The Innovation Value Institute - IRDG (Industry Research ... · 8 IVI-External briefing pack.ppt 15 Engaged Scholarship – Van de Ven IVI-External briefing pack.ppt 16 The Engaged

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The Innovation Value Institute

Sept 2012

Brian Donnellan, Professor, Information System Innovation NUIM,

Academic Director, IVI

2IVI-External briefing pack.ppt Copyright © 2011 Innovation Value Institute

Introduction

Who are we?

• The innovation Value Institute – a consortium of leading players interested in improving the business value that IT delivers

What are we developing?

• Developing an industry standard for managing IT for business value, the IT capability Maturity Framework (IT-CMF)

• The framework covers critical processes to run an IT organisations, built on foundational learning in IT transformation at Intel, refined by academic and industry input

• Includes maturity curves, assessment tools, practices, outcomes and metrics to increase maturity level, case studies and illustrations of best practices

Why should this interest Industry Executives?

• Improve practices within your organisation and deliver more business value

• Contribute to industry thought-leadership, share experiences with other leading companies

• Develop staff and expertise

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IT value management is a key topic for CIOs

... with a tangible opportunity

Budget flexibility coupled with strategic IT alignment leads to 50% greater IT payoffs2

Improving management practices alongside IT investment drives 20% higher IT yields3

Growing evidence of an important gap in the IT industry

Important issue for CIOs ...

71

62

52

45

40

0 20 40 60 80 100

CEO/CFO demanding better waysto demonstrate value

Find it difficult to calculate ROI

Executives "skeptical" of ROI from IT

Metrics don't adequately capturebusiness value

Do not measure business valuefrom IT investments

Source: Industry surveys1. CIO Insight Survey 2. CRTO research 3. LSE, IVI Survey

% of respondents1


CIOs lack a framework for describing business contribution

Financial value delivered

Cash flow ROI

ROCE ROE NPV

EVA

Operational value of IT

Customer

Employee Partner

Supplier

Societal

Managerial

Business valueIT process frameworks

• How to deploy service oriented architecture?• How to implement best in class security?• How to manage a data center?• How to deploy virtualization?

• What is the average return from your IT investments?

• What is the cumulative return from your IT investments?

?

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IVI is focused on realizing more business value from IT

"IVI's vision is to transform organizations to consistently realise IT value from IT investment and practices...

... through researching, developing and disseminating an empirically proven and industry validated IT best practice model.

IVI's mission is to develop a unifying approach for managing the delivery (or realisation) of Information Technology investments ...

... and to validate that these approaches have a broad applicability across different industriesand contexts."

-Innovation Value Institute

Provide new perspectives on value-based IT management

Develop an end-to-end view of IT processes and capabilities

Develop a roadmap to help CIOs select strategies andimprove capabilities

Collect best practice case studies across industries,

understand key value drivers

Consortium of leading industry, consulting, not-for-profit and academic organisations


IVI formed to create integrating framework – creating new approaches, leveraging existing standards and addressing "value" gap

IVI membership includes leading enterprises, consulting,not-for-profit, government and academic organisations.

www.ivi.ie

Steering patrons

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Gothenburg T.U.Univ GlasgowUniv Limerick

Dublin City Univ

GMIT

Univ of New South Wales

Bentley UnivBoston

UnivGeorgia

Univ of South Florida

Bonn T.U.

Babson College

Univ. Vienna

NUI MaynoothGeorgia State

Univ

NUI Galway (DERI)

Univ. of Leipzig


IVI Training and Education

Name Purpose

IT-CMF Passport

To provide validation that the candidate has gained knowledge of the terminology, the basic concepts, and the core principles of the IT-CMF.

IT-CMF Core

To provide validation that in addition to knowledge and comprehension, the candidate is able to apply knowledge of IT-CMF.

