Getting IT right Business IT Alignment
A.J.Gilbert Silvius Lector
Business, ICT en Innovatie
Gilbert Silvius Koninklijke Militaire Academie Vlaardingen 2 kinderen
Fender Precision Bass
1963
Koninklijke Landmacht Erasmus Universiteit
MBA
Getronics
Synergie Consultancy
.
Projectmanagement Business ICT Alignment 2027 Katholieke Universiteit Leuven Ede PhD . Bedrijfseconomie . Utrechtse Ondernemers Academie Master of Informatics Aetsveld Lector Business, ICT en Innovatie
Afghanistan
Master of Project Management
Hogeschool Utrecht
Kenniscentrum Innovatie en Business
Missie
Wij inspireren en innoveren het onderwijs en de beroepspraktijk
Getting IT right Business IT Alignment
A.J.Gilbert Silvius Lector
Business, ICT en Innovatie
In what business is this company?
In what business is this company?
In what business is this company?
ICT als bron van innovatie
Transformatie
hoog
Impact op Business
Informatisering Automatisering
laag Jaren ’60
’70
’80
’90
’00
‘10
BIA strategies
high
Perception of external impact of IT low
Business
Innovative
•IT is business •All technologies •Service orientation
•IT as competitive edge •Experimental technologies •Innovation orientation
Conservative
Essential
•IT saves costs •Proven technology •Efficiency orientation
•IT essential in realising strategy •New technologies •Effectiveness orientation
low
high
Perception of internal impact of IT
Business IT Alignment
Wat is het?
Business IT Alignment
Business
IT Alignment
Klare taal?
Business IT Alignment
IT Governance
IT Planning
Information Planning
IT Service Management
IT Strategy
Alignment?
Alignment?
‘fit’ (Venkatraman, 1989) ‘harmony’ (Luftman et al. 1993) ‘integration’ (Weill and Broadbent 1998) ‘linkage’ (Henderson and Venkatraman 1993) ‘bridge’ (Ciborra 1997) ‘fusion’ (Smaczny 2001)
Vragen
Alignment:
Proces of Toestand?
Weill and Broadbent (1998): ‘Alignment is a journey, not an event’
Vragen
Alignment:
Proces of Toestand?
Eenrichtingverkeer of wederzijdse beïnvloeding?
Wieringa et al. (2005):
‘the problem of matching IT services with the requirements of the business’
Poels (2006):
Alignment implies a ‘mutual influence’ between business and IT.
Twee benaderingen
BIA as the degree to which the business mission, objectives and plans are supported by the IT mission, objectives and plans
Twee benaderingen
BIA as the degree to which the business mission, objectives and plans are supported by the IT mission, objectives and plans
A more holistic view of BIA (Henderson and Venkatraman)
Het Strategic Alignment Framework Vier afstemmingsperspectieven: 1. Strategierealisatie 2. Technologie potentieel 3. Concurrentiepotentieel 4. Service niveau
Business IT Alignment
Business IT Alignment is the degree to which the IT applications, infrastructure and organization, enable and shape the business strategy and processes, as well as the process to realize this.
25
Luftman (2000) Stimulansen voor BITA Top management sponsorship voor IT IT betrokken bij strategie ontwikkeling IT heeft goed begrip van de business Business-IT partnership Goede prioriteitstelling van IT projecten IT toont leiderschap
Obstakels voor BITA Geen sponsorship van het topmanagement Relatie tussen business en IT afstandelijk IT ontbeert begrip van de business IT realiseert doelstellingen niet Zwakke prioriteitstelling IT projecten IT management ontbeert leiderschap
Jerry Luftman Business & IT Alignment Maturity
Maturity of the Business IT Alignment process Optimized Process Improved/Managed Process
Business Established/Focused Strategy / Organization
IT
ProcessStrategy / Organization
Committed Process Initial / Ad-Hoc Process Alignment gap
Business IT Alignment Maturity
Variables Communications Understanding of Business by IT Understanding of IT by Business Inter-/Intra-organizational learning Protocol rigidity Knowledge sharing Liaison(s) effectiveness
Value measurement IT Metrics Business Metrics Balanced Metrics Service Level Agreements Benchmarking Formal assessments/reviews Continuous Improvement
Governance Business Strategic Planning IT Strategic Planning Reporting/Organization Structure Budgetary Control IT Investment Management Steering Committee(s) Prioritization Process
Six IT Business alignment maturity criteria
Partnership Business Perception of IT Value Role of IT in Strategic Business Planning Shared Goals, Risk, Rewards/Penalties IT Program Management Relationship/Trust Style Business Sponsor/Champion
Scope & Architecture Traditional, Enabler/Driver, External Standards Articulation Architectural Integration: - Functional - Enterprise - Inter-enterprise Architectural Transparency, Flexibility
Skills Innovation, Entrepreneurship Locus of Power Management Style Change Readiness Career crossover Education, Cross-Training Social, Political, Trusting Environment
Business & IT Alignment Maturity
Variables Communications
Competency & Value Measurement
Skills
Scope & Architecture
Governance
Partnership
Luftman 2007
197 companies
Why is alignment still an issue?
