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Getting IT rightBusiness IT Alignment
A.J.Gilbert SilviusLector
Business, ICTen Innovatie
Gilbert Silvius
Koninklijke Militaire Academie Fender Precision Bass 19631963Vlaardingen Koninklijke Landmacht Erasmus Universiteit
2 kinderen MBAMBA Getronics Synergie Consultancy .
Lector Business, ICT en Lector Business, ICT en InnovatieInnovatie ProjectmanagementBusiness ICT Alignment 2027Katholieke Universiteit Leuven Ede PhD .
. Utrechtse Ondernemers Academie BedrijfseconomieMaster of Informatics Aetsveld
AfghAnistAn Master of Project Management
HogeschoolUtrecht
Kenniscentrum Innovatie en Business
Missie
Wij inspireren en
innoverenhet onderwijs en de
beroepspraktijk
Getting IT rightBusiness IT Alignment
A.J.Gilbert SilviusLector
Business, ICTen Innovatie
In what business is this company?
In what business is this company?
In what business is this company?
ICT als bron van innovatie
Impactop
Business
hoog
laag
Jaren ’60 ’70 ’80 ’90 ’00 ‘10
Automatisering
Informatisering
Transformatie
BIA strategies
Perceptionof external
impact of IT
high
low
highlowPerception of internal impact of IT
Conservative•IT saves costs•Proven technology•Efficiency orientation
Essential•IT essential in realising strategy•New technologies•Effectiveness orientation
Innovative•IT as competitive edge•Experimental technologies•Innovation orientation
Business•IT is business•All technologies•Service orientation
Business IT Alignment
Wat is het?
Business IT Alignment
Business IT
Alignment
Klare taal?
Business IT Alignment
IT Governance
IT Planning
Information Planning
IT Service Management
IT Strategy
Alignment?
Alignment?
‘fit’ (Venkatraman, 1989) ‘harmony’ (Luftman et al. 1993) ‘integration’ (Weill and Broadbent 1998) ‘linkage’ (Henderson and Venkatraman 1993) ‘bridge’ (Ciborra 1997) ‘fusion’ (Smaczny 2001)
Vragen
Alignment:
Proces of Toestand?
Weill and Broadbent (1998): ‘Alignment is a journey, not an event’
Vragen
Alignment:
Proces of Toestand?
Eenrichtingverkeer of wederzijdse beïnvloeding?
Wieringa et al. (2005): ‘the problem of matching IT services with the
requirements of the business’
Poels (2006): Alignment implies a ‘mutual influence’ between
business and IT.
Twee benaderingen
BIA as the degree to which the business mission, objectives and plans are supported by the IT mission, objectives and plans
Twee benaderingen
BIA as the degree to which the business mission, objectives and plans are supported by the IT mission, objectives and plans
A more holistic view of BIA (Henderson and Venkatraman)
Het Strategic Alignment Framework
Vier afstemmingsperspectieven:
1. Strategierealisatie
2. Technologie potentieel
3. Concurrentiepotentieel
4. Service niveau
25
Business IT Alignment
Business IT Alignment is the degree to which the IT applications, infrastructure and organization, enable and shape the business strategy and processes, as well as the process to realize this.
Luftman (2000)
Stimulansen voor BITATop management
sponsorship voor ITIT betrokken bij
strategie ontwikkelingIT heeft goed begrip
van de businessBusiness-ITpartnership
Goede prioriteitstellingvan IT projecten
IT toontleiderschap
Obstakels voor BITAGeen sponsorship van het topmanagementRelatie tussen business en IT afstandelijkIT ontbeert begrip van de businessIT realiseert doelstellingen nietZwakke prioriteitstelling IT projectenIT management ontbeert leiderschap
Jerry LuftmanBusiness & IT Alignment Maturity
Maturity of theBusiness IT Alignment process
Initial / Ad-Hoc Process
CommittedProcess
Established/FocusedProcess
Improved/ManagedProcess
OptimizedProcess
BusinessStrategy / Organization
ITStrategy / Organization
Alignment gap
Business IT Alignment MaturityVariables
PartnershipBusiness Perception of IT Value
Role of IT in Strategic Business PlanningShared Goals, Risk, Rewards/Penalties
IT Program ManagementRelationship/Trust Style
Business Sponsor/Champion
Scope & ArchitectureTraditional, Enabler/Driver, External
Standards ArticulationArchitectural Integration:
- Functional- Enterprise
- Inter-enterpriseArchitectural Transparency, Flexibility
SkillsInnovation, Entrepreneurship
Locus of PowerManagement StyleChange ReadinessCareer crossover
Education, Cross-TrainingSocial, Political, Trusting Environment
CommunicationsUnderstanding of Business by ITUnderstanding of IT by BusinessInter-/Intra-organizational learning
Protocol rigidityKnowledge sharing
Liaison(s) effectiveness
Value measurementIT Metrics
Business MetricsBalanced Metrics
Service Level AgreementsBenchmarking
Formal assessments/reviewsContinuous Improvement
GovernanceBusiness Strategic Planning
IT Strategic PlanningReporting/Organization Structure
Budgetary ControlIT Investment Management
Steering Committee(s)Prioritization Process
Six IT Business alignment maturity criteria
Business & IT Alignment MaturityVariables
Communications
Competency & ValueMeasurement
Governance
Partnership
Skills
Scope &Architecture
Luftman 2007
197 companies
Why is alignment still an issue?
