Building a Technology Strategy with Data · Building a Technology Strategy with Data Geoff Nielson Director of Innovation & Product Development, Info-Tech Research Group ... Staff

Info-Tech Research Group 1Info-Tech Research Group 1

Building a Technology Strategy with Data

Geoff NielsonDirector of Innovation & Product Development, Info-Tech Research Group


The most innovative research firm in the industry

Member community of 34,000 sharing best practices since

1997


Start Making Key Strategic Decisions with Data

Every IT leader should follow a systematic & data-driven process to lead their IT department to success.

– Joel McLean, Founder and ChairmanInfo-Tech Research Group

Results are highly visual, easy to understand, and implementation-ready

Reports are customized to your organization’s

specific needs

The entire diagnostics portfolio is programmatic

and repeatable

The Benefits to Members of Info-Tech’s Diagnostics


Evolve Your IT Function


Your IT Strategy is Only as Strong as its Inputs.Make them Data-Driven.


Agenda

Insights from Executives

Insights from Business Leaders

Insights from IT Leaders

Driving Systematic Improvement

1

2

3

4


1. Insights from the Office of the CEO

What We’ve Learned from CEO-CIO Alignment


The CEO-CIO Alignment Program

• Short 20 question survey on IT Direction and Execution

• Complete with your CEO (or equivalent), CFO, COO, and/or whoever your manager is

• Road-tested with dozens of CIOs, CEOs, and Business Executives

1. Evaluate IT Fundamentals

2. Align IT with Business Priorities

3. Establish Performance Indicators

4. Invest in Technology & Innovation


CEOs And CIOs Rarely See Eye To Eye

of CIOs/CEOs are not aligned on IT’s current performance49%

67%

are somewhat misaligned

of CIOs/CEOs are unclear on the target role for IT

33%

34% are highly misaligned


CIOs frequently have a stronger appetite for Transformational IT than their CEOs

66% of CEOs don’t want IT to transform the business.

38% of CIOs aim higher than their CEO wants them to.

We asked CIOs and CEOs to “describe the role of IT in your organization in the future.”

17%

34%57%

26%

19%

42%

5%

% of CIO Respondents % of CEO Respondents

Date Driven Insight:Come to consensus on what your CEO expects from you. Operating under the false expectation that IT should strive for innovation can result in wasted resources and unwanted spending.


Many CIOs Overestimate the Size of their Next IT Budget

Increase16–30%

Increase> 30%

Increase6–15%

Increase1–5%

Decrease1–5%

Increase16–30%

Increase 6–15%

Increase 1–5%

Decrease 1–5%Decrease 6–15%

CIO Expectation CEO Expectation

CIOs AccuratelyEstimated

CIOsOverestimated

CIOsUnderestimated

43% of CIOs overestimate the size of their next budget.

23% of CIOs are too conservative and underestimate their future IT budget


CEOs And CIOs Are Aligned On What IT Issues Impede Innovation…

0

1

2

3

4

5

6

7

Legacy SystemsOverhaul

PoorCommunication

IT StaffResistance

BusinessUnderstanding(IT Leadership)

IT LeadershipResistance

CIO CEO

We asked: “How significant of a barrier to IT-enabled Innovation are the following IT issues?”

IT B

arrie

r Sig

nific

ance

Largest barrier

Data Driven Insight:CEOs and CIOs generally agree on IT barriers. There is very high alignment between CEO and CIO barrier significance averages.

Data Driven Insight:CEOs do not perceive IT leaders as resistant. IT leaders have demonstrated willingness to improve and deliver value.

Smallest barrier


But are Highly Misaligned On What Business Barriers Impede Innovation

0

1

2

3

4

5

6

7

Lack ofDirection from

Business

Inadequate ITFunding

Poor ProjectExecution

EmployeeResistance

BusinessLeadershipResistance

CIO CEO

We asked: “How significant of a barrier to IT-enabled Innovation are the following business issues?”

Bus

ines

s B

arrie

r Sig

nific

ance

Data Driven Insight:CIOs are much more critical of the business than CEOs.There is little value in pointing the finger. IT must become proactive in overcoming business barriers.

