making the most of it: it governance and business-it alignment prof. dr. hans borgman, march 17,...
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Making the most of IT: IT governance and Business-IT alignment
Prof. Dr. Hans Borgman, March 17, 2008
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ICT in Business Research Focus
ICT Strategy
ICT Infrastructure
Change Management
High-tech Entrepreneurship
Technology Adoption
Modeling & Software EngineeringVirtual Organizations
IT Governance
Knowledge Management
Open Innovation
Outsourcing
Global Software Development
Data Mining
eBusiness
(Emperical) Research Methodsfor Information Systems
Research
Herbert SimonThe Sciences of the Artificial
• Design• Simulation• Experiments• Quasi
Experiments• Questionnaires• Field Studies• Case Studies• Ethnography• Grounded Theory• Action Research
• Design• Simulation• Experiments• Quasi
Experiments• Questionnaires• Field Studies• Case Studies• Ethnography• Grounded Theory• Action Research
Rigor
Relevance
Rigor
Relevance
IT governance and associated governance mechanisms provide the linkage between responsible corporate governance and effective IT management.
• Overall decision making and accountability structure
• Establish goals, measures, policies• Ensures shareholders interests are
respected
• Overall IT decision making and accountability
• Ensures value is delivered to shareholders through IT investments and actions • Creates business value through IT
• Manages IT budgets, resources, projects, operations, vendors
• Runs IT as a business
IT Management
Corporate Governance
IT Governance
Corporate Governance
IT Governance
IT Management
IT Governance in Context
IT governance is the set of enabling mechanisms to
make & prioritize; fund & sponsor; monitor & enforce appropriate IT investment decisions
•How are decisions made?
•Who plays what role in the decision making?
•What processes are used?
•How are investments prioritised?
•How are decisions made?
•Who plays what role in the decision making?
•What processes are used?
•How are investments prioritised?
•How does leadership work for the business and IT?
•Who is the “evangelist” for technology?
•How are investments authorized?
•How is joint ownership secured?
•How does leadership work for the business and IT?
•Who is the “evangelist” for technology?
•How are investments authorized?
•How is joint ownership secured?
•What is measured and by whom?
•How does the executive retain oversight and control
•What incentive system is used?
•What accountabilities and authorities exist?
•How are investments managed?
•What is measured and by whom?
•How does the executive retain oversight and control
•What incentive system is used?
•What accountabilities and authorities exist?
•How are investments managed?
•What is the strategic business context, how is it refreshed and clarified?
•What knowledge is required to decide between operational and strategic priorities?
•How is a fresh view injected?
•How do we learn continuously?
•What is the strategic business context, how is it refreshed and clarified?
•What knowledge is required to decide between operational and strategic priorities?
•How is a fresh view injected?
•How do we learn continuously?
Foundation for business value from IT investments: Firms with better than average IT governance performance have superior profits as measured by return on assets (ROA) - more than twice compared to firms with poorer IT governance.
