Connect the dots!

Deliver Business Value with IT

This is a breakout from Deliver Business Value with IT (the Book) that you can find as well as (Actionable Story Boards) @ https://flevy.com/seller/mpalmgre/ref=mpalmgre that is flick out the slide set on your ipad and start to share with your CIO, Executives and Board.

Connect the dots!

What has strategy execution, stakeholder priorities, “Time to Market”; business drivers, cost effectiveness & cycle time, Total cost of ownership (TCO); Cost, Consumption, Chargeback, A Business (IT) Model and Value proposition (what?) as well as demand and cost drivers, has to do with the traditional certification Lighthouses such as ITIL, VALIT, COBIT, RISKIT, CMMI, TOGAF, ISO 9000, 20 000, 27 001?
First of all an effective Business (IT) Strategy should cover both the “IT Business Model” and the “IT Value Proposition” and deliver to business priorities.

1: For the IT department to be credible and deliver effectively to the business needs there need to be a clear “IT…

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Avoid the marshmallow momentum

Deliver Business Value with IT

This is a breakout from Deliver Business Value with IT (the Book) that you can find as well as (Actionable Story Boards) @ https://flevy.com/seller/mpalmgre/ref=mpalmgre that is flick out the slide set on your ipad and start to share with your CIO, Executives and Board.

Avoid the “Marshmallow” momentum

I regularly perform an innovation cursus where we use the Marshmallow challenge http://www.marshmallowchallenge.com/TED_Talk.html as an exercise to demonstrate the make or break factor of a project (strategy, innovation production, sales, marketing, R & D) and the importance of to produce a customer journey map and prototype. Each time I perfom the exercise it hits me how often the “Tadaa” moment turns in to the “Uuh” (translated in to that they did not get it) moment during the delivery of an IT project / IT strategy delivery. But rest assured this would also be valid for strategy, marketing, production, R & D, Sales and Delivery.

Within the exercise we…

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Why most IT strategies fail

Deliver Business Value with IT

The very reason why most IT Strategies fail and miserably

This is a breakout from Deliver Business Value with IT (the Book) that you can find as well as (Actionable Story Boards) @ https://flevy.com/seller/mpalmgre/ref=mpalmgre that is flick out the slide set on your ipad and start to share with your CIO, Executives and Board.

 

The IT department needs to perform 3 things well: 1) understand the needs of the business, 2) how to build and run applications that meets the needs of the business and 3) to run an effective infrastructure.

That is IT supports new emerging business initiatives that will eventually form the business strategy as they succeed or fail and the RUN.

Yet most IT Departments 1) has a poor understanding of the needs of the business, 2) are not very successful @ to build and run applications that meets the needs of the business and 3) do not run an effective infrastructure. We all know that infrastructure is unsexy. It…

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Focus on the business strategy not project management

Deliver Business Value with IT

Why Agile is not a methodology to build IT Strategy

This is a breakout from Deliver Business Value with IT (the Book) that you can find as well as (Actionable Story Boards) @ https://flevy.com/seller/mpalmgre/ref=mpalmgre that is flick out the slide set on your ipad and start to share with your CIO, Executives and Board.

Agile http://en.wikipedia.org/wiki/Agile_management , http://www.forbes.com/sites/stevedenning/2012/06/01/ge-gets-agile/ is an excellent methodology to ensure project management as we develop software (full stop).

Yet I have over the last years encountered a number of CIO’s that tried to apply Agile to build the IT Strategy and run the IT department ( see also http://deliverbusinessvaluewithit.wordpress.com/2013/03/19/the-very-reason-why-most-it-strategies-fail-and-miserably/ ). Agile is an excellent tool to ensure capability delivery and effective project management and product delivery with the frame of software development.

Where I do agree with the principles of a more “adaptive” approach to IT Strategy development spelled out in http://deloitte.wsj.com/cio/2012/05/24/an-agile-approach-to-it-strategy/ I believe it is important to keep the methodologies apart.

One examples @ http://cioevent.wordpress.com/2013/03/19/agile-methodologies-live-cioevent/

However organizations are struggling to implement…

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Focus on the value proposition

We believe that: To deliver business value with IT we need to Focus on the Business Bottom Line that is:
How fast can we get our products and services to market “Time to Market” & how can the IT department support the business from a Cycle Time and Cost Effectiveness perspective.

That is In order to avoid the “do we really need a CIO and IT department to bother us with technology when we can use the cloud?” the CIO has to ensure that the business strategy and business objectives are supported by IT (from a Business and IT architecture perspective). Where the IT Strategy support Strategy execution, “Time to Market”, Cost Effectiveness and stakeholder expectations from an Executive, Business Unit, IT Management and IT Risk Management perspective.

We have identified 2 key trends for the CIO to focus on: – Differentiation (That is, how does IT provide a competitive advantage for the business), and – Cost (How does the IT Department deliver IT Services cost effectively). To do so we need to Build an effective IT Delivery Model to meet business needs and expectations as we leverage business strategy execution and business processes supported by an IT Service strategy (ITIL, IT – CMF, CobIT 5 (ValIT, CobIT 4.1, RiskIT), ISO 38 500, TOGAF and ISO 9001, ISO 27 001, COSO) delivered in a Business IT roadmap; that is how do we support business objectives and processes leveraged by IT and an effective IT Services strategy. Within this scope we would by definition address how we execute the IT Strategy:

–       Design: – Spell out IT Activities from a demand and supplier side,

–       Build: – Set IT processes and key performance indicators,

–       Run: – Aligned to described ITIL activities and processes where we build effective IT Financial Management to figure out the actual cost of delivered IT services and follow up on IT chargeback over time.

Once services defined we can then decide where to run the application that support the IT and or Business Services (server / internal / external cloud/outsourced provider).

The CIO and the IT Department need to position as premium provider of IT services and focus on value to cost. In order to avoid the “do we really need a CIO and IT department to bother us with technology when we can use the cloud?” the CIO has to ensure that the business strategy and business objectives are supported by IT (from a Business and IT Architecture perspective). Where the IT Strategy support Business Strategy execution, “Time to Market”, Cost Effectiveness and Stakeholder Expectations from an Executive, Business Unit, IT Management and IT Risk Management perspective.

In order for the CIO and the IT Department to position as premium provider of IT services and focus on value to cost we need to understand the Business (IT) Strategy and how the IT department can deliver effectively to business objectives, that is to deliver business value with IT:

– What is the Business’s strategy and plans?

– What is the current business model that IT has to support?

– Where could IT make a significant impact on the business?

– Are there any further opportunities to use IT?

Within the frame of an acquisition 80% of the value realisation is (can be) on the IT side. The failure to address IT and the IT strategy can be an additional reason to M & A failure.

If we assume that to deliver business value with IT we need to support business objectives, the integration of a new entity is an optimisation of the current IT strategy (how we support business objectives and processes). We would obviously need to understand (and hopefully have the opportunity) how the current IT run before the purchase (IT due diligence) with full IT Financial Management to figure out the actual cost of delivered IT services (cost, consumption, chargeback). Once services defined we can then decide where to run the applications that support the IT and or Business Service (server / internal / external cloud / outsourced provider).

We also need to define the purpose of the purchase (invest / divest) in the overall corporate strategy where it is of little use and a significant cost to integrate all systems in to a common backbone if the company is to be divested only a few years later. We could use a an IT Scorecard to ensure that stakeholder expectations are met from an executive, business line, IT and IT risk perspective.”

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Focus on the value proposition