uly-2016 Overview of the New IT Operating Model …...Key Features of the IT Operating Model for...
Transcript of uly-2016 Overview of the New IT Operating Model …...Key Features of the IT Operating Model for...
28-July-2016
CEB IT Practice
Overview of the New IT Operating Model for Digital
IT Operating Model for Digital Webinar Series
January 2017
28-July-2016
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QUESTIONS THIS WEBINAR WILL ADDRESS
What’s driving the need to change the IT operating model?
What’s the New IT Operating Model for Digital?
What do we mean by “Products Over Projects” in the model?
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WHAT TODAY'S IT OPERATING MODEL MUST DELIVER
Source: CEB analysis.
Flexible ways of working
Faster clock speed
Greater business domain knowledge
Improved customer experience
No reduction in reliability and cost efficiency
1
2
3
4
5
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DIGITIZATION CHANGES THE MEANING OF IT
Cost Center (SG&A) Digital Transformation Driver (COGS)
All IT Projects Are Business Projects All Business Projects Are IT Projects
Sole Provider of Technology Partner with Business Led-IT
Business Strategy Drives IT Strategy Business Strategy = IT Strategy
Source: CEB analysis.
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Project # 165211
Catalog # CIO165211PR
Year Range 2016
NEW IT OPERATING MODEL FOR DIGITALKey Features of the IT Operating Model for Digital
PM
O
Adaptive Business Engagement 2
Strategy Over Governance, Management Over Operations
7
Data Strategy Over Ownership
Adaptive Skills and Mindset
Agile, DevOps, Continuous Delivery
3
Operations and Support
Infrastructure Engineering
Cloud-Based Scalable Infrastructure6
Products Over Projects 14 Customer-
Centric Design
Applications Building Blocks5
Enterp
rise Architecture
Inform
ation R
isk
8
9Applications Development
Source: CEB analysis.
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28-July-2016
NEW IT OPERATING MODEL FOR DIGITALKey Features of the IT Operating Model for Digital
1 Products Over Projects: Priorities and budgets set for business capabilities and products, not projects.
2 Adaptive Business Engagement: Business engagement approach flexes based on business context.
Source: CEB analysis.
Adaptive Business Engagement 2
Products Over Projects 1
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NEW IT OPERATING MODEL FOR DIGITALKey Features of the IT Operating Model for Digital
Adaptive Business Engagement 2
Operations and Support
Infrastructure Engineering
Products Over Projects 1
Applications Development
Agile, DevOps, Continuous Delivery
3
4 Customer-Centric Design
3 Agile, DevOps, Continuous Delivery: Integrated delivery, engineering, and support boost responsiveness and output.
4 Customer-Centric Design: Customer journey mapping used to guide design.
Source: CEB analysis.
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NEW IT OPERATING MODEL FOR DIGITALKey Features of the IT Operating Model for Digital
Operations and Support
Infrastructure Engineering
Cloud-Based Scalable Infrastructure6
Applications Building Blocks5
Agile, DevOps, Continuous Delivery
3
4 Customer-Centric Design
5 Applications Building Blocks: APIs, platforms, data, and reusable services reduce effort and accelerate delivery.
6 Cloud-Based Scalable Infrastructure: IT automation and cloud platforms cut time to scale.
Source: CEB analysis.
Adaptive Business Engagement 2
Products Over Projects 1
Applications Development
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NEW IT OPERATING MODEL FOR DIGITALKey Features of the IT Operating Model for Digital
Strategy Over Governance, Management Over Operations
7
Data Strategy Over Ownership
8
7 Strategy Over Governance, Management Over Operations: Central groups refocus on facilitating strategy, innovation, change, and enterprise data.
8 Data Strategy Over Ownership: Coherent strategy and guidelines around data allow for rapid exploitation by distributed teams.
Source: CEB analysis.
Operations and Support
Infrastructure Engineering Agile, DevOps, Continuous Delivery
3
4 Customer-Centric Design
Adaptive Business Engagement 2
Products Over Projects 1
Applications Development
Cloud-Based Scalable Infrastructure6
Applications Building Blocks5
PM
O
Enterp
rise Architecture
Inform
ation R
isk
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28-July-2016
NEW IT OPERATING MODEL FOR DIGITALKey Features of the IT Operating Model for Digital
Strategy Over Governance, Management Over Operations
7
Data Strategy Over Ownership
8
Source: CEB analysis.
Operations and Support
Infrastructure Engineering Agile, DevOps, Continuous Delivery
3
4 Customer-Centric Design
Adaptive Business Engagement 2
Products Over Projects 1
Applications Development
Cloud-Based Scalable Infrastructure6
Applications Building Blocks5
PM
O
Enterp
rise Architecture
Inform
ation R
isk
Adaptive Skills and Mindset
9
9 Adaptive Skills and Mindset: Staff become technically versatile, collaborative, and open to innovation.
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PROJECTS VERSUS PRODUCTS
Project Product Line
Lifespan ■ Point-in-time ■ Ongoing
Scope ■ Deploys a specific application or infrastructure technology (e.g., ERP or network) and related business change
■ Supports a product (e.g., a customer-facing platform) or a capability (e.g., customer support)
Managed by ■ Project/program manager ■ Product line manager/service manager
Funding Approach
■ By project, based on individual business cases.