IT Governance Definition
Increasingly difficult for executives to delegate decision makingMounting number of strategic IT issues requires cross-functional
perspective
IT must accommodate audit trails and legislative compliance
Legislation like Sarbanes-Oxley Act requires business policies in IT to foster accountability
IT productivity paradox: IT investments failing to provide measurable business value, relates to unclear roles and responsibilities
Executives are required to prepare
for governing complex off shoring and
outsourcing arrangements
Mounting human and financial
consequences of IT put forward arguments for
improved control processes
Cost ControlCost Control
StrategicIT Sourcing
StrategicIT Sourcing ROI PressureROI Pressure
ComplianceRequirements
ComplianceRequirements
Increasing ITPervasiveness
Increasing ITPervasiveness
ITGovernance*
ITGovernance*
IT Governance Drivers
Norm: 77%Best Practice: 55-65%
discretionary
Norm: 23% Best practice: 35-45%(Forrester 2005)Non-
discretionary costs (“must have”)
Examples:•Computer Operations•Applications Maintenance•Planning and Administration•Euro-conversion, Y2K•KTLO: Keep The Lights On
Strategic
Tactical
Discretionary costs (“want to”)
Examples:• Customer Relationship Mgmt. (CRM)• eCommerce• Knowledge Management
IT Costs & Governance
non-
discretionary
IT governance applications
Functionalities of IT Governance Applications(Business Technology Optimization)
IT Governance Application Functionalities:
Workflow Management
ßAutomate and digitize ITgovernance processes, as wellas monitoring that agreed-uponsteps are followed
o
o
e
IT S ervice
S pe c she et
C o nf igura tion
Ma na geme nt
D ataba se
A MC
S ervice q uality pla n
Le ve l: 5
Leg al
C o ns traints ,
extern al po lic ie s
an d s tand ards
S erv ice
L ev el Man age r
AM C mandatory
A MC S ervice
impro veme nt plan
G lo bal s ervice
ca ta lo gue
Co rpora te / R eg io nal
se rvic e catalog ue
A MC S erv ic e
imp ro ve ment p lan
C reate or a da pt
co rpo ra te /
region al S erv ice
c atalo gu e con cep t
A MC
S e rvice qu ality p lan
S ecu rity, ris k,
qua lity an d oth er
interna l po lic ie s
a nd s tan dard s
S erv ic e lev el man age ment
a ctio n p la n
u pda te d
C o rp ora te / R egion al se rvice
ca talog ue co nce pt
Dra f t
Demand Management
ßEnsure that development ofstrategic initiatives is balancedwith efficient day-to-day ITservice delivery and routinechanges
Portfolio Management
ßSupport prioritization processesthrough clear responsibilitiesfor consolidating, evaluating,and approving collectedrequests
Project Management
ßManaging projects bysupporting funding decisions,creating delivery schedules,aligning individual project taskwith business objectives
Application ChangeManagement
ßEnable automatic deploymentand migration of softwarechanges across a firm’s systemlandscape
Monitoring Systems
ßInclude outcome and processcontrol features, as well asmonitoring of key performanceindicators
IT Governance Application Functionalities:
Workflow Management
ßAutomate and digitize ITgovernance processes, as wellas monitoring that agreed-uponsteps are followed
o
o
e
IT S ervice
S pe c she et
C o nf igura tion
Ma na geme nt
D ataba se
A MC
S ervice q uality pla n
Le ve l: 5
Leg al
C o ns traints ,
extern al po lic ie s
an d s tand ards
S erv ice
L ev el Man age r
AM C mandatory
A MC S ervice
impro veme nt plan
G lo bal s ervice
ca ta lo gue
Co rpora te / R eg io nal
se rvic e catalog ue
A MC S erv ic e
imp ro ve ment p lan
C reate or a da pt
co rpo ra te /
region al S erv ice
c atalo gu e con cep t
A MC
S e rvice qu ality p lan
S ecu rity, ris k,
qua lity an d oth er
interna l po lic ie s
a nd s tan dard s
S erv ic e lev el man age ment
a ctio n p la n
u pda te d
C o rp ora te / R egion al se rvice
ca talog ue co nce pt
Dra f t
Demand Management
ßEnsure that development ofstrategic initiatives is balancedwith efficient day-to-day ITservice delivery and routinechanges
Portfolio Management
ßSupport prioritization processesthrough clear responsibilitiesfor consolidating, evaluating,and approving collectedrequests
Project Management
ßManaging projects bysupporting funding decisions,creating delivery schedules,aligning individual project taskwith business objectives
Application ChangeManagement
ßEnable automatic deploymentand migration of softwarechanges across a firm’s systemlandscape
Monitoring Systems
ßInclude outcome and processcontrol features, as well asmonitoring of key performanceindicators
Aim of this study is to provide a better understanding of IT governance software implementation projects and to
explore thefactors which influence the success and failure of
IT governance tool implementations.
Legend: In-scope; Ex-scope.
