Aligning IT to Corporate Strategy

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COBIT5 – Align IT to Corp Strategy.pptx/v1.1

COBIT® 5 – Align IT to Corporate Strategy

ISS-UXC Seminar 25 Jul 2015

1 COBIT is a registered trade mark of ISACA and the IT Governance Institute




Align IT to Corporate Strategy – Why?

• What’s worse than a project that fails to meet its schedule, costs or specs?

• A project that meets its schedule, specs and costs but... is not what your

organisations finds important or useful

and is seen as low value or worse, waste of time and money

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Hence, IT needs to know what is important to the organisation and do accordingly

Low Value Cost Centre or worse




What is COBIT? • Control OBjectives for Information and related Technology • International framework from ISACA and IT Governance Institute

• Helps maximise value of IT to businesses • Originally, more for monitoring/ audit /risk assessment of IT

management processes • Increasingly recognised as comprehensive framework of IT

Management best practices Advises on WHAT to do Some high-level of how to do

• Currently Version 5

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COBIT - Governance and Management

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Strategic Mgt General Mgt

Tactical Mgt Operational Mgt Nb: Words in green above NOT part of COBIT but added by the author of this presentation.

generally, the responsibility of Board of Directors




Strategic Management Processes in COBIT APO (Align, Plan and Organise)

• Manage Relationships • Manage (IT) Strategy • Manage Innovation • Manage Enterprise Architecture • Manage Portfolio

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These 7 Domains are elaborated into 37 processes • 5 of which relate to

strategic alignment






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Manage Relationships (1)

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Image courtesy of digitalart / FreeDigitalPhotos.net

• Who determines what is important to the organisation? • Does IT know them and their needs well?

IT Dept

Other Depts

Top Management

Customers

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Manage Relationships (2)

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Image courtesy of Ambro / FreeDigitalPhotos.net

What does COBIT recommend? • Establish relationship

managers as single points of contact for each key customer




Practices under COBIT “Manage Relationships” Process

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Manage the business relationship •Includes establishing single-point-of-contact relationship manager for each key customer

Co-ordinate and communicate

Understand business expectations

Identify opportunities, risk and constraints for IT to enhance the business

Provide input to the continual improvement of services






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Practices under COBIT “Manage (IT) Strategy” Process

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Communicate the IT strategy and direction

Define the strategic plan and road map

Conduct a gap analysis

Define the target IT capabilities

Assess the current environment, capabilities and performance

Understand enterprise direction




Understand Enterprise Direction

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http://en.wikipedia.org/wiki/Public_housing_in_Singapore#mediaviewer/File:BukitBatok.JPG http://www.hdb.gov.sg/fi10/fi10320p.nsf/w/AboutUsVisionMission?OpenDocument

Keppel Land – Keppel Bay

HDB – Bukit Batok Estate

Who are the developers of these properties? Are their Enterprise Directions the same?

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Define the target IT capabilities - e.g. Strategy Map (fictional example)

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Optimal Costs Low Price

Affordable

High Productivity

Good Quality

Close Inspection / Checking

Better Training

Improved Knowledge Base

Perspectives

Productivity Automation

E-Learning & KM Systems

Quality Check Systems

Customer

Financial

Process

Learning

IT

Mission : We provide affordable quality homes




Practices under COBIT “Manage (IT) Strategy” Process

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Communicate the IT strategy and direction

Define the strategic plan and road map

Conduct a gap analysis

Define the target IT capabilities

Assess the current environment, capabilities and performance

Understand enterprise direction






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Practices under COBIT “Manage Innovation” Process

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Monitor the implementation and use of innovation

Recommend appropriate further initiatives

Assess the potential of emerging technologies and innovation ideas

Monitor and scan the technology environment

Maintain an understanding of the enterprise environment

Create an environment conducive to innovation




Monitor and Scan the Technology Environment - example

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http://www.gartner.com/newsroom/id/2575515

Gartner Hype Cycle for Emerging Technologies 2013

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Assess Potential of Emerging Technologies & Innovation Ideas

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http://brandcredentials.com/pretotyping/

Palm PDA “pretotype”

ISS “Innovation & Design Thinking” course at Makers Block event

http://blog.nus.edu.sg/isssi/#.U8nyerEwDGt

One of the methods for assessing potential

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Practices under COBIT “Manage Innovation” Process

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Monitor the implementation and use of innovation

Recommend appropriate further initiatives

Assess the potential of emerging technologies and innovation ideas

Monitor and scan the technology environment

Maintain an understanding of the enterprise environment

Create an environment conducive to innovation






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Practices under COBIT “Manage Enterprise Architecture”

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Provide enterprise architecture services

Define architecture implementation

Select opportunities and solutions

Define reference architecture

Develop the enterprise architecture vision




Enterprise Architecture is NOT Solution Architecture

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Source : http://www.andyblumenthal.com/2007/08/enterprise-architecture-is-not.html




