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IT-Governance
(GSE-Project Highlights)
Copyright GSE/Project IT-Governance
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Scenario IT-Governance
IT is an intensively discussed topic in Organisations and Enterprises. Discussion ranges from ‘cost factor’ to ‘business enabler’.
A close link between the Enterprise-Strategy and IT-strategy is key, but it seems the distance between Enterprise-Management and IT is growing.
Top Managers come very often from the „classical“ disciplines.CIO’s are not very often members of the Board.For many Enterprises are „Consolidation“, „Concentration on core
business“ and „Operational Excellence“ additional priorities of today. (But this is tightly coupled with Processmanagement, IT-Infrastructureand IT-Skills !!)
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CIOCIO
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Target/Goal of the Project
The Project „IT Governance“ is dealing with the role, the strategic positioning and the alignment of IT in/with the enterprise-strategy.Goal of the Project :
- a Backgroundanalysis - an estimation of Development Trends - the identification of Successfactors and Best Practice Samples - raise quality and influence of the CIO (IT-Department)
Creation of a representative Referencemodel for : - the establishment of an effective IT-Strategy - IT-Guidance - IT-Services tightly linked to the Enterprise- Strategy.
The results will be published in a Management Summary, Q4/04.CIO-Club, Munich 17-18.6.2004 Targetgroups are CEO’s, CIO’s
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The GSE Working Group
Insights on current IT Governance Trends were developed by experienced IT Managers, Business Managers and ConsultantsParticipating Companies
Industry and Public SectorIndustry and Public Sector Consulting CompaniesConsulting Companies
This broad range of diverse backgrounds and experiences results in a comprehensive view on IT governance with different perspectives and emphases
This broad range of diverse backgrounds and experiences results in a comprehensive view on IT governance with different perspectives and emphases
Amt der oberösterreichischenLandesregierung
IT-Sektion
Bundespensionsamt
IT AustriaIT Austria
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Inhalt
Content
IT Strategic Alignment (IT-Governance)
IT Value Delivery (ROI, IT-Marketing, Measurement, Tools)
IT Macroorganisation (Enterprise-Focus)
IT Microorganisation (IT-Focus)
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Strategic AlignmentStrategic Alignment
““IT is there to support people and processes, not the other IT is there to support people and processes, not the other way around.” way around.”
“The only way to justify IT-Investments is by understanding “The only way to justify IT-Investments is by understanding how to support the business and get customer satisfaction” how to support the business and get customer satisfaction”
GSE-IT Governance-Team1-17Okt03-DT-dt-VIE2.ppt
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1.1. Role of IT
IT evolving from Support Tool into Source of Competitive Advantage...
Source of differentiation
and advantage
Support core business
processes
Supportback office
Copyright © The Boston Consulting Group
1960's 1970's 1980's 1990's 2000's
Airlines Retailing Automotive
Health Care
Financial Services
2010's
IT evolution over timeIT evolution over time
ITroleIT
role
IT needs to be linked with business strategy to generate value for the businessIT needs to be linked with business strategy to generate value for the business
Copyright © The Boston Consulting Group
Development Exhausted Or New Future Push To Be Expected? (1)
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1.1. The Integrated Strategy
Increasing Strategic Relevance of IT in a Company demands for Integrated Business and IT Strategy Development “On demand Services”
Separated Business- and IT-
Strategies
Aligned Business- and IT-Strategy
Integrated Business and IT
Strategy
Business- strategy
IT-Strategy
Business- strategy
IT-Strategy
Integrated Strategy
Source: IBM Business Consulting Services
Integrated strategy development requires joint planning and controlling boards and processesIntegrated strategy development requires joint planning and controlling boards and processes
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1.1. IT Stakeholder Interaction
IT Governance manages the Interaction of all involved with IT
External IT service providers
External IT service providers
Internal IT service providers(IT organization,
shared services center)
Internal IT service providers(IT organization,
shared services center)
Transparency needed: roles, influence and mandate of each involved party Transparency needed: roles, influence and mandate of each involved party
Board of directorsBoard of directors
Central functions (Corporate strategy,
Accounting, Controlling, HR ...)
Central functions (Corporate strategy,
Accounting, Controlling, HR ...)