IT Governance Strategies & Structures:
Centralized, decentralized, federal governance mode
Small, large firms Implementation Factors:
Project planning Executive support User involvement User training Commitment Organizational
intgr. Metrics and
feedback
Implementation Factors:
Project planning Executive support User involvement User training Commitment Organizational
intgr. Metrics and
feedback
Implementation Success or Failure:
Portfolio management optimization
Project visibility & control
IT service automation
Implementation Success or Failure:
Portfolio management optimization
Project visibility & control
IT service automation
Environmental Contingencies:
Corporate governance
Economies of scope
Absorptive capacities
Organizational culture
IT Governance Processes & Software Modules:
Demand management
Applic. change mgt.
Portfolio management
Program management
Performance monitor. & management
IT Governance Processes & Software Modules:
Demand management
Applic. change mgt.
Portfolio management
Program management
Performance monitor. & management
Research Aim & Framework
Outcome Factors Overview
Project Visibilityand Control:
Project Visibilityand Control:
•Higher capability maturity level (CMM)
•Increased project sponsor satisfaction
•Percentage increase in healthy projects (better on-budget and on-time)
•Reduced project management costs as percentage of project costs
•Higher capability maturity level (CMM)
•Increased project sponsor satisfaction
•Percentage increase in healthy projects (better on-budget and on-time)
•Reduced project management costs as percentage of project costs
•Improved alignment between business and IT
•Better executive communication and decision-making
•Monetary savings through revised investment decisions and repurposed capital investments
•Improved alignment between business and IT
•Better executive communication and decision-making
•Monetary savings through revised investment decisions and repurposed capital investments
Portfolio ManagementOptimization:
Portfolio ManagementOptimization:
IT ServicesEfficiency:
IT ServicesEfficiency:
•Improved quality of audit and regulatory compliance
•Reduction of overall operational IT spending as a percentage of revenues
•Higher productivity and lower IT personnel costs
•Faster incident handling and deployment of application changes
•Enforced compliance with architectural standards
•Improved quality of audit and regulatory compliance
•Reduction of overall operational IT spending as a percentage of revenues
•Higher productivity and lower IT personnel costs
•Faster incident handling and deployment of application changes
•Enforced compliance with architectural standards
IT GovernanceStrategies & Structures:
ß Centralized,decentralized, federalgovernance mode
ß Small, large firms
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Implementation
Factors:
ß Project planning
ß Executive support
ß User involvement
ß User training
ß Commitment
ß Organizational intgr .
ß Metrics and feedback
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are needed to see this picture.
Implementation
Success or Failure:
ß Portfolio
management
optimization
ß Project visibility &
control
ß IT service automation
Environmental
Contingencies:
ß Corporate governance
ß Economies of scope
ß Absorptive capacit ies
ß Organizational
culture
QuickTime™ and a decompressor
are needed to see this picture.
IT Governance
Processes & Software
Modules:
ß Demand management
ß Applic . change mgt.
ß Portfolio management
ß Program management
ß Performance monitor.
& management
Implementation Factors Overview (1/2)
Project Planning and Analysis (PPA):
Project Planning and Analysis (PPA):
Develop a detailed plan of the required steps in the implementation process, including all resource requirements
Check the firm’s strategic objectives and business needs upfront
Analyze and challenge the pre-implementation situation, current IT governance arrangements, and affected stakeholders
Develop a detailed plan of the required steps in the implementation process, including all resource requirements
Check the firm’s strategic objectives and business needs upfront
Analyze and challenge the pre-implementation situation, current IT governance arrangements, and affected stakeholders
Commitment(COM):
Commitment(COM):
“Commitment to change” - the willingness to accommodate changes in behavior, procedures, etc. which are necessary for IS to work
“Commitment to the project” - a more direct commitment of managers and users
Ensure a smooth systems requirements assessment at pre-design, followed by a post-implementation check
“Commitment to change” - the willingness to accommodate changes in behavior, procedures, etc. which are necessary for IS to work
“Commitment to the project” - a more direct commitment of managers and users
Ensure a smooth systems requirements assessment at pre-design, followed by a post-implementation check
Metrics and Feedback (MFE):
Metrics and Feedback (MFE):
Review the implementation status of the project regularly
Make suggestions and corrections through formal feedback channels or review meetings
Establish a set of project-related KPIs for continuous progress, issue, and risk monitoring
Make metric data frequently available to project management
Review the implementation status of the project regularly
Make suggestions and corrections through formal feedback channels or review meetings
Establish a set of project-related KPIs for continuous progress, issue, and risk monitoring
Make metric data frequently available to project management
IT GovernanceStrategies & Structures:
ß Centralized,decentralized, federalgovernance mode
ß Small, large firms
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are needed to see this picture.
