Bridging the Old and the New Worlds of ITA New IT Operating Model Emerges
David FavelleNovember 2013
All Slides Copyright © 2013 ValueFlowIT
TechnologyStruggling to keep upGrowing complexityManaging the old world and the new separatelyMissing opportunities…
Current State of Play
Business Competitive cadence increasingProliferation of technology optionsRelentless cost pressures
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What are some leading companies doing about it?
Adopting Continuous Delivery(thank you Thoughtworks)
Building in resilience(thank you NetFlix)
Relentlessly automating(Ummm….”we’re not worthy” ;-])
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Maybe there is something different we should be doing in Enterprise IT …
In 2013 and beyond, can we really afford these tradeoffs?
Good news is…There are emerging ways of doing things
Better, Faster AND Cheaper
Today’s topics1. LeanStartup2. Digital Strategy Framework3. Pace Layering4. DevOps5. Scaled Agile6. Service Design Thinking7. Social Business 8. COBIT 59. Weaving this into an IT Operating Model
The Minimum Viable Product Concept drives an Innovation “Fast Lane”
http://tinyurl.com/n7yjumu A recent webinar with Eric Ries and friends:
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Digital Strategy Framework to Organise & Focus Digital Program
Digital Capabilities
BusinessModel
Digitally-Modified Business• Product/Service augmentation• Transitioning physical to digital• Digital wrappers
New Digital Business• Digital products• Reshaping organisational boundaries
Digital globalisation• Enterprise Integration• Redistribution decision authority• Shared digital services
Operational Process
Process Digitization• Performance improvement• New features• New automation
Performance Management• Operational transparency• Data driven decision making
Digital Analytics• Operations Dashboards• Periodical Scorecards• Customer feedback• Employee Feedback
PeopleInnovation
Worker Enablement• Working anywhere anytime• Right device for context• Right information for context• New digital tools
Knowledge Management• Communities of practice• Information leverage• External communities & repositories
Virtual teams• Collaboration tools• Engaging external expertise• Cross boundary utilisation• Coaching & QA
Client Engagement
Client insights• Analytics based segmentation• Socially informed knowledge• Service experience enhancement
Top line growth• Digitally enhanced selling• Augment service offering• Predictive marketing• Streamlined customer processes
Client touch points• Customer service• Cross channel coherence• Self service
• Business and IT Integration• Solution delivery
• Unified Data and Processes• Analytics capability
Adapted from MIT Sloan Digital Strategy Framework:http://www.capgemini.com/resources/digital-transformation-a-roadmap-for-billiondollar-organizations
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A new way of looking at the portfolio…
Source: Gartner 2011
The “Steady Lane” driven by major product upgrades and major business transformation
System of Record
Customer Product Suppliers Orders
The “Medium Lane” driven by business plans and ability to absorb Change into the business i.e. internal cadenceSystem of Differentiation
Customer Service Processes & systems
R&D and Product developmentProcesses & systems Configurator
The “Fast Lane” driven by market cadence and requiring a rapid release cycle
System of Innovation
Facebook presence
iPhone App
Open innovation submission box
Product review service
Recommendations engine
Sentiment analysis service
Droid App
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DevOps: ITSM Fast Lane or “keeping up with Agile!”
Development(Software
Engineering)
Quality Assurance
(QA)
Technology Operations
DevOps
Improved quality of software developments 63%
More frequent software releases
63%
Improved visibility into ITprocess and requirements 61%
Culture changecollaboration/ cooperation 55%
More responsive to business need 55%
More agile development 51%
Improved quality of code 38%
More agile change management process
45%
Organisations implementing DevOps have seen these Benefits:
https://puppetlabs.com/2013-state-of-devops-infographic
Toward the Agile Enterprise
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Where the rubber meets the road!
http://www.youtube.com/watch?v=pCaroLfl__4 Dean Leffingwell
Service Design Thinking: Make it all about the end user…http://thisisservicedesignthinking.com/
How does the Social Media shift impact IT Management?
A move toward personal Digital & Social technologies drives up business and user expectations and capabilities for engaging IT Socially and for integration of Social in day to day business processes.
IT has been slow to adopt social but could quickly adopt this new channel for an more integrated and real team user engagement
COBIT 5: Integrated Management & Governance Models
13Source: COBIT® 5, figure 15. © 2012 ISACA® All rights reserved.
http://www.isaca.org/COBIT/Pages/Product-Family.aspx
We now have guidance well understood by audit and compliance stakeholders on how to integrate governance and management across the full technology lifecycle
COBIT 5 Process Model: Speak the language of compliance
14Source: COBIT® 5, figure 16. © 2012 ISACA® All rights reserved.
