This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/build-an-it-service-strategy-leveraged-by-itil-v2-and-3-design-spell-out-it-activities-from-a-demand-and-supplier-side-282
The "Deliver Business Value with IT" series provides a good overview and actionable material of the ways a CIO can provide valuable and effective support to your company strategy and leverages business model concepts to deliver business value from IT. Martin Palmgren propose an extremely solid piece of work that comes across as the A-Z reference of how to execute and implement IT strategy from a CEO and CIO level perspective."
Executive Summary:
The CIO and the IT Department need to position as premium provider of IT services and focus on value to cost.
In order to avoid the "do we really need a CIO and IT department to bother us with technology when we can use the cloud?" the CIO has to ensure that the business strategy and business objectives are supported by IT (from a Business and IT architecture perspective). Where the IT Strategy support Strategy execution, "Time to Market", Cost Effectiveness and stakeholder expectations from an Executive, Business Unit, IT Management and IT Risk Management perspective.
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Build an IT Service Strategy Leveraged by ITIL V2 & 3 Design - Spell out IT Activities from a Demand and Supplier Side
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Copyright 2012 COMMUNICATE!
Build an effective IT Delivery Model to
meet Business Needs!
- To deliver to set business strategy and objectives !
!!
Break Out or How do we do this!
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CEO, CFO, CIO, CTO, SVP, Architects, Strategy, Business Executives
and the IT function in general. !
Target Audience!
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BrightTalk Thought Leadership: http://www.brighttalk.com/community/it-service-management/webcasts?q=martin+palmgren !
Get your cloud strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/29211 !
Get your IT Service Strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/23630!
Leverage Strategy with IT: http://www.brighttalk.com/community/it-service-management/webcast/534/22934 !
Cloud Computing: Fluff or Lightening? http://www.brighttalk.com/community/it-service-management/webcast/534/21892 !
Run IT as a Service Business! http://www.brighttalk.com/community/it-service-management/webcast/534/21389 !
In French: !
Cloud Computing : La tête dans les nuages?: http://www.brighttalk.com/community/it-service-management/webcast/534/21919 !
Baseline: Coût, Consommation, chargeback et contribution IT aux objectifs de l'entreprise : !
http://www.brighttalk.com/community/it-service-management/webcast/534/21388!
Deliver Business Value with IT (the book) https://www.smashwords.com/books/view/290604 (the blog) http://
deliverbusinessvaluewithit.wordpress.com /!
I also share perspective @ some of the top French Business Schools, notably EDHEC!
International Thought Leadership!
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Copyright 2012 COMMUNICATE!
Build an IT (Service) Strategy!
- Leveraged by ITIL V 2 & 3!
!!
By
Martin Palmgren, IT Strategy and Transformation Executive @ .COMMUNICATE
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Design, Build, Run!
• Design the Business (IT) Value Proposition ()!
• “Canvas” the IT Service Strategy ()!
• Develop a High level picture of the Business (IT)
Strategy ()!
• Articulate the Business (IT) Strategy ()!
• Develop the Business (IT) Service Strategy ()!
• Build the Business (IT) Service Strategy ()!
• Govern the the Business (IT) Service Strategy () !
• Design the Technology Architecture ()!
• Build the Sourcing Strategy ()!
• Develop the Program Plan ()!
• Leverage Business Strategy Execution ()!
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The IT department deliver effective services !
1. Define services!
•
Clearly defined portfolio of products and services and aligned to business
goals and priorities!
•
Costs are understood for each service with a TDABC analysis for resource
capacity, Asset consumption by service is established!
•
Best practice Asset Management practices are in place and IT leverages
frameworks.!
As we understand demand and cost drivers
!
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Focus on business value!
3. Business proposition!
Options are presented to management: In-house, shared services, outsourcing,
cloud sourcing, etc!
•
•
•
•
•
Key IT projects deliver value as planned!
Strategic IT opportunities are identified but not articulated!
The Board will be presented with risk assessment decisions on critical
initiatives!
Position IT services in relation to the competition and industry!
IT analyse competitor's IT initiatives!
And solutions as needed
!
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Institutionalise: Shared Infrastructure!
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Options are presented to management: In-house, shared services, outsourcing!
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Leverage competitive advantage: Provide competitive advantage with a
focus on business value!
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4. Governance in place!
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Best practices processes continuously improved!
Governance blueprint designed and operating!
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IT investments reflect:!
3. Business proposition!
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Key IT projects deliver value as planned!
Strategic IT opportunities are identified but not articulated!
The Board will be presented with risk assessment decisions on critical initiatives!
Position IT services in relation to the competition and industry!
!
IT analyse competitor's IT initiatives!
