Posts Tagged ‘business process’

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3 Ways To Bring Business And IT Together

Wednesday, June 3rd, 2009

Executing A Single Business / Technology Strategy Leads To Success

Executing A Single Business / Technology Strategy Leads To Success

In the end, it all comes down to execution. No, not chopping heads off, but rather how you go about having your IT department perform the tasks that the business needs them to do. How hard could this possibly be?

What’s The Goal?

The power term “alignment” is tossed around a lot these days. I think that it’s gotten used so much that a lot of us have forgotten just exactly what it means. In its simplest form, when a company is truly aligned then it is able to mange both its business and its technology together.

As simple as this may seem, too few companies are able to achieve this goal. The reasons are many: differing personalities, budgets that are unrelated, lack of accountability for business results, etc.

Fredric Fishman has spent some time  thinking about this and he’s come to the realization that in order for a a company to commit to managing both its business and its technology together, then it needs to do three things well:

  • Provide a clear vision for the organization
  • Create a well-defined roadmap that shows how to get to the future
  • Measure outcomes against predefined criteria

One Strategy For Both Business And Technology

If you have any hopes of bringing your business and technology activities together, then you’re going to have to make sure that the firm has a living business strategy. The world changes and your business strategy needs to be able to change with it. One way to accomplish this is to implement processes that will allow feedback on the business strategy to be collected and used to make adjustments.

The next step is to make sure that everyone understand just exactly how technology is going to be used to achieve each one of your business objectives. Finally, don’t just hope for the best – make sure that you have criteria in place to judge success before you start any IT project.

Strategic Imperative: Talk & Spend

A company’s goals are no good if nobody knows about them. Make sure that any planned investment in technology has a direct link to a business objective. This kind of decision making won’t happen overnight. You’re going to have to take the time to create internal processes that will allow your staff to learn how to make the correct investment decisions.

Once again, good communication is at the heart of any well run organization. You need to make sure that EVERYONE knows what the expected outcomes are and what the expected business results are. This will establish a sense of ownership and will make sure that everyone has “skin in the game”.

Measure, Measure, Measure

The best IT programs in the world don’t amount for much if you can’t determine what their impact was. You need to monitor the outcomes of each IT investment decision so that your decision making process just keeps getting better.

This is where IT folks can really shine: collect those metrics, stats, and usage data and use these numbers to measure impacts and report results.

Final Thoughts

As you can see, the steps that we need to take to align technology and business are pretty straightforward. The challenge is that this calls out not for a technology solution, but rather for a human-to-human solution. Within IT we’re great at writing code and hooking up new systems, now we just have to do a better job of talking and communicating with the rest of the company.

Questions For You

Within your firm, do you feel that you have a clear vision or is it just a piece of paper on the wall? Do you know how the company is going to achieve its stated goals? Are there effective ways to measure your IT results in place today? Leave me a comment and let me know what you are thinking.

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Coming Up Next Time

HP’s CIO Randy Mott has done some fantastic things in helping to turn the company around. However, now things are starting to get tricky and it’s not clear that the company is going to be able to continue to be successful…

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Posted in alignment | 5 Comments »

The Problem With Apple: Product Or Platform?

Wednesday, April 22nd, 2009
Apple Is Starting To Play A Bigger Role In Every IT Department - Are You Ready?

Apple Is Starting To Play A Bigger Role In Every IT Department - Are You Ready?

In the world of IT we deal with lots of different questions: what project to take on, how best to align with the business, how to improve processes. One thing that we don’t really spend much time thinking about is if our applications should run on Microsoft or Apple platforms. Hmm, has Apple missed the boat here?

I bring this up as a discussion point because, let’s face it, Apple makes some fantastic products. Starting with the Mac, they went on to produce the PowerBook, the Newton (come on, you remember that one), the iPod, the iPhone, etc. However, they’ve never really been a platform company.

I’m playing games with words here and perhaps I should better explain myself. Michael Cusumano over at the Communications of the ACM gave this some thought awhile back and I think that he was on to something. He defined a platform as being something that had open interfaces and for which further development was encouraged and licensed. Apple doesn’t do this.

