Does IT Governance & Portfolio Management benefit the...
Transcript of Does IT Governance & Portfolio Management benefit the...
Does IT Governance & Portfolio Management benefit the business?
Microsoft Conference
April 17, 2007
by Johann Gautier, Manager, NNIT Business Consulting
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 2
Agenda
Presentation of speaker and NNIT
The Competitive Power in Denmark
Conclusions of market analysis
Does IT Governance and Portfolio Management benefit the business?
NNIT’s approach to Governance and Portfolio Management
GAP model
How to get started
1
2
4
3
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 3
NNIT is a Full Service provider
NNIT
Solutions
Consulting Operations
Analysis Implementation Realisation Operation
Sales and Internal Project Management
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 4
The Competitive Power in Denmark, 2006- Purpose & Background
Scope 152 advanced companies
50 public institutions
Competitive Power is measured by financial results
ability to innovate products and processes
Companies divided into 3 groups by profit margin Top15
Rest
Bottom15
Analysis conducted in cooperation Brøndum & Fliess
Analyse Instituttet Vilstrup Synovate
NNIT
Berlingske Nyhedsmagasin
Purpose To investigate how high innovation and best practices within Strategic
Execution, IT Governance and organisation, process and culture improve the a company’s ability to compete / its financial success.
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 5
The Competitive Power in Denmark, 2006- Findings on Innovation
Has the company within the last 3 years realised product innovations (i.e. marketed and sold new products/services) to the same degree as main competitors?
6,7
40
53,3
6,7
26,7
13,3
6,7
1,6 2,5
38,5
46,7
37,7
19,7
0
10
20
30
40
50
60
To a very lowdegree
To a lowdegree
To a mediumdegree
To a highdegree
To a veryhigh degree
Don't know
Perc
enta
ge
Top 15 Bottom 15 Other private companies
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 6
The Competitive Power in Denmark, 2006- Findings on Innovation
6,7 6,7
40 40
6,7
20
46,7
26,7
6,7
1,6
4,9
23
38,5
27,9
4,1
0
10
20
30
40
50
To a very lowdegree
To a lowdegree
To a mediumdegree
To a highdegree
To a veryhigh degree
Don't know
Perc
enta
ge
Top 15 Bottom 15 Other private companies
Has the company within the last 3 years realised process innovations (i.e. implemented process development) to the same degree as main competitors?
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 7
The Competitive Power in Denmark, 2006- Findings on Innovation
Profit rate over the last 3 years
7,4
10,8
13,0
-2,2
3,4
-2,3
8,57,8 7,7
-4,0
-2,0
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
1 2 3 Year
%
Top15 Bottom15 Other Private Companies
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 8
The Competitive Power in Denmark, 2006- Overall Conclusions
Companies with financial success, work differently…
Financial success
Innovation
Synergy
Strategic Execution IT-Governance
Organisation, Process and Culture
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 9
The Competitive Power in Denmark, 2006- Findings on Organisation, process and culture
Important factors are:
Value driven leadership
Development of a LEAN culture
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 10
The Competitive Power in Denmark, 2006- Findings on Strategic Execution
Involvement of executive
management
Clearly defined roles and
responsibilites when prioritising
projects
Systematic and continuous portfolio
management of current strategic
initiatives
Systematic follow up on benefit
realisation
The IT strategy links directly to
the business strategy
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 11 Benefit management
Idea Initiate Analyse Execute Realise
The Competitive Power in Denmark, 2006- Findings on IT Governance
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 12
The Competitive Power in Denmark, 2006- Findings on IT Governance
Roles and Responsibilities must be clearly defined throughout the project lifecycle
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
To a very low
degree
To a low
degree
To a medium
degree
To a high
degree
To a very high
degree
Don't know
Are roles and responsibilities clearly defined in relation to prioritisation of IT projects?
Are roles and responsibilities clearly defined in relation to implementation of IT projects?
Are roles and responsibilities clearly defined in relation evaluation of implemented IT projects?
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The Competitive Power in Denmark, 2006- Findings on IT Governance
To a very high
degree and even
more today than 3
years ago; 14%
To some degree;
50%
To a high degree; 7%To a low degree;
24%
To a low degree and
even less today than
3 years ago; 1%
Don't know; 4%
Corporations use business cases as basis for decisions
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 14
The Competitive Power in Denmark, 2006- prioritised improvement areas
Percentage who answered "To a high degree and even more today than 3 years ago"
32%
32%
33%
34%
53%
0% 10% 20% 30% 40% 50% 60%
Does the company have a continuous overview of the IT
project portfolio?
To what degree are the internal knowledge processes
structured and IT supported, e.g. through active use of an
intraweb?
Are business cases systematically used in connection with
decisions about strategic initiatives and other larger
investments?
Is change management (focus on communication, innovation
and competence development) systematically used to
improve the possiblity of success for strategic projects?
Do you conduct a systematic and continuous portfolio
management of current strategic initiatives?
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 15
Strategy execution
The Competitive Power in Denmark, 2006- Conclusions on Bottom15
Management involvement
Business strategy broken into
substrategies
Portfolio man of strategic initiatives
Business cases used
systematically
IT Governance
Roles and responsibilities i prioritisation of IT projects
Link between IT strategy and business strategy
Common project management model
Portfolio management of critical IT technologies
Roles and responsibilty in implementation of IT projects
Business cases systematically used in decisionmaking
Evaluation of benefit realisation
Organisation, process and culture
Self governing teams
Internal knowlegde processes structured and IT supported
Value based leadership
Coaching by management
Continuous proces development
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 16
Why IT Governance and Portfolio Management?
It empowers companies to Execute their Strategy.
It empowers companies to Prioritize their Portfolio of Projects and enables them to be Innovative
IT Governance can be improved in almost all companies participating in the analysis
Strategic Execution(IT-Governance, Portfolio Management, Culture)
Innovation
Competitive Power
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 17
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 18
Software Solutions to Support Execution of Strategy
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 19
Case – ALK-Abelló A/S- An IT strategic turnaround
Step 1 Step 2 Step 3 Step 4 Step 5
Documentation of IT systems at the time
Targets for new IT Strategy
New IT Governance Model with heavily involvement of top management
New IT organisation –and standards for cooperation between IT and the business
Portfolio management on strategic initiatives
Portfolio management on IT Projects
Improved project organisation
Use of business cases and benefit management
Implementation of portfolio management system
Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 20
How to get started…- 4 steps
Identify current state
Decide on Roadmap
(Business Case)
Design & Implement
Manage & Improve