The Business IT Alignment Illusion

Remko van der Pols & Mark Smalley

Agenda

• BITA Illusion• Principles for organizing BITA • ASL (guidance for supply)• BiSL (guidance for demand)

• Please interrupt and participate!

Mark Smalley

“I help IT people market, sell and deliver Application Management”

• Director of International Affairs at ASL BiSL Foundation • Principal Consultant at Capgemini• Member Professional EXIN Group• Lecturer at Rotterdam, Brussels, Hangzhou• Author and Speaker (Europe, Australia, China,

Hong Kong, India, New Zealand, Singapore, USA)

CYO, Blind Monk, Maintert®ainer & IT Paradigmologist

Remko van der Pols

• Director and Managing Consultant at The Lifecycle Company

• Member of the Architectural Board at the ASL BiSL Foundation

• Author, Speaker and Lecturer

Illusory gap between business and IT

• IT people think there’s a gap

• "Business should do more with IT”

• Business is happy with how things are

• Otherwise they would have done something about it

• There is a gap but it’s not what IT people think it is

• IT is building the wrong bridge

Building Bridges

Business Island

ITIsland

Separate planets

Topic IT BusinessIT IT=OK,

Business=OKNot my biggest

problemReduce

uncertainty byOne perfect

solutionVarious

strategies Driver Utopia Survival

Dimensions One ManyDecision-

makingRational Intuitive

World Static Dynamic

Separate planetsI see a gap between

business & IT

I see a gap between

business & IT

We need a practical bridge

We need a logical bridge ,

Captain

Decision makingThe Trouble Triangle

Costs

Trouble

Benefits

Separate planets

• Unbridgeable core values

• IT has retreated into“Tell us what you want us to do” (then it’s your fault if something goes wrong)

• So Business is in the lead

• Business has got to learn how to deal with IT people– 1 dimensional IT people can’t see in more

dimensions– They pay so it’s their say

• Bad news for IT – Business rules IT!

Organizing Demand & Supply

• Business rules ITDemand & Supply model

• Demand driven means demand driven Segmentation and fragmentation

Multi tool, multi supplier, multi everything

• Interactions and relationships are key

• Demarcation: What versus How

IT Management Paradigm & Models

ITIL V3 BiSLASL

Application Services Library (ASL)

• Guidance for Application Management (Supply)

• Process model• Best practices• Community of Knowledge

• Supported by the not-for-profit, vendor-independent, public domain ASL BiSL Foundation

• www.aslbislfoundation.org

Application Services Library

• Dutch standard NEN 3434 for AM is based on ASL

• NEN 3434 currently being ‘fast-tracked’ to ISO/IEC 26500; announcement expected May 2010

Application Services Library

16

How do I deliver my services?

What kind ofAM shop

do I want to be?

What kind ofAM shop

do I want to be?

How do I manage and improve my services?How do I manage and improve my services?

Business: Costs, Risk,Benefits

Customer satisfaction Back-to-back contracts Quality management

Supplier’s perspective Rapidly changing world Repositioning Collaborate vs control Proactive, innovative Strategic alignment

Application Services Library

Change

Bus

ines

s

Operations

Bus

ines

s

Strategy

Bus

ines

s

Business: Production,Costs, Revenue, Image

IT: Availability, Continuity Customer Service Proactive chain management Contingency

Business: Time to market,Costs, Revenue, Image

IT: Functionality, Releases Speed Quality

Business: Capital, Profit, RiskIT: Strategy, Architecture Business innovation Application Portfolio

Transformation Strategic dialogue

Business InformationServices Library (BiSL)

• Guidance for Business Information Management (Demand)

• Process model• Best practices• Community of Knowledge

• Supported by the not-for-profit, vendor-independent, public domain ASL BiSL Foundation

• www.aslbislfoundation.org

Business InformationServices Library (BiSL)

Day-to-day management to ensure execution of

the business

Keeping the information provisioning fit for the

business

Keeping time, money, business cases, progress, demand, contracts, suppliers, quality & expectations under control

Ensuring strategic alignment of

business & IT

Ensuring effective organization of

business information management

Man

agin

g an

d im

plem

entin

g ch

ange

s

Ens

urin

g al

ignm

ent o

f all

stra

tegi

c pl

ans

Management Summary

• Business and IT have to recognize and accept their differences in order to collaborate effectively

• Accept and respect ‘demand driven’

• Not uniform practices but customized practices

• IT people should try to imagine other dimensions