From an IT perspective, this causes a number of problems. There’s no question that Apple products are “sexy” and easy to use. However, since there is all too often only one source for features and applications, an ecosystem comparable to that which developed around Microsoft products never arose.

No big deal you say – Apple products are only found in graphic design shops and educational environments. Well, up until the iPhone came out I would have agreed with you. However, the runaway success of the iPhone and the demand for iPhone apps from the Apple store is starting to make it look like a dominate mobile computing platform.

As more and more of your staff start showing up sporting Apple iPhones, you are going to start to feel pressure to come up with ways to iPhone enable your IT department’s apps. This can be done, it’s just that you’ll find that it’s not as easy as connecting a Microsoft PC to your network.

Times are changing and Apple still makes great products. However, since they are not in the business of making platforms you’ve got your work cut out for you…

Do you already have Apple products that people are trying to hook into your network? Have you started to support these products? Does your staff have iPhones? Do they want to use these iPhones to access your network? Leave me a comment and let me know what you are thinking.

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Posted in technologies | 10 Comments »

Why Don’t IT Alliances Work Out?

Monday, April 20th, 2009

IT Department Alliances Can Make Everyone Stronger - If They Are Done Correctly

IT Department Alliances Can Make Everyone Stronger - If They Are Done Correctly

You would think that the more alliances that your company / IT department makes with other firms, then the better that they would become at making them. After all, practice makes perfect – doesn’t it? It turns out that this is not always the case.

Koen Heimeriks has spent time studying 200 firms that had formed more than 3,400 alliances. What he has found just might surprise you.

He found that those firms that had the most experience striking up alliances actually had worse results when compared to those firms who had moderate experience.

Why the difference? It turns out that there are two problems that develop in firms that already have  a number of alliances:

  1. they have a tendency to become overconfident in their alliance building skills, and
  2. they can develop learnings about alliances that are in actuality based on unsupported ideas about cause and effect.

So what can make an IT department’s alliance with another firm actually work out well? It turns out that it’s the methods and procedures that the firm uses to create alliances that will determine their eventual success. Established firms that already have many alliances will probably have rigid and inflexible business processes for making decisions and selecting partners.

However, IT departments with fewer existing alliances will have more flexibility built into their processes. An example of this would be where employees who have worked on previous alliances share information with the employees who are trying to create a new alliance. This type of discussion can lead to experimentation and allows novel approaches to each alliance opportunity.

So in the end, what does all of this lead to? Heimeriks reports that the larger firms who had many alliances and a more rigid alliance creation process had an alliance success rate of around 50%. Those firms that had fewer alliances and a more flexible alliance creation process had an alliance success rate of around 71%. Sure looks like flexible processes are the key to successful IT alliances!

Does your IT department have any alliances with outside firms? Would you say that you have a lot or a few of these alliances? Are they generally successful or not so successful? Do you feel that your alliance creation processes are fixed or flexible? Leave me a comment and let me know what you are thinking.

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Posted in process | 2 Comments »

Hey IT – Forget ITIL, Say Hello To BDIM!

Wednesday, April 8th, 2009

There's A New IT Management Process In Town - BDIM

There's A New IT Management Process In Town - BDIM

The world of IT is changing once again, are you ready? We have evolved a great deal in the last thirty years and it looks like we’re getting ready to make another great leap forward. This time around we have a name for what’s going to happen and it’s called business-driven IT management (BDIM)!

Antão Moura and Claudio Bartolini have been looking at how IT is managed and they’ve discovered that we’re getting ready for another change. Back at the end of the 1980′s IT management was all about tracking boxes and routers. This was the era of IT infrastructure management.

Stability and control were the key drivers behind this effort. IT acted as a technology provider – IT folks were technical experts and their goal was to minimize down time.

In the past few years this style of IT management has changed. Now IT looks less at the infrastructure and more at the end user. IT now practices what is called IT Service Management (ITSM). The thinking is that IT services use groups of IT infrastructure components to help corporate users (and customers) to do business with the firm.

