It Governance OC CIO Nov,2013

Establishing Key IT Governance
Processes in the SMB Client Space
Orange County CIO Round Table
November 14, 2013
Jeff Crowell
EVP, UGovernIT, Inc.

uGovernIT™, Inc. Confidential ©

Establishing Key IT Governance Processes

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Agenda
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CIO View of IT Governance
The need for IT Governance
Review of the IT Governance frameworks and processes as it applies
to process maturity
Implementing IT Governance: Focus on specific company examples of
governance process development (Case Studies)
• Portfolio management and project prioritization
• IT demand management
• IT analytics capture and reporting
Lesson learned and ideas for improvement


A CIO View

3


Who is responsible for IT Governance?

5 to 20
IT Staff

S
IT Expenditures

20 to 50
IT Staff

m

$1M

$3M

$3-$10M

50 to 250+
IT Staff

M
$10-25M+

Who manages IT?
CFO
COO

4

I.T. Director

CIO
Helped by
Directors

CIO
Helped by
PMO, CTO
and VPs


CIOs are faced with 3 Concurrent Activity Streams
“Keep it running”

Business
As Usual

Innovate

Changes to operations/problems are
managed via service requests

Optimize

“Increase Revenues”
5

“Do More With Less”

These are typically your strategic
initiatives implemented to get the
best value

These projects are typically
improvements that drive efficiency
to the way business operates

The Big IT Challenge for all firms: Small or Big or In-Between
Users/Market Forces

Staff/ Vendors

1

1

Prioritizing
Activities &
Demand
Management

2

Service
Requests

•
•
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Right Balance In
Build/Buy &
In-house/Outsource

3

Enterprise
Architecture
(Cloud,
Mobility, Social
Media)

2

Keep Lights On
Improve Efficiency
Innovate

Project
Requests

3
Restraining Force
Business 1

•Example text

•Fill in your own
Changes &
•Example text
Compliance

Unlike the Federal Government, CIOs have to balance the books
This implies tying all activities to Budgets, Resources and Assets

6


Frameworks for IT Governance (CoBIT, ITIL)

Control Objectives for Information & related Technology (CoBIT)
Information Systems Audit and Control Association (ISACA) is
a set of guidelines and supporting toolset for IT Governance
that is accepted worldwide. It’s used by auditors and
companies as a way to integrate technology to implement
controls and meet specific business objectives.

The Information Technology Infrastructure Library (ITIL)
ITIL from the government of the United Kingdom offers eight
sets of management procedures in eight books: service
delivery, service support, service management, infrastructure
management, software asset management, business
perspective, security management and application
management. ITIL is a good fit for organizations concerned
about operations.

7


Frameworks for IT Governance (COSO, CMM)

Committee of Sponsoring Organizations (COSO)
This model for evaluating internal controls is from the
Committee of Sponsoring Organizations of the Treadway
Commission. It includes guidelines on many functions,
including human resource management, inbound and
outbound logistics, external resources, information technology,
risk, legal affairs, the enterprise, marketing and sales,
operations, all financial functions, procurement and reporting.
This is a more business-general framework that is less ITspecific than the others.

Capability Maturity Model Integration (CMMI)
The Capability Maturity Model Integration method, created by a
group from government, industry and Carnegie-Mellon’s
Software Engineering Institute, is a process improvement
approach that contains 22 process areas. It is divided into
appraisal, evaluation and structure. CMMI is particularly wellsuited to organizations that need help with application
development, lifecycle issues and improving the delivery of
products throughout the lifecycle.

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Evolution of IT Governance
IT Governance processes evolve over time and become either more or
less embedded into the cultural and operational fabric of the company
• The introduction and use of a set of IT Governance processes is a journey
• It starts when it becomes clear that something needs to be done
• Deciding how to introduce the requirement and how much - how fast to
implement and improve IT Governance Processes is key to success
• Need to consider the 5 level Capability Maturity Model as it applies to process
maturity

1) Initial (chaotic, ad hoc, individual heroics) - the starting point for use of a new or undocumented
repeat process.
2) Repeatable - the process is at least documented sufficiently such that repeating the same steps
may be attempted.
3) Defined - the process is defined/confirmed as a standard business process, and decomposed to
levels 0, 1 and 2 (the last being Work Instructions).
4) Managed - the process is quantitatively managed in accordance with agreed-upon metrics.
5) Optimizing - process management includes deliberate process optimization/improvement.