Business units, subsidiaries,
affiliated companies
Business units, subsidiaries,
affiliated companies
Employees,workers' council
Employees,workers' council CooperationCooperation Regulatory authorities(1)Regulatory authorities(1)
(1) E. g. in Energy/utilities, health care, telecommunications, financial services (2) Source: BCG; GSE Arbeitskreis
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1.1. IT Governance Circle
… by addressing seven Core Questions
IT Governance
"Which skills should be developed and kept internal and which activities should be outsourced?"
"Which skills should be developed and kept internal and which activities should be outsourced?"
"How should the IT service portfolio be managed and controlled from a corporate perspective?"
"How should the IT service portfolio be managed and controlled from a corporate perspective?"
"How should BUILD, TRANSFORM, and RUN be managed? How should the development process look like? What are appropriate standards for delivery(2) (SLAs, availability ...)?
"How should BUILD, TRANSFORM, and RUN be managed? How should the development process look like? What are appropriate standards for delivery(2) (SLAs, availability ...)?
"How are corporate-wide architecture standards developed and implemented for the entire organization?"
"How are corporate-wide architecture standards developed and implemented for the entire organization?"
How is IT managed?
"How should the IT organization be structured to account for local and global needs?"
"How should the IT organization be structured to account for local and global needs?"
"How well are the overall business strategy and IT strategy aligned?""How well are the overall business strategy and IT strategy aligned?"
What is thepurpose of IT for
the company?
Overall: "How much value does IT contribute to the
organization?"
Overall: "How much value does IT contribute to the
organization?"
Businessand IT
strategyalignment
IT architecture
IT planning and
controlling
IT leader-ship and
organization Skills and
sourcingIT develop-ment anddelivery
(1) This includes the function, application, information and technology architecture (2) E. g. SLAs, availability ...Source: BCG methodology, BCG Navigator Copyright © The Boston Consulting Group
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1.2. Our Definition of IT Governance
Our Definition of IT Governance emphasizes the close Link of IT to the Organization as a whole ...... but also acknowledges the Limits of IT Governance (!!)
(1) Vorstand Source: GSE Arbeitskreis "IT Governance"
IT governance is an integral part of corporate governance and analogously combines leadership, organizational structures, and processes that ensure that IT sustains and extends the organization’s strategies and objectives
IT governance provides guidelines, establishes criteria and standards for decision making, monitoring, measuring, and improving the performance of IT
IT governance is the responsibility of the executive board and the executive management (incl. IT) and supports the interaction of all the organization's parties involved with IT
IT governance is an integral part of corporate governance and analogously combines leadership, organizational structures, and processes that ensure that IT sustains and extends the organization’s strategies and objectives
IT governance provides guidelines, establishes criteria and standards for decision making, monitoring, measuring, and improving the performance of IT
IT governance is the responsibility of the executive board and the executive management (incl. IT) and supports the interaction of all the organization's parties involved with IT
What?What?
How?How?
Who?Who?
Though guided by it, daily operations or operative project management, are not core part of IT governance nor can IT governance substitute for a sound business strategy
Though guided by it, daily operations or operative project management, are not core part of IT governance nor can IT governance substitute for a sound business strategy
What not?What not?
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1.3. Frameworks' Overview
Each framework can be deployed in different situations accordinglyEach framework can be deployed in different situations accordingly
Several IT Governance Frameworks with different Focus
ITIL
Business/IT alignmentIT focus
Focus on operations
Focus on strategy
BCG
GartnerGiga Group
COBITISO
17799
ITIL
CompanyindividualDe factostandard
IT process performance controls
and metrics
IT process performance controls
and metrics
IT security managementIT security
management
IT services managementIT services
management
Structure of global IT
organizations
Structure of global IT
organizations
Note: A "framework" is a comprehensive concept describing options, methods, and tools to implement IT governance. If a framework is chosen and adapted to fit a specific companies needs, we speak of a "model"
Source: GSE Arbeitskreis "IT Governance"
KPMG
IBM
IT decision structures and
processes
IT decision structures and
processes
Business and IT strategy integrated
Business and IT strategy integrated
Business and IT strategy alignment
Business and IT strategy alignment
Implementation of IT governance using CobiT, ITIL
Implementation of IT governance using CobiT, ITIL
Content
Primary objective
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1.4. Which model?