The first reason is that the definition of alignment is frequently focused only on how IT is aligned with the business. Alignment must also address how the business is aligned with IT. Alignment must focus on how IT and the business are aligned with each other; IT can both enable and drive business change.
The second reason is that organizations have often looked for a silver bullet. Originally, some thought the right technology (e.g., infrastructure, applications) was the answer. While important, it is not enough. Likewise, improved communications between IT and the business help but are not enough. Similarly, establishing a partnership is not enough nor are balanced metrics that combine appropriate business and technical measurements. Clearly, mature alignment cannot be attained without effective and efficient execution and demonstration of value, but this alone is insufficient. Our research has found that all six of these components must be addressed to improve alignment.
The third reason IT-business alignment has been elusive is that there has not been an effective tool to gauge the maturity of IT-business alignment—a tool that can provide both a descriptive assessment and a prescriptive roadmap on how to improve.
Luftman 2007
Main observations
Industries vary in their alignment maturity
Alignment maturity is rising
Business executives score alignment higher than IT executives
Rankings among Level 2, 3, and 4 companies are remarkably consistent
ROC BIA maturity onderzoek
Ca. 25 ROC’s, in twee groepen
8 – 10 respondenten per ROC
September 2009 – Januari 2010 Februari 2010 – Juli 2010 ‘Business’ ICT Intermediair
Vragenlijst gebaseerd op Luftman assessment
Ist Soll
Overall Maturity
Communications 5,00 4,00 Skills
3,00
Competency & Value Measurements
2,00 1,00 0,00
Scope & Architecture
Governance
Partnership
Totaal
Huidig / Gewenst
Maturity
Maturity
Communications 5,00
Communications 5,00
4,00 Skills
4,00
3,00
Competency & Value Measurements
2,00
Skills
3,00 2,00
1,00
1,00
0,00
0,00
Scope & Architecture
Governance
Partnership
Totaal
Competency & Value Measurements
Scope & Architecture
Governance
Partnership
Totaal
Huidig / Gewenst Maturity
Maturity
Communications 5,00
Communications 5,00
4,00
4,00
3,00
Skills
Competency & Value Measurements
2,00
3,00
Skills
2,00
1,00
1,00
0,00
0,00
Scope & Architecture
Governance
Scope & Architecture
Governance
Partnership
Partnership
Totaal
Totaal
Spreiding
Spreiding
MAX
MAX Gem 33
MIN
Competency & Value Measurements
34
35
36 37 5
1
2
3
4
4
5
3
32 31
Gem 33
6 7 8
2
30
9
1
29b
0
29a
MIN
28 27
14 25
24
23
22 21
20
19 18
17
16
15
35
36 37 5
29a
12
28
3
4
5
6 7 8
2
30
11
2
3
31 29b
1
4
32
10
13
26
34
9
1
10
0
11 12
27
13
26
14 25
24
23
22 21
20
19 18
17
16
15
Communicatie Communicatie Het Begrijpen van de business door de IT 5 4
De doeltreffendheid van samenwerken
3
Het begrijpen van de IT door de business
2 1 0
kennisdeling
Evaluatie en van elkaar leren
De mate van standaard protocollen
Business
Intermediair
ICT
Communicatie Communicatie Het Begrijpen van de business door de IT 5 4
De doeltreffendheid van samenwerken
3
Het begrijpen van de IT door de business
2 1 0
kennisdeling
Evaluatie en van elkaar leren
De mate van standaard protocollen
Communicatie Het Begrijpen van de business door de IT
Business
Intermediair
5
ICT
4 3
De doeltreffendheid van samenwerken
Het begrijpen van de IT door de business
2 1 0
kennisdeling
Evaluatie en van elkaar leren
De mate van standaard protocollen
Business
Intermediair
ICT
Waardetransparantie Waarde metingen De perf ormance van de IT 5,00 4,00
Continue verbetering van prestatie indicatoren
De perf ormance van de Business
3,00 2,00 1,00 0,00
Achteraf evalueren van projecten
De onderliggende link tussen Business en IT
Waarde metingen Benchmarking
Service Level Agreements De perf ormance van de IT 5,00 4,00
Continue verbetering van prestatie indicatoren Business
Intermediair
De perf ormance van de Business
3,00
ICT
2,00 1,00 0,00
Achteraf evalueren van projecten
De onderliggende link tussen Business en IT
Benchmarking
Business
Service Level Agreements
Intermediair
ICT
Governance Governance Strategische business planning 5,00 4,00
Projectprioriteit
Strategische IT planning
3,00 2,00 1,00 0,00
Organisatie structuur en rapportage
