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Key Management Concepts and Disciplines. Business – IT Management. Warning Zone. Desired State. Business Enablement/Support. IT Delivering Business Value. High Attention Zone. Opportunity Zone.

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Business it management

Key Management Concepts and Disciplines

Business – IT Management

Warning Zone

Desired State

Business Enablement/Support

IT Delivering Business Value

High Attention Zone

Opportunity Zone

Establish a Working Environment of Business/IT Management That Delivers the Desired Level of Business Value and Performance of IT for Assisting Agencies to Enable a Responsive, Accountable, and Citizen-Centric Government

IT Providing Effective and Efficient services

IT Operational Performance


Business it management

Motivations for Business/IT Management

  • Innovative service delivery

  • Enhanced quality and results of governmental programs

  • Greater productivity/efficiency in operations

  • Increase transparency and accountability for performance

  • More value to the public for expenditures

Societal and technological change

Directs

  • Technology is an integral part of the business

  • Technology can enhance citizen services and improve business processes

A technologically aware organization

Recognizes

Today’s and tomorrow’s employee

Expects

  • An IT-intensive environment

  • Service-centered and customer-focused

  • Efficient and effective in its operations

  • Responsive to changing business needs

A credible IT organization

Is

  • Advancement of organizational mission

  • Accomplishment of business goals and strategies

  • Business transformation

A mature IT organization

Enables

2


Business it management

Components of Business/IT Management

Business Strategies and Initiatives

Directs

Business Processes (Work Tasks, Information, and Policies/Rules)

Influences and Enables

Dictates

IT Plans and Projects

Supports and Sustains

Creates

IT Infrastructure (Hardware, Software, Management Practices and Processes)

3


Business it management

Business/IT Management Outcomes*

To get to the best outcome, both IT efficacy and business/IT enablement must be accomplished

Warning Zone – Ineffective IT Operations Places Continued Business Growth At Risk

Desired State –Business Enabled by IT Operational Excellence

Business Improvement -14%

IT Spend Change +13%

11% of companies

Business Improvement +35%

IT Spend Change - 6%

7% of companies

Initiatives for improving IT efficacy and business/IT enablement may be performed in parallel

IT Delivering Business Value

Business Enablement/Support

High Attention Zone – Both Business Support and IT Operational Performance Problems

Opportunity Zone – Strong Delivery Capabilities But Weak Linkage of Operational Capabilities to Business Needs

Business Improvement -2%

IT Spend Change +0%

74% of companies

Business Improvement +11%

IT Spend Change -15%

8% of companies

Achieving IT efficacy provides the most incremental business benefits

IT Providing Effective and Efficient Services

IT Operational Performance

*Sloan Management Review, Fall 2007, “Are You Caught In the Alignment Trap?”

4


Organizational expectations for it s role
Organizational Expectations for IT’s Role

High

IT possesses detailed business process knowledge and relationship skills

IT Counselor

IT Value Seeker

  • Anticipate business needs

  • Service over costs

  • Don’t hinder the business

  • Full business/IT integration

  • Efficiency and costs are important

  • Business process focus - solution driven

IT Enabling/Supporting Business

IT Delivering Business Value

IT Doer

IT Service Provider

  • Keep lights on

  • Efficiency and costs unimportant

  • Little role in business innovation or improvement

  • Reliability, costs and security emphasized

  • Technology not thought of as enabler of business mission

IT has limited feel for business needs and processes

IT Providing Efficient and Effective Services

Low

IT Operational Performance

Low

High

IT operations extremely reactive and service delivery problematic

IT operations proactive and service delivery reliable and responsive


Business it management

Business/IT Management Analysis

Warning Zone

Desired State

Business Enablement/Support

High Attention Zone

Opportunity Zone

IT Operational Performance

Legend

Focus on IT operational performance improvements

Focus on business enablement and support improvements

Focus on both business enablement and support and IT operational performance with priority for IT operations improvements

6


Business it alignment responsibilities for functions and processes
Business/IT Alignment – Responsibilities for Functions and Processes

Business Responsibilities for Processes

Investment management (identification, evaluation, and selection/prioritization of IT capital investments and projects); enterprise architectures (business processes and information); and enterprise management of HR, finances, risk, business continuity planning, security, and governance processes.

Missions and Strategies

Business and Information Architectures

Primarily Business Focus

Drives

Business Processes and Information Flows

Prescribes

Joint Business and IT Responsibilities for processes

Program and project portfolio management, including project management mythology (PMI); applications portfolio management; and service level agreements (SLAs).

Technical Architecture

Joint Business and Technical Focus

Applications (Data and Work Tools)

Enabled by

IT Responsibilities for processes

IT is responsible for service management/technical operations (such as ITIL) including service desk, CMDB (for ITIL), and infrastructure assets; technical architecture; software development processes (SDLC, design, QA, testing, etc.); DR; and technical risk management.