Implementation
Factors:
ß Project planning
ß Executive support
ß User involvement
ß User training
ß Commitment
ß Organizational intgr .
ß Metrics and feedback
QuickTime™ and a decompressor
are needed to see this picture.
Implementation
Success or Failure:
ß Portfolio management
optimization
ß Project visibility &
control
ß IT service automation
Environmental
Contingencies:
ß Corporate governance
ß Economies of scope
ß Absorptive capacit ies
ß Organizational
culture
QuickTime™ and a decompressor
are needed to see this picture.
IT Governance
Processes & Software
Modules:
ß Demand management
ß Applic . change mgt.
ß Portfolio management
ß Program management
ß Performance monitor.
& management
User Training
(UTR):
User Training
(UTR):
Explain the scope of the IT governance initiative and its relation to the organization, as well as to the environmental contingencies
Facilitate formal and informal training, practice fields, as well as support groups of people experiencing similar difficulties
Explain the scope of the IT governance initiative and its relation to the organization, as well as to the environmental contingencies
Facilitate formal and informal training, practice fields, as well as support groups of people experiencing similar difficulties
User Involvement
(UIN):
User Involvement
(UIN):
Configure and participative customize the selected software and rollout approach
Involve users so that they can form realistic expectations about the IS
Foster a sense of ownership and increase the assessment of system requirements’ quality
Configure and participative customize the selected software and rollout approach
Involve users so that they can form realistic expectations about the IS
Foster a sense of ownership and increase the assessment of system requirements’ quality
Organizational Integration (OIN):
Organizational Integration (OIN):
Align IT governance software rollouts with the organization’s strategic focus and business drivers
Embed the tool in the organizational context (i.e. structures and processes)
Drive users to assume ownership and responsibility for the tool’s maintenance and evolution
Align IT governance software rollouts with the organization’s strategic focus and business drivers
Embed the tool in the organizational context (i.e. structures and processes)
Drive users to assume ownership and responsibility for the tool’s maintenance and evolution
Executive Support
(ESU):
Executive Support
(ESU):
Ensure executive participation and involvement
Facilitate high degree of cross-stakeholder collaboration and power reallocations
Communicate a compelling vision for the IT governance initiative and allocate non-routine resources
Ensure executive participation and involvement
Facilitate high degree of cross-stakeholder collaboration and power reallocations
Communicate a compelling vision for the IT governance initiative and allocate non-routine resources
Implementation FactorsOverview (2/2)
IT GovernanceStrategies & Structures:
ß Centralized,decentralized, federalgovernance mode
ß Small, large firms
QuickTime™ and a decompressor
are needed to see this picture.
Implementation
Factors:
ß Project planning
ß Executive support
ß User involvement
ß User training
ß Commitment
ß Organizational intgr .
ß Metrics and feedback
QuickTime™ and a decompressor
are needed to see this picture.
Implementation
Success or Failure:
ß Portfolio management
optimization
ß Project visibility &
control
ß IT service automation
Environmental
Contingencies:
ß Corporate governance
ß Economies of scope
ß Absorptive capacit ies
ß Organizational
culture
QuickTime™ and a decompressor
are needed to see this picture.
IT Governance
Processes & Software
Modules:
ß Demand management
ß Applic . change mgt.
ß Portfolio management
ß Program management
ß Performance monitor.
