Business IT Management Concepts and Disciplines by xV3WmZE


									 Business – IT Management
    Key Management Concepts and

                              IT Delivering Business Value
                                                             Warning       Desired
                                                              Zone          State

                                                             Attention    Opportunity
                                                               Zone         Zone

                                        IT Providing Effective and Efficient services

                                                                 IT Operational

 Establish a Working Environment of Business/IT
  Management That Delivers the Desired Level of
Business Value and Performance of IT for Assisting
Agencies to Enable a Responsive, Accountable, and
            Citizen-Centric Government
    Motivations for Business/IT Management
                                          • Innovative service delivery
                                          • Enhanced quality and results of
                                            governmental programs
      Societal and                        • Greater productivity/efficiency in
                               Directs      operations
  technological change
                                          • Increase transparency and accountability
                                            for performance
                                          • More value to the public for expenditures

                                          • Technology is an integral part of the
A technologically aware                     business
      organization           Recognizes   • Technology can enhance citizen services
                                            and improve business processes
Today’s and tomorrow’s        Expects     •   An IT-intensive environment
                                          • Service-centered and customer-focused
A credible IT organization       Is       • Efficient and effective in its operations
                                          • Responsive to changing business needs
                                          • Advancement of organizational mission
A mature IT organization       Enables    • Accomplishment of business goals and
                                            strategies                                  2
                                          • Business transformation
Components of Business/IT Management
                Business Strategies and


               Business Processes (Work
Influences      Tasks, Information, and
    and             Policies/Rules)

                   IT Plans and Projects
                        Creates               Sustains

               IT Infrastructure (Hardware,
             Software, Management Practices
                       and Processes)
                                                              Business/IT Management Outcomes*
                                                                                                                                    To get to the best
                                                                 Warning Zone – Ineffective IT    Desired State –Business Enabled   outcome, both IT
                                                                 Operations Places Continued       by IT Operational Excellence     efficacy and
                               IT Delivering Business Value

                                                                   Business Growth At Risk                                          business/IT
                                                                                                                                    enablement must
 Business Enablement/Support

                                                              Business Improvement -14%           Business Improvement +35%         be accomplished
                                                              IT Spend Change      +13%           IT Spend Change       - 6%
                                                                                                                                    Initiatives for
                                                              11% of companies                    7% of companies
                                                                                                                                    improving IT
                                                                                                                                    efficacy and
                                                                 High Attention Zone – Both         Opportunity Zone – Strong       business/IT
                                                                   Business Support and IT         Delivery Capabilities But Weak   enablement may be
                                                              Operational Performance Problems         Linkage of Operational
                                                                                                   Capabilities to Business Needs   performed in
                                                              Business Improvement -2%            Business Improvement +11%
                                                                                                                                    Achieving IT efficacy
                                                              IT Spend Change      +0%            IT Spend Change      -15%         provides the most
                                                              74% of companies                    8% of companies                   incremental
                                                                                                                                    business benefits
                                                                 IT Providing Effective and Efficient Services
                                                                                    IT Operational Performance

*Sloan Management Review, Fall 2007, “Are You Caught In the Alignment Trap?”                                                                       4
Organizational Expectations for IT’s Role
IT possesses   High

                IT Enabling/Supporting Business
business                                                                               IT Counselor             IT Value Seeker
process                                                                           • Anticipate business   • Full business/IT

                                                   IT Delivering Business Value
                                                                                  needs                   integration
and                                                                               • Service over costs    • Efficiency and costs
                                                                                                          are important
relationship                                                                      • Don’t hinder the
skills                                                                            business               • Business process
                                                                                                         focus - solution driven
                                                                                           IT Doer         IT Service Provider
                                                                                  • Keep lights on       • Reliability, costs and
                                                                                  • Efficiency and costs security emphasized
                                                                                  unimportant            •Technology not
                                                                                  • Little role in       thought of as enabler
IT has                                                                                                   of business mission
limited feel                                                                      business innovation
for business                                                                      or improvement
needs and                                                                         IT Providing Efficient and Effective Services
                                                  Low                                IT Operational Performance                     High

                                                  IT operations                                                          IT operations
                                                  extremely                                                              proactive and
                                                  reactive and                                                           service delivery
                                                  service delivery                                                       reliable and
                                                  problematic                                                            responsive
 Business/IT Management Analysis

                                      Business Enablement/Support
                                                                    Warning             Desired
                                                                     Zone                State

                                                                    Attention        Opportunity
                                                                      Zone             Zone

