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

IT Governance a Compass Without a Map? © Pink Elephant, 2011. All Rights Reserved. 4

� 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


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


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


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


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


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


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


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


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


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?


Services vs. Processes

ITIL is a Service Management Framework. This means that the


This means that the processes described by ITIL exist for the primary purpose of planning, delivering and supporting IT Services.

Sample Service Catalog


Service and Process Architectures

App. Dev. Infrastructure

SLM

SLA

Client

Service & Process Organizations tied together by SLM

� Application Services

� Infrastructure Services

� Professional Services


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


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


• 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


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


Utilities

Manufacturing

Education

RetailLate Adopters

requirements

Questions?

Troy DuMoulin

[email protected]


Thank YouPINK ELEPHANT

www.pinkelephant.com

http://blogs.pinkelephant.com/troy

http://twitter.com/TroyDuMoulin

4. it governance a compass without a map v.2.6 pink elephant

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Transcript of 4. it governance a compass without a map v.2.6 pink elephant