1. The strategic intent of the Board!
2. Business goal and priorities!
3. A clear IT portfolio of projects and services!
4. A Service Portfolio alignment to business goals and priorities!
!
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IT investments deliver a good return on investment!
The IT Steering Committee will initiate a strategic IT competitive analysis!
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Stabilise: Understand demand and cost drivers!
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Consolidate: Provide Better Information!
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1. Service definition!
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Clearly defined portfolio of products and services: - Portfolio aligned to
business goals and priorities!
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Customer base and demand is clearly defined: !
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Costs are understood for each service: - TDABC analysis for resource
capacity, Asset consumption by service is established!
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Prices / SLAʼs for services are established: !
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Best practice Asset Management practices are in place. - IT leverages best
practice such as VALIT, COBIT, RISKIT, ITIL,CMMI, TOGAF.!
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2. Market definition!
- Who is consuming what services!
- Internal rates compared to outside marketplace for IT (Make or Buy)!
To the Strategic Plan!
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9. Strategic!
Tactic!
Operational!
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Strategy!
Process!
We deliver competitive services, execute strategy
effectively and measure the added value to optimise
investment in IT!!
Leverage competitive advantage!
Strategic!
Tactic!
Institutionalise!
Consolidate!
Operational!
Stabilise!
Time to Market (Performance & Conformity)!
Application support !
Vendor Driven!
Execute Business Strategy!
Business Architecture!
and deliver competitive services!
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Focus on strategy execution !
!
!
Assess the Business (IT) strategy !
!
Develop an understanding of the Business (IT) Strategy and how the IT department will deliver
effectively to support strategy execution: !
!
Objective: To develop a comprehensive understanding of the business environment and future
direction in order to identify areas of strategic IT opportunities and as the basis to develop the IT
strategy.!
!
Benefit: A Clear business vision and direction avoids dispersed, conflicting, non-value added
activities and costs and enable a clear focus on the chosen markets / products / services. The
establishment of an agreed business vision provides an understanding for how IT can/should
contribute to business objectives and how ROI can be driven from IT investments. As you establish
the need for and agree on the scope/focus of the IT strategy engagement, it is important to develop
a sense of the business environment and future direction. This understanding of the organisationʼs
present and future is documented and is used to determine how IT will be leveraged.!
!
It should be clearly understood that this activity is not intended to build the business vision but to
support the roll out of an established business vision. The purpose of this activity is to understand
the business, its internal and external environment and make explicit any unstated or inadequately
articulated business values and vision elements to build a firm platform for the project.!
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Focus on strategy execution !
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Assess the Business (IT) strategy !
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Develop an understanding of the Business (IT) Strategy and how the IT department will deliver
effectively to support strategy execution: Confirm business vision !
!
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It is important to understand both the vision and the extent to which it has been communicated
throughout the organisation and “bought in to” by Stakeholder, key influencers and end users.!
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In the event of a non articulated vision for the organisation, it should be agreed that a consensus
approach is required to build one. A visioning workshop should be conducted with key stakeholders. !
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Focus on strategy execution !
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Assess the Business (IT) strategy!
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Develop an understanding of the Business (IT) Strategy and how the IT department will deliver
effectively to support strategy execution: Confirm External Environment !
!
The Business Profile developed should have identified a large number of organisational and
industry key issues. These will set the direction and focus of the review of the strategic analysis and
highlight material areas which have not been considered/ignored in the development of the Business
(IT) Strategy plan. An analysis of the external environment will involve: political, economic, social
and technological forces impact the business; suppliers and customers; threat of new entrants;
possible substitution effects; the competitive arena and the business relative positioning.!
!
!
!
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!
Focus on strategy execution !
!
Assess the Business (IT) strategy!
!
Develop an understanding of the Business (IT) Strategy and how the IT department will deliver
effectively to support strategy execution: Confirm IT Value Proposition and Product / Service offer!
The value proposition clearly articulates how value is defined by the stakeholder. It will differ by
stakeholder and be defined by cost and demand drivers in regards of business drivers and
objectives.!
!
Further comprehension of expectations on the “IT Value Proposition” that is how do we (are we
expected to) deliver IT services to business needs is achieved by conducting interviews with key
executives and an analysis of stakeholder surveys.!
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Copyright 2012 COMMUNICATE!
!
Focus on strategy execution !
!
!
Assess the Business (IT) strategy!
!
Develop an understanding of the Business (IT) Strategy and how the IT department will deliver
effectively to support strategy execution: Confirm Business (IT) Strategy, Objectives and Goals !
The business strategy and plan based on available data follows logically from it. The
organisationʼs business imperatives, strategies, goals and objectives with Critical Success Factors
within the control of the organisation are identified and documented. !