■ By product line/capability, based on their strategic importance
Metrics ■ Project inputs (e.g., schedule, budget, scope)
■ Product outcomes (e.g., quality, cost, volume, value delivered)
Source: CEB analysis.
Products Over Projects 1
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Source: CEB analysis.
Products Over Projects 1
Business Unit 2
Product Lines Online Banking
Sales Customer Support
...
Product Line Managers
Business Analysts --
Architects
Agile and DevOps Teams
Infrastructure Engineering,
Ops and Support
Business Unit 1
Create a coordination mechanism across product lines to spot opportunities for scaling innovation.
ORGANIZE AROUND PRODUCT LINESProduct Line IT Organization
Empower the product line manager to reallocate funding and resources.
Define product lines that align to the most critical business capabilities.
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Sales
FUND PRODUCTS NOT PROJECTSFunding Process for IT Product Lines
Funding Prioritized by Enterprise Capability
■ Determine the relative importance of product lines annually and allocate funding proportionally.
■ Guide senior business partners through a structured tradeoff exercise.
Source: CEB analysis.
Products Over Projects 1
Product Lines Online Banking
Product Line Managers
■ Product line managers have discretion to allocate funds to enhancements, technology refreshes, innovation, etc.
■ Product line managers can reallocate funding dynamically across the year as priorities change.
IT Budget
...Customer Support
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BEST IN CLASS EXAMPLES
Define IT services/ product lines using groups of related business capabilities. See Business Capability-Based Service Definitions.
Allocate IT investment by business capability. See Strategic Pillar Investment Targets.
Align delivery resources to product lines. See Business Service-Aligned DevOps Teams.
Create empowered product line managers. See Product/Service Manager Responsibilities and Skills.
Set up services/product lines to help experiment with digital innovation. See End-to-End Services Management.
Involve business partners in the process of determining how service/ product costs will be allocated. See Business-Driven Service Cost Allocation.
Source: CEB analysis.
Products Over Projects 1
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ADAPT ENGAGEMENT ACROSS FIVE ACTIVITIESFive Engagement Activities
Source: CEB analysis.
Own the process of delivering technology functionality, or provide integration capabilities for business-led technology investments.Delivering
5
Enable employees to make full use of the enterprise’s technology and information.
Coaching4
Provide the internal and external connections needed for business leadership of technology investments.
Brokering3
Offer advice and frameworks to enable successful business leadership of technology investments.
Consulting2
Keep abreast of emerging digital trends, and educate business partners on opportunities to create value from technology.Evangelizing
1
For more on the five engagement activities, see CEB’s work on Adaptive IT
Flex between the five activities based on business partners’ digital ambition and ability.
Project # 161782
Catalog # CIO5504116SYN
Year Range 2016
Adaptive Business Engagement2
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Improve innovation outcomes by coaching
employees on developing and pitching
their ideas.
EXAMPLES OF NEW ENGAGEMENT ACTIVITIES
1
23 4 5
6
7
1
1
1 Pseudonym.
Promote digital marketing capabilities
through an internal digital agency run by enterprise architects.
Offer consultancy services to support part-time project managers through the PMO.
Connect business partners to sources of technology expertise and funding to
expedite their ideas.
Improve employee ability to exploit data by
providing coaching.
Guide business partners on due diligence
conversations as they work with technology vendors themselves.
Evangelizing
Influence emergent vendors and startups
so that business partners can work with
them directly.
Source: CEB analysis.
CoachingBrokeringConsulting
Adaptive Business Engagement2
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CEB IT Leadership Academy’s Blended Learning Approach1
■ Focused on solving real-world IT challenges
■ Configurable to specific organization needs
■ Work-based application for immediate on-the-job impact
■ Choice of live or virtual learning interventions
■ Ability to measure the impact of learning with CEB Metrics That Matter™
Equip IT Professionals to Succeed in an Adaptive Environment
Build an Adaptive workforce by developing 12 critical competencies proven to drive high performance.CEB IT Leadership Academy develops these 12 competencies, enabling participants to effectively collaborate with the business, analyze IT enablement opportunities, and respond to a constantly shifting business and technology environment.