The “right" IT Governance Model depends onthe overall Business Context
Source: BCG methodology
"How diversified is thecompany?"
Homogeneous business requirements orHeterogeneous businessmodels of the different BUs
Which industry is the company in?ProductionServicePublic Sector
Size of the company
"How diversified is thecompany?"
Homogeneous business requirements orHeterogeneous businessmodels of the different BUs
Which industry is the company in?ProductionServicePublic Sector
Size of the company
"What does the overall business structure look like?"
Financial holding with independent BUs orIntegrated and tightly coupled business units
"What does the overall business structure look like?"
Financial holding with independent BUs orIntegrated and tightly coupled business units
"What are major technological trends and how can they be utilized in the company?"
Strategic differentiator or Efficiency increase
Level of commonality across different architectural layers
"What are major technological trends and how can they be utilized in the company?"
Strategic differentiator or Efficiency increase
Level of commonality across different architectural layers
Technology trendsTechnology trendsBusiness diversityBusiness diversity
Business management modelBusiness management model
"What are the driving forces for the company"
Economic environmentCompetitive environmentCustomersCompany performance
"What are the driving forces for the company"
Economic environmentCompetitive environmentCustomersCompany performance
Business imperativeBusiness imperative
IT Governance Model:=
Company-specific adaptationof (a) selected framework(s)
IT Governance Model:=
Company-specific adaptationof (a) selected framework(s)
The chosen governance model may change with changing contextual factorsThe chosen governance model may change with changing contextual factors
Copyright © The Boston Consulting Group
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Always remember : What suits one customer might not suit
the next
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IT Value Delivery
"Instead of valuing something by its cost, figure out how much it's worth."
GSE-IT Governance-Team1-17Okt03-DT-dt-VIE2.ppt
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2.1. IT Benefit
Source: Wigand
Benefit from IT is derived exclusively via business processes it supports or enables.
ITIT Enterprise ValueEnterprise Valuex
• enables the process in the first place• increases effectiveness of the process• increases efficiency of the process• reduces risk of the process (e.g. through higher flexibility)• increases competitiveness of the enterprise as a whole• increases efficiency of the enterprise• reduces risk of the enterprise
Business Processes
IT B
enefit
Strategic Value Drivers
• market potential• customer value• productivity of resources• resource prices
Process Benefit
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2.1. IT Benefit
Infrastructure Processes
Types of benefit
ITIT Enterprise Value
Strategic Value Drivers
• market potential• customer value• productivity of resources• resource prices
Geschäfts-prozesse
Geschäfts-prozesseBusiness
Processes
BP-BENEFIT1111
2222
3333
INFRASTRUCTURE BENEFIT
1 = Business Process Benefit (increased effectiveness and efficiency, lower risk of business process)
2 = Infrastructure Benefit (higher flexibility of the company as a whole, lower total cost, lower marginal cost for Business Unit IT)
3 = Indirect Benefit (Benefit = opportunity costs; „must-do-projects“ for legal, technological, or competitive reasons)
Source: IBM Global Services
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2.1. IT Value-Added
What elements determine the value added to the enterprise?
Source: IBM Global Services
COSTCOST of IT
COSTCOST of IT
IT-IT-VALUE-VALUE-ADDED ADDED
IT-IT-VALUE-VALUE-ADDED ADDED
BENEFITBENEFIT from IT
BENEFITBENEFIT from IT
++
RISKRISK from IT
RISKRISK from IT
--
CAPITALCAPITALinvested in IT
CAPITALCAPITALinvested in IT
----
--
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2.1. Controlling IT-Value-Added
How do you CONTROL IT-Value added?
Source: IBM Global Services
Hint: Managing IT just as COST prevents lasting improvement of IT VALUE added.