& management
“A case study is an empirical inquiry that:– investigates a contemporary phenomenon within its
real-life context, especially when the boundaries between phenomenon and context are not clearly evident.” 1)
– “refers to the collection and presentation of detailed information about a particular participant or small group. […] Researchers do not focus on the discovery of a universal, generalizable truth, nor do they typically look for cause-effect relationships; instead, emphasis is placed on exploration and description.” 2)
1) Yin, R. K. Case Study Research, Design and Methods, 3rd ed. Newbury Park, Sage Publications, 2003.2) Colorado State Writing Guide, http://writing.colostate.edu/guides/research/casestudy/
The Case Study as Research Method
• Title: “conceptual question: the case of …”• Intro - Method - Research - and - Discussion
(IMRaD)• Typically focus on understanding the
relationship between factors that are inter-releated and contextual and cannot be separated for study in lab experiments
General research questionMethod & rationale
General ‘answer’Discussion, limitations
Case study dataCase study analysis
(The Anatomy of a Case Study Research Paper
Four Case Studies
Company: Organization Size: Application Modules: Impl. Status:* Interviewees:
Gas and OtherServices CombinedSIC 4932(Germany)
ßRevenue: $10bnßEmployees: 41,000
ßDemand managementßApplication changemanagement
50%
ßManager change management datacenter
ßProject manager IT governanceßSenior manager customer center SAPßHead of global applications
Health and AlliedServicesSIC 8099(U.S.)
ßRevenue: $75bnßEmployees: 55,000
ßPortfolio managementßProgram managementßPerformance monitoring
75%
ßSenior VP business managementßDirectors IT pharmaceutical distr. 1 &2
ßConsulting senior executives 1 & 2ßConsulting executives 1 & 2
ManagementServicesSIC 8741(U.S.)
ßRevenue: $16bnßEmployees:130,000
ßProgram managementßDemand managementßApplication change mgt.ßPerformance monitoring 50%
ßService management leadßSupport leadßService delivery leadßClient relationship managerßClient unit lead
Sporting andAthletic GoodsSIC 3949(Germany)
ßRevenue: $7bnßEmployees: 17,000
ßProgram managementßDemand managementßPerformance monitoring
50%
ßBusiness analyst IT strategyßSenior manager processes global ITßIT manager area centralßManager project office
Note: *) Implementation status/completeness of governance tools during research.
Company: Organization Size: Application Modules: Impl. Status:* Interviewees:
Gas and OtherServices CombinedSIC 4932(Germany)
ßRevenue: $10bnßEmployees: 41,000
ßDemand managementßApplication changemanagement
50%
ßManager change management datacenter
ßProject manager IT governanceßSenior manager customer center SAPßHead of global applications
Health and AlliedServicesSIC 8099(U.S.)
ßRevenue: $75bnßEmployees: 55,000
ßPortfolio managementßProgram managementßPerformance monitoring
75%
ßSenior VP business managementßDirectors IT pharmaceutical distr. 1 &2
ßConsulting senior executives 1 & 2ßConsulting executives 1 & 2
ManagementServicesSIC 8741(U.S.)
ßRevenue: $16bnßEmployees:130,000
ßProgram managementßDemand managementßApplication change mgt.ßPerformance monitoring 50%
ßService management leadßSupport leadßService delivery leadßClient relationship managerßClient unit lead
Sporting andAthletic GoodsSIC 3949(Germany)
ßRevenue: $7bnßEmployees: 17,000
ßProgram managementßDemand managementßPerformance monitoring
50%
ßBusiness analyst IT strategyßSenior manager processes global ITßIT manager area centralßManager project office
Note: *) Implementation status/completeness of governance tools during research.
Outcome Factors Results
IT GovernanceStrategies & Structures:
ß Centralized,decentralized, federalgovernance mode
ß Small, large firms
QuickTime™ and a decompressor
are needed to see this picture.
Implementation
Factors:
ß Project planning
ß Executive support
ß User involvement
ß User training
ß Commitment
ß Organizational intgr .
ß Metrics and feedback
QuickTime™ and a decompressor
are needed to see this picture.