The first reason is that the definition of alignment is frequently focused only on how IT is aligned with the business. Alignment must also address how the business is aligned with IT. Alignment must focus on how IT and the business are aligned with each other; IT can both enable and drive business change.
The second reason is that organizations have often looked for a silver bullet. Originally, some thought the right technology (e.g., infrastructure, applications) was the answer. While important, it is not enough. Likewise, improved communications between IT and the business help but are not enough. Similarly, establishing a partnership is not enough nor are balanced metrics that combine appropriate business and technical measurements. Clearly, mature alignment cannot be attained without effective and efficient execution and demonstration of value, but this alone is insufficient. Our research has found that all six of these components must be addressed to improve alignment.
The third reason IT-business alignment has been elusive is that there has not been an effective tool to gauge the maturity of IT-business alignment—a tool that can provide both a descriptive assessment and a prescriptive roadmap on how to improve.
Luftman 2007
Main observations
Industries vary in their alignment maturity
Alignment maturity is rising
Business executives score alignment higher than IT executives
Rankings among Level 2, 3, and 4 companies are remarkably consistent
ROC BIA maturity onderzoek
Ca. 25 ROC’s, in twee groepen September 2009 – Januari 2010 Februari 2010 – Juli 2010
8 – 10 respondenten per ROC ‘Business’ ICT Intermediair
Vragenlijst gebaseerd op Luftman assessment Ist Soll
Overall
0,00
1,00
2,00
3,00
4,00
5,00Communications
Competency & Value Measurements
Governance
Partnership
Scope & Architecture
Skills
Maturity
Totaal
Huidig / Gewenst
0,00
1,00
2,00
3,00
4,00
5,00Communications
Competency & Value Measurements
Governance
Partnership
Scope & Architecture
Skills
Maturity
Totaal
0,00
1,00
2,00
3,00
4,00
5,00Communications
Competency & Value Measurements
Governance
Partnership
Scope & Architecture
Skills
Maturity
Totaal
Huidig / Gewenst
0,00
1,00
2,00
3,00
4,00
5,00Communications
Competency & Value Measurements
Governance
Partnership
Scope & Architecture
Skills
Maturity
Totaal
0,00
1,00
2,00
3,00
4,00
5,00Communications
Competency & Value Measurements
Governance
Partnership
Scope & Architecture
Skills
Maturity
Totaal
0
1
2
3
4
51
2 34
56
78
9
10
11
12
1314
1516
171819
202122
2324
2526
27
28
29a
29b
30
3132
3334
3536 37
Spreiding
MAX
Gem
MIN
0
1
2
3
4
51
2 34
56
78
9
10
11
12
1314
1516
171819
202122
2324
2526
27
28
29a
29b
30
3132
3334
3536 37
Spreiding
MAX
Gem
MIN
Communicatie
0
1
2
3
4
5
Het Begrijpen van de business door de IT
Het begrijpen van de IT door de business
Evaluatie en van elkaar leren
De mate van standaard protocollen
kennisdeling
De doeltreffendheid van samenwerken
Communicatie
Business Intermediair ICT
Communicatie
0
1
2
3
4
5
Het Begrijpen van de business door de IT
Het begrijpen van de IT door de business
Evaluatie en van elkaar leren
De mate van standaard protocollen
kennisdeling
De doeltreffendheid van samenwerken
Communicatie
Business Intermediair ICT
0
1
2
3
4
5Het Begrijpen van de business door de IT
Het begrijpen van de IT door de business
Evaluatie en van elkaar leren
De mate van standaard protocollen
kennisdeling
De doeltreffendheid van samenwerken
Communicatie
Business Intermediair ICT
Waardetransparantie
0,00
1,00
2,00
3,00
4,00
5,00De performance van de IT
De performance van de Business
De onderliggende link tussen Business en IT
Service Level AgreementsBenchmarking
Achteraf evalueren van projecten
Continue verbetering van prestatie indicatoren
Waarde metingen
Business Intermediair ICT
0,00
1,00
2,00
3,00
4,00
5,00De performance van de IT
De performance van de Business
De onderliggende link tussen Business en IT
Service Level AgreementsBenchmarking
Achteraf evalueren van projecten
Continue verbetering van prestatie indicatoren
Waarde metingen
Business Intermediair ICT
Governance
0,00
1,00
2,00
3,00
4,00
5,00
Strategische business planning
Strategische IT planning
Organisatie structuur en rapportage
