ITSS4370 Week 3 Flashcards
Three Themes in this Course
- introduction to IT infrastrure
-trends in IT managmnent/IT infrastrure - IT Manamgnet and Governance
-how decisions are made ab adoption, investment, implmentatiton, and deployment of IT withing organization
-orgnaizational perspectives on planning and implemenation
-useses critical capabilites of the IT-CMF and ITIL as framework for organizing discussion - Managing the IT infrastrure
IT Management Capabilities influence the organization’s ability to deploy IT infrastructure
Graph for in the firms for performance and the outcome you want is for the firms to perfrom well, do they make money do they perform well? one think that leads to fiancial performance is IT infrastrure and directly realted to that is the managment capabilities leading the IT capabilities. research shows if u have bad IT managment it gives bad performance and good managment gives good infratrue and good fiancnial performanace.
Trends from the field
its not about what you have its about how you deploy it
-Focus on customer and the business
-adapt or die-keep up with new technoligies
-grwoth in demand with flat or decling budgets
-IT as an operation expense
shifiting from cpatial expense(CAPEX) to Operation Expense(CAPEX)(pay as you go) in IT its like building ur own data center to moving to th cloud, largely driven by the cloud, third party hosting and SaaS
-Flattening of the IT organization
24.6% of survery responsdens have four or less decidated IT staff supproing their business losing IT people those middle managment people or people doing IT on the small
Organazing for Systems Manamgnet
-IT organization design factors
-infrature design factors dpeending on the type of the infrastire were using
-infrasture department w alernative locations depending on loction infrasture maybe diff
IT organization design factors
-department respoblities (roles)
-planning orienation(knowing what is going to happened when some people plan later or sooner)
-Infrasturue processes(what ur doing to mangage ur infrature some maybe using dif then others)
Basic IT organization
You have a CIO then two group underneatem ADM (application, development, maintence all software) and infrasture team now if you added adminsitration to that it would be ADM (application, development, maintence all software) and infrasture team and admin(billing, training, etc)
IT organization with DUAL manamgnet levels would be broken into first tier CIO
then applications, infrastrue, and admin
application would be broken into development and maintence and infrasture would be broken into computer operations and technical services and network services
IT Organization with Three Management Levels check graph but each acategory would be broken into 3 for instance admin and planning would be broekn into project mgmt, budge and finance, and HR planning would be broken into business rquirments and IT technical architecture
infrstrure would be broken into tech,network, customer sevices and computer operation
application maybe broken into development,maintenance, and methods and metrics
IT Organization—Three Management Levels with Business Units same as one accept the application is broken into 3 business units each with development and maintenance
business units could be by geography or by product, dog food, verbalizers, plant seeds
IT-CMF as a framework
thisis holistic framework that was designed to cover and adress everything we do to run IT(We will use IT-CMF as a holistic or overarching framework to introduce these concepts before diving deeper into infrastructure management) with a focus on delivering servirces and benefits and giving value to our customers with service mangment, project mng, software development, benefits mgt, and enterpise architecure
business value challenges for CIOs
atleast more than 2/3 organisations ay they find it difficlut to calculate return on invest for IT investment
-almost half of the organizations say their value metircs do not capture IT investments
-half of the organziations say their objectives are sceptical
-only 41% only perfom and ROI assessment
to get value from out IT investments we need to get benefits, add affordable cost, and add an approriate level of service across the full lifecycle of an IT system
NUMBER 1 ISSUE IN SIMS IT NOT ALIGHNED W BUSINESS VALUE
*****IT-CMF
IT-CMF talks about delivering business aligned value, we want to deliver value to the bufsiness and be aligned with the business through delivering IT services to them
IT capbaiblity (organziation level)- the ability to use those resources that we have to acieve the out comes that we plan
capbility depends on the compentence of peoepl
Compentecy (idndivial level)- deomonstrated ability of the indivail to apply knowlege, skills, bheavior, and attitude for achiving observalbe results
Capability is underpinned by the competencies of individuals
What is an IT Capability
Enterprice IT capability - is an integration of people (roles), process, and organziation strucute technology that provides IT services in alignmen w strategic intent and investment allocation
IT-CMF def of IT capability
IT CMF defines IT capability as “The systematinc mobislisation of IT resource in support targeted in outcoems”
systematic moblis
Systematic mobilisation - integration, reconfiguration, gain, and release
* IT-based resources -
* Tangible; e.g. financial, physical, infrastructure and human assets
* Intangible; e.g. software, data, intellectual property, branding, culture.
Definint IT capbility
what can IT do for the business, When IT capability is mature, it is
understood by business executives, becomes a differentiator in the enterprise, an is integrated into overall corporate strategy. erformance is measured by the business value that the IT organisation (and IT itself) can deliver for an organisation. This includes IT as a strategic options generator, enabling the business to react quickly to new business opportunities, and respond with innovative IT solutions.
Context for defining IT Business Value and Business Benefits: Five Principles1
- It has no value
- benefits only arise when IT enables people to do things differently
- the business gets to decide if its valuable before us and realse that busnies benefits and business value of IT
- all projects have outcomes but not all of them are good
- benefits need to be actively manged so they maintain their value
HOW it creates value
- it has to have an impact on business processes by being there in those business processes
- by manging and proccesing our information (processing, control, coordination, comm. knowdlge) and it does that in 3 unique ways 1. is automation everything is automated substituing IT for labor mchdonlas kiosk example (alue results from impacts such as labour savings, productivity improvements, and cost reductions.)
- informational effects is another way we can deliver vale with IT (emerge from IT’s capacity to collect, store, process, and
Value accrues from improved decision quality, Automational EffectsIT
disseminate information.
decreased use of resources,
enhanced organisational effectiveness better quality, and employee empowerment) 3. transofrmatonal effect transform how we do things (The value deriving from IT’s
capability to faciliate and
support process innovation
IT
Business
Transformational Effects
business value associated with these effects manifests
1Mooney, J.G., Gurbaxani,V., and Kraemer, K.L. (1996). A process oriented framework for assessing the business value of information technology. SIGMIS Database 27, 2 (April 1996), 68-81.
and transformation. The
Informational Effects
as improved revenue,
increased agility, and
product enhancement as a
result of re-designed
organisational structures.) starbucks line ex not standing in line u can just order on the app
What is IT Business Value?
the contribution that iT makes to the organization to reach its objectives
“The contribution that IT-based resources and capabilities make to helping an organization achieve its objectives.”
The realization of IT Business Value and Business Benefits depends on
ü business changes as well as technology
ü gaining commitment to achieving the benefits
ü enabling the success of the IT investment to be judged objectively, based upon
relevant and appropriate evidence2
Real-World Benefits of using IT-CMF
Intel - 25% improvement in IT capability, for a 10% reduction in overall spend
merck -8% saving in total operating budget for Technology Innovation and 20% saving of total budget for experiment execution
axa tech- 96% reduction in set-up working time for new servers
bp-IT-CMF is a key measure to track performance over time… Training and certifying senior staff in IT-CMF has significantly improved the quality and consistency of BP’s work
IT-CMF
A strategic partnership between IT and the organisation-
at-large to unlock the business value of IT
includes 4 maco capbilites: managing IT like a business, Managing the iT budge, Manging the IT capability, Managing IT for business value each critical cability sits withing a macro capbility
Hierachy of IT-CMF
IT CMF –> Macrocapbility–>cricitcal cability —> CC category—->capability buidling block—->practice outcome metric (POM)
