Orchestrating IT Value Delivery

© 2011 Gerald Grant and Robert Collins 2

Agenda

The Challenge of Business/IT Management Today

Business/IT Alignment – Engineering Model

Agricultural Model of Business/IT Management

Value Realization Cycle

Conclusion

© 2011 Gerald Grant and Robert Collins 3

Issues in IT management

Centrality of IT to business strategy

Justification for IT investmentsWho should control IT directionIT skills and knowledge Beneficiaries of IT (are there

winners/losers?)

© 2011 Gerald Grant and Robert Collins 4

The Engineering Model

Mechanistic Like construction

Assumes an orderliness which is false Presumes all is known, standardized and

measurable Anything not is considered “error”

Siloed A mirage

Looks perfect from afar but false when close

© 2011 Gerald Grant and Robert Collins 5

Agricultural Model

Investment in the life cyclePlantingCultivationNurturingHarvestingRenewing

Include all stakeholders in the full cycleNot just planning

© 2011 Gerald Grant and Robert Collins 6

What is IT Governance?

“determines who has authority for significant IT decisions. Internally, in organizations, governance design is used to determine which executives (i.e., IT or business) are responsible for which IT activities and at which level of the firm (i.e., enterprise or line of business). Centralized, decentralized and federal modes are the commonly used forms of governance in IT.” (Smith, SIM APC Report, p. 6)

© 2011 Gerald Grant and Robert Collins 7

What is Enterprise Architecture?

An enterprise architecture is a ‘living’ ‘blueprint’ that articulates, in logical business and technical terms, the integrated relationship between business imperatives , business processes, information flows, information systems applications, and the technology and physical infrastructures that support the business in achieving its strategic objectives .

It applies frameworks, models, standards, and tools, to define the logical relationships and processes for ensuring effective and efficient coordination of resource and information flows, systems design and deployment, and project control and investment.

© 2011 Gerald Grant and Robert Collins 8

Classifying IT Investment Portfolios

60%

30%

10%

© 2011 Gerald Grant and Robert Collins 9

IT Service Sourcing Options

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What to Measure?

Just what you need, not too much Monetary and non-monetary

E.g. Ambulance response time Hard and soft data

E.g. Customer satisfaction• Gap analysis

Proxy metrics If a specific target is difficult to measure, a directly

related one may stand in E.g. Employee morale - absenteeism

There must be a causal link between what you are measuring and the goal you are trying to achieve

Metrics that employees feel they can impact

© 2011 Gerald Grant and Robert Collins 11

Harvest

Returns Measure

The basis of communications This year’s results feed next year’s plans