Budget beheer van ITIT investeringen
Bestuurscomités
Projectprioriteit
Governance
Business Intermediair ICT
0,00
1,00
2,00
3,00
4,00
5,00
Strategische business planning
Strategische IT planning
Organisatie structuur en rapportage
Budget beheer van ITIT investeringen
Bestuurscomités
Projectprioriteit
Governance
Business Intermediair ICT
Partnership
0,00
1,00
2,00
3,00
4,00
5,00
Beeldvorming business over de waarde van IT
De rol van IT in strategische business planning
Gedeelde doelen, risico's en beloningenRelatie & vertrouwen tussen business - IT
Allocatie van middelen
Partnership
Business Intermediair ICT
0,00
1,00
2,00
3,00
4,00
5,00
Beeldvorming business over de waarde van IT
De rol van IT in strategische business planning
Gedeelde doelen, risico's en beloningenRelatie & vertrouwen tussen business - IT
Allocatie van middelen
Partnership
Business Intermediair ICT
Scope en Architectuur
0,00
1,00
2,00
3,00
4,00
5,00Scope van IT
Standaardisatie protocollen
Standaardisatie van IT processen
Architecturale integratie(afdelingsniveau)
Architecturale integratie(bedrijfsniveau)
Transparantie en Flexibiliteit
Scope & Architectuur
Business Intermediair ICT
0,00
1,00
2,00
3,00
4,00
5,00Scope van IT
Standaardisatie protocollen
Standaardisatie van IT processen
Architecturale integratie(afdelingsniveau)
Architecturale integratie(bedrijfsniveau)
Transparantie en Flexibiliteit
Scope & Architectuur
Business Intermediair ICT
Skills
0,00
1,00
2,00
3,00
4,00
5,00Innovatie & ondernemerschap
Machtsverdeling
Managementstijl
VeranderbereidheidCarrière overstap
Personeelstraining
Sociaal & politiek betrouwbare werkomgeving
Vaardigheden
Business Intermediair ICT
0,00
1,00
2,00
3,00
4,00
5,00Innovatie & ondernemerschap
Machtsverdeling
Managementstijl
VeranderbereidheidCarrière overstap
Personeelstraining
Sociaal & politiek betrouwbare werkomgeving
Vaardigheden
Business Intermediair ICT
Wat te doen?
PartnershipBusiness Perception of IT Value
Role of IT in Strategic Business PlanningShared Goals, Risk, Rewards/Penalties
IT Program ManagementRelationship/Trust Style
Business Sponsor/Champion
Scope & ArchitectureTraditional, Enabler/Driver, External
Standards ArticulationArchitectural Integration:
- Functional- Enterprise
- Inter-enterpriseArchitectural Transparency, Flexibility
SkillsInnovation, Entrepreneurship
Locus of PowerManagement StyleChange ReadinessCareer crossover
Education, Cross-TrainingSocial, Political, Trusting Environment
CommunicationsUnderstanding of Business by ITUnderstanding of IT by BusinessInter-/Intra-organizational learning
Protocol rigidityKnowledge sharing
Liaison(s) effectiveness
Value measurementIT Metrics
Business MetricsBalanced Metrics
Service Level AgreementsBenchmarking
Formal assessments/reviewsContinuous Improvement
GovernanceBusiness Strategic Planning
IT Strategic PlanningReporting/Organization Structure
Budgetary ControlIT Investment Management
Steering Committee(s)Prioritization Process
Six IT Business alignment maturity criteria
Verdiep je in de business
Weestransparant
Creëer stuurmogelijk-heden voor de
business
Creëerbetrokken-
heid
Creëer een effectieve
architectuur
Ontwikkel de kwaliteit van medewerkers
IT strategieën
Perceptionof externalimpact of IT
high
low
highlowPerception of internal impact of IT
Conservative•IT saves costs•Proven technology•Efficiency orientation
Essential•IT essential in realising strategy•New technologies•Effectiveness orientation
Innovative•IT as competitive edge•Experimental technologies•Innovation orientation
Business•IT is business•All technologies•Service orientationIT does
matter!
Strategie geeft AlignmentIT
stra
tegy
Innovative
Conservative
HighLowAlignment capability
Essential
The new IT professional
Competenties
TechnicalCompetencies
BehavourialCompetencies
ContextualCompetencies
Technical knowledge
Domain knowledge
Tool knowledge
Product knowledge
Project knowledge
….
LeadershipEngagement & motivationSelf-controlAssertivenessRelaxationOpennessCreativityResults orientationEfficiencyNegotiationValues appreciationEthics
Business (general)Business (specific)MarketingSystems, products & technologyPersonnel managementHealth, security, safety
& environmentFinanceLegal
Vragen??