                                                                      IT Operational Performance

                                                                            •Bidding and contracting
                                  Procurement                               •Vendor performance management
  Focus on IT operational                                                   • Management disciplines
                                  Project                                   • Development methodologies
  performance improvements        Implementation                            • Program/Project Mgt Office

  Focus on business enablement                                              • Technical architecture
                                  Applications                              • Plans and actions for legacy elimination,
  and support improvements        Management                                  replacement or modernization per applications

                                  Service/Operations                        • Processes and measurements using best
  Focus on both business                                                      practices frameworks
                                  Management                                • Continuous improvement methods
  enablement and support and IT
  operational performance with                                              • Inventory of hardware and software items
                                                                            • Repository of interdependencies and
  priority for IT operations      Asset Management                            relationships among items
  improvements                                                              • Infrastructure support services
     Business/IT Alignment – Responsibilities for
             Functions and Processes
                                                             Business Responsibilities for
                                                             Investment management
                                                             (identification, evaluation, and
                         Missions                            selection/prioritization of IT capital
     Business and                                            investments and projects);
      Information           and              Primarily       enterprise architectures (business
                                             Business        processes and information); and
     Architectures       Strategies           Focus          enterprise management of HR,
                            Drives                           finances, risk, business continuity
                                                             planning, security, and governance
                       Processes and
                     Information Flows
                         Prescribes                        Joint Business and IT
Technical                                                  Responsibilities for processes
Architecture         Applications (Data      Business      Program and project portfolio
                                                and        management, including project
                      and Work Tools)        Technical     management mythology (PMI);
                                              Focus        applications portfolio management;
                          Enabled by                       and service level agreements (SLAs).

                                                           IT Responsibilities for processes
           Technical Products and Services                 IT is responsible for service
                                               Primarily   management/technical operations
                          Supported by         Technical
                                                Focus      (such as ITIL) including service desk,
                                                           CMDB (for ITIL), and infrastructure
                                                           assets; technical architecture; software
     Technical Computing, Storage, and Networking          development processes (SDLC, design,
                    Infrastructure                         QA, testing, etc.); DR; and technical
                                                           risk management.
     Major Activities for Developing Agency IT Plans
       Correlation with Results Based Budgeting Approach
    Type                 Agency Strategic Missions,
  Strategic            Duties, and Responsibilities and
                           Governmental Priorities

Management            Current        Future         Business
                     Business       Business        Plans and
Business Goals,       Status          State         Initiatives
Strategies, and
   Measures                          (Where we     (How we get
(Results Based     (Where we are)    want to be)      there)

                      Step 1              Step 2      Step 4       Expansion
                                                    Develop IT
Business/IT Conduct Self            Determine        Initiatives
Management Assessment                                              Requests
                                     Desired       and Projects
                    of Current        State         and Create
   Business/IT                                                      Agency IT
                      Status                           IT Plan        Plan
Alignment and IT
 Efficiency and                 Step 3
  Effectiveness                Perform
       Overview of Agency IT Planning Process
                                         Department Strategic
                                         Initiatives, Business
                                         Drivers, and Results-
                                        Based Budgeting Plans

                             Changes in Portfolio                               Improvements in
   Plans for Legacy                                  Human Resource               Business/IT
                              of Infrastructure
     Applications                                     Requirements             Management Areas

                              Governance Process for Selecting and                       New Business
                                                                                        Requirements or
   Adjustments to               Prioritizing Funding Requests for                         Government
   Current Projects                                                                    Program Initiatives
                               Initiatives, Programs, and Projects

