IT Director Strategy Day UK Tech Landscape Neil Macehiter

8/2/2019 IT Director Strategy Day UK Tech Landscape Neil Macehiter

1/26

advising on IT-business alignment

mwdmacehiterward-dutton

The challenges of

IT-businessalignment

A presentation for

Microsofts

TechNet ITDirectors

Strategy Day

Neil Macehiter,Partner


2/26

Macehiter Ward-Dutton 2005 www.mwdadvisors.com 2

Agenda

A brief introduction to MWD

Aligning IT and business

Understanding business processes Understanding managed IT services

Summary


3/26


A brief introduction to MWD

Strategic advice and consulting

Focus on issues concerning IT-business alignment

Driving more business value out of enterprise IT Not about the nuts and bolts of individual technologies

Core: two highly experienced industry analysts /

practitioners

Sun, Oracle, Sybase, Ovum, Deloitte Consulting, etc

Based in UK, Europe-wide capability


4/26


advising on IT-business alignment


Aligning IT and

business


5/26


6/26


Why now?

Globalisation

Customers, partners, suppliers and competition

Connectedness driving sophisticated value chains Transparency

Industry regulations, consumer pressure and competition

driving openness

Service focus Differentiation and shareholder value increasingly derived

from service experience


7/26


From a UK perspective

A healthy economy albeit growing at a low rate

Spurred by public sector investment

With a knock-on effect on the IT market

Globalisation

>4000 (+400/year) UK-Sino joint ventures

Vonage launches UK VoIP service (01/05)

Tesco enters mortgage market with First Active (11/04)

Transparency

Corporate Responsibility (CORE) coalition

Government initiatives e.g. Extractive Industries Transparency Initiative International Financial Reporting Standards (IFRS)

Service Focus

BT launches mobile music service with UBC Media and Virgin Mobile (06/05)

Amazon Services Europe to underpin M&S e-commerce systems (04/05)


8/26


The real world

From Towards

Build, or buy vs.

buildApplication implementation

Buy AND build AND

integrate

Back office Business area investment focusFront office and

beyond

Personal

productivity

desktop

IT access environmentProductivity

desktop + global

access to resources

Data processing Technology innovation focusCommunication,

collaboration,

integration

Older approaches fail to capture reality re: integration,

communication, collaboration, supply complexity

Outsourcing vs.

in-house deliveryCapability supply Multi-sourcing


9/26


A common language is the essential

starting point

IT

Business

?

Investment prioritised in terms

of business need

Systems that deliver value to

the business

Clear direction from the

business about focus, strategy

Collaborative approach to

implementing business change

A common, agreedrepresentation of business

activity, goals

+A common, agreed view of

how current and future ITprovides structured support to

the business in this context


10/26


Reflecting the environment in IT-business

alignment

Business

IT

Managed

IT service

Managed

IT service

Managed

IT service

Managed

IT service

Managed

IT service

A P P L I C A T I O N S & I N F O R M A T I O N

I N F R A S T R U C T U R E

B U S I N E S S S T R A T E G Y

Business processes

form the foundation

of a commonlanguage

IT defines and delivers

business level services

which support the rightprocesses, the right way


11/26

Macehiter Ward-Dutton 2005 www.mwdadvisors.com 11advising on IT-business alignment


Understanding

business processes


12/26


Business process

Applications

Data

The challenge

Activities, processesThe business

The real world doesnt decompose nicely and IT isnt

just about things you build in-house


13/26


Providing structured support for business processes

means understanding scope & scale of interactions

From

Data design tightly coupled to

application design, and application

design to user requirements very

restricted view of process needs

Bu

sin

e

ss

p

roc

e

ss

Towards

Business

pro

cess

Loosely-coupled resources provide

services which are designed to support

the interactions that take place within a

business process


14/26


IT approaches must consider business process support

more broadly

Business

process

Transactional

services

Information

services

Communication

& collaboration

services

Support scenario: a

mesh of interactions

We have to model more than just transactional applications


15/26


A universe of business processes [1]

Execution processes

instances handle particular

units of work within

business activities

Management processes

instances oversee

instances of execution

processes

Strategy processes

instances oversee instances

of management processes

A hierarchy of business processes


16/26


A universe of business processes [2]

Contribution to competitive differentiation

Non-differentiating

(focus should be on efficiency)

Differentiating

(focus should be on flexibility)


17/26


Observations on the nature of business

processes

Non-differentiating

(focus should be on efficiency)

Differentiating

(focus should be on flexibility)


18/26


A resulting (wider) view of technical

architecture

L

evelofprocessabstraction

Low

High

Non-differentiating Differentiating

Strategy

business processes

Management

business processes

Execution

business processes

Business functions

Pure BPMS

Traditional

app.

Developmenttools&

framewor

ks

Collaboration tools

Simple portal

Business intelligence

tools

Workflow

Composite service-based

application development &

integration


19/26



Understanding

managed IT services


20/26


So what is an IT service?

CRM

database

Provide

automated

support for my

sales force

Update

customer

details

Line of business

perspective

IT operations

perspective

Developer

perspective


21/26


Managed IT services aligned with

business processes

Lifecycle servicesManaging the lifecycles of business functions and infrastructure

Business function servicesAutomating business functions

Infrastructure servicesProviding the platform

Users experiences

of managed IT service


22/26


Contracts bring obligations for suppliers

and consumers

Message FormatMessage Sequence

Functions

SecurityResponse Time

Throughput

Usage CostLiability Clauses

Trust

Functional

Terms

QoS

Terms

Commercial

Terms


23/26


An organising model for service-oriented

IT in the context of IT-business alignment

How can we align flexibility /

reusability requirements for

business software functions,

to business needs?

How can we trade-off

flexibility / reusability of

business function serviceswith efficiency / openness

requirements?

How can we ensure that the

right consumers get the right

kind of experience fromthese services, and do so

cost-effectively?

How should infrastructure

elements provide their

services to different business

functions? How should

infrastructure be optimally

managed?

How can QoS responsibility

be delegated to infrastructure

in a way that is easily flexed

in response to changing

requirements?

How can we minimise the

cost and risk of overall

process support while

creating an business support

environment with more

moving parts?

How should we differentiate

lifecycle service levels for

different kinds of business

function, infrastructure?

How should we define and

enforce development, fault-

fix and change-request

priorities?

How can we demonstrate theoverall value of the services

that the IT organisation and

its resources provide to the

business?

Functional contract

aspects

Quality-of-Service

contract aspects

Commercial

contract aspects

Business

functionservices

Infrastructure

services

Lifecycle

services


24/26


An example business function service

design

Levelofprocessabstraction

Low

High

Non-differentiating(focus should be on efficiency)

Differentiating(focus should be on flexibility)

Business activity role

Strategy

business processes

Management

business processes

Execution

business processes

Activity functions

Technical functions

Reusability

importance

increases


25/26



Summary


26/26


Summary

Todays business environment brings IT-business alignment to

the fore

In terms of investment, delivery and change

Business processes provide a common language But the organisational context of real-world business processes is

complex

Managed IT services must align with business process

priorities Its about more than business function services

Services and their contracts provide an organising model for

service-oriented IT

Documents

IT Director Strategy Day UK Tech Landscape Neil Macehiter