IT-CMF Advanced

Available 2012

IT-CMF Expert

Available 2012

Name Purpose

MSc. In IT Mgmt –with NUIM Business School

To provide Academic accreditation for IT Management academic course.

Professional Training Academic Education

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Design Pattern – Generically Reusable Solution

High-level impact of maturity is detailed by each of the 33 individual critical processes

Value Centre5

Investment Centre4

Sustainable Economic Model

Corporate Core Competency

Optimised Value

Expanded Funding Options

Strategic Business Partner

Options and Portfolio

Management

3 Service CentreSystemic Cost

ReductionTechnology

ExpertROI & Business

Case

2 Cost CentrePredictable

PerformanceTechnology

SupplierTCO

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Managing IT like a business

Managing theIT budget

Managing IT for business value

Managing theIT capability

BeginningInitial

Basic

Intermediate

Advanced

Optimising


IT-CMF details 4 Macro Processes to manage IT organizations for business value

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Standardised materials provided for value-centric assessments of each critical process

Standard set of materials provided for each of the 33 critical processes

Value of maturity$

Evidence and anecdotes of value delivered to companies who increased maturity

Business value

perspective

Best practices and case studies of how companies improved maturity

Practices

Level-by-level assessment questions to determine a company’s strengths and weaknesses

AssessmentTool

Five-level maturity curve framework and supporting evidence

Maturity Curve1

2

3

4

5

Collection of whitepapers, academic journals, books, and consortium-submitted content

ReferenceMaterials

Proposed industry standard definition for a set of capabilities

Process Definition“ ”

Assessments can be run efficiently and with low overhead through use of standardized tools and documents


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Assessment: An objective way of assessing maturity of IT management practices ... Identifying gaps and opportunities for investment and growth

Managing IT Like a BusinessDelivering

IT Capability

Realizing &Assessing

Value

Managing theIT Budget

1

2

3

4

5 Industry average

Current maturity

level

LG BM BP SP DS CP RM AA OP SO RM IM PQ VA FF BM PP BO EA IMPA IC RA RD SD SPUM UA PM SM VC CA TC BR PM IP

Could be applied across all IT functions or in a selected set of areas

Gaps reflect opportunities for

investment, growth

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Very positive reactions to the work so farFrom contributing organisations

IVI is working on topics of great importance to our business, where innovation in IT is a way of life, and managing value is critical to our success. ... I see materials here that I can bring back to my organisation immediately, today.

The industry is looking to the IVI industry consortium to lead the way in researching the challenges facing IT today. I have great faith in the value of this approach to the field of IS management.

This consortium is a great way to see how other industries have solved the problems we’re tackling. I think there is tremendous value in participating, and contributing to IVI.

I have no doubt of the value of IVI... when I look at the output we have produced. The return has been incredible compared to the investment I have made.

Valuable content

Industrythought

leadership

Learning &development

Return on investment


IT-CMF offers concise management roadmapto optimize business value from IT investment

IT Capability Maturity Framework (IT-CMF) is based on five maturity levels to assess and optimize value of IT

• Value-centric IT management• State-of-the-art practices and

outcomes

• Benefits from IT investments quantified and communicated

• Practices and outcomes well above industry average

• IT/business interaction forma-lized for all critical processes

• Transparent investment decisions

• Delivering basic IT services• Some IT/business interactions

formalized

• No formal processes• Ad-hoc management of IT

Ma

turity

Low

High

Initial

Basic

Intermediate

Advanced

Optimising

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15IVI-External briefing pack.ppt

Engaged Scholarship – Van de Ven

16IVI-External briefing pack.ppt

The Engaged Scholarship Model

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European Design Science Workshop

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For further information, please contact

http://ivi.nuim.ie/

[email protected]

+353 1 708 6931

Documents

The Innovation Value Institute - IRDG (Industry Research ... · 8 IVI-External briefing pack.ppt 15 Engaged Scholarship – Van de Ven IVI-External briefing pack.ppt 16 The Engaged