COSTCOST
BENEFIT
RISK
CAPITAL ITVA
+
-
-
--
COST COST
EFFICIENCYEFFICIENCY
RISK
CAPITAL ITVA
++
-
-
--
COST COST
BENEFIT BENEFIT
PROFITABILITY (ROI)PROFITABILITY (ROI)
RISK
CAPITAL CAPITAL ITVA++
-
----
COST COST
BENEFIT BENEFIT
VALUE-ADDEDVALUE-ADDED
BENEFIT BENEFIT
COST COST
RISK RISK
CAPITAL CAPITAL ITVA ITVA
++
--
--
--
Maturity of IT
controlling
Maturity of IT
controlling
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2.1.Total Cost of Ownership
Lasting IT cost management requires a holistic view of the IT life cycle (Total Cost of Ownership = TCO).
Production CostsProduction Costs
Management CostsManagement Costs(for Internal Organization)(for Internal Organization)
Management CostsManagement Costs(for External Partners)(for External Partners)
Costs of Costs of
RiskRisk
• Sourcing Risk• Utilization Risk• Performance Risk• Cost Structure Risk
• Search and Initiation • Bargaining and Contracting• Policing/Auditing• Enforcement
• Coordination CostsOrganizational Structure
People & Systems-Management
IT Systems
• Motivation CostsPerformance Appraisal
Cost of Conflicts
Cost of Wrong Decisions
• Hardware• Software• External Services• Property• „Productive“ Personnel• Cost of Capital
To
tal L
ife
Cyc
le C
ost
Source: IBM Global Services
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2.1. Total Cost of Ownership
Total IT costs are higher than the IT budget!
Production CostsProduction Costs
Management CostsManagement Costs(for Internal Organization)(for Internal Organization)
Management CostsManagement Costs(for External Partners)(for External Partners)
Costs of Costs of
RiskRisk
• Sourcing Risk• Utilization Risk• Performance Risk• Cost Structure Risk
• Search and Initiation • Bargaining and Contracting• Policing/Auditing• Enforcement
• Coordination CostsOrganizational Structure
People & Systems-Management
IT Systems
• Motivation CostsPerformance Appraisal
Cost of Conflicts
Cost of Wrong Decisions
• Hardware• Software• External Services• Property• „Productive“ Personnel• Cost of Capital
Source: IBM Global Services
IT costs outside IT costs outside IT budgetIT budget
IT costs IT costs covered by IT covered by IT
budgetbudget
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2.1. Types of IT Risk
IT Risk must be viewed from two sides:strategic and operational
STRATEGIC STRATEGIC
IT RiskIT Risk= IT negatively affects the = IT negatively affects the Long-term ViabilityLong-term Viability
of the enterpriseof the enterprise
STRATEGIC STRATEGIC
IT RiskIT Risk= IT negatively affects the = IT negatively affects the Long-term ViabilityLong-term Viability
of the enterpriseof the enterprise
„Do we have the right IT?“
„Is our IT secure and available?“
OPERATIONAL OPERATIONAL
IT RiskIT Risk= IT negatively affects the = IT negatively affects the
Operational PerformanceOperational Performance of the enterpriseof the enterprise
OPERATIONAL OPERATIONAL
IT RiskIT Risk= IT negatively affects the = IT negatively affects the
Operational PerformanceOperational Performance of the enterpriseof the enterprise
Top ManagementTop Management
Business Management
IT Management
Top ManagementTop Management
Business Management
IT Management
Top Management
Business Management
IT ManagementIT Management
Top Management
Business Management
IT ManagementIT Management
Responsibility
Source: IBM Global Services
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2.1. IT Capital Employed and ROI
Capital invested in IT and the „profit“ derived from IT usage determine the Return on Investment of IT
IT PROFITABILITY IT PROFITABILITY (ROI)(ROI)
(Return on Invested IT Capital)(Return on Invested IT Capital)
IT PROFITABILITY IT PROFITABILITY (ROI)(ROI)
(Return on Invested IT Capital)(Return on Invested IT Capital)
IT „PROFIT“IT „PROFIT“IT „PROFIT“IT „PROFIT“
CAPITAL CAPITAL invested in ITinvested in IT
CAPITAL CAPITAL invested in ITinvested in IT
:
monetary monetary
IT BENEFITIT BENEFITmonetary monetary
IT BENEFITIT BENEFIT
IT COSTIT COSTIT COSTIT COST
-