Enterprise Architecture

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TechnologyArchitecture

Hardware, software, network

Application Architecture

Services

DataArchitecture

Data, information

Business Architecture

Business processes, organization, people

TechnologyArchitecture

Hardware, software, network

Application Architecture

Services

DataArchitecture

Data, information

Business Architecture

Business processes, organization, people

Current (now)

Target (up to 5 yrs’ time)

Plan Target (Reference) Architecture




Enterprise Architecture – Example




Business Architecture (1)

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Source: http://portal.hud.gov/hudportal/documents/ huddoc?id=DOC_15169.pdf

Duplication in Functions

Streamlined & improved Functions

New Functions Eg. Foreclosure Cost Mgt




Business Architecture (2)

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Plan Improvements to Business Processes

Current Target




Application Architecture – Current

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Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13845.pdf


Wasteful Redundancy and Siloed Applications

duplicate applications for same process




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Application Architecture – Target


Streamlined Portfolio of Applications

Cost Mgt Module

streamline & remove duplicates

plan new applications




Data Architecture – Current

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Duplicate, Inconsistent Data Some data not available for future needs

Adapted from: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13840.pdf

HUD Program Data FHA Program

Data

FHA Program Data

OFHEO Program Data

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Data Architecture – Target

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Streamlined and Updated Portfolio of Data Sources -Consistent data - “Single” source of truth

Adapted from: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13840.pdf

HUD Program Data

FHA Program Data

OFHEO Program Data

Cost Management





Technology Architecture – Current & Target

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• Target Future (TF) • Pilot (P) • Target Current (TC) • Maintain (M) • Obsolete (O)

HUD TRM CATEGORY Parent Name Product Version

HUD TRM Status

Application Server Software SUN JAVA SYSTEM APPLICATION SERVER 9 TF

Application Server Software SUNONE APPLICATION SERVER 8.2 TC

Application Server Software SUNONE APPLICATION SERVER 7 M

Application Server Software SUNONE APPLICATION SERVER 6.5 O

Asset Management Tools OPEN VIEW ASSET CENTER 5 TF

Asset Management Tools OPEN VIEW ASSET CENTER 2 TC

Business Intelligence MICROSTRATEGY 8.X TC

Business Intelligence CRYSTAL REPORTS 8.5 M

Business Intelligence CRYSTAL REPORTS 8 O

etc.. Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13829.pdf




Technology Architecture – Target

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Streamlined Technology Architecture (example)





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Provide enterprise architecture services

Define architecture implementation

Select opportunities and solutions

Define reference architecture

Develop the enterprise architecture vision






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Manage benefits achievement

Maintain portfolios

Monitor, optimise and report on investment portfolio performance

Evaluate and select programmes to fund

Determine the availability and sources of funds

Establish the target investment mix




Establish Target Investment Mix

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Source: Framework from P.Weill & M. Broadbent, Leveraging the New Infrastructure: How market leaders capitalize on IT, Harvard Business School Press, 1998. Data: Percentages are 2009 total $IT spending (operations + depreciation) from 1091 firms in 77 countries from Gartner CIO Survey

http://cisr.mit.edu/research/research-overview/classic-topics/it-portfolio-management/

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Evaluate and Select Programmes to Fund (1)

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Which projects would you do first?




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Evaluate and Select Programmes to Fund (2)





Monitor Portfolio Performance / Manage Benefits Achievement

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http://aptris.com/images/servicenow-project-portfolio-management.jpg

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Summary


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Low Value Cost Centre or worse




Q & A

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For Further Information General: http://www.iss.nus.edu.sg/ COBIT: https://www.iss.nus.edu.sg/ProfessionalCourses/SearchCourse/CourseDetail/tabid/267/cid/20/cname/nicf-cobit-foundation/Default.aspx Manage Innovation: https://www.iss.nus.edu.sg/ProfessionalCourses/ServiceInnovation.aspx Manage Enterprise Architecture: https://www.iss.nus.edu.sg/ProfessionalCourses/SearchCourse/CourseDetail/tabid/267/cid/1/cname/nicf-certified-enterprise-architecture-practitioner-course/Default.aspx Setting up of Portfolio, Programme, Project Office (P3O): https://www.iss.nus.edu.sg/ProfessionalCourses/SearchCourse/CourseDetail/tabid/267/cid/46/cname/nicf-portfolio-programme-and-project-offices-p3o-foundation-and-practitio/Default.aspx Managing Stakeholders: https://www.iss.nus.edu.sg/ProfessionalCourses/SearchCourse/CourseDetail/tabid/267/cid/51/cname/nicf-managing-project-stakeholders-a-practical-approach/Default.aspx 42

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https://www.iss.nus.edu.sg/ProfessionalCourses/SearchCourse/CourseDetail/tabid/267/cid/46/cname/nicf-portfolio-programme-and-project-offices-p3o-foundation-and-practitio/Default.aspx�





















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THE END

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