing IT today. I have great faith in the value of this approach to the field of IS management. Learning & development This consortium is a great way to see how other industries have solved the problems we re tackling. I think there is tremendous value in participating, and contributing to IVI. Return on investment I have no doubt of the value of IVI... when I look at the output we have produced. The return has been incredible compared to the investment I have made. 13 IT Capability Maturity Framework (IT-CMF) is based on five maturity levels to assess and optimize value of IT High Low Maturity Optimising Advanced Intermediate Basic Initial Value-centric IT management State-of-the-art practices and outcomes Benefits from IT investments quantified and communicated Practices and outcomes well above industry average IT/business interaction formalized for all critical processes Transparent investment decisions Delivering basic IT services Some IT/business interactions formalized No formal processes Ad-hoc management of IT IT-CMF offers concise management roadmap to optimize business value from IT investment 14 7

8 Engaged Scholarship Van de Ven 15 The Engaged Scholarship Model 16 8

9 European Design Science Workshop 18 9

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