• Seek out direction from business leaders.

• Help manage critical projects.

• make a strong case for funding.


Overcoming Misalignment Means Knowing Each Other’s Pain Points and Mobilizing to Resolve Them

30%Staff sufficiency, skill, engagement 61% Staff sufficiency, skill,

engagement

25%IT constrains innovation and agility 26% IT constrains innovation

and agility

20%IT fails to deliver business value 28% IT fails to deliver

business value

Top 4 CEO Pain Points Top 4 CIO Pain Points

16%IT operating model complexity 29% Senior management

unwilling to sponsor IT

CIOs’ frustration with management sponsorship is unknown to the CEO. This

pain point needs to be articulated.

CIOs should either simplify their operating models, or communicate and justify the

need for complexity to management.

Blind Spots


Focus on Delivering Benefits to Align with Business Needs

45%

30%

[VALUE]Resource Optimization

Benefits Delivery

Risk Mitigation

“Which business objectives should IT be able to support best?”

Historically, IT departments have been mandated to optimize resources and mitigate risks.

Today, IT success means delivering benefits by generating revenue and creating value for stakeholders.


Measuring Benefits Delivery Requires Better Tracking of Satisfaction and Business Value Metrics

Business ValueMetrics

StakeholderSatisfactionReporting

TechnologyPerformance &

OperatingMetrics

Risk Metrics Cost & SalaryMetrics

37%25% 22% 25% 20%

35%45% 45% 38% 42%

Info-Tech CEO-CIO Alignment ProgramN = 60

Some improvement necessary

Significant improvement required

CEOs consistently demand better metrics around business value and

Satisfaction reporting. CIOs must prioritize measuring these.

Cost, Salary, and Risk-related metrics are typically more well-

regarded by the CEO.


2. Insights from over 21,000 Business Leaders

What We’ve Learned from CIO Business Vision


Our process is fairly ad hoc. Typically we use conversations in the hallway or ad hoc meetings” – CIO

“Understanding the business’s needs is important to us like breathing, but it isn’t something we really have a lot of

processes around” – CIO

“We don’t really have much in place” – CIO

How Effective is the Process You Use to Measure and Manage Business Stakeholder Satisfaction?


The Importance of Knowing your Stakeholders

Info-Tech’s Perspective:

The most important thing an IT leader can do is understand business needs and actively measure that business stakeholders are satisfied

If you don’t have a clear understanding of the needs of your stakeholders, you are flying blind

of C-Suite Executives believe IT needs to improve how they measure business satisfaction

74%


Our Tool: CIO Business Vision + Results

• Short 28 question survey on satisfaction and needs

• 21,367 business leaders

• 267 organizations

• Proven results: Members close their satisfaction gap by 20% in one year

1. Understand Business Satisfaction

2. Demonstrate Business Demand

3. Manage Stakeholders

4. Generate Improvement Ideas


We Ask About

Overall Satisfaction with and Value from IT

Overall Satisfaction with and Value from IT 12 Core IT Services12 Core IT Services

3 Relationship Factors

3 Relationship Factors

Resource Constraint and Dependency

Resource Constraint and Dependency

Use of Shadow ITUse of Shadow IT


The Average Profile: How Would You Compare?

Relationships Satisfaction

71%

71%

70%

Needs

Execution

Communication

Satisfaction

74%

Net IT Support Score: Satisfaction Percentage

+30%

Net IT Support Score: Value Percentage

-2%

Value

72%

Service* Satisfaction Range

Network Infrastructure 75% 45% - 91%

Service Desk 79% 48% - 95%

Business Applications 72% 41% - 90%

Data Reliability 72% 47% - 89%

Devices 75% 56% - 92%

Analytical Capability 67% 42% - 86%

Work Orders 75% 45% - 93%

Customer Facing Technology 66% 47% - 83%

Projects 71% 40% - 91%

Innovation Leadership 66% 39% - 93%

IT Policies 71% 43% - 91%

Requirements Gathering 69% 43% - 94%

* Services are presented in order of importance, as ranked by respondents.