• Many organizations start well and then digress
• A strong change agent (Executive Leader) is usually required to get the process
started
• The IT organization has a key role in initiating the implementation

How do I?
I have a
problem

New Project
Request

RESOURCE
MANAGEMENT

PROJECT REQUESTS

SERVICE REQUESTS

Typical IT Governance Workflows

I need something

Review &
Approval Process

Asset
Management

Project Implementation
& Delivery Process

Budget
Management

Resource
Management

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Evolution of IT Governance

Maturity
Level

Efficiency

Design, develop and
deliver analytics based
insights

Continuously evolve
services to meet
user needs
Service
Management,
Project
Management

Triage and sequence
projects to meet
business needs

Competitive
advantage and
motivated Enterprise

Portfolio
Management

IT Analytics

Develop and meet
SLAs to improve
performance

Continuously evolve
capabilities to deliver
competitiveness

Continuously evolve to
innovate and add
business value

Design, develop and
deliver IT Services

User
Benefit

Business
Benefit
11

Transformational

Design, develop and
deliver technology
initiatives

Technology
Management

Tools

Effectiveness


Early Benefits of IT Governance (Efficiency)
Maturity
Level

Efficiency

ce t
rvi men
Se ve
ro
mp
I

Effectiveness

Transformational

Se
Str rvic
at e
eg
y

Ser
v
Des ice
i gn

ice
Serv ion
rat
Ope

Service
Transition

12


IT Process Overview For Design, Develop and Deliver IT Services
Manage IT Enterprise

…

* Follows

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ITIL V3 framework


ITIL V3 Process Detailed View

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Services Architecture Components Overview
Architecture

Implementation
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•

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Policies/Procedures
Roles/Responsibilities
Work Flows
Tasks
Change Management
Automation agents
Monitors and alerts
Dashboards
Reports
Escalation/SLAs
Application(s)
Interfaces
Content data
Infrastructure
Trained IT and End Users


Matured Benefits of IT Governance (Effectiveness)
Maturity
Level

Efficiency

Transformational

Po
rtf Pro
oli jec
oS t
tr a
te
gy

folio
Port ment
a ge
Man

Pro
& A ject R
ppr
e
ova quest
l Pr
oce
ss

lio t
tfo men
r
Po ve
pro
Im

Effectiveness

Project
Management

16


IT Process Overview For Design, Develop and Deliver Technology
Initiatives

…

* Follows

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ITIL V3 framework


Detailed Process View for IT Governance (Effectiveness)

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Today’s Demand from IT Governance (Transformational)
Maturity
Level

Efficiency

th e
fy
nti of IT
a
Qu alue
V

Effectiveness

Transformational

Eff Reso
ec ur
tiv ce
en
es
s

KPIs

Cor
r
Bus elation
ine
ss t of
o IT

ving
Evol

Benchmark
Analytics

19


IT Process Overview For Analytics Based Transformation

…

* Follows

20

ITIL V3 framework


Detailed Process View for Analytics Based Transformation

21


Case Study 4: Large Retailer
Maturity
Level

(Starting Point)
Efficiency

(Later)

Effectiveness

Transformational

• Company (situation a few years ago - currently a very successful company)
• $Billion plus revenue
• 90 Employee IT group
• Less than 1 % IT expense to revenue ratio
• The primary mandate for IT was to minimize expense (use equipment as long as
possible, minimize maintenance and keep IT resource cost low)
• Very unstable IT infrastructure (respond to problem environment)
• Very entrepreneurial IT management (do lots with little - part of company culture)
• Very immature IT leadership skills
• No IT career path management/investment
• Ad Hoc IT project prioritization based on influence of key business executives
• IT Leadership basically left alone to do what they think is best
• Nothing in the way of formal IT governance processes - no IT Steering Committee
• Initially no documented business strategy with goals and objectives – strategy
developed and the IT governance process was adjusted to accommodate the strategy

