Innovation Value Institute 2014

IVI Executive Briefing

Innovation Value Institute 2014
Research
Education /
Training
Assessment /
Benchmarking
Maturing Enterprise IT Capability
IVI Mission
To deliver practice-based research and thought leadership
to transform how public and private sector organisations
globally manage IT capability for value and innovation
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Innovation Value Institute 2014
IVI A global open-innovation consortium .
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Innovation Value Institute 2014
Managing IT like
a business
Managing the
IT budget
Managing IT for
business value
Managing the
IT capability
AA Accounting and Allocation
BP Business Planning
BPM
Business Process
Management
CFP
Capacity Forecasting
and Planning
DSM
Demand and Supply
Management
EIM
Enterprise Information
Management
IM Innovation Management
ITG
IT Leadership
and Governance
ODP
Organization Design
and Planning
RM Risk Management
SAI
Service Analytics
and Intelligence
SICT Sustainable ICT
SP Strategic Planning
SRC Sourcing
BGM Budget Management
BOP
Budget Oversight and
Performance Analysis
FF Funding and Financing
PPP
Portfolio Planning
and Prioritization
CAM
Capability Assessment
and Management
BAR
Benefits Assessment
and Realization
EAM
Enterprise Architecture
Management
ISM
Information Security
Management
KAM
Knowledge Asset
Management
PAM
People Asset
Management
PPM
Program and Project
Management
RAM
Relationship Asset
Management
RDE
Research, Development
and Engineering
SD Solutions Delivery
SRP Service Provisioning
SUM Supplier Management
TIM
Technical Infrastructure
Management
UED User Experience Design
PM Portfolio Management
TCO Total Cost of Ownership
IT-CMF spans the IT capability of the organization
Increasing maturity improves IT ability to deliver on key business priorities
Each critical
capability has five
levels of maturity:
UTM
User Training Management
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Innovation Value Institute 2014
IT-CMF assessments measure and benchmark
maturity levels across 4 Macro Capabilities
Cost Centre
Service Centre
Investment Centre
Value Centre
Predictable
Performance
Systemic Cost
Reduction
Expanded Funding
Options
Sustainable
Economic Model
Technology Supplier
Technology Expert
Strategic Business
Partner
Corporate Core
Competency
TCO
ROI & Business
Case
Options and
Portfolio
Management
Optimised Value
Optimising
Advanced
Intermediate
Basic
Initial
M
a
t
u
r
i
t
y
Low
High
Managing IT like a
business
Managing the
IT budget
Managing IT for
business value
Managing the
IT capability
Macro
Capability
Unmanaged
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Innovation Value Institute 2014
Why is IT capability of the organization important?
Technology
IT Process
IT People
IT Knowledge
Organizational capability to manage IT for business value
Business value and innovation enabled through IT
I
T