The Overwhelming Majority Of IT Departments Do Not Achieve More Than 80% Satisfaction

Info-Tech Business Vision SurveyN = 21,367

0%

2%

4%

6%

8%

10%

12%

14%

3.75 4 4.25 4.5 4.75 5 5.25 5.5 5.75 6 6.25 6.5 6.75 7 7.25 7.5 7.75 8 8.25 8.5 8.75 9 9.25 9.5 9.75 10

73% of firms have an Overall Satisfaction score between

6.0 and 8.0

Just 16% of firms score above 8.0 in

Overall Satisfaction

11% of firms score lower than 6.0 in

Overall Satisfaction

Average Score: 7.4


More Mature IT Departments Have Drastically Higher Satisfaction Levels

Date DrivenInsight:

Progression up Info-Tech’s operating model tower means improvement across every core service. However, largest differences are observed in work orders fulfillment, project satisfaction, and innovation leadership.

Most IT departments score very similarly in Device Satisfaction.

Service Desk is a high-scoring core

service at all levels.

Significant variance in Innovation Capability

and Project Satisfaction



IT Departments in Large Organizations achieve Lower Satisfaction, likely due to Higher Stakeholder Expectations

79%

69%

77%

71%

78%

70%

78%

73%73%

66%

73%

68%

60%

64%

68%

72%

76%

80%

Devices Innovation Leadership Work Orders IT Projects

Cor

e Se

rvic

e Sa

tisfa

ctio

n

Date DrivenInsight

Large organizations are the least satisfied due to the heightened expectations at large firms and the complexity of managing large-scale IT environments.


Business Leaders Misjudge Which Services Really Matter to Them

Network Infrastructure

Service Desk

Business Applications

Data Quality

Devices

Analytical Capability

Client-Facing Technology

Work Orders

Innovation Leadership

Projects

IT Policies

Requirements Gathering

Projects

Work Orders




Service Desk




Data Quality

IT Policies

Devices

Data Driven Insight:Rethink your priorities; invest in services with the highest return on IT satisfaction.

Projects, work orders, and innovation leadership drive IT satisfaction.

Ensure projects deliver value, remain on budget, and finish on time.

Data needs to be good, but truly spectacular data may go unnoticed.

Investing in state-of-the-art devices won’t significantly bolster satisfaction.

11

10

12

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2

4

5

8

9

7

6

3

11

10

12

1

2

4

5

8

9

7

6

3


Achieve fast turnaround on work requests.

Reported Importance Actual Importance*

* As determined by strength of correlation between Core Service scores and Overall Satisfaction

Overrated Services Underrated Services


Business Leaders below the Executive Level Undervalue IT Innovation, Data Quality, and Customer-facing Technology


Service Desk


Data Quality

Devices


Work OrdersClient-Facing Technology


Projects

IT Policies



Data Quality


Service Desk




Devices

Projects

Work Orders

IT Policies


Management Level Executive Level

Date DrivenInsight

There is a much larger disconnect between Executives and Manager than between Managers and their Direct Reports, particularly with regards to Work Orders and Devices.


Identifying and Serving the Needs of Shadow IT Factions Can Bolster Overall IT Satisfaction

Those among the “Shadow IT Factions” are 13% less satisfied with Project Execution and Availability than those among the Complying Majority.

“Lost-Cause Outliers” are no more dissatisfied with IT than their Shadow IT Faction counterparts; their more blatant disregard for IT policy is not explained statistically.

Data Driven Insight:Target the needs of shadow IT factions. The majority of shadow IT is driven by a subset of dissatisfied individuals with similar complaints. Ask what IT needs to do to meet their needs, and mobilize to enable them.



Building Relationships with Business Stakeholders is a Key Driver Of Overall Satisfaction and Perceived Value

Ove

rall

IT S

atis

fact

ion

Perceived Value of IT

Firefighters Operators Innovators

Relationships are 24% stronger among Innovators than Operators.