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Maturity
Level

Efficiency

Effectiveness

Transformational

• Initial focus was on Efficiency with no documented strategic plan to work from. A series of
core IT governance processes were developed including the IT Governance framework
• A method to quantify and evaluate IT projects was developed
• A process was developed for prioritizing these projects within the IT organization was
instituted (multi voting by IT managers with a summarized result)
• A collaboration approach was developed to share and discuss the results of the IT led
prioritization approach with the key business executive stakeholders
• The business executives then took the IT prioritization as input to their own group
discussion and agreed on a prioritization of projects
• A subsequent exercise of IT Load vs. capacity was performed to determine the projects
that would be released for that quarter

23


IT Project Selection and Approval Process Without A
Formal Strategic Plan
 A subset of the Executive Leadership (EL) members will review and approve IT projects from the
presented list of candidate projects
 This group will consist of the Senior Executives and the IT leadership and the EL project sponsor
 The CEO will decide on the order of the projects to be reviewed and request the review from the
project sponsor
 The project sponsor will present their project at a session that will typically be held on the day of
an EL meeting
 The project disposition will have three potential outcomes:
 approval to proceed
 not approved
 needs more clarity (return with answers to key questions)
 Once a project is approved it will be processed through the remaining stages of the 5 stage
justification process and released into the SDM process on its own schedule based on priority
set by the CEO
 The actual IT project start date (kick off meeting) is dependent on the IT load capacity situation
and the availability of key resources
 Any project behind timeline or over budget will be subject to cancellation or deferral at each
SDM milestone by the CEO
 ITSC monthly meeting will recap project status

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IT Project Justification/Review Session Agenda
 Overview of the Selection/Approval process
 Review of IPJ by Business Sponsor
 Sponsor walks through the IPJ summary (10 min each)
 Clearly articulates how the benefits are derived
 Discusses the cost estimates
 Discusses risks
 Talks to the project position on the strategic matrix
 Discusses readiness
 Questions and comments by group for each IPJ
 EL provides determination (or asks for more information/analysis)
 Review and discussion of new ideas not included in the current list of projects
 Sponsor presents idea/concept
 Questions and clarifications by group
 Sponsor action items identified

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Consensus IT Project Ranking
Project #

Project Name
Project 1
Project 2
Project 3
Project 4
Project 5
Project 6
Project 7
Project 8
Project 9
Project 10
Project 11

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Project Type
Revenue
Foundational
Foundational
Maintenance
Revenue
Revenue
Cost Control
Cost Control
Maintenance
Cost Control
Maintenance

IT Process Project Ranking by team 1-11 (1 - Lowest:Total
Owner
R
Jeff
J
D
11
11
11
8
41
10
9
10
5
34
9
10
8
6
33
8
6
7
11
32
4
8
6
10
28
5
7
5
9
26
7
3
9
7
26
6
5
4
4
19
3
4
2
1
10
2
1
3
3
9
1
2
1
2
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Confidential Information - Do Not Distribute

Maturity
Level

Starting Point
Efficiency

Effectiveness

Transformational

The company launched a formal initiative to develop a strategic business plan
• All key managers and executive leadership were involved
• Several off sites were conducted
• The plan objectives and goals were decomposed into various actions and projects
• The plan goals and objectives were prioritized as to their importance
•Strategic value could now be used as a key dimension for IT Projects
• The PMO function was strengthen as part of the overall approach
• Increased fidelity was introduced around project costs, risks benefits
• A basic Enterprise Architecture and project Road Map was developed and
introduced into the process
• The following slides review the Effectiveness phase in more detail

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The IT Project Portfolio Management Process Was Now Based on
the Newly Available Business Strategy
Objective and intended outcome
• Develop a set of prioritized IT projects for the 1st quarter of FY
• Use our documented business strategy as a key factor in the prioritization
process
• Use a set of parameters to describe each project
•Used the portfolio evaluation matrix (bubble chart) as a key visualization tool
• Each project was positioned in the evaluation matrix to understand its value
compared to similar projects
• The evaluation matrix considers key parameters including project size,
strategic value financial benefits, risk, and project readiness

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Process Overview - Progress to Date
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Completed two IT project prioritization sessions in each area:
• Distribution/Transportation
• Stores
• Merchandising/Planning
• Finance/HR/Admin
Evaluated load vs. capacity constraints
Looked at the readiness condition for each project
Settled on a top priority list for a subset of the projects
Defined a follow on course of action
• Further discussion/clarification of projects where the 1st QTR scope was
still somewhat unclear
• Assessing ways of resolving remaining resource issues
• Shift internal resources
• Outsourcing
• Staff augmentation (perm or contract)