Technical Products and Services

Primarily Technical Focus

Supported by

Technical Computing, Storage, and Networking Infrastructure


Major activities for developing agency it plans correlation with results based budgeting approach
Major Activities for Developing Agency IT Plans ProcessesCorrelation with Results Based Budgeting Approach

Planning Type

Agency Strategic Missions, Duties, and Responsibilities and Governmental Priorities

Strategic

Business Management

Business Goals, Strategies, and Performance Measures (Results Based Budgeting)

Current Business Status

Future Business State

Business Plans and Initiatives

(Where we want to be)

(How we get there)

(Where we are)

Step 4

Step 2

Step 1

Expansion Budget Requests

Develop IT Initiatives and Projects and Create IT Plan

Business/IT Management

Business/IT Alignment and IT Operations Efficiency and Effectiveness

Conduct Self Assessment of Current Status

Determine Desired State

Agency IT Plan

Step 3

Perform Gap Analysis


Overview of agency it planning process
Overview of Agency IT Planning Process Processes

Department Strategic Initiatives, Business Drivers, and Results-Based Budgeting Plans

Plans for Legacy Applications

Changes in Portfolio of Infrastructure Assets

Human Resource Requirements

Improvements in Business/IT Management Areas (Note)

Governance Process for Selecting and Prioritizing Funding Requests for Initiatives, Programs, and Projects

New Business Requirements or Government Program Initiatives

Adjustments to Current Projects

Note – Areas include: applications portfolio management (APM), program/project portfolio management (PPM), management of personnel, vendor management, management of architecture, software development process, service management/operations support, fiscal and budget management, and infrastructure asset management

Dept. IT Plan Initiatives and Funding Requests

  • Input to Agency’s IT Plan for Submission to State CIO

  • Input to Expansion Budget Request Process


Overview of agency it planning process1
Overview of Agency IT Planning Process Processes

  • Department mission

  • Business/program goals and objectives

  • Governmental initiatives

  • Citizen services offered

  • Regulatory/compliance requirements

  • Statutory mandates

  • One-stop shop and information sharing opportunities

  • Organization streamlining potential

  • Business process reengineering opportunities

Department Strategic Initiatives, Business Drivers, and Results-Based Budgeting Plans

Plans for Legacy Applications

Changes in Portfolio of Infrastructure Assets

Human Resource Requirements

Improvements in Business/IT Management Areas

  • Retirements/replacements

  • Eliminations/consolidations

  • Modernizations, technical renovations, and functional enhancements

  • On-going maintenance

  • Refreshment cycles

  • Security/reliability upgrades

  • Standardization and consolidations

  • Staffing numbers and skill requirements

  • Training requirements

  • Use of supplemental staffing

  • Policy and process improvements - Note

  • Organization realignments

  • Changes due to consolidations and other statewide initiatives

  • Initiative and Funding Request Priority Setting

  • (Spending on Right Projects to Improve Operations and Services)

  • Identify potential initiatives and investments and evaluate candidates against defined criteria (business benefit or public value, strategic alignment, financial return, impact on business processes, technical architecture fit, risks, etc.)

  • Prioritize initiatives and investments based on analysis results (relative weighted scores) and dependencies

  • Balance staffing and fiscal resources

  • Determine disposition – select, reject, adjust, or sunset

  • Include selections in department IT Plan and funding requests

New Business Requirements or Government Program Initiatives

Adjustments to Current Projects

  • Current project inventory, staffing and funding commitments, and status

  • Projects requiring additional funding to complete

  • Projects no longer relevant or with lower priorities

  • Projects with higher priorities or increased urgency

  • New governmental priorities

  • Regulatory/compliance requirements

  • Statutory mandates

  • Opportunities for productivity improvements or service level performance enhancements in business processes

  • Opportunities for new or better services for the state’s citizens, businesses, or employees

  • E-government opportunities

Note – Areas include: applications portfolio management, program/project portfolio management, management of personnel, vendor management, management of architecture, software development process, service management/operations support, fiscal and budget management, and infrastructure asset management

Dept. IT Plan Initiatives and Funding Requests

  • Input to Agency’s IT Plan for Submission to State CIO

  • Input to Expansion Budget Request Process


Key components of business it management
Key Components of Business - IT Management Processes

  • Prioritiesfor governmental programs and services

  • Economic realities and budgetary constraints

  • Stakeholders and funding and oversight authorities

  • Business and information architectures

  • Compliance/regulatory mandates

  • Environmental sustainability

Business Strategy and Requirements

  • Goals and objectives

  • Future technologies and enterprise architecture

  • Communications

  • Leadership and new directions and approaches

  • Management processes and maturity levels

IT Vision

IT Strategy and Plans

  • Investment selection and resource (staffing) allocation

  • Financial management and budget control

  • Risk management

  • Business and technical architectures

  • Service offerings

  • Major initiatives and programs

Management and Governance

  • Portfolio and asset management and tools

  • PMO

  • Decision making processes, with participants and processes

  • Purchasing and vendor management

  • Life cycle management

  • Personnel management

  • Organizational structure

Application Delivery

Operations Excellence

  • Project management with development and management methodologies

  • Software development and quality management

  • Applications engineering

  • Tools

  • IT service management (ITSM) – ITIL framework

  • IT asset management (ITAM)

  • Service catalogue and service level agreements (SLAs)

  • Platform, networking, and storage engineering

  • Tools


Business it management overview
Business - IT Management Overview Processes

Business Plans and Strategies

IT Plans and Strategies

  • Business Architecture –business models, services/governmental programs, and processes

  • Information Architecture –acquisition, distribution/sharing, and application of data

  • Applications Architecture –technicalstructures of applications and facilities for exchanging data among them

  • Technical Architecture –technical descriptions for platforms/servers, storage devices, networking equipment and interconnections among them

Business - IT Governance

  • Roles and responsibilities

  • Policies and processes

Management Disciplines

  • Portfolio management

  • Project management

  • Investment management

  • Personnel management

  • Financial management

  • Asset management

  • Service/operations management

  • Purchasing and vendor management

  • Applications development management

  • Legacy applications management


Historical perspective for business it management
Historical Perspective for Business – IT Management Processes

Period

60s

70s

80s and 90s

Today

Business Role

Senior Leader

Business – IT Governance

Unquestioned Superior

Command and Control

Gap Between Business and IT

Servitude Follower

Order Taker

Organizational Problem Solver

Deliverer of Business Technology

IT Role