Operators score a 71% average in relationship satisfaction.

Relationships are 22% weaker among Firefighters than Operators.


Data Driven Insight:Invest in building relationships with your stakeholders.Stronger relationships will drive improved satisfaction across all IT services.


Prioritize IT Services that Have Real Potential to Improve

Most Improved

1 Projects (+26%)

2 Innovation (+24%)

3 Analytics (+21%)

Least Improved

1 IT Policies (+13%)

2 Infrastructure (+14%)

3 Devices (+15%)

Minimum

43% Satisfaction

25th Percentile

69% Satisfaction

Mean

74% Satisfaction

75th Percentile

82% Satisfaction

Maximum

97% Satisfaction

+19%

Overall Satisfaction:

From the 25th to 75th percentile, the average Core Service satisfaction score improved by



Members Achieve Real Benefits in One Year

22%

25%

31%

13%

9%

One Year Improvement

20+ Points

10‐19 Points

5‐9 Points

1‐4 Points

Negative (1‐3Point Loss)

The Biggest Improvement Achieved was

24 Points

The Biggest Loss was -3 Points

From 92% to 89%(Who are we to judge!)

On Average Participants got

18% Closer to a Perfect Score

53% of Organizations

Improved by 5+ Points

Average Improvement was

6 Points


3. Insights from 1,600 IT Leaders

What We’ve Learned From The IT Management & Governance Diagnostic


The IT Management & Governance Program

Dive deeper into process performance:

Highlight contentious areas and understand

how aligned your team is.

Assign process ownership and hold your

team members accountable for process

improvement

What is the difference between an IT department in firefighting mode and a trusted business partner?

Strong core processes.


Map Your Process Landscape

How EFFECTIVE andIMPORTANT are allof your Processes?

Are ACCOUNTABILITY and RESPONSIBILITY for each Process assigned?

Complete the survey in just ten minutes


Prioritize Process Improvement based on Importance and Effectiveness


World Class IT Departments Live Everywhere

• These ratios hold across industries

• 50% of Innovator IT Departments are operating in business environments that are ‘Challenging’ or ‘In Decline’

• 40% of Firefighters are in business environments that are ‘Rapid Growth’ or ‘Steady’

26% 59% 15%

How IT Departments Self-Identify

Firefighter Operator Innovator


Innovators & Firefighters Agree on Which Processes are Most Important: Security, Risk, and Basic Operations

IT Process Average Importance Score

1 Service Desk 89%

2 Security Management 89%

3 DRP 88%

4 Security Strategy 88%

5 Incident & Problem Management 88%

6 Stakeholder Relations 87%

7 Business Continuity 87%

8 IT Strategy 87%

9 Leadership, Culture, and Values 86%

10 Requirements Gathering 86%


Innovators Place Significantly More Importance on 8 Key App- and Business-Focused Processes

IT Process Importance Surplus*

1 Application Portfolio Management 5%

2 Enterprise Application Selection & Implementation 4.4%

3 Vendor Management 4.3%

4 Stakeholder Relations 3.6%

5 Business Value 3.5%

6 Enterprise Architecture 3.4%

7 Data Quality 3.3%

8 Innovation 3.3%

*Extra Importance Placed on Each Process by Innovators

Total Variance Across Processes is only 15%, hence why these small %s are significant


