Management Information SystemsBest Practices in I/T

William R. MussattoCyberStratgies, Inc.mussatto@csz.com

TopicsBest Practices in I/T

Overview: What do we mean by “best practices?”

Operational and Strategic Alignment

Best PracticesTopics

What Are Best Practices?Why Study Best Practices?Which Best Practices Do You Study?BenchmarkingBest Practice TypesSummary / Conclusions

What Are Best Practices?

End-to-End Management of Business Processes

Characteristics Recognition

as a modelby “experts”“widely” recognized

What does “best” mean?

What Are Best Practices?

Complex system of many processes but not just processes People - Process - Technology

Examples AMEX Billing

accuratehighly leveraged

FedEx Logistics

Best Practice Criteria

Public Press Exposure watch out for PR and marketing

AwardsCase StudiesBenchmarking Studies

metrics and insight comparison analysis

What Practices are Not Best Practices?

Literal Transplantation must tailor

Failure to ValidateYesterday’s NewsIrrelevantFadsVaporware/Abandon-ware

Which Best Practices?

Relevant to Your Organization Industry & Environment

Potentially High Payoff process improvement radical process innovation must pass the “so what?” test

Benchmarking

Two Kinds measurement based process based

Measurement Based Benchmarking

Traditional in I/T Organizations data center audits product testing and evaluation cost measurements performance measurements

Process Based Benchmarking

More SubtleStrategic Orientation

linked to high level business objectivesLess Mechanical

Comparison of Two Kinds of Benchmarking

Characteristic Measurement Based Process Based

Scope Single Work Group Cross-FunctionalFocus Efficiency EffectivenessObjective Problem Solving Improve Business

SupportResult Value Assessment Increase QualityImpact Narrow, Tactical Broad, Strategic

Comparison of Two Kinds of Benchmarking

Characteristic Measurement Based Process Based

Useful Life Short term MultiyearParticipants Technical manager Business managersApproach Comparative Insight basedComparisons Industry focus Best in classExpense Less than $50,000 Up to $500,000Work Effort Weeks Months

Summary / Conclusions

Study of Best Practices … helps identify what projects are necessary provides good introduction into challenges

of project managementpeople, process, technology

Study of Best Practices in I/T … highlights new role of I/T organizations underscores importance of alignment with

business goals

Operational and Strategic Alignments

PlanningFundingCommunications

Operational and Strategic Alignments: Planning

Do I/T activities fit business unit plans? Best practices mean continuous planning

for both I/T and business continuous resynching and re-validating

monthly, not yearlyRight balance between short and long-

term plans? time lags in order to execute

Operational and Strategic Alignments: Funding

Investing the right amount on I/T? putting money where their mouths are?

Investing in right areas of I/T?Investing adequately in infrastructure?

capital expenditures skills development and acquisition

Answer: earmarking funds to strategic projects and/or infrastructure

Operational and Strategic Alignments: CommunicationsHuman Communications

very important today because there is so much more information (data) to communicate

data + understanding = informationDoes I/T communicate its strategic

value to its constituency? training: programming the humans helping people understand the big picture

Operational and Strategic Alignments: Communications

Does I/T coordinate appropriately with its key stakeholders? customers employees shareholders

Answers: distribute I/T personnel throughout the

enterprise treat communications as critical activities

Operational vs. Strategic Planning

Operational Fit

Operational Fit

Strategic Fit

Mismatch

Enabler

Low

High

Differentiator

I/T andLong-Term Business Plan Integration

View of I/T

Operational FitBest Practices in Planning

Responsive to business unit requirements somehow, someway as enterprise is responsive to customers

internal customersPriorities set by business units

what about resource contention among different business units?need for conflict resolutions

Operational FitBest Practices in Planning

Flexible Plans reviewed frequently by business units

Timely Approval

Operational FitBest Practices in Funding

Business Units Obtain Funding I/T initiatives now business initiatives

More Flexible Budgets not once a year allocation more true in private sector than in

governmentIncentivize Investments in Infrastructure

not put off until end of year

Operational Fit: Best Practices in Communications

Effective Communications from End-Users to I/T Organizations keep developers focused on end-

users needs can lead to requirements creep

Rapid Teaming to meet market opportunities requires agility data mining

Operational FitSome Notes

Such practices begin in I/T, but only work if whole enterprise follows similar planning methods consistent process engineering

language across whole enterprise

Strategic FitAligning I/T Strategies with Business

Strategies higher level decisions and planning what technology is needed to support

business scope?Best practice firms have processes

supporting strategic planning and have I/T-related activities built into these processes

Strategic FitBest Practices in Planning

Involvement by all key stakeholders business units I/T strategic partners

Planning process leads to single, well-integrated business plan including clearly stated I/T component

Strategic FitBest Practices in Funding

Multiyear Plans two to three years not uncommon

Senior Execs remain actively engagedForums for cross-functional conflict

resolutionFunding in I/T Infrastructure viewed

as crucial to future competitiveness

Strategic Fit: Best Practices in Communications

Continuous Collaboration between I/T and Business Units I/T experts invited to key meetings

I/T execs wind up in “inner circle”

Funding

Communication

Planning

Aligned Action

Infrastructure Investment

CoordinatedCommunications

Aligned Planning Cycle

Group Project

Break into groups of about 5.Situation:

Multi-national operating in 3 countries. Want to centralize decision making.

Questions: What areas will need MIS support? Outline a plan to integrate: accounting,

shipping, or customer relationship.Explain your answers in ~15 minutes.