!
!
!
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!
Focus on strategy execution !
!
!
Assess the Business (IT) strategy!
!
Develop an understanding of the Business (IT) Strategy and how the IT department will deliver
effectively to support strategy execution: Validate the Business (IT) Strategy!
Does IT support strategy execution with a clear IT Business Model and Value Proposition
articulated in a service strategy?!
!
Focus on the validation of the IT strategy and direction. Where certain areas are less focused,
dispersed or contradict elements of the Business (IT) strategy it is necessary to undertake
incremental strategic analysis. The extent to which this is necessary or desirable depend on if the
area of concern is fundamental to the entire Business Strategy & impact on the Business (IT)
Strategy. !
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Focus on strategy execution !
!
!
Develop a high level picture of the Business (IT) Strategy!
!
Develop a high level picture of the Business (IT) Strategy !
A high level picture of the Business (IT) Strategy contains a description of the Business Strategy
with Business Drivers and Objectives, how IT support strategy execution, the needed competencies
and resources. This picture is developed as we consider a number of aspects of the Business (IT)
Strategy such as the subsequent value chain, process architecture, information/data architecture,
organisation charts and skills and competencies. !
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Focus on strategy execution !
!
!
Develop a high level picture of the Business (IT) Strategy!
!
Develop a high level picture of the Business (IT) Strategy: Determine the leverage of IT to
support strategy execution !
The extent to which IT is used as an organisational asset is an indication of Key Business
Stakeholders Perception of IT as critical lever and drives the value the organisation places on it.
This in turn will determine the nature and quality of information technology in use in the organisation.
The importance of IT on the boardʼs agenda usually provides a good indication of the value the
organisation places on IT. A SWOT analysis could be performed on the IT Strategy to highlight
critical “hot spots”.!
!
!
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Focus on strategy execution !
!
!
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Develop a high level picture of the Business (IT) Strategy!
!
Develop a high level picture of the Business (IT) Strategy: Identify high level IT enabled business
opportunities - Identify Focus Areas !
!
To identify the areas of the organisation that are critical to the success of the business strategy
we focus on business drivers and objectives. This involves to map prioritised IT objectives to high
level business drivers and objectives. !
!
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Focus on strategy execution !
!
!
!
Develop a high level picture of the Business (IT) Strategy!
!
Develop a high level picture of the Business (IT) Strategy: Identify high level IT enabled business
opportunities - Identify scope/opportunities for improvement !
!
To identify opportunities for improvement and get a first, high level, view of the potential benefits
available to the organisation, we map the Business Strategy with Business Drivers and Objectives to
the current IT service strategy. !
!
The gap should be used to determine the scope of possible improvements. In addition to the
benefits the opportunities are likely to bring in, a preliminary identification of the associated risk and
cost is made. The scope / opportunities are validated and recorded on the ʻAs-Isʼ process model to
ensure that the widest possible acceptance of this picture is achieved among management and staff
not only involved in but are affected by the process. It should be noted that the opportunities
identified in this task will primarily have a business focus. This analysis results in the first view of the
Business (IT) Strategy business case.!
!
!
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Focus on strategy execution !
!
Develop a high level picture of the Business (IT) Strategy!
!
Develop a high level picture of the Business (IT) Strategy: Identify high level IT enabled business
opportunities - Ensure stakeholder “buy in” and sponsorship !
!
To ensure that stakeholders, top management, IT management and other business managers
have been involved in and have “bought in” to the output we need to understand stakeholder
expectations and deliver to the latter. Adequate buy-in at appropriate levels from all stakeholders is
critical to the success of the engagement. If appropriate sponsorship is not visible at all stages, the
quality of the work effectuated and the ability to implement the solution will be limited. Appropriate
action should be taken to ensure that the interest and sponsorship of top management is sustained
throughout the engagement. The key to maintain sponsorship is to keep relevant stakeholders
informed and to demonstrate the benefits case as it develops with the delivery of quick wins. !
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Design, Build, Run!
• Articulate the Business (IT) Strategy ()!
!
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- Draw the current Business (IT) Service Strategy ()!
- Scope ()!
- IT Review ()!
- Inventory of the existing IT and plan review scope and detail ()!
- Understand and assess overall Alignment of IT to the business ()!
- IT Benefits Review ()!
- Assess the Business (IT) relationship ()!
- Applications Review ()!
- Applications Portfolio Review ()!
- Assess IT programmes / projects ()!
- Assess Stakeholders Priorities, Maturity and Satisfaction ()!
!
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Business Context!
Business Strategy!
IT Business Model & Value Proposition!
Business Operations!
