11. 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:
12. IT principles: high level decisions about the strategic role of IT in the business
15. Business Application Needs: business requirements for purchased or internally developed IT applications that both use and build the foundation for execution.
16. Prioritization and Investment: decisions about how much and where to invest in IT, including project approval and justification
17.
18. The Governance Model ISO 38500 Corporate Governance of ICT Business Needs Business Pressures Evaluate Direct Monitor Proposals Performance Conformance Plans Policies Business Processes ICT Projects ICT Operations
19. IT Governance vs Management Market Competition Business Strategy New Technology Markets Legislation IT Strategy Customers IT Governance Services External Internal IT Management Present Service Portfolio Future Service Portfolio Business Governance & Strategy Drives IT
21. The ChangingRole For IT HIGH v3 IT customers are the customer of the organization Value Network Focus IT is perceived as an internal business partner Business Focus Influence On The Business v2 IT has a single strategy and is focused on the customer, but is perceived as an external supplier Customer Focus IT is focused on the integration and delivery of end-to-end IT services (business solutions) Service Focus IT is focused on technology, infrastructure and applications are treated as separate and largely unrelated domains Technology Focus LOW Role Of IT/IS In The Organization
22. Four Stages or Architecture Maturity Business Silo Architecture Standardized Technology Architecture Optimized Core Architecture Business Modularity Architecture Reuse loosely coupled IT Enabled business process components (services) to preserve global standards while enabling local differences Providing IT efficiencies though technology standardization and, in most cases increased centralization Where companies look to maximize individual business unit needs of functional silo needs Company wide data and process standardization as appropriate for the operating model Phase 1 Phase 3 Phase 2 Phase 4 Source: HBS Enterprise Architecture as Strategy
55. ROEIT Core Strategic Measures IT Governance & Measures Balanced Scorecard Business Value IT Value Chain (Service Organization) IT Governance / COBIT IT Goals IT Operational Processes IT Processes ITSM, SDLC, Project Mgmt., Security and Information Mgt.
57. DEMAND MANAGEMENT SUPPLY Develop & Maintain Orders Deliver Service Commitments E2E Service issues: Service delivery MI E2E Service information Supplier strategies & profiles governance Group Industry Best practice Develop & Integrate Service Components Strategy, Planning and Sourcing Deliver business change Client strategies Service cost info Architectures Handover components (awaiting authority to run) Aggregated release Plans Demand levels & supply capacity Accepted bid 10 Incidents & 1st line support Requests/fixes Acceptance documentation Service Portfolio Service Run Service Components Authorise major changes Support Approved plans & controls 3 Unplanned change demand 4 5 7 6 8 C U S T O M E R S Performance vs. OLA U S E R S E2E Service Design & Sourcing Client requirements for/ agreement to change Request for major Service changes Manage Services Manage Client Relationships Major change request Request for improved performance/fixes Market and supplier info Manage Service Components Maintain Service Components OLA requirements OLA reporting Bid support Cost & price model OLA metrics Minor change requests Invoicing & payments Incident escalation 2 Financial Processing & Reporting 1 Major change requests Financial information Supplier contract, issue resolution, feedback and benchmarking 10 9 11 12 Incident escalation/ resolution Problem reporting and resolution Manage Customer Services Supplier negotiation requirements Incident communications Supplier profiles Orders Supplier performance feedback Manage Risk Manage Suppliers 11 11 11 4 9 6
58. 5. Develop& Integrate Service Components 3. Strategy, Planning & Sourcing 2. Manage Services 6. Run Service Components 3.1 Define Vision & Strategy 3.2 Define Strategic Investment Portfolio 2.1 Produce Service Plan 6.1 Operate & monitor services 6.2 Service recovery 5.1 Manage projects 3.3 Develop / Maintain Service Portfolio, OM & Architectures 3.4 Define Strategic Roadmaps 2.2 Track sservice performance 5.2 Manage integrated service components/ business change 8. Manage Service Components 3.5 Develop SP Business Plan and Budget 3.6 Apply Strategic Governance 8.1 Implement changed/ new service component 2.3 Review & report service performance 8.2 OLA management 8.3 Operational supplier management 8.4 Service component performance management 2.4 Identify service improvements 4. E2E Service Design & Sourcing 1. Manage Client Relationships 4.1 Change demand capture 8.6 Update SCP database & reporting 2.5 Update SLAs (existing services) 8.5 Benchmarking 1.1 Facilitate client business strategy 7. Maintain Service Components 4.2 Route to appropriate change process 1.2 Manage client demand 9. Manage Customer Services 7.1 Component acceptance 4.3 Confirm feasibility of bid 9.1 Manage incidents 9.3 Manage order 9.2 Manage problem 1.3 Manage client contact 4.4 Mobilise team & prepare bid 7.2 Release planning 9.4 Manage major incident 9.5 Manage knowledge 1.4 Facilitate overall client satisfaction 7.3 Maintain component 4.5 Agree with clients 12. Manage Risk 1.5 Manage marketing & account opportunities 12.3 Provide risk consultancy 12.1 Provide local risk governance 12.2 Lead risk management 7.4 Production change control 4.6 Portfolio entry 7.5 Business, operations, IT & supplier support 12.6 Provide IT security solutions 12.5 Provide risk training & awareness 12.4 Provide tools, techniques & standards 4.7 Aggregate business release/ plan entry 11. Manage Suppliers 10. Financial Processing & Reporting 10.3 Maintain & manage cost (ABC) and pricing models 10.1 Operate and maintain accounting systems 10.2 Maintain financial accounts 11.1 Provide market & supplier intelligence 11.4 Communicate with suppliers 11.2 Negotiate with suppliers 11.3 Select suppliers 11.7 Resolve dispute with supplier 11.5 Manage supplier relationships 11.6 Review supplier performance 10.4 Charging and invoicing 10.5 Management & financial reporting 10.6 Investment Appraisal
59. Value Service Network Business Units Shared IT Services 3 Service Supplier Types Business Unit A Service Unit 1 Service W Dedicated Service Business Unit B Service Unit 2 Service X External Supplier Shared Service Business Unit C Service Unit 3 External Business Unit A Service Y Outsourced Service Business Unit D Service Unit 4 Service Z Embedded IT Service Ecosystem Service Catalog
60. IT Governance Model Sarbanes- Oxley US Securities & Exchange Commission COSO CobIT Service Mgmt. App. Dev. (SDLC) Project Mgmt. IT Planning IT Security Quality System ISO CMMi Six Sigma ITIL ASL ISO 27001 PMI TOGAF Zachman ISO 20k Audit Models Quality Systems & Mgmt. Frameworks IT OPERATIONS
73. Human ResourcesService All of these functions have a enterprise IT mandate and not a vertical technology focus Customer Infrastructure Applications
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