externalexternalexternalexternal
internalinternalinternalinternal
LabourLabourLabourLabour
MaterialMaterialMaterialMaterial
CapitalCapitalCapitalCapital
HardwareHardwareHardwareHardware
SoftwareSoftwareSoftwareSoftware
Intellectual Capital
Source: IBM Global Services
Hint: Reduce invested capital through „usage contracts“ - e.g. „on demand“
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2.1. IT Value Drivers
IT Value Drivers (Overview)
VALUE ELEMENTSVALUE ELEMENTS Strategic IT VALUE DRIVERSStrategic IT VALUE DRIVERS
IT BENEFITIT BENEFIT
Strategic Alignment
Functionality
Service Level
Degree of Innovation
IT COSTIT COST
Specificity
Complexity
Economies of Scale
Economies of Scope
Economies of Learning
Risk Taking
Flexibility
IT RISKIT RISK
Business-/IT-Alignment
Cost Structure
Availability
Reliability (Integrity)
CAPITALCAPITAL invested in IT IT Sourcing Mix
Source: IBM Global Services
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2.2. Levers of IT Value Management
IT Value-Added can be managed using 3 Levers
EffectivenessEffectivenessStrategic Strategic AlignmentAlignment EfficiencyEfficiency
„Requesting the right IT services“
„Delivering the right IT services“
„Delivering IT services right.“
Source: IBM Global Services
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2.2. Three Levels of IT Optimization
The right sequence of optimization is crucial to avoiding „doing the wrong things more efficiently“!
Source: IBM Global Services
Type of ServiceType of ServiceRequirements
not metUnknown IT
Potential
User RequirementsUser Requirements
Specific Customized Standardized
StrategicStrategic OptimizationOptimization
StrategicStrategic OptimizationOptimization 1111
Business StrategyBusiness Strategy
OptimizingOptimizing EffectivenessEffectiveness
OptimizingOptimizing EffectivenessEffectiveness 2222
OptimizingOptimizing EfficiencyEfficiency
OptimizingOptimizing EfficiencyEfficiency 3333
Current IT ServicesCurrent IT Services
IT SourcingIT SourcingRequirements
not metUnknown IT
Potential
Self Sourcing Strategic Partnerships Market
Non-strategic IT Services
Unknown IT Potential
Requirements not met
Unknown IT Potential
IT Services not required
IT Services not required
„Delivering the right IT services“
„Delivering IT services right“
„Requesting the right IT services“
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2.2. Maximizing ITVA
A GOOD IT-Strategy :• states a basic belief or attitude towards using IT in the organization – in one or two
clear sentences• is a guideline for action – but also allows valid arguments against it• is in non-technical language to be understood by non-IT people and IT people alike• influences corporate-wide and/or business unit-wide behaviour• has lasting effects• has objective reasons
A BAD IT-Strategy :• is a statement no one can object to („All new applications must have simple
handling.“)• is too general („Total cost of IT must come down.“)• has no logical reasons = „Because I tell you“-principles• is too technically detailed and therefore quickly outdated
Source: IBM Global Services
What are Strategic Guiding Principles for IT?
Implement strategic guiding principles approved and committed to by all IT stakeholders – before optimizing effectiveness and efficiency!
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2.2. IT Portfolio Alignment
The overall optimum for the organization is achieved by aligning user requirements with the strategic guiding principles.
Functional & Service Level Requirements of IT usersFunctional & Service Level Requirements of IT users
Optimum Functionality and Service LevelOptimum Functionality and Service LevelOptimum Functionality and Service LevelOptimum Functionality and Service Level
Additional Requirementsfrom Strategic Guiding Principles
(e.g. Security or Integration Requirements)
Requirements Cut-offfrom Strategic Guiding Principles(e.g. 80/20 Rule of Functionality)
Source: IBM Global Services
Communicate and explain the rules for additional requirements and cut-offs!
