IT Management Domains

Instructor: Prof. Dr. Martin Knahl

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Mini Case Study 1
A day in the life of an IT Business Analyst / IT
Management Consultant....
• Your boss is ill / away for a meeting with a key
account customer / busy ...

2
Mini Case Study 1
A day in the life of an IT Business Analyst / IT
Management Consultant....
• Your boss is ill / away meeting a key account
customer / busy ...
• You are called to a meeting with the CIO of a
strategic customer (obviously at the last minute)....
• The topic is (supposedly) dealing with issues
surrounding IT Management... what could be the
questions at stake?

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IT Management - Challenges
Day-to-day-
Requirements difficult Operations
to establish &
New (Approach), Ad-Hoc Team /
describe
Unique (Business Change
Case) Moving Target Problem
Management
(Requirements,
Technologies) Costs & Benefits
difficult to
Complexity (Processes, establish
Components, High Failure-Risque
Configurations, Versions, (e.g. Project Failure,
Documents) Acceptance)

Critical Requirements regarding IS Design:

• IT Architecture
• Technology- / Product Selection
• „Best-Practice“ Framework
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• Management of IT Function
Mini Case Study 1
A day in the life of an IT Business Analyst / IT
Management Consultant....
• Your boss is ill / away meeting a key account
customer / busy ...
• You are called to a meeting with the CIO of a
strategic customer (obviously at the last minute)....
• The topic is (supposedly) dealing with issues
surrounding IT Management (rumours of escalating
IT costs, quality of operational IT services, strategic
use of IT, compliance, etc.)....
• How or what do you prepare for the meeting?

5
 Mini Case Study 1
A day in the life of an IT Business Analyst / IT Management
Consultant....
• You are called to a meeting with the CIO (obviously at
the last minute)....
• The topic is vaguely dealing with issues surrounding
IT Management rumours talk of issues with both the
operational IT Services and a lack of a clear IT
Strategy etc.)....
• How or what do you prepare for the meeting?
– What could be the likely challenges with regards to IT
Management....
– What could be the solutions / remedies that you carry
around with you in your consultant‘s toolbox....

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IT Management – A Consultant‘s
Toolbox.....
• COBIT
• ITIL • .....

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IT Management – A Consultant‘s
Toolbox.....
• COBIT • COSO
• ITIL • TOGAF / SAP EAF
• Six Sigma • MOF / HP ITSM /...
• Balanced Scorecard / SWOT • eTOM
• Portfolio Management
• CMMI / SCAMPI • .....
• Project Portfolio Management
• V-Modell

èNot an ordered list...

èPrtially Planning Tools / Best Practise Frameworks /
Corporate Governance Standards / Controlling
èAdopted for IT Governance, IT Service Management,
etc. 8
Mini Case Study 2
The Power of Networking (XING)
• 22 Dec 2009, 8:42 pm
„Hi,

my name is Leopold Obermeier and I'm in charge of business development for a data center in
Vienna called 'Danube Data Center'. ==> www.danubedc.com

We have been established 2 years ago and our focus is on managed services. Since january this
year we are activly selling our offerings and with 20 new customers we have been quite
successful in a year like 2009.

The aim why I mocked into this group is that we are forced by customers from financial services
to become SAS70 certified and I wonder if someone in this group can tell me more about it.

Is it really worth to go for it ?

Whats the financial, organisational impact ?
Does an existing ISO 27001 help ?
Any recommendation for literature ?“

br
Leo
P.S. Sorry for disturbing the silence.....
https://www.xing.com/net/itaudit/introductions-384841/introduction-and-first- 9
questions-26864663/26864663/#26864663
IT Management – A Consultant‘s
Toolbox.....
• COBIT • COSO
• ITIL • TOGAF / SAP EAF
• Six Sigma • MOF / HP ITSM /...
• Balanced Scorecard / SWOT • eTOM
• Portfolio Management • ISO 20000
• CMMI / SCAMPI • BS15000
• V-Modell • ISO 27000
• SAS 70
• SWOT
èNot an ordered list...
• .....
èPrtially Planning Tools / Best Practise Frameworks / Corporate
Governance Standards / Controlling
èAdopted for IT Governance, IT Service Management, etc.