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Case Study Results
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Executive leadership now part of the IT Project definition/prioritization process
Formal documentation as how the IT project process really works
Company better prepared to take on major IT initiatives (SAP ECC 6.0)
Much more realistic grasp of what can be done in a given timeframe
Realization that some projects would never get done
Greater willingness to outsource some functions
More cohesion around what is important to the company
Platform, governance roles and process to resolve IT – business conflicts
Organizing the IT Steering Committee and discussion agenda was a key part of the
new process
• Developing a first order Enterprise Architecture and including a process architecture
was needed to support the process
• The overall process was viewed favorably by the financial entity that acquired the
company

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Appendix

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Portfolio Management using Strategic Objectives and Correlation
Matrices (like QFD) for large established companies


Portfolio Management using Strategic Objectives and
Correlation Matrices (like QFD or House of Quality)
Business
Processes

Business
Applications

Business
Processes
Strategic
Objectives


How this Process Was Performed
• An initial session with the executive leadership team to prioritize the objectives
• The time frame needed to be considered
• Used a multi voting session with the executive leadership team
• Significance differences in opinion were discussed and reconciled
• The discussion was perhaps the most valuable part of the session
• A second session was held to “correlate” the objectives to their business processes
• The nuisances of the house of quality were discussed but not all resolved
• The second correlation between the business processes and the applications was
performed in a subsequent session by the IT leadership group
• Even with the process shortcomings the executive team was more aligned
• The executive team and the CEO specifically gave the process a high rating


A Lot of Business Assets Are Required to Make this Type of
Process Function Well Within the Organization
• Objectives with quantitative measures (when how much)
• A method to prioritize the objectives
• Multi voting session with the executive leadership team
• Produces a ranked list of objectives or at least a grouping by priority
• A process architecture with decomposed business processes to at least level 3
• An understandable business process description so that everyone is on the same
page
• An application architecture that describes the business domain of specific enterprise
applications
• Subsequent implementations of this process are often know as Catchball
(A management process that aligns—both vertically and horizontally—an
organization’s functions and activities with its strategic objectives)


But How Can the Portfolio Process Work effectively in Companies
without a Formal Strategic Plan
• Many SMBs do not have a documented business strategy
• It may be a work in process
• Members of the executive team may have a vision that they share and
understand
• This vision may have been communicated to the organization
• Business updates may be provided in the context of the vision
• How the company has grown may be part of the vision and how the employees
view the company
• IT is viewed as a necessary component of the business but its leverage on the
business has not been formally discussed and agreed to by the leadership

• This situation leaves a lot of room for interpretation by the middle management layer
of the company and the IT leadership and requires some form of Executive
Leadership prioritization process.

Demand Management Case Background
• Company (recent situation – suffered significant business down turn- now stabilizing)
• Approximately $100 Million in revenue with high growth aspirations
• 12 person IT department with operations in 4 countries
• Less than 1 % IT expense to revenue ratio
• IT infrastructure (Windows server environment) not well supported
• VP of IS resigned suddenly over frustration with lack of IT resources
• CEO recognized the need to quickly get some help in the IT area
• 30 % of IT staff resigned in a 6 month time frame
• Annual IT project plan with time phased expenditures in an approved budget
• No IT Steering committee
• No formal governance processes
• Big time company implementation of SAP ECC 6.0
• Also trying to fully implement SAP Business Objects
• Used SAP BPC for financial consolidation/reporting
• Put great strain on IT group


A Demand Management Approach Was Required to help Alleviate the IT Stress Level
and Improve Relationship with the User Community
Recommended Approach for the Demand Management Process:
•Define projects in a way understandable to the Leadership Team
• Size, stage, risk, expected outcome
• Review and understand any project to project dependencies or
other dependencies
•Decide on a review time frame (probably quarterly)
•Perform a group review on a company wide basis (the group has general
understanding of business priorities and needs)
• Multi vote
• Summarize results
• Discuss major differences
• Agree on a prioritized companywide list
• Reconcile with already established priorities/in process work and
adjust as necessary
•Compute load/capacity view over the quarterly time frame
•Adjust start dates to roughly match capacity and or
• Discuss actions to adjust capacity for specific project needs