Service strategy (ITIL) !
Delivery capability (VALIT, COBIT, RISKIT, CMMI, eSCM, ITDB)!
Architecture (TOGAF)!
Business Value!
Security (ISO 9000, 20/ 27 000)!
For Effective Governance, Risk, Compliance!
Draw the current Business (IT) Service Strategy!
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Focus on strategy execution !
!
!
Assess the As – Is of the Business (IT) Service Strategy !
!
Draw the current Business (IT) Service Strategy: IT Review !
!
An assessment of the existing The IT Business Model and Value proposition with a Service
Strategy, IT Delivery Capability, Architecture and Security model is an essential and integral part of
the IT strategy engagement. The nature and extent of the assessment will vary in each engagement.
This assessment provides the ʻAs-Isʼ picture that will be the point of departure for the Business (IT)
Strategy.!
!
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Focus on strategy execution !
!
!
Assess the As – Is of the Business (IT) Service Strategy!
!
Draw the current Business (IT) Service Strategy: Understand and assess overall Alignment of IT
to the business !
!
!
The purpose of this task is to understand how well existing IT is aligned to the business. The
effectiveness of the IT strategy and the extent of IT leverage to the business strategy can be
assessed as we determine that IT investments match with business priorities and the extent of IT
support to business requirements and priorities.!
!
!
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Focus on strategy execution !
!
!
Assess the As – Is of the Business (IT) Service Strategy!
!
Draw the current Business (IT) Service Strategy: Assess the Business (IT) relationship!
!
The relationship between IT (the supply side) and the Users (the demand side) will depend on
the extent of integration of IT in the organisation. Traditionally, IT was a separate department with
varying degree of autonomy depending on whether it was a cost or a profit centre.!
!
A focus on strategy execution with business objectives and drivers forces the identification of a
service strategy, delivery capability, architecture and security and will help you assess the
expectations of the business stake holders.!
!
!
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Focus on strategy execution !
!
!
Assess the As – Is of the Business (IT) Service Strategy!
!
Draw the current Business (IT) Service Strategy: Applications Portfolio Review!
The existing portfolio of applications should be assessed by functional and technical quality. The
two views provide the demand and supply side perspectives. The functional quality provides the
userʼ perception of how well existing applications support the business. The technical quality
provides the IT departments perception of how good the applications are from a technical standpoint.
It is important to identify all applications that are to be included in the analysis.!
!
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Focus on strategy execution !
!
Assess the As – Is of the Business (IT) Service Strategy!
!
Draw the current Business (IT) Service Strategy: Assess Stakeholders Priorities, Maturity and
Satisfaction !
!
Stakeholder priorities, Maturity and Satisfaction should be assessed to complete the
understanding of the reasons for the existing effectiveness of IT in the organisation. Stakeholder
priorities can be assessed by structured interviews of selected stakeholders to understand users
priorities, IT skills, involvement in and satisfaction with IT. Alternatively, a user maturity assessment
can be made via a workshop with IT and business representatives (or separately if needed) - any
significant differences in views can be a measure of misalignment between IT and the business.!
!
User satisfaction across different services provided by IT such as Operations, Supply of solutions
and Support can be measured and assessed with Key Performance Indicators.!
!
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Focus on strategy execution !
!
!
Assess the As – Is of the Business (IT) Service Strategy!
!
Draw the current Business (IT) Service Strategy: Assess IT Talent and Organisational Skills !
!
In order to develop an IT skills and competency profile to support the development of the IT
strategy, it is important to undertake an assessment of the skills and competencies of the IT staff.
This review can be completed with an activity analysis of staff to support the development of a talent
profile. An IT skills survey questionnaires can be appropriately conceived and distributed. An activity
questionnaire can also be distributed or alternatively, timesheets can be analysed. The results
should be analysed and staff experience, skills, competency and activity profiles prepared and
results summarised. Results should clearly identify strengths and weaknesses of existing staff in the
context of the relevant business strategy.!
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Focus on strategy execution !
!
Assess the As – Is of the Business (IT) Service Strategy!
!
Draw the current Business (IT) Service Strategy: Review of External Services !
!
Where the organisation has an IT service provided by a third party supplier, the relationship
between the service provider and IT on the one hand and Users on the other should be examined as
this represents an extension of the IT supply chain. Several aspects of the external service need to
be assessed. The first of these is the ʻpartnershipʼ or the relationship between the service provider
and the client organisation. In this context the IT function will be both a supplier (to business users)
and a user (of the service from the third party supplier). This dual relationship requires greater
management sophistication than required of the simple IT function. The second aspect of the review
is the user satisfaction expressed in regards of externally provided services.!
