4. it governance a compass without a map v.2.6 pink elephant
Transcript of 4. it governance a compass without a map v.2.6 pink elephant
IT Governance aCompass Without a Map?Compass Without a Map?
Presenter: Troy DuMoulinAVP Strategic Solutions
RISK GAP• Lack of availability,
performance, reliability, quality
Process Requirements• Increasing number of products & services
• Increasing rate of change• Increasing complexity / data interdependency
• Increased speed and efficiency• Increased speed to market
• Reduced costs
The “Risk Gap” For Business Growth Goals
Increased Business N
eed Of IT
Services
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved.
IT Process Capabilities• Silo / Fragmented / redundant processes
• Lack of integration, automation• Lack of visibility
Operating as a mature IT Service Provider requires consistent management processes across silos!
Scalability of Management Processes Over Time
Increased Business N
eed Of IT
Services
3
What is IT Governance
� IT governance is the responsibility of executives and the board of directors, and consists of the leadership, organizational structures and processes that ensure that the enterprise’s IT sustains and extends the organization’s strategies and objectives.
� Furthermore, IT governance integrates and institutionalizes good practices to ensure that the enterprise’s IT supports the business objectives.
� ~IT Governance Institute – “COBIT 4.1”
� IT Governance encompasses five major decision areas related to management and
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� IT Governance encompasses five major decision areas related to management and use of IT in a firm, all of which should be driven by the operating model:
� IT principles: high level decisions about the strategic role of IT in the business
� Enterprise Architecture: the organizing logic for business processes and IT infrastructure
� IT Infrastructure: centrally coordinated, shared IT services providing part of the foundation for execution
� Business Application Needs: business requirements for purchased or internally developed IT applications that both use and build the foundation for execution.
� Prioritization and Investment: decisions about how much and where to invest in IT, including project approval and justification
� ~ Harvard Business Review / MIT Sloan “Enterprise Service Architecture as Strategy”
Evaluate
Direct Monitor
Corporate Governance
of ICT
The Governance Model ISO 38500
IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved.
Direct Monitor
ICT Projects ICT Operations
Business ProcessesP
ropo
sals
Plans
Policies
Per
form
ance
Con
form
ance
IT Governance
Service Portfolio and Governance
IT Strategy
Business Goals
and Strategies
Enterprise
Architecture
IT Guiding
Principles
Service Portfolio
Management
Model
IT Organizational
Structure
Investment
IT Governance
Regulatory &
Environmental
IT Mgmt. tools
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Investment
Decisions
Projects Operations
Risk Management
Measurements
& Reporting
Controls/Policies
IT Management
Business Management
Service
Provider
Type
IT Mgmt. tools
Business Focus
Value Network Focus
HIGH
IT is perceived as an internal business partner
IT customers are the customer of the organization
The Changing Role For IT
v3
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Technology Focus
Customer Focus
LOW
Role Of IT/IS In The Organization
IT has a single strategy and is focused on the customer, but is perceived as an external
supplier
IT is focused on the integration and delivery of end-to-end IT services (business solutions)
IT is focused on technology, infrastructure and applications are treated as separate and largely unrelated domains
Service Focus
v2
Four Stages or Architecture Maturity
Business SiloArchitecture
Standardized TechnologyArchitecture
Optimized CoreArchitecture
Business ModularityArchitecture
Phase 1 Phase 3Phase 2 Phase 4
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Where companies look
to maximize individual
business unit needs of
functional silo needs
Providing IT efficiencies
though technology
standardization and, in most
cases increased
centralization
Company wide data and process
standardization as appropriate
for the operating model
Reuse loosely coupled IT
Enabled business process
components (services) to
preserve global standards while enabling local
differences
Source: HBS Enterprise Architecture as Strategy
IT Governance & Business Value Linkage
Core Business Measures
• Revenue
• Market Share
• Profit
• ROE
IT Core Strategic Measures
IT Governance & Measures
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Balanced Scorecard
IT Operational Processes
ITSM, SDLC, Project Mgmt., Security and Information Mgt.
