slide1
Download
Skip this Video
Download Presentation
STRATEGIC ALIGNMENT MATURITY

Loading in 2 Seconds...

play fullscreen
1 / 24

STRATEGIC ALIGNMENT MATURITY - PowerPoint PPT Presentation


  • 291 Views
  • Uploaded on

STRATEGIC ALIGNMENT MATURITY. SIM FAIRFIELD-WESTCHESTER. DR. JERRY LUFTMAN STEVENS INSTITUTE OF TECHNOLOGY [email protected] 2/20/03. AGENDA. WHAT IS STRATEGIC ALIGNMENT? 2. WHY IS IT TAKING SO LONG TO ADDRESS? HOW MATURE IS YOUR IT-BUSINESS ALIGNMENT?.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' STRATEGIC ALIGNMENT MATURITY' - roger


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

STRATEGIC

ALIGNMENT

MATURITY

SIM FAIRFIELD-WESTCHESTER

DR. JERRY LUFTMAN

STEVENS INSTITUTE OF TECHNOLOGY

[email protected]

2/20/03

slide2

AGENDA

WHAT IS STRATEGIC ALIGNMENT?

2. WHY IS IT TAKING SO LONG TO ADDRESS?

HOW MATURE IS YOUR IT-BUSINESS ALIGNMENT?

which technology issues will be of greatest concern to you and your company in the next year
Which technology issues will be of greatest concern to you and your company in the next year?

168 Better links to customers and suppliers

163 Enhancing corporate-wide processes

151 Aligning IT and business goals

126 Lowering costs of technology

72 Increasing user competence

70 Enabling/enhancing e-business and e-commerce

61 Data security / privacy

56 Implementing new technologies (e.g., wireless)

* CEO Responses

TOP 3 ARE IT BUSINESS ALIGNMENT ISSUES

Ref : Conference Board

slide4

Organization Concerns Rankings

Ref: Robert Gray, Anil Gulati - Western New England College

slide5

Average weighted score (10 = max)

1

2

3

4

5

6

7

8

9

10

Top 10 IS Management Priorities, 2002

Key Findings

Improve synchronization

  • During tough times, strategizing and executive leadership are more important than ever, as is e-enabling the enterprise

Delivering value, cut costs

  • Now is the time to demonstrate value for IS investments and to focus on better IS management

Fix security and business continuity

  • Privacy and security concerns top the IS management agenda
  • The scope of security includes business continuity

Strategizing for IS/business linkage

Providing leadership and guidance for the board/executive

Demonstrating business value of IS

Developing leadership and behavioral competencies in the IS senior mgmt. team

Reducing total IT costs

Strengthening program/project prioritization and management

Tightening security and privacy safeguards

Developing e-enabling IT architectures

Attracting, nurturing and sustaining IS resources

Reducing IT complexity

Gartner

slide7

IT is an equal agenda item in your company’s strategy and planning sessions

STRONGLY AGREE

AGREE

7%

STRONGLY DISAGREE

18%

20%

27%

NEUTRAL

28%

DISAGREE

Ref : CIO and Boston-based consultancy ICEX

slide8

Product strategy

51%

E-business strategy

49%

Sales/marketing

43%

43%

Customer service

Competitive position

38%

IT’s Role

35%

Manufacturing

8%

Corporate executives were asked:

Which subjects are included in your formal business strategy?

SOURCE: CUTTER CONSORTIUM, ARLINGTON, MASS.

slide9

What is the role of IT at your company ?

Manager of key data, communications, hardware, and software

Vital utility, like electricity

Tool for improving business-process efficiency

Resource for creating new business processes

Instrument for cutting costs within the company

Core part of decision-making team that sets overall strategy

Responsible primarily for technology maintenance

Cost Center and drain on corporate resources

Note: Multiple responses allowed

Profit Center

10

20

30

40

50

60

70

% of respondents

Ref: Optimize Research

slide11

External

Where is the Value From IT Investments?

IT

Investments

Strategic

Benefits

Business

Transformation

Internal

Every business is an information business.

Information is the glue that holds value chains & organizations together.

slide12

A New Perspective

IT Investments

Investments in Business Change!!!

slide13

Business Outcome:

IT Enabler:

Business Process:

Value Management Framework

  • Portfolio Management
  • Options
  • IT-Business Process
slide14

BUSINESSBusiness Strategy

ITIT Strategy

Business Scope

Technology Scope

Distinctive

competencies

Business Governance

Systemic competencies

IT Governance

Strategic Fit

Administrative Structure

IT Architecture

Processes

Skills

Processes

Skills

Organizational Infrastructure

IT Infrastructure

The Strategic Alignment Model

Functional Integration

symptoms of strategic alignment problems
Symptoms of Strategic Alignment Problems

LONG LIST ABOUT SYMPTOMS OF ALIGNMENT PROBLEMS

slide17

There is no “silver bullet”…

It takes a combination of “things” to make it a success!!!

slide18

Customercentric,

IT enabled/driven

differentiation

Incremental vs

Radical Innovation

Global Community

& Economy;

Enronitis

Knowledge

Economy

internal/external

E-NOUGH

Value

Demonstration

BUSINESS

TRANSFORMATION

IT can:

- Enable

- Drive

- Inhibit

Leverage Core CSFs

Secure,

Integrated

Infrastructure

Leadership Skills:

Agility, Experimentation

& Learning Hierarchy

of Imagination

Enterprise Application

Integration:

CRM, SCM, & K

Multiple careers.

Rightsizing, Skills

Shortage

Disintermediation,

Reintermediation,

Hypermediation,

Infomediation,

Aggregation

New Org.

