reality bites lpd2010 silvius
DESCRIPTION
Presentation on the reality of Business IT Alignment on the \'Landelijke Praktijkdag Functioneel Beheer\', March 23rd 2010TRANSCRIPT
Reality bitesDe realiteit van business IT alignment
A.J.Gilbert SilviusLector
Business,ICT en Innovatie
Gilbert Silvius
Koninklijke Militaire Academie Fender Precision Bass 19631963Vlaardingen Koninklijke Landmacht Erasmus Universiteit
2 kinderen MBAMBA Getronics Synergie Consultancy .
Lec t or Business, ICT en Lec t or Business, ICT en Innovat ieInnovat ie ProjectmanagementBusiness ICT A lignment 2027K a t h o l i e k e U n i v e r s i t e i t L e u v e n Ede PhD .
. Utrechtse Ondernemers Academie BedrijfseconomieMaster of Informatics Aetsveld
Af ghanist an Master of Project Management
HogeschoolUtrecht
Kenniscentrum InnBus
Reality bitesDe realiteit van business IT alignment
A.J.Gilbert SilviusLector
Business,ICT en Innovatie
In what business is this company?
In what business is this company?
In what business is this company?
It’s just getting interesting!
Impactop
Business
hoog
laag
Jaren ’60 ’70 ’80 ’90 ’00 ‘10
Automatisering
Informatisering
Transformatie
ICT als bron van innovatie
Bedrijfsmiddelen
Bedrijfsprocessen
Bedrijfsmodel
Bedrijfsstrategie
En we zijn nog niet klaar!
De vraag ook niet
Growing
Flat
Declining
Help enablegrowth!
Help improvemargins!
Help reducefixed and variable
costs!
Companyrevenue
IT budget
IT demand
Does alignment pay-off?
Kans of kopzorg?
Vraag
Hoe zou je de alignment tussen business en IT verbeteren?
Why is alignment still an issue?
Géén tweerichtingverkeer
Géén ‘silver bullit’
BIA is multidimensionaal
Geen instrumentarium om verbetering te plannen en te monitoren
Jerry LuftmanBusiness IT Alignment Maturity
Maturity of theBusiness IT Alignment process
Initial / Ad-Hoc Process
CommittedProcess
Established/FocusedProcess
Improved/ManagedProcess
OptimizedProcess
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
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
Processen
Structures
CapaciteitenVisies /Gedrag
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
Luftman 2007
Question
How does Alignment relate to Business Performance?
Does alignment matter?
Alignment matters!
Alignment matters!
Strategic Alignment Maturity makes a significant contribution to company performance.
SAMs impact on company performance is .34. This is a very good validation of the relationship between
SAM and company performance.
Question
How does Alignment relate to Strategy? To Business Strategy To IT Strategy
Does strategy matter?
Relationships??
BusinessStrategy
ITStrategy
Business IT Alignmentcapability
OperationalExcellence
ProductLeadership
CustomerIntimacy
Business Strategy
Operational ExcellenceEmphasis on efficiency and reliability, price leadership, cost control and supply chain optimization.
Product LeadershipEmphasis on continuing product development, innovation, fast time-to market and high margins.
Customer IntimacyEmphasis on customer service, responsiveness, tailoring products and services to individual customer needs.
IT Strategie (Visie)
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
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
Relationships??
BusinessStrategy
ITStrategy
Business IT Alignmentcapability
OperationalExcellence
ProductLeadership
CustomerIntimacy
BusinessStrategy Perception
of externalimpact of IT
high
low
Perceptionof external
impact of IT
high
low
highlow
Perception of internal impact of IThighlow
Perception of internal impact of IT
Conservative•IT saves costs•Proven technology•Efficiency orientation
Essential•IT essential in realisingstrategy•New technologies•Effectiveness orientation
Innovative•IT as competitive edge•Experimental technologies•Innovation orientation
Business•IT is business•All technologies•Service orientation
Strategies combined
Strategie geeft AlignmentIT
str
ateg
y
Innovative
Conservative
HighLowAlignment capability
Essential
Business IT Alignment
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
Wat is belangrijk?
28
13,4 14,3 15,712,7
15,9
0
5
10
15
20
25
30
Perceived weight of variablesPerceived weight of variables
Wat is belangrijk?
31,1
15,8 14,69,9 11,7
17,0
0,05,0
10,015,020,025,030,035,0
Perceived weight of subvariablescommunication
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
(maar andersom ook!)
Weestransparant
Creëer stuur-mogelijkheden
Creëerbetrokken-
heid
Creëer een effectieve
architectuur
Ontwikkel de kwaliteit van medewerkers
Reality bitesDe realiteit van business IT alignment
A.J.Gilbert SilviusLector
Business,ICT en Innovatie
What we know
Algemeen
BIA is multidimensionaal (processen, structuren, capaciteiten en visie)
Géén ‘silver bullit’
Kan bij alle business strategieën
Het levert op!
What we know
Wat helpt?
Tweerichtingsverkeer Visie en (IT) strategie Transparantie en stuurmogelijkheden (Business) kennis in IT IT kennis in de business IT architectuur Procesvolwassenheid in IT én business Cultuur heeft invloed
Kijk uit voor bestuurders!
Basistype Kenmerken
Hypocriet Verklaart de IT belangrijk te vinden, ontkracht dit geloof door zijn handelen
Weifelaar Accepteert aarzelend het strategisch belang van de IT. Wil echter niet zelf betrokken raken bij de IT-vraagstukken
Atheïst Vindt de IT niet belangrijk. Verkondigt die overtuiging in het openbaar
Fanaat Vindt de IT van strategisch belang. Beschouwd zichzelf als een autoriteit op het gebied van IT
Agnost Geeft toe dat de IT van strategisch belang is. Moet daar steeds opnieuw van overtuigd worden
Koning Accepteert dat de IT strategisch belangrijk is. Benoemt de best denkbare CIO en trekt zich dan terug
Gelovige Gelooft dat de IT een strategisch voordeel kan bieden. Benadrukt die overtuiging door zijn dagelijkse optreden
What we don’t know
Nog niet goed onderzocht
BIA in MKB
Multibusiness IT alignment
Effect van outsourcing
Vragen??