Innovators are Significantly More Effective at 7 Key Processes

IT Process Effectiveness Surplus*

1 Innovation 9.7%

2 Project Management 9.2%

3 Stakeholder Relations 9.1%

4 Availability & Capacity Management 9.0%

5 Change Management 9.0%

6 Vendor Management 8.9%

7 IT Management & Policies 8.8%

*Gap Between Innovator and Firefighter Effectiveness


4. Drive Systematic Improvement

Executing a Data Driven IT Strategy


IT S

TR

AT

EG

YEach Diagnostic Plays a Specific Role in IT Strategy

Gathered Data• IT Future Role

• Expected Budget Change

Participants• CEO

• CIO1

2

3

Gathered Data• Core Service

Satisfaction

• Core Service Feedback

Participants• Business

Leaders

• Business Employees

Gathered Data• Process

Importance

• Process Effectiveness

Participants• IT Leaders

• IT Employees


Our Programs Enable a Comprehensive Data-Driven IT Strategy

Results are highly visual, easy to understand, and implementation-ready

Reports are customized to your organization’s

specific needs

The entire diagnostics portfolio is programmatic

and repeatable

The Benefits to Members of Info-Tech’s Diagnostics


Follow the Systematic Path to IT Success

Unstable - StrugglesInability to Provide Reliable Business Services

Firefighter - SupportsReliable Infrastructure and IT Service Desk

Trusted Operator - OptimizesEffective Fulfillment of Work Orders, Functional Business

Applications and Reliable Service Management

Business Partner - ExpandsEffective Execution on Business Projects, Strategic Use of

Analytics and Customer Technology

Innovator – TransformsReliable Technology Innovation

90-100% Satisfaction

80-90% Satisfaction

70-80% Satisfaction

60-70% Satisfaction

<60% Satisfaction


Core Service SatisfactionSatisfaction

SupportFeedback

< 65%

< 60%

< 65%

IT needs to resolve network downtime issues.

IT regularly fails to support every-day admin tasks.

Network and Comm. Infrastructure

Work Orders

Service Desk

UnstableIdentify if your IT department’s results place you on this level

Firefighter Category DescriptionFirefighters typically experience wide-spread dissatisfaction fueled by an inability to deliver on core infrastructure, service desk, and business-as-usual services.Characteristics: Low IT satisfaction, low infrastructure satisfaction, low service desk satisfaction.

Satisfaction

<60%


< -20%


< -20%


Next Level: Reliable Operator

Current Level: Firefighter

4

3

2

1

Unstable Roadmap: Leverage Info-Tech’s research to expedite IT improvement

Service Desk (DSS02)

Network and Infrastructure (BAI09, BAI10)

Devices (APO09, BAI09)

Security (APO013, DSS05)

Service Desk

Make the Network Invisible

End-User Computing

Information Security

Incident Management

Outsource Network Management

Mobility Management

Secure Critical Systems


FirefighterIdentify if your IT department’s results place you on this level

Reliable Operator Category DescriptionTrusted Operator Bs have established core IT operations, such as infrastructure and a service desk, but they struggle with work orders and data quality.Characteristics: Moderate infrastructure satisfaction, low work order and business applications satisfaction.

Satisfaction

SupportFeedback

IT doesn’t prioritize my work orders.

Data quality is poor and it makes our job harder.

Core Service Satisfaction

65%-75%

65%-75%

60%-70%

Work Orders

Data Quality


Satisfaction

60%-70%


-20% - 10%


-20% - 15%


FirefighterRoadmap: Leverage Info-Tech’s research to expedite IT improvement

Next Level: Trusted Operator

Current Level: Reliable Operator

4

3

2

Work Orders (DSS01, DSS02, BAI04)

Service Management (DSS01, BAI04, BAI06)

Business Applications (BAI03, BAI05, BAI07)

Stakeholder Management (APO08, EDM05)

Capacity Management

Application Rationalization

Build a 100-Day Plan for IT Excellence

Application Maintenance

Manage an Agile Portfolio

User-Facing Service Catalog

Application Development

Manage Stakeholder Relations


Trusted OperatorIdentify if your IT department’s results place you on this level

Trusted Operator Category DescriptionTrusted Operator As have bolstered satisfaction by improving work order and data quality performance. They still struggle with projects, customer technology, and analytics.Characteristics: Moderate-high overall satisfaction, low client-facing technology and analytics satisfaction.

Satisfaction

SupportFeedback

IT projects are sometimes late or over budget.