The load Capacity Analysis was Completed for the SAP Area and Reviewed with the
COO for his concurrence and communication with the Executive Committee


A Simple IT Portfolio Process Was Started Within IT and Reviewed with the COO
The recommended Portfolio Management approach was initially performed by the IT
organization for IT Infrastructure Projects
IT Infrastructure Project

ID

Ensure Enterprise Wide Backup and restore
Create VM and server environment for BOBJ 4

Ent BU
BOBJ Serv

Exchange server upgrade and email retention policy

Exchange

Disaster Recovery Capability

DR

WAN/LAN Network Performance for Engineering data transmission W/L Perf
Omnify Remote Access Performance
SharePoint site Maintenance
SQL database performance and monitoring
PADS files version control
WAN connectivity assurance (failover circuit)
Finish Recommended VM actions

Omnify
S/P
SQL DB
PADS
Failover
VM

Cost $

Value

Qtr Hrs

54.7
8

10
14

83.35
165.2

11
17

50.8
1.8
0
6.04
0.9
10.8
4.08

11
6
8
13
12
10
9

180
0
150
180
40
40
80
20
20
0
40


A cost to value Quadrant was Used to Understand the Infrastructure Projects.
Key IT personnel participated in a multi voting session to agree on Value To the Business


Results of the Demand Management Approach
• The COO became a key defender of the IT situation and helped manage user
expectations/demand with the company
• IT projects are prioritized by IT and reviewed with the COO for concurrence
• IT has begun IT updates with the user organization
• IT Infrastructure projects are now launched with better IT business user
understanding of need
• Some rudimentary IT service desk weekly performance reporting was initiated
• However there is more work to be done:
• IT metrics and performance reporting needs to be expanded within the
company
• SAP projects vs. capacity needs to be reviewed beyond the COO


Overview of IT Spend Alignment
IT-Business Alignment model developed by Carnegie Mellon’s Software Engineering Institute has six criteria:
1. Communications Maturity
Effective exchange of ideas and a clear understanding of what it takes to ensure successful strategies are high on the list
of enablers and inhibitors to alignment. Too often there is little business awareness on the part of IT or little IT
appreciation on the part of the business. Given the dynamic environment in which most organizations find themselves,
ensuring ongoing knowledge sharing across organizations is paramount.
2. Competency/Value Measurement Maturity
Too many IT organization cannot demonstrate their value to business in terms that the business understands.
Frequently Business & IT metrics of value differ. Service levels that assess IT’s commitments to the business often help.
However, the service level must be expressed in terms that the business understands and accepts. The service levels
must be tied to criteria that clearly define the rewards & penalties for surpassing or missing the objectives.
Frequently, organizations devote significant resources to measuring performance factors. However, they spend much
less of their resources on taking action based on these measurements. For example, requiring a return on investment
(ROI) before a project begins, but not reviewing how well objectives were met after the project was deployed, provides
little value to the organization. It is important to continuously assess the performance metrics criteria.
3. Governance Maturity
The considerations for IT governance include how the authority for resources, risk, conflict resolution, and responsibility
for IT is shared among business partners, IT management, and service providers. Project selection and prioritization
issues are included here. Ensuring that the appropriate business and IT participants formally discuss and review the
priorities and allocation of IT resources is among the most important enablers (or inhibitors) of alignment. This decisionmaking authority needs to be clearly defined