Note – Areas include: applications portfolio               Dept. IT Plan
management (APM), program/project                            Initiatives and
portfolio management (PPM), management                     Funding Requests
of personnel, vendor management,
management of architecture, software
development process, service                • Input to Agency’s IT Plan for Submission to
                                                                 State CIO
management/operations support, fiscal and        • Input to Expansion Budget Request
budget management, and infrastructure asset                       Process
           Overview of Agency IT Planning Process
                                                                                                              • Department mission
• Statutory mandates                                        Department Strategic                              • Business/program goals and
• One-stop shop and information                             Initiatives, Business                             objectives
sharing opportunities
• Organization streamlining potential
                                                            Drivers, and Results-                             • Governmental initiatives
• Business process reengineering
                                                           Based Budgeting Plans                              • Citizen services offered
opportunities                                                                                                 • Regulatory/compliance
                                               Changes in Portfolio                                                Improvements in
     Plans for Legacy                                                            Human Resource
                                                of Infrastructure                                                    Business/IT
       Applications                                                               Requirements
                                                     Assets                                                       Management Areas
• Retirements/replacements                     • Refreshment cycles              • Staffing numbers and skill
                                                                                                      • Policy and process
• Eliminations/consolidations                  • Security/reliability upgrades    requirements          improvements - Note
• Modernizations, technical                    • Standardization and             • Training requirements
                                                                                                      • Organization realignments
renovations, and functional                     consolidations                   • Use of supplemental staffing
                                                                                                      • Changes due to consolidations
enhancements                              Initiative and Funding Request Priority Setting and other statewide initiatives
• On-going maintenance
                                        (Spending on Right Projects to Improve Operations and Services)
    Adjustments to              •Identify potential initiatives and investments and evaluate                               New Business
    Current Projects            candidates against defined criteria (business benefit or                                  Requirements or
                                public value, strategic alignment, financial return, impact on                              Government
• Current project inventory,                                                                                             Program Initiatives
 staffing and funding           business processes, technical architecture fit, risks, etc.)
 commitments, and status        •Prioritize initiatives and investments based on analysis
• Projects requiring additional results (relative weighted scores) and dependencies                                 • New governmental priorities
 funding to complete                                                                                                • Regulatory/compliance
• Projects no longer relevant
                                •Balance staffing and fiscal resources                                               requirements
 or with lower priorities       •Determine disposition – select, reject, adjust, or sunset                          • Statutory mandates
• Projects with higher          •Include selections in department IT Plan and funding                               •Opportunities for productivity
 priorities or increased                                                                                             improvements or service level
                                requests                                                                             performance enhancements in
                                                                                                                     business processes
Note – Areas include: applications portfolio                    Dept. IT Plan
management, program/project portfolio
                                                                                                                    • Opportunities for new or better
                                                               Initiatives and                                       services for the state’s citizens,
management, management of personnel,
                                                             Funding Requests                                        businesses, or employees
vendor management, management of
                                                                                                                    • E-government opportunities
architecture, software development process,
service management/operations support,          • Input to Agency’s IT Plan for Submission to
fiscal and budget management, and                State CIO
infrastructure asset management                 • Input to Expansion Budget Request Process
      Key Components of Business - IT Management
                                                                       • Priorities for governmental
   • Business and information                                          programs and services
   architectures                            Business                   • Economic realities and budgetary
   • Compliance/regulatory mandates         Strategy and               constraints
   • Environmental sustainability           Requirements               • Stakeholders and funding and
                                                                       oversight authorities
            • Goals and objectives                                    • Leadership and new
            • Future technologies and           IT Vision             directions and approaches
            enterprise architecture                                   • Management processes and
            • Communications                                          maturity levels

                                              IT Strategy
                                              and Plans                • Investment selection
                    • Business and                                     and resource (staffing)
                    technical                                          allocation
                    architectures                                      • Financial management
                    • Service offerings       Management               and budget control
                    • Major initiatives
                                              and                      • Risk management
                    and programs              Governance
                                          • Portfolio and asset
                                          management and tools                    Application
              Excellence                  • PMO                                   Delivery
                                          • Decision making processes,      • Project management with
• IT service management (ITSM)            with participants and processes   development and management
– ITIL framework                          • Purchasing and vendor           methodologies
• IT asset management (ITAM)              management                        • Software development and quality
                                          • Life cycle management           management
• Service catalogue and service
level agreements (SLAs)                   • Personnel management            • Applications engineering
• Platform, networking, and               • Organizational structure        • Tools
storage engineering
• Tools
 Business - IT Management Overview
Business Plans                                                      IT Plans and
and Strategies                                                      Strategies
• Business                                                          • Applications
Architecture –                         Business - IT                Architecture – technical
business models,                       Governance                   structures of applications and
services/governmental                   • Roles and                 facilities for exchanging data
programs, and processes                 responsibilities            among them
• Information                           • Policies and              • Technical
Architecture –                          processes                   Architecture – technical
acquisition,                                                        descriptions for
distribution/sharing, and                                           platforms/servers, storage
application of data                                                 devices, networking equipment
                            Management Disciplines                  and interconnections among
                            • Portfolio management
                            • Project management
                            • Investment management
                            • Personnel management
                            • Financial management
                            • Asset management
                            • Service/operations management
                            • Purchasing and vendor management
                            • Applications development management
                            • Legacy applications management
       Historical Perspective for
      Business – IT Management
Period          60s        70s        80s and 90s       Today

Business   Unquestioned Command and   Senior Leader    Business – IT
             Superior     Control                      Governance

and IT

            Servitude    Order        Organizational     Deliverer of
IT Role     Follower     Taker          Problem           Business
                                         Solver          Technology

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