We need better analytic support from IT


65%-75%

60%-70%

60%-70%

Projects


Analytics

Satisfaction

70%-80%


20% - 55%


15% - 45%


Trusted Operator Roadmap: Leverage Info-Tech’s research to expedite IT improvement

Next Level: Evolutionary Innovator

Current Level: Trusted Operator

4

3

2

4

Strategy & Governance (EDM01, APO01, APO02)

IT Strategy IT Governance

Projects (APO05, BAI01, BAI02)

Project Management

Project Portfolio Management

Resource Management (APO06, APO07)

IT Budgeting Resource Management

Data Quality (APO01, DSS06)

Data Management Data Quality


Business PartnerIdentify if your IT department’s results place you on this level

Evolutionary Innovator Category DescriptionInnovator Bs have achieved high overall satisfaction by improving analytic and project performance. Still required improvement in client-facing technology and IT innovation leadership.Characteristics: High overall satisfaction, moderate client-facing tech. and innovation leadership satisfaction.

Satisfaction

SupportFeedback

IT is great, but we could benefit from some cutting-

edge technology.

IT always helps our critical projects succeed.


75%-85%

70%-80%

70%-80%

Projects

Customer-Facing Technology

IT Innovation Leadership

Satisfaction

80%-90%


55% - 90%


45% - 75%


Business Partner Roadmap: Focus on these areas to advance to the next level

Next Level: Transformative Innovator

Current Level: Evolutionary Innovator

4

3

2

1

Risk Management (EMD03, APO12)

External Compliance

Mitigate Risk with Internal Controls

Analytical Capability (BAI03, DSS06)

Develop a Winning BI Strategy

Develop a BI Tool Strategy

Customer-Facing Technology (BAI03, EDM02)

Consumer Technology Integration

Enterprise Architecture

Adopt Universal EA Principles

Develop an EA Vision

Exploit Disruptive Technology


InnovatorIdentify if your IT department’s results place you on this level

Transformative Innovator Category DescriptionInnovator As have achieved remarkable and rare levels of IT satisfaction by performing exceptionally well on all core IT services and delivering innovative solutions.Characteristics: High satisfaction, high customer-facing technology and innovation leadership satisfaction.

Satisfaction

SupportFeedback

IT is a truly critical enabler for our business.

IT delivers exactly what we need before we even know

we need it.


80%-90%

75%-85%

80%-90%

Network and Comm. Infrastructure

Customer-Facing Technology

IT Innovation Leadership

Satisfaction

>90%


>90%


>75%


Innovator Roadmap

IT Innovation Leadership (APO04)

Position IT as an Innovator

Make IT a Partner in Innovation

Leadership, Culture, & Values (APO01, APO07)

Leadership Optimization

Employee Engagement

Next Level: You are already at the highest level

Current Level: Transformative Innovator

2

1


Our services offer various levels of support to best suit your organization’s needs

DIY Toolkit

Guided Implementation

On-site Workshop

Consulting

Valu

e to

Clie

nt

“Our team has already made this critical

project a priority. We have plenty of time

and the capability to execute, but some

guidance along the way would be helpful.”

“Our team knows that we need to fix a

process, but we need assistance to

determine where to focus. Some check-ins along the way would

help keep us on track.”

“We need to hit the ground running and

get this project kicked off immediately. Our

team has the ability to take this over once we get a framework and

strategy in place.”

“Our team does not have the time or the

knowledge to take this project on. We need

assistance throughout the entirety of this

project.”

Degree of Customization

All four delivery methods use consistent research-validated frameworks that are supported by diagnostic tools.


See For Yourself – Try One Program at No Cost

• Peer data is interesting, but can’t substitute building relationships with your own stakeholders

• Measuring stakeholder needs and satisfaction is a critical input into any IT strategy

• You can’t build a strategy on research reports and analyst trends

Your To-Do List

1. Collect DATA on Stakeholder Needs and Satisfaction

2. Build Consensus and Accountability within IT

3. Confirm Priorities with CEO and Critical Stakeholders

4. Build Relationships with Business Leaders

5. Create Company and Business Unit Action Plans

6. Build On-Going Success & Improvement

Documents

Building a Technology Strategy with Data · Building a Technology Strategy with Data Geoff Nielson Director of Innovation & Product Development, Info-Tech Research Group ... Staff