IT Value Chain (Service Organization)
IT Governance / COBIT
Business Value
IT Goals
IT Processes
Strategy, Planning
and Sourcing
Develop & Integrate
Service Components
E2E Service
Run Service
Components
Man
age
Clie
nt Relat
ionsh
ips
Man
age
Ser
vice
s
Client requirements for/
Client strategies
Architectures
Approved
plans &
controls
Request for major Service changes
Accepted
bid
Deliver business change
Acceptance
documentation
11
Supplier strategies
& profiles
Performance vs.
OLA
Authorise major changes
Support
E2E Service informationE2E Service issues: Service delivery MI
3
4
5
6
Aggregated
release
Plans
Demand
levels
& supply
capacity
Unplanned
change
demand
Service Portfolio
C
U
S
T
U
S
Handover components
(awaiting authority
to run)
9
Incidents & 1st line support
Requests/fixes
SUPPLYDevelop & Maintain Deliver Service
DEMAND MANAGEMENTOrders Commitments
Service
10
Service
cost info
Industry Best practice
Group governance
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E2E Service
Design & Sourcing
Maintain
Service Components
Manage Service
Components
Manage Customer
Services
Man
age
Clie
nt Relat
ionsh
ips
Man
age
Ser
vice
s
Client requirements for/
agreement to change
Invoicing & payments
Financial information
Request for major Service changes
Problem reporting
and resolutionSupplier
negotiation
requirements
11Market and supplier
info
Request for improved
performance/fixes
OLA requirements
OLA reporting
Supplier
contract,
issue
resolution,
feedback
and
benchmarking
Incident
escalation/
resolution
4
Financial Processing
& Reporting10
7
8
2
9
Manage Suppliers11
11
Cost &
price model
Manage Risk
Supplier performance feedback
Incident communications
OLA metricsBid support
T
O
M
E
R
S
S
E
R
S
12
4
Major change
requests
6Incident
escalation
Orders
Major
change
request
Minor change
requests
Supplier
profiles
1. Manage ClientRelationships
2. Manage Services5. Develop& IntegrateService Components
6. Run Service Components
7. Maintain Service Components
4. E2E Service Design & Sourcing
3. Strategy, Planning & Sourcing
8. Manage Service Components
9. Manage Customer Services
1.1 Facilitate client business strategy
1.2 Manage client demand
3.1 Define Vision & Strategy
3.3 Develop / Maintain Service Portfolio, OM
& Architectures
3.5 Develop SP Business Plan
and Budget
3.2 Define StrategicInvestment Portfolio
3.6 Apply StrategicGovernance
3.4 Define StrategicRoadmaps
5.1 Manage projects
5.2 Manage integrated service components/
business change
6.1 Operate & monitor services
6.2 Service recovery
8.1 Implement changed/ new service
component8.2 OLA management
8.4 Service componentperformance management
8.3 Operational supplier
management
8.6 Update SCP database & reporting8.5 Benchmarking
2.1 Produce Service Plan
2.3 Review & report service performance
2.4 Identify service improvements
2.5 Update SLAs (existing services)
2.2 Track sservice performance
4.1 Change demandcapture
4.2 Route to appropriate
change process
7.1 Component
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11. Manage Suppliers10. Financial Processing & Reporting
12. Manage Risk
demand
1.3 Manage client contact
1.4 Facilitate overallclient satisfaction
1.5 Manage marketing& account opportunities
4.4 Mobilise team &prepare bid
4.3 Confirm feasibility of bid
4.5 Agree with clients
4.7 Aggregate businessrelease/ plan entry
4.6 Portfolio entry
7.1 Component acceptance
7.2 Release planning
7.3 Maintain component
7.4 Production change control
7.5 Business, operations, IT & supplier support
9.3 Manage order
9.4 Manage major incident
9.2 Manage problem9.1 Manage
incidents
9.5 Manage knowledge
12.1 Provide local risk governance
12.2 Lead risk management
12.3 Provide risk consultancy
12.4 Provide tools, techniques &
standards
12.5 Provide risk training & awareness
12.6 Provide IT security solutions
10.1 Operate and maintain accounting
systems
10.2 Maintain financial accounts
10.3 Maintain & manage cost (ABC) and pricing models
10.4 Charging and invoicing
10.5 Management & financial reporting
11.1 Provide market & supplier intelligence
11.5 Manage supplierrelationships
11.4 Communicatewith suppliers
11.3 Select suppliers11.2 Negotiate with suppliers
11.6 Review supplierperformance
11.7 Resolve disputewith supplier
10.6 Investment Appraisal
Process & Product Relationship
Low StandardizationHigh Standardization
Risk
Cost EfficiencyRegulatory Compliance Specialist Knowledge
Tailored Solution
Unique Context
Formal Process Craftsmanship
Commoditization
Assemble To Order
Make To Stock
(3)
(4) (2)Service Catalog
Make To Order
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Low Variance High Variance
Engineer To OrderMake To Stock
(1)(5)
?$$ $$$$
Policies, Roles, Procedures, Metrics, Common Tools
Mitigating Risk of Variance Accepting Risk of Variance
Low VolumeHigh Volume
CobIT
Audit Models
Quality Systems & Mgmt. Frameworks
Service M
gm
t.