IT Competencies
1Premium offering not included in standard membership
■ Business Results Orientation
■ Communication
■ Influence
■ Relationship Management
■ Teamwork
■ Analytic Ability
■ Decision Making
■ Prioritization
■ Process Orientation
■ Creativity
■ Learning Agility
■ Organizational Awareness
Collaborative Analytical Responsive
CEB IT LEADERSHIP ACADEMY
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28-July-2016
Project # 165211
Catalog # CIO165211PR
Year Range 2016
NEW IT OPERATING MODEL FOR DIGITALKey Features of the IT Operating Model for Digital
Adaptive Business Engagement 2
Strategy Over Governance, Management Over Operations
7
Operations and Support
Infrastructure Engineering
Cloud-Based Scalable Infrastructure6
Products Over Projects 1
Applications Building Blocks5
Applications Development
PM
OAgile, DevOps, Continuous Delivery
3
4 Customer-Centric Design
Enterp
rise Architecture
Inform
ation R
iskData Strategy Over Ownership
Adaptive Skills and Mindset
8
9
1 Products Over Projects: Priorities and budgets set for business capabilities and products, not projects.
2 Adaptive Business Engagement: Business engagement approach flexes based on business context.
3 Agile, DevOps, Continuous Delivery: Integrated delivery, engineering, and support boost responsiveness and output.
4 Customer-Centric Design: Customer journey mapping used to guide design.
6 Cloud-Based Scalable Infrastructure: IT automation and cloud platforms cut time to scale.
7 Strategy Over Governance, Management Over Operations: Central groups refocus on facilitating strategy, innovation, change, and enterprise data.
8 Data Strategy Over Ownership: Coherent strategy and guidelines around data allow for rapid exploitation by distributed teams.
9 Adaptive Skills and Mindset: Staff become technically versatile, collaborative, and open to innovation.
5 Applications Building Blocks: APIs, platforms, data, and reusable services reduce effort and accelerate delivery.
Source: CEB analysis.
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28-July-2016
IT OPERATING MODEL FOR DIGITAL WEBINAR SERIESNext Webinar: Products Over Projects
IT Operating Model for Digital Webinar Series
CEB Enterprise ArchitectureCEB CIOCEB Applications
CEB IT Midsized CEB Infrastructure
CEB Information Risk CEB PMO
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28-July-2016
Additional Resources and Upcoming Events
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28-July-2016
Project # 164926
Catalog # CIO164926PR
CEB CIO LEADERSHIP COUNCIL WEBINAR SERIESWebinars for January–February 2017
January February March
IT Operating Model for Digital Webinar Series: Products Over Projects26 January 2017 12:00 p.m. EST
IT Operating Model for Digital Webinar Series: Adaptive Business Engagement23 February 2017 12:00 p.m. EST
Tactics to Improve Gender Balance in IT8 February 2017 11:00am EST
Registration information and audio for past webinars is available on the member website in the Events section.
Increasing IT Scorecard Effectiveness for Digitization 9 March 2017 12:00 p.m. ET
IT Operating Model for Digital Webinar Series23 March 2017 12:00 p.m. ET
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ADDITIONAL SUPPORT FROM CEB IT PRACTICE
CEB Applications CEB CIO CEB Enterprise Architecture
Understand the key features of the new IT operating model for digital by reviewing The New IT Operating Model for Digital.
Understand the key features of the new IT operating model for digital by reviewing The New IT Operating Model for Digital.
Understand the key features of the new IT operating model for digital by reviewing The New IT Operating Model for Digital.
Improve your maturity in 20 areas critical to Agile using Agile Handbook.
Define an end-to-end IT service/product line using CEB Ignition™ Guide to Defining End-to-End IT Services.
Understand how EA groups are rethinking the value of and approaches to traditional areas of EA focus by reviewing The Future of EA.
Understand, plan, and roll out DevOps at your organization using DevOps Implementation Roadmap.
Understand the changes IT functions are making to create an adaptive IT–business engagement model by reviewing Adaptive Business Engagement.
Support a successful transition to Agile at scale by reviewing Adapting Enterprise Architecture for Agile at Scale.
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ADDITIONAL SUPPORT FROM CEB IT PRACTICE
CEB Information Risk CEB Infrastructure CEB PMO
Understand the key features of the new IT operating model for digital by reviewing The New IT Operating Model for Digital.
Understand the key features of the new IT operating model for digital by reviewing The New IT Operating Model for Digital.
Understand the key features of the new IT operating model for digital by reviewing The New IT Operating Model for Digital.
Navigate the new organizational context to build a strong foundation for success by reviewing First Steps for Creating a New Information Security Function.
Identify the key steps for building and implementing a cloud strategy using Cloud Strategy Roadmap and Checklist.
Understand the high-value opportunities, beyond the methodology, that PMOs can use to help the organization attain value from Agile by reviewing Defining the PMO’s Role in Driving Agile Value.
Coordinate risk management activities with other risk management functions by reviewing Formalizing Interfaces Between Risk Management Functions.
Bring clarity on how to implement change for DevOps by reviewing Implementing DevOps.
Adjust the type of support the PMO can provide to business partners using Context-Based PMO Engagement (Air Products and Chemicals, Inc.).