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IT value streamsStrip away jargon and buzzwords to create real value based on user needs

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.2

IT’s new operating model

• IT has moved from a system-centric model into a user-driven era, with many IT leaders struggling to adapt.

•Working for more than a year with Fortune 500 businesses, we’ve defined a new business-centric, user-centric operating model for IT.

•We stripped away jargon, trends, and technologies to ask: “What are the key things IT must do—and do well?”

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.3

Focus on creating results

Value chains:Activities that a firm operating in a specific industry performs to deliver something of value (a product or service)1

• The term “value chains” was adapted by lean manufacturing into “value stream” — analyzing and optimizing the flow of materials and information to realize a value chain.

“A ‘value stream’ is an end-to-end collection of activities that create a result for a customer.” — James Martin, The Great Transition

1 from Michael Porter’s Competitive Advantage: Creating and Sustaining Superior Performance

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.4

Enterprise IT is no longer in total control• IT was once the single provider of

applications, services, and resources for all enterprise users.

• Today, specialized vendors, “composite” apps, multiple sourcing options, mobile technology, and the consumerization of IT let business users choose from multiple alternatives.

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.5

Ending the IT struggle

IT must continue to add value to the business, rather than become an inhibitor.

“Failing to understand business outcomes is one reason IT is struggling. CIOs are becoming outcasts because the business comes with a set of imperatives that IT won’t meet. Then the business calls an outside vendor.”

— Keith Macbeath, senior principal consultant with HP Professional Services

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.6

It’s about strategy, not tactics

The goal is to serve the end user and bring positive business results—not to serve a particular process.

• Unhappy users easily find better products or ad hoc workarounds.

• Process guidelines (ITIL, COBIT, ISO, etc.) fail to answer the question: “How do I define the data underneath and use it the right way?”

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.7

The value proposition

Before you focus on the tactics that get you there, start with a strategy defining where you want to go.

The goal: To create measurable value for all IT users while

gaining a better understanding of underlying data

The benefits: • IT can better monitor total spending.• IT can ensure the quality of deliverables.• IT can apply metrics that truly matter.

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Applying the “value stream” construct to IT provides a framework to better manage the changing IT landscape.

IT value streams: A more effective framework

Strategy to Portfolio

Requirement to Deploy

Request to Fulfill

Detect to Correct

PlanRunBuildPlan

Run

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.9

The four essential IT value streamsEach value stream spans a key set of activities that create real value for your IT users:

• From strategy to portfolio:Drive IT portfolio to business innovation

• From requirement to deploy: Build what the business wants, when it wants it

• From request to fulfill: Catalog, fulfill, and monitor service usage

• From detect to correct: Anticipate and resolve production issues

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.10

Each stream can be broken down into the steps that lead to value

Four streams that feed one result

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The supporting foundation

At the four value streams’ core are support activities that include:

• financial management

• governance, risk, and compliance

• analytics/insight

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.12

Your next steps toward value

•To learn more, download the free ebook, “Value streams: A user-centric model for the enterprise CIO.”

•Read more on the value streams concept in the May 2013 Discover Performance.

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hp.com/go/discoverperformance

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

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