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Design, Build, Run!
• Develop the Business (IT) Service Strategy ()!
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- Draw the future Business (IT) Service Strategy ()!
- Business (IT) Vision ()!
- Set stretch targets ()!
- Consolidate Business IT opportunities of improvement ()!
- Service Strategy ()!
- Delivery Capability ()!
- Architecture ()!
- Security ()!
- Determine competencies/skills required ()!
- Prepare the “Service Strategy” business case ()!
!
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Articulate the Business (IT) Service Strategy!!
!
!
!
Develop the Business (IT) Service Strategy!
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Draw the future Business (IT) Service Strategy: Business (IT) Vision !
!
The Business (IT) Vision set to strategic direction, stretch targets and design principles will be
developed to conceive a ʻTo-Beʼ Business (IT) Model and Value Proposition. The model specifies
objectives and drivers to the required level of detail and identifies the types of measures which will
apply to each part of the organisation. !
!
A range of different scenario, based on a combination of strategic objectives and business
drivers and technology will be created to start with. The benefit / risk / cost / time profile associated
with each of the scenarios can be used to eliminate less attractive propositions. Sourcing
alternatives should also be considered while developing the ʻTo-Beʼ Business IT model. If consistent
with business principles and priorities, it is possible that certain ʻnon-coreʼ services should be a
candidate for outsourced supply based on Demand and Cost Drivers (internal / external shared
service centre, outsourced or cloud(out)sourced). !
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Articulate the Business (IT) Service Strategy!!
!
!
!
Develop the Business (IT) Service Strategy!
!
Draw the future Business (IT) Service Strategy: Consolidate Business IT opportunities of improvement!
!
!
!
To develop the Business (IT) Model the strategic preferences of identified stakeholders are used
to develop themes to address business / information technology opportunities. The latter could
range from “to extend the value chain to customers and suppliers” to support the business strategy
or use of new technology to underpin performance improvement. !
!
Opportunities should reflect the Business Strategy that is: Strategy execution, Business
objectives and drivers.!
!
Input from best practice models, industry benchmark and technology practices should be used to
identify available opportunities. To meet stakeholder needs, incorporate new technologies to out
perform competition and capture revenue are some examples of strategy considerations to improve
business performance. Improvement opportunities are formulated and grouped as common
elements to evaluate available options. !
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Articulate the Business (IT) Service Strategy!!
!
Develop the Business (IT) Service Strategy!
!
Draw the future Business (IT) Service Strategy: Delivery Capability!
!
!
!
Delivery Capability ensures that the IT Business is able to deliver IT capability to Execute the
Business Strategy. The Delivery Capability perspective provides the basis to identify the projects
and standards required to achieve to the desired future state. !
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Articulate the Business (IT) Service Strategy!!
!
Develop the Business (IT) Service Strategy!
!
Draw the future Business (IT) Service Strategy: Security!
!
Security defines how the IT Business will ensure IT RISK and Business Continuity in the future.
The Security perspective provides the basis to identify projects and standards required to achieve to
the desired future state. !
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Articulate the Business (IT) Service Strategy!!
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Develop the Business (IT) Service Strategy!
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Draw the future Business (IT) Service Strategy: Prepare the “Service Strategy” business case !
The last step is to prepare a set of “Service Strategy” business cases that define the projects
required to deliver to the ʻTo-Beʼ Business (IT) Strategy Execution Model. A business case will
identify tasks, resources, time lines, milestones, benefits and risks of identified projects. !
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Articulate the Business (IT) Service Strategy!
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Build the Business (IT) Service Strategy!
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Build the Business (IT) service strategy:!
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Question:!
What is the structure of services, applications, information and data needed to support the business
in the future?!
!
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Objective:!
To identify how services, applications, information and data will be structured to support the ʻTo-Beʼ
business architecture.!
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Benefit:!
Increase the flexibility of information systems to adapt to changing business needs and provide the
information needed to manage the business.!
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Articulate the Business (IT) Service Strategy!
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Build the Business (IT) Service Strategy!
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Build the Business (IT) service strategy: Develop the Information Architecture!
!
Further techniques, such a data normalisation, can be used to rationalise data group and link
data. The exercise is best performed with a small group of talent with at least one experienced data
modeller. The results is then validated with a wider business audience for buy-in and verification.!
!
Workshops are used to identify responsibilities for ownership and maintenance of critical
information and data the establishment of appropriate business drivers and subsequent processes
included. !
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Articulate the Business (IT) Service Strategy!!
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Build the Business (IT) Service Strategy!
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Build the Business (IT) service strategy: Define Information/Applications Architecture
Implementation Policies/ Principles & Standards !