Structures,

X-engineering, Business

Partnership Mgt

Wireless PDAs

via Semantic Web

Revenue vs

Earnings Growth

slide19

HOW MATURE IS YOUR

IT-BUSINESS ALIGNMENT???

slide20

Climbing the Strategic Alignment Maturity Model

LEVEL 5

Optimized

Process

LEVEL 4

Improved Process

LEVEL 3 Established process

Business

IT Strategy

Strategy

LEVEL 2 Committed Process

LEVEL 1 Initial Process

Alignment Gap

slide21

IT Investment Management

  • Prioritization Process
  • Innovation, Entrepreneurship
  • Cultural Locus of Power
  • Management Style
  • Change Readiness
  • Career crossover; training/education
  • Social, Political, Trusting

Interpersonal Environment

  • Hiring and retaining

GOVERNANCE

COMPETENCY/VALUE

COMMUNICATIONS

MEASUREMENTS

  • Understanding of Business

by IT

  • IT Metrics
  • Business Strategic Planning
  • Understanding of IT
  • Business Metrics
  • IT Strategic Planning

by Business

  • Balanced Metrics
  • Organization Structure
  • Inter/Intra

organizational

-

  • Service Level Agreements
  • Budgetary Control

Learning/Education

  • Benchmarking
  • Protocol Rigidity
  • Formal Assessments/Reviews

·

  • Steering Committee(s)
  • Knowledge Sharing
  • Continuous Improvement
  • Liaison(

s) effectiveness

IT BUSINESS ALIGNMENT MATURITY CRITERIA

SKILLS

PARTNERSHIP

SCOPE &

ARCHITECTURE

  • Business Perception of IT Value
  • Traditional, Enabler/Driver,

·

  • Role of IT in Strategic

c Business

External

·

Planning

  • Standards Articulation
  • Shared Goals, Risk,
  • Architectural Integration:

·

Rewards/Penalties

- Functional Organization

-

-

  • IT Program Management

-Enterprise

·

-

-Inter enterprise

  • Relationship/Trust Style

·

-

Inter

-

  • Business Sponsor/Champion
  • Architectural Transparency,

·

Agility, Flexibility

  • Manage Emerging Tech.
strategic alignment maturity summary

Level 5

  • Optimized process
  • COMMUNICATIONS: Informal, pervasive
  • COMPETENCY/VALUE: Extended to external partners
  • GOVERNANCE: Integrated across the org & partners
  • PARTNERSHIP: IT-business co-adaptive/improvisational
  • SCOPE & ARCHITECTURE: Evolve with partners
  • SKILLS: Education/careers/rewards across the organization
Strategic AlignmentMaturitySummary

Level 4

  • Improved/ managed process
  • COMMUNICATIONS: Bonding, unified
  • COMPETENCY/VALUE: Cost effective;Some partner value;Dashboard managed
  • GOVERNANCE: Managed across the organization
  • PARTNERSHIP: IT enables/drives business strategy
  • SCOPE & ARCHITECTURE: Integrated with partners
  • SKILLS: Shared risk & rewards

Level 3

  • Established focused process
  • COMMUNICATIONS: Good understanding; Emerging relaxed
  • COMPETENCY/VALUE: Some cost effectiveness; Dashboard established
  • GOVERNANCE: Relevant process across the organization
  • PARTNERSHIP: IT seen as an asset; Process driver;Conflict seen as creative
  • SCOPE & ARCHITECTURE: Integrated across the organization
  • SKILLS: Emerging value service provider;Balanced tech & business hiring

Level 2

  • Committed process
  • COMMUNICATIONS: Limited business/IT understanding
  • COMPETENCY/VALUE: Functional cost efficiency
  • GOVERNANCE: Tactical at Functional level,occasional responsive
  • PARTNERSHIP: IT emerging as an asset; Process enabler
  • SCOPE & ARCHITECTURE: Transaction (e.g., ESS, DSS)
  • SKILLS: Differs across functional organizations

Level 1

  • Initial/Ad-Hoc process
  • COMMUNICATIONS: Business/IT lack understanding
  • COMPETENCY/VALUE: Some technical measurements
  • GOVERNANCE: No formal process,cost center, reactive priorities
  • PARTNERSHIP: Conflict; IT a cost of doing business
  • SCOPE & ARCHITECTURE: Traditional (e.g., acctng, email)
  • SKILLS: IT takes risk, little reward; Technical training
strategic alignment maturity summary1

Optimized process

Level 5

Strategic AlignmentMaturitySummary
  • COMMUNICATIONS: Informal, pervasive
  • COMPETENCY/VALUE: Extended to external partners
  • GOVERNANCE: Integrated across the org & partners
  • PARTNERSHIP: IT-business co-adaptive/improvisational
  • SCOPE & ARCHITECTURE: Evolve with partners
  • SKILLS: Education/careers/rewards across the organization

Level 1

  • Initial/Ad-Hoc process
  • COMMUNICATIONS: Business/IT lack understanding
  • COMPETENCY/VALUE: Some technical measurements
  • GOVERNANCE: No formal process,cost center, reactive priorities
  • PARTNERSHIP: Conflict; IT a cost of doing business
  • SCOPE & ARCHITECTURE: Traditional (e.g., acctng, email)
  • SKILLS: IT takes risk, little reward; Technical training
slide24

IT IS NOT JUST THE LEVEL OF

MATURITY

  • WHERE IS THE ORGANIZATION STRONG/WEAK?
  • WHERE IS THERE DISAGREEMENT?
  • WHAT ARE THE IMPLICATIONS?
  • WHAT CAN BE DONE TO IMPROVE THE MATURITY LEVEL?
  • IT OPENS THE DOOR TO DISCUSSING ALIGNMENT
ad