Overview of IT Spend Alignment Con’t
IT-Business Alignment model developed by Carnegie Mellon’s Software Engineering Institute
4. Partnership Maturity
The relationship that exists among the business and IT organizations is another criterion that ranks high among the
enablers and inhibitors of alignment. Giving the IT function the opportunity to have an equal role in defining business
strategies is obviously important. However, how each organization perceives the contribution of the other, the trust that
develops among the participants, ensuring appropriate business sponsors and champions of IT endeavors, and the
sharing of risks and rewards are all major contributors to mature alignment. This partnership should evolve to a point
where IT both enables and drives changes to both business processes and business strategies. Naturally, this demands
having a clearly defined vision shared by the CIO and CEO.
5. Technology Scope Maturity
This set of criteria assesses the extent to which IT is able to go beyond the back office & front office of the organization
and its ability to assume a role of supporting a flexible infrastructure that is transparent to all business customers &
partners . The ability to evaluate and apply emerging technologies effectively, enable or drive business processes &
strategies and provide solutions customizable to customer needs.
6. Skills Maturity
This category encompasses all IT human resource considerations, such as how to hire and fire, motivate, train and
educate, and culture. Going beyond the traditional considerations such as training, salary, performance feedback, and
career opportunities, there are factors that include the organization’s cultural and social environment. For example, is the
organization ready for change in this dynamic environment? Do individuals feel personally responsible for business
innovation? Can individuals and organizations learn quickly from their experience? Does the organization leverage
innovative ideas and the spirit of entrepreneurship? These are some of the important conditions of mature
organizations.


Value Of IT Metric - EBITDA / IT Headcount
•

•
•

The numerator of Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) is a common measure of
the health of your operations. It is also the metric most frequently used for measuring senior executive
performance from an earnings perspective. It defines your core earnings potential and IT is an essential part of the
processes, work, collaboration etc that drives core earnings. It is the financial measure of productivity value that
counts.IT projects are prioritized by IT and reviewed with the COO for concurrence. The denominator, IT Headcount,
is the full time equivalents who are employed in IT. This is a measure of the efficiency and leverage the enterprise
gets from IT. By concentrating on headcount, and not budget, the CIO can show that they are managing the cost
structure of IT and that investments are made with an eye to creating a disproportionate impact on the
enterprise.IT Infrastructure projects are now launched with better IT business user understanding of need. (leave
out contractor and outsourced headcount and use only internal IT headcount)
What says everything is the progression of that metric over time. The value of IT exists over time not a point in
time. That shows that IT is well managed, has a business impact and has meaning to the enterprise. *
Some argue that EBITA is a better measure since the investment in working capital (Depreciation) should be
considered.

* Discussion from:
Mark P. McDonald
GVP EXP
8 years at Gartner
24 years IT industry
Mark McDonald, Ph.D., is a group vice president and head of research in Gartner Executive Programs. He is the coauthor of The Social Organization with Anthony Bradley

Descriptive and Predictive Analytics

Accenture Getting Serious About Analytics: Better Insights, Better Decisions, Better Outcomes

Dimensions of an IT Budget
1. Run budget items keep the organization operating. Examples of Run budget items include mission-critical server
replacements, key software upgrades and personnel costs associated with administering and maintaining the IT
infrastructure on a day-to-day basis.
Organizations that have to trim IT budgets should avoid cutting Run initiatives. Such cuts would introduce operational
risk. If an organization already is going through a tough stretch, the last thing it needs is a server, application or network
failure.
2. Grow budget items help the organization introduce new capabilities or improve existing ones. Grow initiatives could
include the implementation of new software that makes operations more efficient, the purchase of a new firewall that
provides additional protection from cyber threats or an upgrade of the organization’s website that improves
interactivity with customers.
Grow budget items should tie directly to the organization’s strategic initiatives. Grow initiatives usually are not as
mission critical as Run initiatives and often have some time flexibility, which means that they are good candidates for
starting early when additional cash is available, or for deferral if cash is tight.
3. Transform budget items are research- and-development-type activities. These initiatives might seek to identify, for
example, the right technologies for new organizational capabilities; fundamental changes to business processes; or a
new product or service offering. Examples of Transform initiatives include proof of concepts, prototypes and small-scale
testing of new systems or business applications.*

* How organizations can align technology spending with their overall mission and goals
BY DONNY SHIMAMOTO, CPA/CITP
MARCH 2012