Once the information and applications architecture has been defined, a set of policies, principles
and standards for implementing this architecture has to be established. This will include policies and
principles for package preferred solutions, replacement of applications/modules, integration and
interface standards for current and future components of the information and applications
architecture and responsibilities for maintaining architectural compliance.!
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Design, Build, Run!
• Govern the the Business (IT) Service Strategy ()!
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- Define the role of the IT Department and scope of the IT !
function ()!
- Define IT management principles and policies ()!
- Define IT management practices ()!
- Define Critical Success Factors and Performance Metrics ()!
- Define the IT Organisational structure ()!
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Articulate the Business (IT) Service Strategy!
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Govern the Business (IT) Service Strategy !
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Govern the Business (IT) Service Strategy: Define the role of the IT Department and scope of
the IT function!
!
We define the role of the IT Department in the organisation as a partner in business planning
and strategy processes and an agent to support the change process, an integrator that brings focus
on business strategy execution, business drivers and objectives and identify subsequent services
and technology solutions as a cost effective provider of services.!
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Articulate the Business (IT) Service Strategy!
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Govern the Business (IT) Service Strategy !
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Govern the Business (IT) Service Strategy: Define IT management practices!
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To define the desired IT management practices and processes we need to understand that not
all management practices will be important for the future and we should focus on the key practices
that need to be improved. We need to identify a prioritised list of practices for which improvement
programs should be kicked-off as part of the overall program plan. In addition, the IT Business
Strategy should clearly relate to how it supports the Execution of the Business Strategy.!
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Articulate the Business (IT) Service Strategy!
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Govern the Business (IT) Service Strategy !
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Govern the Business (IT) Service Strategy: Define the IT Organisational structure !
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Define the IT organisational structure with the distribution of IT staff and the identification of line
and staff reporting relationships in line with the overall IT management principles defined earlier.!
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Articulate the Business (IT) Service Strategy!!
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Design the Technology Architecture !
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Define architecture framework, design principles and policies:!
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Question:!
What technology components are needed to support strategy execution with the information and
application architecture in the future? !
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Objective:!
To develop a set of technology blueprints for an integrated set of information system
components, together with a framework of standards and principles to ensure that components will
operate effectively together, and adapt readily to the evolving needs of the business and supports
strategy execution.!
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Benefit:!
As we support the strategy execution process we identify the optimal integrated set of
information systems technology components to invest in that will! best help manage information/
knowledge and adapt readily to the future needs of the business.!
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Articulate the Business (IT) Service Strategy!!
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Design the Technology Architecture !
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Define architecture framework, design principles and policies:!
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The architecture framework defines the general design principles that will the guide development
of the technology blueprints. In addition to establishing common approaches to general architectural
requirements such as flexibility and scalability, the framework provides standards and guidelines for
a number of common system design and integration issues. These are based on the application of
industry and technology best practices to the overall business information requirements that have
been defined in previous activities. The framework also identifies technology standards that will be
used to implement the infrastructure.!
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Articulate the Business (IT) Service Strategy!
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Design the Technology Architecture !
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Define architecture framework, design principles and policies: Identify ʻbest practiceʼ and “key trends”!
!
We focus on the impact of business change on best practice in regards of IT infrastructure
design to complement performed research of business and technology sources. !
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The team will review and confirms result, conduct follow-up research as needed, and then
documents findings in the form of a summary of best practices that highlights impact on the
architecture framework and blueprints.!
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Articulate the Business (IT) Service Strategy!
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Design the Technology Architecture !
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Define architecture framework, design principles and policies: Identify technology classes !
!
We use the framework identified to define specific technologies or classes of technologies that
will be used to implement the design. !
!
As we identify and prioritise the various issues to be addressed by the framework we agree on
best practices, and then identify and evaluate alternatives (where possible) that will enable an
effective migration from the As Is to the To Be. Once preferred alternatives have been identified for
all of the framework topic areas, the team conduct a systematic review to identify and resolve gaps
and inconsistencies among the various design principles and guidelines, as well as conflicts with
business drivers and other framework constraints.!
!
If existing policies or contracts specifies the use of predefined products they should be clearly
identified, since they may influence the selection of other technologies or products.!
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Articulate the Business (IT) Service Strategy!!
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Design the Technology Architecture !
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Design Technology Solutions: Define Blue Prints!