R
e
s
o
u
r
c
e
s
IT capability is about executing stable and repeatable patterns of IT
management activities that deliver business value
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Innovation Value Institute 2014
Potential IT value contribution increases with maturity
Maturity level
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Intermediate
High
Low
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Advanced
2
Basic
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Optimizing
1
Initial
IT enables and drives business value creation and business opportunities
IT is fully aligned with business strategy and anticipates business needs
IT focuses on business value creation
Value oriented IT management using various industry best practices
IT directly contributes to business value creation in some areas
IT turns toward focusing on business value creation, but is mostly understood as service provider
IT mainly provides services allowing business to create value
IT focuses on delivering solutions for business needs, but not a value creator on its own
IT disconnected from business value creation
IT is not an integral part of value creation
IT value contribution
Organization must be able to translate
IT maturity into business value contribution
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Innovation Value Institute 2014
IT-CMF architecture how it works
4x Macro-
capabilities
35x IT management
capabilities (Critical
Capabilities)
308x Capability Building
Blocks + individual maturity
profiles
>800x maturity assessment
questions
>3,400x recommendations (POMs)
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Innovation Value Institute 2014
Key benefits of IT-CMF
Leverages the collective intelligence of international
consortium of public and private sector collaborators
Development
IT-CMF integrates existing frameworks/ standards into a
meta-level architecture to provide an integrated & holistic
framework
Integrated
IT-CMF allows measurement of improvement against a
baseline using standard assessment tools
Assessment
IT-CMF provides benchmarking against peers
Benchmarking
IT-CMF provides prioritization & improvement
recommendations for 30+ critical capability areas
Recommend
VALUE FOCUS TO MANAGING IT
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Innovation Value Institute 2014
Using IT CMF for specific challenges
IT
operational
excellence
Business &
customer
focus
Agility
&
innovation
Business Issue Value step
Data,
information
& security
Value
governance
Strategic
integration
of business & IT
Digitization &
agility
IT enabled
business
innovation
Service
management &
quality
Cost management
Operational
partnership
Establish cost transparency, drive asset
productivity and manage to meet budget
expectations
Value Proposition
Core capabilities
Supporting
capabilities
Anchor
capability
TCO BOP AA BGM FF PPP BAR
Standardize services, industrialize service
delivery, managing services to meet business
demand
SRP CFP DSM
BPM EAM PAM SRP TIM UED
Achieve systems flexibility and integration
capability for business changes
CAM
IM RDE UED SP BP
Foster and execute IT enabled product,
service and process innovations
KAM BAR
SP PPP BP PM DSM
Agree on business priorities and implication
on IT strategy
BAR
RAM ITG PM SP RM
Deliver to the business needs; strengthen
business / IT relationship
ODP PAM ITG KAM
Set up effective IT organization; manage
sourcing strategically; develop people and
organizational capabilities
PPM SD BAR
Govern and steer projects for timeliness and
respecting budget constraints, aligning across
programs
PM PPP ITG BGM
TIM SAI UED SD
BAR
EIM
PPP TCO EAM SP PM
ISM EAM RM KAM
SRC SUM
Make the right IT investment decisions and
deliver value by ensuring business outcomes
are actually achieved
Deliver data, information and analytics;
protect business value and success from
adverse effects of inadequate security
ITG
SAI
CAM
Organization &
people
management
Project & program
delivery
Innovation Value Institute 2014
The Executive Assessment gives an overview of IT-management
capabilities across all IT functions ...
Purpose
Provide a high-level comprehensive
view of current and target state in the IT-
CMFs 34 Critical Capabilities (CCs)
First indication of areas that require
attention
Offers broad practice improvements to
improve maturity
Helps to identify:
CC improvement targets for all
capabilities
Critical Capabilities for potential
further assessment deep dives
Clusters of CCs to improve in concert
Key Components
1. Kick-off meeting survey coaching
2. Online survey
3. Follow-up participant interviews
4. Analysis of quantitative and qualitative
results
5. Final report with improvement
recommendations
Subject Matter
Experts
IT Executives
Business leaders
with IT
accountability
Follow up with
selected
participants
Online Survey
Follow-up
interviews
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Innovation Value Institute 2014
Sponsor planning
meeting
Carefully select
participants
Sign Non
Disclosure
Agreement (NDA)
Pre-assessment
reading material
Preparation Survey Analysis Feedback
Kick-off meeting
and assessment
workshop
(mandatory)
Online survey
(done at the
same time)
Interviews
Analyse survey
and interviews
Recommendations,
draft and final
report.
2 5+ days .5 days 1 5 days 2 5+ days
Understand
business and IT
context behind
the assessment
Adjust
assessment to fit
organizations
objectives
Context
Program assessment (elapsed time ~3 weeks)
and follows a standard process that can flex based on
organizational context
Depth of analysis depends on the agreed scope
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Innovation Value Institute 2014
At-a-glance: IVI IT-CMF 5-tier education model
Curriculum Tier Course Name Course Description
Tier 1
IT-CMF Passport
1-day course. Introduces participants to fundamental IT-CMF concepts, with a component focusing on the
IT-CMF assessment process
IT-CMF Executive
Overview
1-day course. Introduces CIOs and other C-Level executives to IT-CMF, with a special emphasis on assessing
and measuring business value derived from IT
Tier 2
Managing IT for
Business Value
3-day course. Designed for CIOs and senior IT decision-makers, focusses on optimising the IT business value
contribution to the organization. The course shares practical methodologies, IT-CMF tools & case studies,
and discusses how to establish and manage IT for business value in organizations
IT-CMF Core
3-day course. Develops core IT-CMF concepts. Covers the macro capabilities, one CC, CC clusters,
conducting assessments. This course provides a broad overview of IT-CMF so that IT managers &
professionals may begin to implement the framework in their organization
IT-CMF Core
Workshop
1-day facilitated workshop. Provides hands-on coaching in the implementation of the tools and techniques
from IT-CMF. Helps jump-start capability maturity improvement projects at the CC level. Leverages
concepts in the CC Master Deck and POMs, but does not substitute for the IT-CMF Core curriculum
IT-CMF Core Custom
3-to-5 day course. Develops core IT-CMF concepts. Covers the macro capabilities, a number of CCs, CC
clusters, conducting assessments. This course is highly modular and customisable so that consultancy &
services organizations may introduce content aligning with their specialised requirements for using IT-CMF
Tier 3
IT-CMF Advanced
For individuals who wish to become IT-CMF assessment practitioners, having attained IT-CMF Tier 2
accreditation. Rather than instruction alone, this is an experiential programme for prospective IT-CMF
assessment practitioners.
Tier 4
IT-CMF Expert
For individuals who have achieved IT-CMF Tier 3 certification, and have significant experience implementing
the framework. Rather than instruction alone, this tier is a 6+ month experientially-driven programme,
focussed on IT-CMF Adoption, change management, and IT Transformation
Tier 5
MSc in IT
Management
1-year MSc programme. Accredited by NUI Maynooth. This course is designed for individuals who wish to
acquire a thorough grounding in IT-CMF and to apply the framework to IT challenges in their organization
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