Session 601: Two ITIL Processes That Pack Big Business Punch!

Mauricio Corona, PhD

@MauricioCorona

Agenda

2

1. The research 2. Research questions and background 3. Scope 4. Variables 5. Main findings 6. Main conclusions

The research

Addressing the dilemma of Information Technologies (IT)/Business alignment is an extremely important area to investigate. IT/Business Alignment is considered as a main important issue in order to harmonize IT strategic goals with organizational goals (Tapscott & Caton, 1993).

3

These findings add credence to the importance of achieving a high level of maturity in the IT/Business alignment.

Recent studies have found a positive correlation between high levels of IT/Business alignment and high levels of Competitive Advantage for Businesses (Luftman, 2008).

4 1. (Hu and Huang, 2005; Duffy, 2002; Marchand, Kettinger and Rollins, 2001; Bergeron, Raymond and Rivard, 2001; Maes, Rijsenbrij, Truijens and Gondola, 2000; Reich and Benbasat, 1996, 2000; Tallon and Kraemer, 1998; Teo and King, 1996, 1997; Luftman, 2000; Henderson and Venkatraman, 1993)

Information Technology Alignment

Business

The research

Research Questions

Is it important to get IT/Business alignment?

How can organizations get the IT/Business alignment?

Most executives and organizations are turning to see “the promise of ITIL (Information technology infrastructure Library)”

5

Research background

This research has been conducted for more than 6 years.

Main objective

To find if there is any kind of correlation between the maturity of some ITIL processes and the maturity of the alignment dimensions considered as part of the alignment phenomenon.

6

Scope of research

41 organizations from these sectors:

– 12 Financial

– 6 Academic

– 4 Oil, gas, energy

– 8 Outsourcing

– 4 Government

– 7 Telecommunications

Alignment variables To assess the alignment variables the research is based on (Luftman’s, 2006) strategic alignment model. This model was adopted and adapted to the context of this research, the main dimensions translated into variables are:

8

Communication

Business Value

Governance

Business Relationship Management

IT Architecture

Staff Skills

Communications Is the effective exchange of ideas and a clear understanding of what it takes to ensure successful strategies. This variable is high on the list of enablers and inhibitors to alignment

Business Value Is necessary when too many IT organizations cannot demonstrate their value to the business in terms that the business understands. Frequently, business and IT metrics of

value differ

Governance Takes the considerations for IT governance that includes how the authority for resources, risk, conflict resolution, and responsibility for IT is shared among business partners, IT management and service providers

Business Relationship Management

Considers the relationship that exists among the business and IT organizations is another criterion that ranks high among the enablers and inhibitors of alignment

IT Architecture This set of criteria assesses the extent to which IT is able to: • Go beyond the back office and the front office of the

organization • Assume a role supporting a flexible infrastructure that is

transparent to all business partners and customers • Evaluate and apply emerging technologies effectively • Enable or drive business processes and strategies as a true standard • Provide solutions customizable to customer needs

Staff Skills

Encompasses all IT human resource considerations, such as how to hire and fire, motivate, train and educate, culture….

ITIL variables

The ITIL processes and function were translated into variables:

15

Financial Management for IT Services

Service Level Management

Availability Management

IT Service Continuity Management

Capacity Management

Incident Management

Problem Management

Change Management

Release & Deployment Management

Service Asset and Configuration Management

Service Desk

Service Level Management

Ensure that all current and planned IT services are delivered to agreed achievable targets.

'I think most of us want service-level assurance more than we want a service-level agreement.' Peter Coffee

Incident Management

Restore normal service operation as quickly as possible and minimize the adverse impact on business operations

Service Desk

Is a functional unit and should be the single point of contact for IT users on a day-by-day basis

Main findings

Business Value

Government

Business Relationship Management

Communication

Main findings

Business Value

Communication

Main findings

Business Value

Business Relationship Management

Communication

Main conclusions 1. Stop thinking that……..

Customers and users perception about alignment is the same IT thinks it is; SLM process showed 4 positive correlations, this is the stronger punch to IT - Business alignment.

Main conclusions 2. Stop thinking that……..

Incident Management process is an operational process and it does not help IT to get business alignment.

Main conclusions 3. Stop thinking that……..

Service Desks is the function that has to be conformed by inexperienced people with less skills than other lines of support.

Main conclusions 4. Stop thinking that……..

ITIL framework is the only thing that you need in order to get IT business alignment.

Thank you for attending this session. Don’t forget to complete the evaluation!

m.corona@bpgurus.com

@MauricioCorona

Support slides for questions

RESEARCH METHOD

To provide a representation of each

organization’s alignment maturity level at the

time of the study, a cross-sectional design

was employed utilizing 12 survey

assessment instruments that were

developed based on ITIL theory and

Strategic Alignment Model.

INSTRUMENT DEVELOPMENT

The alignment instrument were developed using Likert

items for the scales to be able to measure maturity levels

(do not confuse this with CMM model).

To assess the maturity of each variable all of the ITIL

instruments were developed using nominal scales and

each item were assessed on a dichotomous scale (do not

confuse this with CMM model). The ITIL processes were

operationalized as independent variables and the

alignment model operationalized as dependent variable

through a congruence matrix.

Outputs from Atlas Ti

30

Reliability and Validity

Reliability is defined as the extent to which a questionnaire, test, observation or any measurement procedure produces the same results on repeated trials. In short, it is the stability or consistency of scores over time or across raters.

Validity is defined as the extent to which the instrument measures what it purports to measure.

Cronbach Alpha

32

Chi-square sample

33

1. Ho:xy1=o

a. Chi C < Chi T ∴ can’t reject H0.

2. Ho:xy2=o

a. Chi C > Chi T ∴ H0 is rejected.

3. Ho:xy3=o

a. Chi C < Chi T ∴ can’t reject H0.

4. Ho:xy4=o

a. Chi C < Chi T ∴ can’t reject H0.

5. Ho:xy5=o

a. Chi C > Chi T ∴ H0 is rejected.

6. Ho:xy6=o

a. Chi C > Chi T ∴ H0 is rejected.