The guidance extends down to practitioner level in all aspects of IT process, policy, roles and measures
Bringing it all together
All of this non-proprietary (free!) thinking can be woven into a full lifecycle view that takes advantage of emerging frameworks
and technologies
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Let’s call this the
IT Operating Model
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Dimensions of an IT Operating Model
Automated Workflows, Controls & Reporting
Leadership & People
Strategy, Architecture & Governance
Measurement & Improvement
Service Brokerage& Partner Integration
Organisational Design
Business Engagement & Demand
Service Lifecycle (Phases & Processes)
IT Operating Model
The Operating Model for IT must incorporate many dimensions, in harmony as a “system” if IT is the deliver optimal value from the IT portfolio
Concept Design Build Transition Operate Improve
Feed
back
Lifecycle Phases
Line of Business Strategy
3 Service Portfolio speeds
Integrating the Dimensions: ValueFlow IT Multi-Speed Operating Model™
TransformDisruptive Innovations
Innovation
portfolio Fast Lane
ChangeBusiness
DifferentiationBusiness UnitPortfolios Medium Lane
Enterprise Portfolios
RenewalCorporate capabilities Steady Lane
Service Portfolio
Business D
emand
Service Pipeline Service Catalogue
Process Framework
Organisational Structure
IT Management platform & specialist tools
Governance Controls
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Line of Business Strategy
3 Service Portfolio speeds Concept Design Build Transition Operate Improve
Frameworks Across the ValueFlow IT Multi-Speed Operating Model™
TransformDisruptive Innovations
Innovation
portfolio
ChangeBusiness
DifferentiationBusiness UnitPortfolios
Enterprise Portfolios
RenewalCorporate capabilities
Service Portfolio
Business D
emand
Process Framework
Service Pipeline
Feed
back
Lifecycle Phases
Service Catalogue
Organisational Structure
IT Management platform & specialist tools
Governance Controls
Scaled Agile DevOps
ITIL
LeanAgile or SDLC
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Digital Strategy Open Innovation
SDLC or Agile
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Process Framework
Concept Transition
Improve
EngageInvestment Management
Demand Management
Relationship Management
Innovation Management
Strategise & PlanStrategy Generation
Service & Asset Portfolio Management
Architecture Management
Govern ITRisk & Compliance
Management
Performance Management
Operating Model Assurance
Problem Management
Requirements Definition
Options Analysis
Operate
IncidentManagement
RequestFulfillment
Service LevelManagement
EventManagement
AccessManagement
IT ContinuityManagement
SupplierManagement
SecurityManagement
AvailabilityManagement
CapacityManagement
FinancialManagement
AssetManagement
ReleaseManagement
ChangeManagementConfigurationManagement
TestingManagement
KnowledgeManagement
Service Reporting
ImprovementManagement
Design BuildExperience
Design
Solution Design
ITSM Design
WorkloadManagement
Development Management
Quality Assurance
Project/Programme Management
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Minimum Process System
Concept Transition
EngageInvestment Management
Demand Management
Relationship Management
Innovation Management
Strategise, Plan & ManageStrategy Generation
Service & Asset Portfolio Management
Architecture Management
Govern ITRisk & Compliance
Management
Portfolio Assurance
Operating Model Assurance
Requirements Definition
Options Analysis
Operate
IncidentManagement
RequestFulfillment
Service LevelManagement
EventManagement
AccessManagement
IT ContinuityManagement
SupplierManagement
SecurityManagement
AvailabilityManagement
CapacityManagement
FinancialManagement
AssetManagement
ReleaseManagement
ChangeManagementConfigurationManagement
TestingManagement
Design BuildExperience
Design
Solution Design
ITSM Design
WorkloadManagement
Development Management
Quality Assurance
Project/Programme Management
Improve
Problem Management
KnowledgeManagement
Service Reporting
ImprovementManagement
Tuning Operating Model for Multiple Speeds
1. Engage Business in Shaping demand1. What are the cadences?2. How can we organise by portfolio?3. Categorise by Pace layer and or risk
2. Align Strategy, Architecture and Governance1. Adapt controls to pace layers2. Integrate the pace layer approach into the
architectural thinking3. Bring multi-speed roadmaps into the strategy
3. Multi-speed Processes1. Tune workflows2. Tune governance controls3. Design across the lifecycle phases
4. Automation1. Automate as much as you can to ensure
visibility and standardisation
2. Align with process and compliance 3. Build automation in concert with process and
controls rather than after
5. Organisation1. Structure according to value, flow and risk2. Leadership is key in ensuring that the system is
not “gamed” and that staff are fully supported in their efforts
3. Don’t re-organise until you’ve figured out what problem you’re solving e.g. bottlenecks, focus
4. Consider cross-functional and self organising teams to drive value and throughput
6. Measurement:1. Throughput of each lane2. Bottlenecks/delays3. Customer satisfaction4. Costs and realisation of risk
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Key Takeaways
1. Better, faster, cheaper is possible. You can be “Cloud Like”
2. Take advantage of the eco-system of frameworks
3. A multi-speed approach is required to straddle the old and the new worlds
4. Your business context, cadence/rhythms, investment portfolios, sourcing models and current capabilities must drive how you go about it
Know with the flow…www.valueflowit.com.au
@DaveFavelle, @[email protected]
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Which part of the IT Operating model would you like to explore in more
detail ?