Viewed this way, IT has become a service provider. The downfall of this is that IT is still viewed as being separate from the rest of the business. The rest of the business believes that IT is mainly concerned with expense control. This has caused one of the firm’s greatest concerns to become the issue of business-IT alignment.

We’ve come up with a whole bunch of technical ways to keep track of how the IT infrastructure is performing in order to ensure that our services are meeting their performance levels. These tools include quality of service (QoS), service level agreements (SLAs), and when you combine both of these you get service level objectives (SLOs).

The arrival of the IT Infrastructure Library (ITIL) set of best practice standards has provided a way to deliver IT governance which seeks to ensure that IT risks are mitigated, IT is aligned with the rest of the firm, and that the expected results are achieved.

The problem with all of this is that the best practices, such as ITIL, are very useful, but they just don’t go far enough toward providing concrete solutions.

This has led to the creation of the business-driven IT management (BDIM) approach to IT management. The goal of BDIM is to move IT one step further and start to use a full business perspective to mange IT. This means that we would need to stop using technical metrics measured at the IT level.

This can get a bit difficult to grasp, so here are a few IT management questions posed in BDIM format:

  • Of all the IT incidents that are occurring RIGHT NOW, which is impacting the business the most and thus should be worked on now?
  • Which services should we invest in to improve business results?
  • How many standby servers should we have for our e-commerce site?

Since I know some you may still be struggling, here is a formal definition of BDIM:

“BDIM is the application of a set of models, practices, techniques, and tools to map and to quantitatively evaluate interdependencies between business performance and IT solutions – and using the quantified evaluation – to improve the IT  solutions’ quality of service and related business results”

BDIM is still in the development stages. Models have to be created, how it related to the ITIL processes will have to be worked out, and creating BDIM decision support related tools will have to be done. However, yet another IT management change is almost upon us – and it’s name is BDIM.

Does your IT shop still use the IT infrastructure management approach or have you moved on to the IT Service Management approach? Is your IT shop seen as separate from the rest of the business or do you think that you’ve achieved business alignment? Leave me a comment and let me know what you are thinking.

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Posted in alignment | 5 Comments »

Is Allstate’s IT Department In Good Hands?

Wednesday, March 18th, 2009
Allstate Is Doing Interesting Things To Ride Out The Recession

Allstate Is Doing Interesting Things To Ride Out The Recession

Awhile ago over at the Wall Street Journal they had a chance to sit down and have a talk with Catherine Brune who is the CIO over at the big insurance company Allstate. Catherine had some interesting things to say about how she is adapting Allstate’s IT operations and strategy to deal with the current recession.

First off, Catherine pointed out that she sees opportunity in the times that we are currently living in. Specifically, she noted that yes, everything will eventually recover, and firms need to make sure that they will be ready to seize the moment when this occurs. IT will play a major role in making sure that any firm is ready to do this.

Allstate is currently in the process of re-prioritizing all of its IT projects (no surprise there, eh?) The way that they are going about doing this is by taking a look at what the project would produce once it was completed. They then ask “is this something that customers are asking for?” If it isn’t, then that project get shelved.

It turns out that this is actually pretty hard to do because every project is related to other projects. That means that that shelving one project may result in a number of other projects also being shelved. The key to doing this right is to take the time up front and map out the dependencies between IT projects.

Allstate’s IT department realizes that they need to support the rest of the business. This means that they find themselves living in both the world of IT and the world of business. They do this by focusing on business processes and how IT can help. The key here, however, is to make sure that they don’t automate a bad business process.

Finally, Allstate has adopted the ITIL (Information Technology Infrastructure Library) set of best practices in order to run their shop. This basically means that there is a form for just about everything that you’d want to do. This has simplified the routine parts of running the IT department.

Is your IT department currently reprioritizing your current projects? Have you created a dependency map? How involved in automating business processes are you? Does your IT shop use the ITIL practices? Leave me a comment and let me know what you are thinking.

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Posted in leadership | No Comments »

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