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2.3. IT Benchmarking
Benchmarking – used correctly – can deliver important information for IT controlling
BENCHMARKINGBENCHMARKINGBENCHMARKINGBENCHMARKING
= structured = structured comparisoncomparison for better performance for better performance= structured = structured comparisoncomparison for better performance for better performance
Own PastOwn PastOwn PastOwn Past
periodic comparison of relevant periodic comparison of relevant measures of IT performancemeasures of IT performance
periodic comparison of relevant periodic comparison of relevant measures of IT performancemeasures of IT performance
StandardsStandardsStandardsStandards
standardized standardized „„Best Practices“ – Best Practices“ –
e.g. ITIL, ITPM, COBITe.g. ITIL, ITPM, COBIT
standardized standardized „„Best Practices“ – Best Practices“ –
e.g. ITIL, ITPM, COBITe.g. ITIL, ITPM, COBIT
Other CompaniesOther CompaniesOther CompaniesOther Companies
comparable key metrics comparable key metrics (Problem: How to get (Problem: How to get
relevant and comparable relevant and comparable figures from others?)figures from others?)
comparable key metrics comparable key metrics (Problem: How to get (Problem: How to get
relevant and comparable relevant and comparable figures from others?)figures from others?)
with
Hint: Do not neglect „internal“ benchmarking in favour of external Benchmarking!Source: IBM Global Services
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IT MaIT Maccroorganisationroorganisation
GSE-IT Governance-Team1-17Okt03-DT-dt-VIE2.ppt
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3.2. Sourcing Strategy
As part of their externalization strategies, worldwide and European organizations are using, and willcontinue to use, not only outsourcing but also different intermediate models !
Choice of Optimal Sourcing Model … … Depends on a Sourcing StrategyThe Sourcing Strategies Space and the Sourcing Models:
Make or Buy
CompetitionLevel
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3.1. Principles of IT Control
Principles of IT Control
StrategicIT-Management
synergies
Enterprise-wideIT-Strategy, Architecture
and Infrastructure
federal
Low customer orientation
Bad coverage of BU-specificrequirements
Low transparency and possibility of control
of central IT-costs by BU
Scale effects („Economies of Scale“)
Critical mass at skills
Enterprisestandards
central
Systems partially in responsibility of
BUs
Good coverage of BU-specific demands
priority of demands user-controlled
Reinventing the wheel
Excessive total costs
Different standards und competences
No synergies and integration advantages
local
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3.1. Organisation and IT Strategy
Organisation and IT Strategy
An IT-Strategy is...
...an integral part of the corporate strategy
…the result of a continuous planning
process
...a navigation path for the future direction
of informatics
...a guideline for investment decisions
…the base for the implementation
program
...controllable and adaptable
An IT-Strategy is...
...an integral part of the corporate strategy
…the result of a continuous planning
process
...a navigation path for the future direction
of informatics
...a guideline for investment decisions
…the base for the implementation
program
...controllable and adaptable
corporate strategy
IT-strategy
IT-activitiesIT-activities
IT-processesIT-processes
roles responsibilities
roles responsibilities
sourcingsourcing
applicationsapplications
architecturearchitecture
......
targ
ets
targ
ets
de
cisi
on
crit
eria
de
cisi
on
crit
eria
gu
ide
line
sg
uid
elin
es
Source: IBM Business Consulting Services © Copyright IBM Corporation 2003
The organisation ensures that the IT-strategy is not an isolated planning and controlling instrument, but is seen in a global context.
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3.1. Governing Bodies
High Level Governing Bodies Steer and Monitor Implementation and Performance of IT Governance
BU IT groups only(no corporate IT)
Corporate IT only(no BU IT groups)
Corporate IT and BU IT
groups
Top-down AutonomousBalanced
High (leaders)
Low (technical experts)
Seniority of members IT Working Groups:
CIO and senior IT manager from each BU
Governance Committees:5–7 most senior people (usually CEO, CFO, BU presidents, CIO)
IT Councils:CIO and 5–7 well respected BU managers
IT Advisory Boards: 3–5 IT specialistswith 1–2 IT Council members
Provides strategic oversight to corporationIT is only one dimension of their scope
Aligns IT to business strategy
Provides IT coordination across BU’sEstablishes IT policies and enforce standardsPrioritizes IT projects
Chartered by IT CouncilDevelops policy recommendations for IT CouncilFocused on a specific IT topic
Provides BU perspective to CIODebates IT strategyInput on IT project prioritization
Roles/responsibilities
Degree Of Centralization Drives Which Bodies are Deployed for Which Tasks !