Implementation
Success or Failure:
ß Portfolio
management
optimization
ß Project visibility &
control
ß IT service automation
Environmental
Contingencies:
ß Corporate governance
ß Economies of scope
ß Absorptive capacit ies
ß Organizational
culture
QuickTime™ and a decompressor
are needed to see this picture.
IT Governance
Processes & Software
Modules:
ß Demand management
ß Applic . change mgt.
ß Portfolio management
ß Program management
ß Performance monitor.
& management
Gas & Other Services Combined:Gas & Other Services Combined:
• 2% reduction in project defect rates• 5% increase in projects on budget• 10% improvement in the timing and scheduling of
resources• 20-25% time reduction in processing change
requests (contact- and data center)
• 2% reduction in project defect rates• 5% increase in projects on budget• 10% improvement in the timing and scheduling of
resources• 20-25% time reduction in processing change
requests (contact- and data center)
Management Services:Management Services:
• 20% workforce reduction due to automated and standardized IT request lifecycles
• 35% of workforce relocated to low-cost countries• 10% increase in projects on budget• 20% decrease in delays • 15% decrease of average project costs (due to more
efficient project mgmt. and automated reporting)
• 20% workforce reduction due to automated and standardized IT request lifecycles
• 35% of workforce relocated to low-cost countries• 10% increase in projects on budget• 20% decrease in delays • 15% decrease of average project costs (due to more
efficient project mgmt. and automated reporting)
Health & Allied Services:Health & Allied Services:
• Implementation was in an early stage and in a rather turbulent environment with diverse stakeholder expectations
• The case illustrates that successful implementation of IT governance applications requires clearly-designed IT governance processes
• At this stage the case is inconclusive in terms of business outcomes
• Implementation was in an early stage and in a rather turbulent environment with diverse stakeholder expectations
• The case illustrates that successful implementation of IT governance applications requires clearly-designed IT governance processes
• At this stage the case is inconclusive in terms of business outcomes
Sporting & Athletic Goods:Sporting & Athletic Goods:
• 5% decrease of operational IT costs• 5% decline in time to market for approved initiatives• 10-20% increase in projects meeting quality criteria• 1-5% project management cost decrease• Recovery of implementation costs ($1.5m) after
1.5 years
• 5% decrease of operational IT costs• 5% decline in time to market for approved initiatives• 10-20% increase in projects meeting quality criteria• 1-5% project management cost decrease• Recovery of implementation costs ($1.5m) after
1.5 years
Gas & Other Services Combined:
Gas & Other Services Combined:Some of the projects received a high level of
ESUHigh user COM already in early project stages
High levels of PPA and UIN - the project was tracked and users were involved
Little information regarding MFEEmphasis was placed on UTRStrong evidence for OIN - detailed process definitions
Some of the projects received a high level of ESU
High user COM already in early project stages
High levels of PPA and UIN - the project was tracked and users were involved
Little information regarding MFEEmphasis was placed on UTRStrong evidence for OIN - detailed process definitions
Health & Allied Services:Health & Allied Services:Limited ESU - no process owners for ppm modules
Very little general COM during the rollout Insufficient degree of PPAUTR followed different approaches - mixed success
Limited information regarding MFENo evidence of UIN during implementationLimited evidence of OIN - “the tool was just screwed in”
Limited ESU - no process owners for ppm modules
Very little general COM during the rollout Insufficient degree of PPAUTR followed different approaches - mixed success
Limited information regarding MFENo evidence of UIN during implementationLimited evidence of OIN - “the tool was just screwed in”
ESUESU OINOINCOMCOM PPAPPA UINUIN MFEMFE UTRUTR
SS
MM
WW
ESUESU OINOINCOMCOM PPAPPA UINUIN MFEMFE UTRUTR
SS
MM
WW
Legend: strong evidence, moderate evidence, weak evidence
Implementation FactorsResults (1/2)
IT GovernanceStrategies & Structures:
ß Centralized,decentralized, federalgovernance mode
ß Small, large firms
QuickTime™ and a decompressor
are needed to see this picture.
