12.4 Areas of interface between IT and FF & Key performance indicators

Question 1

Traditionally, the IT function and FF worked independently:

Answer 1

• FF viewed IT as a cost and IT viewed it as an asset
• Collaboration was limited (eg: budget)

Question 2

The modern approach is to view:

Answer 2

• IT as one of the greatest assets an org has
• These functions need to for a productive partnership, given the central role technology plays in supporting modern bus and the FF

Question 3

Examples of why these two functions need to interact include:

Answer 3

• Smarter investment in IT - the expert guidance of IT on which technology will help the org achieve it’s goals and increase competitiveness is a huge benefit to the FF
• Information security and compliance - can work together to create access policies and minimize the threat of data theft and loss
• Data analytics - org are working to find ways to turn their data into actionable bus intelligence. The FF wants to make sure only the most relevant and accurate data is used for decision making. This requires the bus to apply the right combination of technologies, processes and strategies.
• Cost benefit analysis

Question 4

How FF helps to manage IT using KPIs:

Answer 4

• The IT function will identify relevant CSFs
• The KPIs are the measures that indicate whether the IT function is achieving these CSFs
• The FF works with IT function to:
  
  • Identify appropriate KPIs
  • Assemble KPI data and info
  • Analyse this for insight
  • Give advice to the IT function based on this insight
  • Apply what has been learned to impact the achievement of the objectives of the IT function and the org as a whole
• Technology will act a an enabler in this, particularly in the assembly and analysis tasks

Question 5

KPIs for IT by type of activity

Answer 5

• Operational activities - KPIs are used to monitor the day to day activity and effectiveness of the IT function
• Transformational activities - KPIs are used to measure the impact of IT initiatives in terms of better and more informed decision making
• Strategic activities - KPIs are used to monitor the progress of the IT function towards long-term strategic goals