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Agenda
• IT Management
• Reference Models – ITIL, CobiT, ....
• Module Plan
• Projects

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IT-Management - Discussion
1. What is meant by IT Management?

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Definition: IT Management
„Information Technology Management is concerned
with exploring and understanding Information
Technology as a corporate resource that determines
both the strategic and operational capabilities of the
firm in designing and developing products and
services for maximum customer satisfaction,
corporate productivity, profitability and
competitiveness.“
[M.K. Badawy (1998), Technology Management
Education: Alternative Models. California
Management Review. 40 (4), pp. 94–115]
• Not to be confused with Management Information
Systems
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IT-Management - Discussion
1. What is meant by IT Management?
2. What are the important issues surrounding IT
Management?

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IT-Management - Discussion
1. What is meant by IT Management?
2. What are the important issues surrounding IT
Management?
3. How can we structure the relevant aspects
surrounding IT Management?

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 Information Management – Layers of
Abstraction

Project 1 Project 2 Project 3

Prozessebene
Processes

Roles , Use CasesInformationsebene

(Tasks ), and Data Objects

Application
Applikationsebene
Systems and Interfaces

Computers
Infrastrukturebene
and Networks

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comp. Helmut Krcmar, „Informationsmanagement“, 5. Aufl., Springer, 2009.
 IV Management: Management Areas
according to Krcmar
• Information Management (IM): Strategy,
Organisation, Controlling
• Information Systems (IS): Data, Processes,
Lifecycle
• Information Technology: Storage,
Processing, Communication

comp. Helmut Krcmar, „Informationsmanagement“, 5. Aufl., Springer, 2009.

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IV-Management: Management Layers
according to Heinrich
Strategic Layer
• Medium to long term maaping of IT Strategy & Goals
to Enterprise Strategy (IT Alignment)

Administrative Layer
• Application / Implementation of strategic planning
• Management tasks to realise and sustain IT
Infratsructure & IT Services

Operational Layer
• Management tasks to run and use IT Infratsructure &
IT Services (Operational IT)
Quelle: Lutz J. Heinrich, Dirk Stelzer. Informationsmanagement: Grundlagen,
Aufgaben, Methoden. Verlag Oldenbourg (9. Auflage). 2009. 18
 IT Management – Mapping of Layers &
Tasks (Baumgartnersches Model)

IM IS IT
Strategic
Admini-
strative
Opera-
tional

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IT Management Domains#1

Corporate Governance

IT Governance
Strategy

IT Alignment

IT
IT Service Management
Architecture
Infrastructure
IT Management
IT IT
Compli- IT Compliance
Service Service
Service
•Facility Management
Opera-
ance Strategy Planning
tions
•Network Management
Strategy •Systems Management

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IT Management Domains#2

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Network, System & Facility
Management

Applications
Management

System-
Systems
Network- Active Network
Facility- Infrastructure
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Facility Management
• International Facility Management Association (IFMA): "The
practice or coordinating the physical workplace with the people and
work of the organization; integrates the principles of business
administration, architecture, and the behavioral and engineering
sciences.“
• Europe: wider definition than simply management of buildings and
services.
– European Committee for Standardisation (CEN) and ratified by e.g. BSI
(British Standards Institute) : “Facilities management is the integration
of processes within an organisation to maintain and develop the
agreed services which support and improve the effectiveness of its
primary activities”.
– The British Institute of Facilities Management adopted the (slightly
simplified) CEN definition : "Facilities management is the integration of
multi-disciplinary activities within the built environment and the
management of their impact upon people and the workplace".