Ap
p. D
ev.
Pro
ject Mg
mt.
IT P
lann
ing
IT S
ecurity
Qu
ality System
IT Governance Model
COSO
ISO
Sarbanes-Oxley
US Securities & Exchange
Commission
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IT OPERATIONS
Service M
gm
t.
Ap
p. D
ev. (SD
LC
)
Pro
ject Mg
mt.
IT P
lann
ing
IT S
ecurity
Qu
ality System
ISO27001
PMI
ISO
SixSigma
TOGAFZachman
ASL
CMMi
ITIL
ISO 20k
Where Do We Want To Be?
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Services vs. Processes
ITIL is a Service Management Framework. This means that the
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This means that the processes described by ITIL exist for the primary purpose of planning, delivering and supporting IT Services.
Sample Service Catalog
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Service and Process Architectures
App. Dev. Infrastructure
SLM
SLA
Client
Service & Process Organizations tied together by SLM
� Application Services
� Infrastructure Services
� Professional Services
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Desktop
Hosting
Security Mgmt
Business App.Service Owner
SO
SO
Application Service
Infrastructure Service
Process (Incident)Process Owner
Process Improvements based on Service Reporting
Professional Service
SO
Enterprise Governance & SD Function
Enterprise Business Engagement Model
HIGH
The Evolving IT Service Organization
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Technology Consolidation
CIO Span Of Control Issues Arise
LOW
Organizational Design Drivers
Enterprise IT Groups Spin Off
Service Organization Model
Infrastructure ApplicationsService Delivery
• ITSM• Security • QA assurance / testing
Customer
Service
SLMCatalog
SLA
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• QA assurance / testing• PMO• Performance Mgmt.• Planning / Consulting• IT Finance• Risk Mgmt./ Compliance• IT Audit• Human Resources
All of these functions have a enterprise IT mandate and not a vertical technology focus
Workflow ManagementIncident ManagementProblem Management
Monitoring&
Event Mgmt.
Code & Doc.
Reporting
Customer Web Portal
Service CatalogRequests Fulfillment
Service level ManagementKPI Dash Boards
Reso
urce
& P
roje
ct Portfo
lio M
gm
t.
ITSM Tool Strategy & Integrations
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Problem ManagementChange Management
Release & Deployment ManagementAccess Management
Etc...
Provisioning
Code & Doc.Mgmt.(DML)
Reporting
Billing & Financial Management
Reso
urce
& P
roje
ct Portfo
lio M
gm
t.
Configuration Management(CMS)
Federated Data Sources
Government
Medical
Finance & Trading
Adoption Curve Of ITSM
Early Adopters
Key Drivers:
1) IT impact on revenue
2) Legislative requirements
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Utilities
Manufacturing
Education
RetailLate Adopters
requirements
Questions?
Troy DuMoulin
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Thank YouPINK ELEPHANT
www.pinkelephant.com
http://blogs.pinkelephant.com/troy
http://twitter.com/TroyDuMoulin