Typical Definitions for IT Governance
1) Information technology governance is a subset discipline of corporate governance focused on
information technology systems and their performance and risk management. ...
http://en.wikipedia.org/wiki/IT_governance
2) IT governance (ITG) is defined as the processes that ensure the effective and efficient use of IT in
enabling an organization to achieve its goals. IT demand governance (ITDG—what IT should work
on) is the process by which organizations ensure the effective evaluation, selection, prioritization,
and funding of competing IT investments; oversee their implementation; and extract (measurable)
business benefits. ITDG is a business investment decision-making and oversight process, and it is a
business management responsibility. IT supply-side governance (ITSG—how IT should do what it
does) is concerned with ensuring that the IT organization operates in an effective, efficient and
compliant fashion, and it is primarily a CIO responsibility
Gartner Group
3) IT governance is the board's ability to direct and control the enterprise's use of IT resources in
line with strategic goals. Leadership, organisational structure and processes are used to leverage IT
resources and drive alignment, the delivery of value, management of risk, optimisation of resources
and performance measurement.
COBIT 5 Foundation
4) What is IT governance?
Simply put, it’s putting structure around how organizations align IT strategy with business strategy,
ensuring that companies stay on track to achieve their strategies and goals, and implementing good
ways to measure IT’s performance. It makes sure that all stakeholders’ interests are taken into
account and that processes provide measurable results. An IT governance framework should answer
some key questions, such as how the IT department is functioning overall, what key metrics
management needs and what return IT is giving back to the business from the investment it’s making.
CIO Magazine

CIO Top Ten Issue List for 2013
1) Transforming IT spending habits by leveraging cloud computing to unlock and liberate huge
chunks of IT budgets.
2) Embracing social business in a wide range of ways to enhance internal collaboration and
external engagements.
3) Exploiting Big Data and analytics to unlock new growth opportunities.
4) Creating customer-centric systems and culture across the organization.
5) Future-proofing your IT architecture to meet the profoundly more-demanding requirements
of businesses in a world increasingly driven by mobile, social, Big Data, and the Internet of
Things.
6) Cloud computing as business-transformation agent: rapidly shifting the cloud discussion
from one that’s centered on technology to one focused on strategic business outcomes.
7) Big Data goes strategic: Big Insights, Big Opportunities, and Big Growth become the new
themes.
8) Move at the speed of your customers: finding elegant and scalable ways to marry systems of
record (ERP) with systems of engagement (Social).
9) CIO as Chief Acceleration Officer: CIOs need to help CEOs accelerate everything from product
development to analytics to financial closings to responding to customer inquiries. Latency is the
enemy!
10) More Innovation, Less Integration: old IT approaches simply can’t scale with today’s
demands, so CIOs must find powerful new approaches to meet the new customer-driven
requirements of today and tomorrow
Bob Evans, Oracle


Business/CIO Top Ten Issue List for 2013
Top 10 Business Priorities

Ranking

Top 10 Technology Priorities

Increasing enterprise growth

1

Analytics and business intelligence 1

Delivering operational results

2

Mobile technologies

Reducing enterprise costs

3

Cloud computing (SaaS, IaaS, PaaS) 3

Attracting and retaining new
customers

4

Collaboration technologies
(workflow)

4

Improving IT applications and
infrastructure

5

Legacy modernization

5

Creating new products and services
(innovation)

6

IT management

6

Improving efficiency

7

CRM

7

Attracting and retaining the
workforce

8

Virtualization

8

Implementing analytics and big data 9

Security

9

Improving business processes

ERP Applications

10

10

Ranking

2

Gartner - January 16, 2013

Who is Responsible for IT Governance Processes
Ownership of IT Governance is often attributed to an individual, who in many cases is the Chief
Information Officer, or the Chief Financial Officer. There are situations where companies have a
committee that assumes responsibility of IT Governance. Although there is no one right answer
to the question of who should be responsible, managers and executives from both IT and
business departments should contribute to the IT Governance strategy.
Stakeholders include:
1) Board members: should take an active role in IT Governance;
2) CEOs :should provide organizational structures to create bridges between IT and the business
3) CIOs :must become business-oriented
4) All executives: should become involved in IT guidance.
The owner of IT governance should have a strategic view of the entire company. No matter who
takes ownership, the collaboration with senior executives across the enterprise is critical for
effective IT Governance.
Source: http://agileitgovernance.com/2012/06/19/who-is-responsible-for-it-governance-inyour-organization/#sthash.IdSimtHj.dpufypical IT Governance Processes Used in Many
Companies


A Typical SMB Set of IT Governance Processes
Typical IT Governance Processes Used in Many Companies

* Focus for this discussion

It Governance OC CIO Nov,2013

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