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Internet management model
ME Elements being managed ME

Management
information

ME
Management
protocol ME

NMS ME

Other hosts

Manager’s Host

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 Body /
Membership Structure Standards & Direction
Consortium
Networking &
Internet Management, SNMP, RMON,
IETF Telecommuications Industry /
NETCONF...
Academia

OSI Managament: CMIP, & Telecommunications

ITU Intergovermental Organisation
Management: TMN

Open Software
Industry Consortium CORBA based Management
Foundation (OSF)

Web Based
Web based Enterprise Management; Hypermedia
Enterprise
Industry Consortium Management Protocol (HMMP), Common
Management
Information Model (CIM)
Initiative (WBEM)

Desktop
Emphasis on System Management; Generic
Management Task Industry Consortium
System Modelling (took over CIM..),...
Force (DMTF)

Emphasis on Network & Service Provider:

TeleManagement Modelling of generic management processes and
Industry Consortium
Forum (TMF) management systems (eTOM - enhanced Telecom
Operations Map)
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Service Management
„Service Management is integrated into Supply Chain Management as
the joint between the actual sales and the customer. The aim …. optimize
the service-intensive supply chains, which are usually more complex than
the typical finished-goods supply chain. Most service-intensive supply
chains require larger inventories and tighter integration with field service
and third parties … inconsistent and uncertain demand …… coordinated
across numerous service locations with large numbers of parts and
multiple levels in the supply chain.
Among typical manufacturers, post-sale services (maintenance, repair
and parts) comprise less than 20 percent of revenue. But among the most
innovative companies in Service, those same activities often generate
more than 50 percent of the profits…. Traditionally overlooked as a
‘necessary evil’….
Benefits
– High service costs can be reduced, i.e. by integrating the service and
products supply chain.
– [Reduced] Inventory levels [and] costs.
– Increasing service revenue…Improve customer satisfaction level ….’”
Wikipedia, 24. September 2008 26
IT Service Management
• No one author, organization, or vendor owns the term "IT
Service Management" and the origins of the phrase are unclear.
• A discipline for managing information technology (IT) services &
systems
• Philosophically centered on the customer's perspective of IT's
contribution to the business.
• ITSM is process-focused, ties with process improvement
frameworks and methodologies (e.g CMMI).
• Often seen in contrast to technology-centered approaches to IT
management and business interaction.

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IT Service Management
“Providers of IT services can no longer afford to focus
on technology and their internal organization, they
now have to consider the quality of the services they
provide and focus on the relationship with customers
IT Service Management Forum (2002). In: van Bon, J.:
IT Service Management: An Introduction. Van Haren
Publishing. ISBN 90-806713-4-7.

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“Traditional” View: IT Services

Business
Process

IT Functions
IT - orientierted IT - oriented
Investment Performance

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“Modern” View: IT Services

Business
Process

IT Services
Service Business
oriented Oriented
Investiment Services

ITSM Reference-Model
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IT Infratsructure Library (ITIL)
• Idea: “Best Practise“ Reference Model / Framework
– Originally developed in 1980s by U.K. Government‘s CCTA
(Central Computer and Telecommunications Agency)
– Since 2001: Office of Government Commerce (OGC), later
BSI (British Standards Institution)
• ITIL provides basis for BSI 15000, since 2005 ISO/IEC 20000
• Background
– Dependency on IT and IT Quality
– Improvement of IT Transparency and Availability
• Goal: Standardisation and documentation of IT Services
– Operational Perspective (different for COBIT)

(Johannsen, 2007:149-150) 31
 ITILv3

Source: http://www.pressebox.de/pressemeldungen/iet-solutions-gmbh/boxid-126831.html
Definition: Governance
to govern
1. To make and administer the public policy and affairs of; exercise sovereign
authority in.
2. To exercise political authority.
3. To have or exercise a determining influence.

