management information systems best practices in i/t william r. mussatto cyberstratgies, inc....
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Management Information SystemsBest Practices in I/T
William R. MussattoCyberStratgies, [email protected]
TopicsBest Practices in I/T
Overview: What do we mean by “best practices?”
Operational and Strategic Alignment
Best PracticesTopics
What Are Best Practices?Why Study Best Practices?Which Best Practices Do You Study?BenchmarkingBest Practice TypesSummary / Conclusions
What Are Best Practices?
End-to-End Management of Business Processes
Characteristics Recognition
as a modelby “experts”“widely” recognized
What does “best” mean?
What Are Best Practices?
Complex system of many processes but not just processes People - Process - Technology
Examples AMEX Billing
accuratehighly leveraged
FedEx Logistics
Best Practice Criteria
Public Press Exposure watch out for PR and marketing
AwardsCase StudiesBenchmarking Studies
metrics and insight comparison analysis
What Practices are Not Best Practices?
Literal Transplantation must tailor
Failure to ValidateYesterday’s NewsIrrelevantFadsVaporware/Abandon-ware
Which Best Practices?
Relevant to Your Organization Industry & Environment
Potentially High Payoff process improvement radical process innovation must pass the “so what?” test
Measurement Based Benchmarking
Traditional in I/T Organizations data center audits product testing and evaluation cost measurements performance measurements
Process Based Benchmarking
More SubtleStrategic Orientation
linked to high level business objectivesLess Mechanical
Comparison of Two Kinds of Benchmarking
Characteristic Measurement Based Process Based
Scope Single Work Group Cross-FunctionalFocus Efficiency EffectivenessObjective Problem Solving Improve Business
SupportResult Value Assessment Increase QualityImpact Narrow, Tactical Broad, Strategic
Comparison of Two Kinds of Benchmarking
Characteristic Measurement Based Process Based
Useful Life Short term MultiyearParticipants Technical manager Business managersApproach Comparative Insight basedComparisons Industry focus Best in classExpense Less than $50,000 Up to $500,000Work Effort Weeks Months
Summary / Conclusions
Study of Best Practices … helps identify what projects are necessary provides good introduction into challenges
of project managementpeople, process, technology
Study of Best Practices in I/T … highlights new role of I/T organizations underscores importance of alignment with
business goals
Operational and Strategic Alignments: Planning
Do I/T activities fit business unit plans? Best practices mean continuous planning
for both I/T and business continuous resynching and re-validating
monthly, not yearly
Right balance between short and long-term plans? time lags in order to execute
Operational and Strategic Alignments: Funding
Investing the right amount on I/T? putting money where their mouths are?
Investing in right areas of I/T?Investing adequately in infrastructure?
capital expenditures skills development and acquisition
Answer: earmarking funds to strategic projects and/or infrastructure
Operational and Strategic Alignments: Communications
Human Communications very important today because there is so
much more information (data) to communicate
data + understanding = informationDoes I/T communicate its strategic
value to its constituency? training: programming the humans helping people understand the big
picture
Operational and Strategic Alignments: Communications
Does I/T coordinate appropriately with its key stakeholders? customers employees shareholders
Answers: distribute I/T personnel throughout the
enterprise treat communications as critical
activities
Operational vs. Strategic Planning
Operational Fit
Operational Fit
Strategic Fit
Mismatch
Enabler
Low
High
Differentiator
I/T andLong-Term Business Plan Integration
View of I/T
Operational FitBest Practices in Planning
Responsive to business unit requirements somehow, someway as enterprise is responsive to customers
internal customers
Priorities set by business units what about resource contention among
different business units?need for conflict resolutions
Operational FitBest Practices in Planning
Flexible Plans reviewed frequently by business units
Timely Approval
Operational FitBest Practices in Funding
Business Units Obtain Funding I/T initiatives now business initiatives
More Flexible Budgets not once a year allocation more true in private sector than in
governmentIncentivize Investments in Infrastructure
not put off until end of year
Operational Fit: Best Practices in Communications
Effective Communications from End-Users to I/T Organizations keep developers focused on end-
users needs can lead to requirements creep
Rapid Teaming to meet market opportunities requires agility data mining
Operational FitSome Notes
Such practices begin in I/T, but only work if whole enterprise follows similar planning methods consistent process engineering
language across whole enterprise
Strategic Fit
Aligning I/T Strategies with Business Strategies higher level decisions and planning what technology is needed to support
business scope?Best practice firms have processes
supporting strategic planning and have I/T-related activities built into these processes
Strategic FitBest Practices in Planning
Involvement by all key stakeholders business units I/T strategic partners
Planning process leads to single, well-integrated business plan including clearly stated I/T component
Strategic FitBest Practices in Funding
Multiyear Plans two to three years not uncommon
Senior Execs remain actively engaged
Forums for cross-functional conflict resolution
Funding in I/T Infrastructure viewed as crucial to future competitiveness
Strategic Fit: Best Practices in Communications
Continuous Collaboration between I/T and Business Units I/T experts invited to key meetings
I/T execs wind up in “inner circle”
Funding
Communication
Planning
Aligned Action
Infrastructure Investment
CoordinatedCommunications
Aligned Planning Cycle