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Blueprints are defined to meet the data storage and communications capabilities required to
implement the information/applications solutions to meet agreed objectives in terms of performance,
reliability, security and evolution. This is done as we determine the technologies required at each
type of site (based on the applications and databases that run on workstations and servers located
on site), define the network and communication technologies required to provide needed
connectivity. Proof of concept testing will be required to confirm the inter-operability and
performance of the various hardware and software components. At this point the team assess how
the new technology infrastructure will need to be supported to deliver to set metrics. The final activity
in this phase revisits the business case. In the light of what has been learned through the blueprint
design process, the team will be in a good position to refine earlier projections and assumptions on
the benefits that the new architecture will be able to deliver, cost and risks involved in the
construction. This reassessment may lead to modifications in the proposed architecture.!
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Articulate the Business (IT) Service Strategy!
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Design the Technology Architecture!
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Design Technology Solutions: Define Site Technology Models !
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As we define the technology at different sites we identify boundaries between technology owned
by business divisions and external services. Captured in a blueprint they form the site technology
model.!
!
As the architecture is completed and describe the functionality, topology, and technology for all
of the applications, databases, and common services within the scope of the initiative, we turn to the
definition of technology components upon which the applications and data will be deployed across
the enterprise. As the architecture describe the "upper" layers of technology, the technology
blueprint defines the "lower" layers: Data management, access and security, Operating system,
Messaging, Network, Hardware.!
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Articulate the Business (IT) Service Strategy!!
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Design the Technology Architecture !
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Design Technology Solutions: Define the Enterprise Technology Model !
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As we draw the enterprise technology model we present a definition of the way the
organisationʼs technology infrastructure will be organised and managed; specific hardware, software
and network components and identity responsibilities for maintenance, operation and support
together with technology infrastructure components shared with suppliers/customers and/or with
outsourced service providers.!
!
The enterprise technology model is concerned with connecting the site models developed in the
previous sub-task. Once application and database functionality has been bundled in user
workstations, and these workstations have been distributed into representative sites and attached to
local networks, it is possible to model a network that responds to the aggregate demand for system
and network bandwidth resources. The enterprise technology model is also concerned with system
and network management requirements as they exist as a result of connecting the sites.!
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Articulate the Business (IT) Service Strategy!
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Design the Technology Architecture !
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Design Technology Solutions: Summarise models and define technology cost and risk!
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We consolidate technology diagrams to assess costs and risks involved with the overall
infrastructure and to define boundaries of the infrastructure, identify responsibilities for maintenance
and operations of specific applications and technologies including outsourced services. !
!
The original business case should be revisited. In light of what has been learned through the
blueprint design process, the team will be in a good position to refine earlier projections and
assumptions both on the benefits the new architecture will be able to deliver, and the cost and risk
involved in building it.!
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Articulate the Business (IT) Service Strategy!!
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Build the Sourcing Strategy !
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The focus on sourcing as a part of the service strategy is limited to the identification of an
optimal sourcing strategy for the IT Service Strategy. !
!
Question: How do we optimally source our IT requirements to execute strategy and business
drivers and objectives?!
!
Objective: The objective is to create a model to meet the IT services strategy required by the
organisation and how it should be packaged for optimal delivery. This leads to a definition of the
resources (skills and competencies) required to support and manage defined services effectively.
Service levels and key performance indicators to monitor and manage each service ʻbundleʼ are also
developed to ensure the effective management services.!
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Benefit: Define the value of services required to support the business requirements and identify
the best sourcing options for IT to meet business performance objectives.!
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Articulate the Business (IT) Service Strategy!
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Build the Sourcing Strategy !
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Develop a service architecture:!
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The Service Strategy is developed with input from the IT Assessment, Demand Side
Architecture, Technical Architecture and preliminary reflections on governance to structure an
architecture of the IT services. The architecture clearly identifies services (in-house and outsourced)
required by the organisation with skills and competencies required to effectively manage the
required services.!
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Articulate the Business (IT) Service Strategy!!
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Build the Sourcing Strategy
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Develop a service architecture: Establish guiding principles!
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To establish guiding principles to take decisions on to in-source or outsource services the key
elements considered include available skills and competencies, cost, potential for improved
productivity, effectiveness and user satisfaction to meet demand and cost drivers.!
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Articulate the Business (IT) Service Strategy!!
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Build the Sourcing Strategy
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Develop a service architecture: Evaluate sourcing options!
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All identified sourcing options should be evaluated as we look at the benefits, cost and risk
associated with each option. !
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Articulate the Business (IT) Service Strategy!
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Build the Sourcing Strategy
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Develop a service architecture: Outsource, Cloud(source) Effectively!
!
The best outsourcing agreement is not necessarily the one with the lowest price. In fact,
successful outsourcing contracts are those that strike a balance and focus on the primary goal of
meeting business needs on day one and throughout the life of the contract. Five guidelines to help
companies align their outsourcing agreements with internal strategies and requirements.
!