Governance also implies Controls, e.g. „Institutional Controls“ (Kenis/Schneider

1996)

Definition Institutions:
• „Institutions are the rules of the game in society“ (North 1990)
– Formal Rules,
– Informal Rules,
– Enforcement Mechanisms
(legal system, social sanctions, …)

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Definitions: IT Governance
• Weill and Ross focus on "Specifying the decision rights and accountability
framework to encourage desirable behaviour in the use of IT."[2]
• In contrast, the IT Governance Institute expands the definition to include
foundational mechanisms: "… the leadership and organisational structures
and processes that ensure that the organisation’s IT sustains and extends
the organisation’s strategies and objectives." [3]
• AS8015 (Australian Standard for Corporate Governance of ICT): "The
system by which the current and future use of ICT is directed and
controlled. It involves evaluating and directing the plans for the use of ICT
to support the organisation and monitoring this use to achieve plans. It
includes the strategy and policies for using ICT within an organisation.“
• Related Topics:
IT-Architectures; IT-Strategy; Project Portfolio Management; Network,
System & Service Management; ....
Sources:
Weill, P. & Ross, J. W., 2004, IT Governance: How Top Performers Manage IT Decision Rights for Superior Results", Harvard Business School Press, Boston.
IT Governance Institute 2003, "Board Briefing on IT Governance, 2nd Edition".
IT-Governance für Geschäftsführer und Vorstände, zweite Ausgabe, IT-Governance Institut, S.11,

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IT Governance
• Strategic
Alignment
• Value Delivery
• Resource
Management
• Risk
Management
• Performance
Measurement
(Fröhlich, 2007:49)
Source: COBiT 4.0 35
Definition Modern Governance
• “Modern Governance explores how new balances have been struck
between the state and the market.” (Kooimann 1993)
• “modern governance […] recommends concrete action by
governments, businesses, multilateral organizations and other
stakeholders […] “
(OECD 2003)
• Modern (public) Governance:
Organisation & Management of Networks and Interaction between
State, Business, Civil Society and Individuals through institutional
governance and the integration of different fovernance forms (Jann
2002)

• Q: How can this be aligned with Corporate Governance?

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Definition Corporate Governance
„Corporate Governance is the way companies
are directed and controlled“ (Cadbury
Commission, UK, Led by Sir Alan Cadbury,
1992)

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Definitionen Corporate Governance
Shareholder Approach
• Corporate Govenance „… is dealing with the ways, in which
suppliers of finance to corporations assure themselves of getting a
return on their investment“ (Vishny/Shleifer 1997)
• „Corporate Governance ist die Gesamtheit der auf das
Aktionärsinteresse ausgerichteten Grundsätze, die unter Wahrung
von Entscheidungsfähigkeit und Effizienz auf der obersten
Unternehmensebene Transparenz und ein ausgewogenes Verhältnis
von Führung und Kontrolle anstreben.“ (Swiss Codex for Corp. Gov.)
• Corporate Governance umfasst die Gesamtheit der Grundsätze für
die Leitung und Überwachung eines Unternehmens. Mit Corporate
Governance soll ein effizientes System von „checks and balances“
den Kräfteausgleich in einer Aktiengesellschaft garantieren.
(German Justizministerium)

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Definitions Corporate Governance
Stakeholder Approach
• „[… ] the role of a corporate governance system is
to ensure that the power to make decisions is
allocated to the people with the best
opportunities.“ (Zingales 2000)
• „[… ] the systems of laws, rules, and factors that
control operations at a company […] [...] Set of
structures, which include participants, such as
managers, workers, suppliers of capital […]”
[Sillian & Starks (1998)]
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IT Management - Challenges
Day-to-day-
Requirements difficult Operations
to establish &
New (Approach), Ad-Hoc Team /
describe
Unique (Business Change
Case) Moving Target Problem
Management
(Requirements,
Technologies) Costs & Benefits
difficult to
Complexity (Processes, establish
Components, High Failure-Risque
Configurations, Versions, (e.g. Project
Documents) Failure,
Acceptance)

Critical Requirements regarding:

• IT Architecture
• Technology- / Product Selection
• „Best-Practice“ Framework
40
• Project Management