Bestuurscomités
Governance Strategische business planning
IT investeringen
5,00
Budget beheer van IT
4,00
Projectprioriteit Business
Intermediair
Strategische IT planning
3,00
ICT
2,00 1,00 0,00
Organisatie structuur en rapportage
Bestuurscomités
IT investeringen
Business
Budget beheer van IT
Intermediair
ICT
Partnership Partnership Beeldvorming business over de waarde van IT 5,00 4,00 3,00 2,00
De rol van IT in strategische business planning
Allocatie van middelen 1,00 0,00
Partnership Relatie & vertrouwen tussen business - IT
Gedeelde doelen, risico's en beloningen
Beeldvorming business over de waarde van IT 5,00 4,00 3,00
Business
Intermediair
ICT
2,00
De rol van IT in strategische business planning
Allocatie van middelen 1,00 0,00
Relatie & vertrouwen tussen business - IT
Gedeelde doelen, risico's en beloningen
Business
Intermediair
ICT
Scope en Architectuur Scope & Architectuur Scope van IT 5,00 4,00 3,00 Transparantie en Flexibiliteit
Standaardisatie protocollen 2,00 1,00 0,00
Scope & Architectuur Architecturale integratie(bedrijfsniveau)
Scope van IT 5,00
Standaardisatie van IT processen
4,00 3,00 Transparantie en Flexibiliteit
Architecturale integratie(afdelingsniveau) Business
Intermediair
Standaardisatie protocollen 2,00
ICT
1,00 0,00
Architecturale integratie(bedrijfsniveau)
Standaardisatie van IT processen
Architecturale integratie(afdelingsniveau) Business
Intermediair
ICT
Skills Vaardigheden Innovatie & ondernemerschap 5,00 4,00 Sociaal & politiek betrouwbare werkomgeving
Machtsverdeling
3,00 2,00 1,00 0,00
Personeelstraining
Managementstijl
Vaardigheden
Carrière overstap
Innovatie & ondernemerschap 5,00
Veranderbereidheid
4,00 Sociaal & politiek betrouwbare werkomgeving Business
Intermediair
Machtsverdeling
3,00 2,00
ICT
1,00 0,00 Personeelstraining
Managementstijl
Carrière overstap
Business
Veranderbereidheid
Intermediair
ICT
Wat te doen? Communications Understanding of Business by IT Understanding of IT by Business Inter-/Intra-organizational learning Protocol rigidity Knowledge sharing Liaison(s) effectiveness
Verdiep je in de business
Creëer Wees stuurmogelijktransparant heden voor de business Value measurement IT Metrics Business Metrics Balanced Metrics Service Level Agreements Benchmarking Formal assessments/reviews Continuous Improvement
Governance Business Strategic Planning IT Strategic Planning Reporting/Organization Structure Budgetary Control IT Investment Management Steering Committee(s) Prioritization Process
Six IT Business alignment maturity criteria
Partnership Business Perception of IT Value Role of IT in Strategic Business Planning Shared Goals, Risk, Rewards/Penalties IT Program Management Relationship/Trust Style Business Sponsor/Champion
Creëer betrokkenheid
Scope & Architecture Traditional, Enabler/Driver, External Standards Articulation Architectural Integration: - Functional - Enterprise - Inter-enterprise Architectural Transparency, Flexibility
Skills Innovation, Entrepreneurship Locus of Power Management Style Change Readiness Career crossover Education, Cross-Training Social, Political, Trusting Environment
Creëer een Ontwikkel de effectieve kwaliteit van architectuur medewerkers
IT strategieën
high
Perception of external impact of IT low
Business
Innovative
•IT is business •All technologies •Service orientation
•IT as competitive edge •Experimental technologies •Innovation orientation
•IT saves costs •Proven technology •Efficiency orientation
•IT essential in realising strategy •New technologies •Effectiveness orientation
IT does matter! Conservative Essential
low
high
Perception of internal impact of IT
Strategie geeft Alignment
IT strategy
Innovative
Essential
Conservative Low
Alignment capability
High
The new IT professional
Competenties
Technical Competencies Technical knowledge Domain knowledge Tool knowledge Product knowledge Project knowledge ….
Behavourial Competencies Leadership Engagement & motivation Self-control Assertiveness Relaxation Openness Creativity Results orientation Efficiency Negotiation Values appreciation Ethics
Contextual Competencies Business (general) Business (specific) Marketing Systems, products & technology Personnel management Health, security, safety & environment Finance Legal
Vragen??
