aligning it to corporate strategy
DESCRIPTION
Presented by Goh Boon Nam, Chief, New Initiatives & Strategic Planning, Institute of Systems Science, NUS at ISS-UXC Seminar: Move IT from Cost to Value Centre using IT Service Management and COBIT on 25 July 2014.TRANSCRIPT
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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
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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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Understand Enterprise Direction
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http://eunicechen.com/wp-content/uploads/2011/06/reflections-at-keppel-bay.jpg http://www.keppelland.com.sg/AU-Vision-And-Mission.asp
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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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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
© 2014 NUS. All Rights Reserved Unless Otherwise Stated.
ATA/Lucid/2014-07 MUS/
COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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
© 2014 NUS. All Rights Reserved Unless Otherwise Stated.
ATA/Lucid/2014-07 MUS/
COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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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© 2014 NUS. All Rights Reserved Unless Otherwise Stated.
ATA/Lucid/2014-07 MUS/
COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
Enterprise Architecture is NOT Solution Architecture
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Source : http://www.andyblumenthal.com/2007/08/enterprise-architecture-is-not.html
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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
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
Enterprise Architecture – Example
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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
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Business Architecture (2)
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Plan Improvements to Business Processes
Current Target
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Application Architecture – Current
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Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13845.pdf
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
Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13845.pdf
Streamlined Portfolio of Applications
Cost Mgt Module
streamline & remove duplicates
plan new applications
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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
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
Technology Architecture – Target
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Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13843.pdf
Streamlined Technology Architecture (example)
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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
© 2014 NUS. All Rights Reserved Unless Otherwise Stated.
ATA/Lucid/2014-07 MUS/
COBIT5 – Align IT to Corp Strategy.pptx/v1.1
Strategic Management Processes in COBIT APO (Align, Plan and Organise)
• Manage Relationships • Manage (IT) Strategy • Manage Innovation • Manage Enterprise Architecture • Manage Portfolio
34
© 2014 NUS. All Rights Reserved Unless Otherwise Stated.
ATA/Lucid/2014-07 MUS/
COBIT5 – Align IT to Corp Strategy.pptx/v1.1
Practices under COBIT “Manage Enterprise Architecture”
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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
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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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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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)
Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13840.pdf
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
Monitor Portfolio Performance / Manage Benefits Achievement
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http://aptris.com/images/servicenow-project-portfolio-management.jpg
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
Summary
• Manage Relationships • Manage (IT) Strategy • Manage Innovation • Manage Enterprise Architecture • Manage Portfolio
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Low Value Cost Centre or worse
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
Q & A
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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
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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COBIT5 – Align IT to Corp Strategy.pptx/v1.1
THE END
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