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IT-MiIT-Microorganisationcroorganisation
GSE-IT Governance-Team1-17Okt03-DT-dt-VIE2.ppt
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4.1. Gestaltungskriterien IT-Organisation
Different solutions for the organisation of the IT-Department
Function oriented
• E.g. Oracle-Group, Java-Group, SAP-Group
Customer oriented• Aligning the IT-Organisation with
organisational Structures on Customerside (divisional Structure)
• E.g. Boards, Divisions, Departments, ..
IT-Process oriented
• Organisation aligned with IT-Processes
• E.g. Project Office for Project-management, Applicationssupport, Relationship Management, Help Desk, Operation, Engineering
Businessprocess oriented• Aligning the IT-Organisation with
Customer Businessprocesses• E.g. Finance, HR, …
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Different solutions for different situations ……
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4.1. Zentralisierung vs. Dezentralisierung
Centralisation versus Decentralisation
Centralisation for cost reasons. Enabled by Technologie (Broadband, Internet, Mobile Computing)
Decentralisation enables Focus on specific Topics and supports a closer relationship with the customer.
Operation with the same Know-How-Basis in decentral Structures results in lower efficiency and professionality and will result inhigher costsCalculation of the relevant pro‘s and con‘s, lead in our days mostly to centralisation of – at least – mission critical functions.
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4.3. Innovator - Adopter - Follower
Technology Adoption
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Forecasting and optimization are complex
Come on! It can‘t go
wrong every time...
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4.2. Motivationsfaktoren
Climate, Culture and Teamspirit are Keyfactors to influence the motivation of your staff
Performanceoriented
Salary
Quality of
Leaders
Continouseducation
Flexibilityof the
workingscenario
Workingenvironment
Motivation
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4.2. Rollenbeschreibungen
Skill demands has to be linked closely with the future function in the
IT-Organisation
The needed skills has to be defined according to the jobprofile :Should be the base for Recruiting
and for further HR-Processes (education)
Beside technical skills so called „Soft Skills“ has an increasing importance.
Samples are :Teamcompetence
Stresshandling abilities
Socialcompetence
Assessment Centers are a good instrument, to rate especially these
„Soft Skills“.
Clearly formulated jobdescriptions helps to select people with the right mix of Hard- and Softskills
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4.2. Sourcing-Kriterien
Time, Competence and Know-how-Transfer are the main criteria for all Sourcing Evaluations
Buy Services Employ staff
Position = Corecompetence
Specific BusinessKnow-how
Spezific Know-how will be built up and further used.
Limited ressource demand
Technical experts
Cost evaluation
Knowledgetransfer
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4.4. Gelebtes Wissensmanagement
Coreprocesses of Knowledgemanagement has to be implemented in the IT-Department
Feedback W issens- zie le
W issens- bewertung
W issens- bewahrung
W issens- erw erb
W issens- nutzung
W issens- entwicklung
W issens- (ver)teilung
W issens- identifikation Identification
Know-How
Collection
Development Distribution
Use
Store
Valueestimate
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4.4. Reuse-Kultur
Provision of Know-How is only successful, if people are willing to use it
Not Invented Here (or „NIH-Factor“) refers to the problem when people in companies continue to ignore existing solutions to problems because it was not created in-house. It is endemic to the computer industry.
(See also: www.wikipedia.org)
Inventing the wheel again and again and again ……
Indicators for a good Reuse-Culture are :
• Decreasing percentage of selfwritten applications• Selfdevelopments based on Standards und Objects• Check for available/usable solutions is part of the Softwaredevelopment-process
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It‘s a cultural change - don‘t set too ambitious deadlines !
Deadline is deadline !
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How will „On Demand“ change the classicalIT-Governance model ?
How will „On Demand“How will „On Demand“change thechange the
classical IT-Governance model ?classical IT-Governance model ?
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Forget how it‘s called ……
On Demand Business
Adaptive Enterprise
Agile Enterprise
Realtime Enterprise
Zero-Latency Enterprise
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Three important Steps
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Four keyquestions
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Not every presentation is successful ........ ……. I hope you enjoyed this one