Five Ways to Strike the Right Balance:
1. Contract Terms – It is important for you to fully understand the terms and conditions you will live
with for many years to come. Governance, delivery locations, and clear termination language are
critical pieces of a successful outsourcing agreement.
2. Statement of Work (SOW) – SOWs should clearly define the roles and responsibilities of the
provider as well as the client side. We recommends organizing the SOW into market-based towers,
such as Server Management, Contact Center Management, Applications Development, etc. which
results in easier ʻapples to applesʼ comparisons of competing providers. Setting up the SOW this
way also makes it much easier to benchmark the price of services periodically over the term of the
contract.
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Articulate the Business (IT) Service Strategy!
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Build the Sourcing Strategy
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Develop a service architecture: Outsource, Cloud(source) Effectively!
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5. Pricing – Expect your outsourcing costs to go down over time. One of the best ways to ensure the
long-term success of your outsourcing agreement is to start with an agreement based on market
prices. This means you are starting the relationship in the right place, and any future pricing
adjustments (such as benchmark adjustments) will not be as extreme or emotional as they
otherwise might be.
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Leverage strategy execution with IT!
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Develop the Program Plan!
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Develop Program Plan: !
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Question:!
How do we sequence tasks needed to support the business strategy and what resources do we need?!
What are the capital investments and operating expenses over the next 5 years to implement the plan?!
How do we manage risk and change during implementation?!
!
Objective:!
The purpose of this step is to develop an implementation strategy and plan to effectively
manage the transition from the ʻAs-Isʼ to the ʻTo-Beʼ state.!
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Benefit:!
Business buy-in, ownership and commitment to the transition plan and its benefits.!
!
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Leverage strategy execution with IT!
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Develop the Program Plan !
Develop Program Plan: Establish Program Management Principles !
!
Program management principles are established to provide guidance to the implementation
team of the effective management and administration of all projects in the program. A workshop is
conducted to identify all program risks, barriers and critical success factors for successful
implementation. Appropriate lifecycle methodologies, work breakdown standards and project
management tools are also identified in this workshop.!
!
The development of these principles is essential for consistent quality of delivery and effective
management of resources. These also provide the program management team with the required
flexibility to meet the needs of individual projects.!
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Leverage strategy execution with IT!
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Develop the Program Plan !
Develop Program Plan: Develop a Change Program to set target!
The IT program is driven to support the Execution of the Business Strategy with a Stage Gate
implementation plan with clear objectives. !
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Leverage strategy execution with IT!
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Develop the Program Plan !
Develop Program Plan: Identify and plan for required skills and competencies
!
It is important to identify skills and competencies required to deliver the program. The skills and
competencies for each major stream and project should be identified separately and synergies to
share resources agreed on. This will require a review of priorities. !
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Leverage strategy execution with IT!
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Develop the Program Plan !
Develop Program Plan: Prepare for program implementation !
!
The implementation of the program plan involves a number of activities such as to define roles
and responsibilities, the establishment of an appropriate program organisation, the set up of
processes for risk management, issue resolution, quality management as well as program
governance and communication. !
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Leverage strategy execution with IT!
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Develop the Program Plan !
Develop Program Plan: Set up program monitoring and management mechanism !
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!
A program performance monitoring and management mechanism is established to ensure that
the benefits identified are delivered on time, to budget and the required quality. This include the
establishment of milestones and a set of performance measures that will guide the program roll-out
together with processes for risk management, issue resolution, quality management and program
reporting and communication.!
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CEO, CFO, CIO, CTO, SVP, Architects, Strategy, Business Executives
and the IT function in general. !
Target Audience!
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BrightTalk Thought Leadership: http://www.brighttalk.com/community/it-service-management/webcasts?q=martin+palmgren !
Get your cloud strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/29211 !
Get your IT Service Strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/23630!
Leverage Strategy with IT: http://www.brighttalk.com/community/it-service-management/webcast/534/22934 !
Cloud Computing: Fluff or Lightening? http://www.brighttalk.com/community/it-service-management/webcast/534/21892 !
Run IT as a Service Business! http://www.brighttalk.com/community/it-service-management/webcast/534/21389 !
In French: !
Cloud Computing : La tête dans les nuages?: http://www.brighttalk.com/community/it-service-management/webcast/534/21919 !
Baseline: Coût, Consommation, chargeback et contribution IT aux objectifs de l'entreprise : !
http://www.brighttalk.com/community/it-service-management/webcast/534/21388!
Deliver Business Value with IT (the book) https://www.smashwords.com/books/view/290604 (the blog) http://
deliverbusinessvaluewithit.wordpress.com /!
I also share perspective @ some of the top French Business Schools, notably EDHEC!
International Thought Leadership!
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