Implementation
Factors:
ß Project planning
ß Executive support
ß User involvement
ß User training
ß Commitment
ß Organizational intgr .
ß Metrics and feedback
QuickTime™ and a decompressor
are needed to see this picture.
Implementation
Success or Failure:
ß Portfolio management
optimization
ß Project visibility &
control
ß IT service automation
Environmental
Contingencies:
ß Corporate governance
ß Economies of scope
ß Absorptive capacit ies
ß Organizational
culture
QuickTime™ and a decompressor
are needed to see this picture.
IT Governance
Processes & Software
Modules:
ß Demand management
ß Applic . change mgt.
ß Portfolio management
ß Program management
ß Performance monitor.
& management
Management Services:Management Services:
Major evidence for ESU - tool received full support
PPA was highlighted - processes were defined
Several occurrences of UIN became visibleLittle evidence for MFEHigh COM - staff & users believed in the product
High UTR - conducted in multiple user groups
Strong evidence of OIN - workflows built into tool
Major evidence for ESU - tool received full support
PPA was highlighted - processes were defined
Several occurrences of UIN became visibleLittle evidence for MFEHigh COM - staff & users believed in the product
High UTR - conducted in multiple user groups
Strong evidence of OIN - workflows built into tool
Sporting & Athletic Goods:Sporting & Athletic Goods:
Low ESU - “marketing-driven company”Little COM evidence from the designated tool users
Poor PPA and limited MFE - the tool was selected rather on motivation than evaluation
No instances of UIN - the advantages of the tool were not articulated to users
Medium OIN - limited process design and mapping
Low ESU - “marketing-driven company”Little COM evidence from the designated tool users
Poor PPA and limited MFE - the tool was selected rather on motivation than evaluation
No instances of UIN - the advantages of the tool were not articulated to users
Medium OIN - limited process design and mapping
ESUESU OINOINCOMCOM PPAPPA UINUIN MFEMFE UTRUTR
HH
MM
LL
ESUESU OINOINCOMCOM PPAPPA UINUIN MFEMFE UTRUTR
HH
MM
LL
Legend: strong evidence, moderate evidence, weak evidence
Implementation FactorsResults (2/2)
IT GovernanceStrategies & Structures:
ß Centralized,decentralized, federalgovernance mode
ß Small, large firms
QuickTime™ and a decompressor
are needed to see this picture.
Implementation
Factors:
ß Project planning
ß Executive support
ß User involvement
ß User training
ß Commitment
ß Organizational intgr .
ß Metrics and feedback
QuickTime™ and a decompressor
are needed to see this picture.
Implementation
Success or Failure:
ß Portfolio management
optimization
ß Project visibility &
control
ß IT service automation
Environmental
Contingencies:
ß Corporate governance
ß Economies of scope
ß Absorptive capacit ies
ß Organizational
culture
QuickTime™ and a decompressor
are needed to see this picture.
IT Governance
Processes & Software
Modules:
ß Demand management
ß Applic . change mgt.
ß Portfolio management
ß Program management
ß Performance monitor.
& management
Conclusions and Further Research
UIN, UTR, and COM
Comparing the findings
MFE
Cases 2 and 4 show major deficiencies - implementation failed to some extent Cases 1 and 3 show careful attention to most implementation factors - implementation was regarded successful Little evidence was found for the implementation factor
MFE Should not be included in further research UIN, UTR, and COM may serve as a priori explanations of
implementation success or failure.
PPA, ESU, and OIN
PPA, ESU, and OIN are powerful measures to overcome common failure points
A correlation between PPA and OIN was found - effort spent on PPA may translate into improved OIN
Further Research
A questionnaire-based quantitative survey with a larger cross-sectional sample will be conducted
A better understanding of the cause and effect relationships between implementation factors and rollout success or failure would be valuable to academic and practitioner communities
Support for relation between six out of seven implementation factorsTo implementation success or failure
Making the most of IT: IT governance and Business-IT alignment
Prof. Dr. Hans Borgman, March 17, 2008