reality bites lpd2010 silvius

Reality bitesDe realiteit van business IT alignment

A.J.Gilbert SilviusLector

Business,ICT en Innovatie

Gilbert Silvius

Koninklijke Militaire Academie Fender Precision Bass 19631963Vlaardingen Koninklijke Landmacht Erasmus Universiteit

2 kinderen MBAMBA Getronics Synergie Consultancy .

Lec t or Business, ICT en Lec t or Business, ICT en Innovat ieInnovat ie ProjectmanagementBusiness ICT A lignment 2027K a t h o l i e k e U n i v e r s i t e i t L e u v e n Ede PhD .

. Utrechtse Ondernemers Academie BedrijfseconomieMaster of Informatics Aetsveld

Af ghanist an Master of Project Management

HogeschoolUtrecht

Kenniscentrum InnBus

Reality bitesDe realiteit van business IT alignment

A.J.Gilbert SilviusLector

Business,ICT en Innovatie

In what business is this company?

In what business is this company?

In what business is this company?

It’s just getting interesting!

Impactop

Business

hoog

laag

Jaren ’60 ’70 ’80 ’90 ’00 ‘10

Automatisering

Informatisering

Transformatie

ICT als bron van innovatie

Bedrijfsmiddelen

Bedrijfsprocessen

Bedrijfsmodel

Bedrijfsstrategie

En we zijn nog niet klaar!

De vraag ook niet

Growing

Flat

Declining

Help enablegrowth!

Help improvemargins!

Help reducefixed and variable

costs!

Companyrevenue

IT budget

IT demand

Does alignment pay-off?

Kans of kopzorg?

Vraag

Hoe zou je de alignment tussen business en IT verbeteren?

Why is alignment still an issue?

Géén tweerichtingverkeer

Géén ‘silver bullit’

BIA is multidimensionaal

Geen instrumentarium om verbetering te plannen en te monitoren

Jerry LuftmanBusiness IT Alignment Maturity

Maturity of theBusiness IT Alignment process

Initial / Ad-Hoc Process

CommittedProcess

Established/FocusedProcess

Improved/ManagedProcess

OptimizedProcess

Alignment gap

Business IT Alignment MaturityVariables

PartnershipBusiness Perception of IT Value

Role of IT in Strategic Business PlanningShared Goals, Risk, Rewards/Penalties

IT Program ManagementRelationship/Trust Style

Business Sponsor/Champion

Scope & ArchitectureTraditional, Enabler/Driver, External

Standards ArticulationArchitectural Integration:

- Functional- Enterprise

- Inter-enterpriseArchitectural Transparency, Flexibility

SkillsInnovation, Entrepreneurship

Locus of PowerManagement StyleChange ReadinessCareer crossover

Education, Cross-TrainingSocial, Political, Trusting Environment

CommunicationsUnderstanding of Business by ITUnderstanding of IT by BusinessInter-/Intra-organizational learning

Protocol rigidityKnowledge sharing

Liaison(s) effectiveness

Value measurementIT Metrics

Business MetricsBalanced Metrics

Service Level AgreementsBenchmarking

Formal assessments/reviewsContinuous Improvement

GovernanceBusiness Strategic Planning

IT Strategic PlanningReporting/Organization Structure

Budgetary ControlIT Investment Management

Steering Committee(s)Prioritization Process

Six IT Business alignment maturity criteria

Business IT Alignment MaturityVariables

PartnershipBusiness Perception of IT Value

Role of IT in Strategic Business PlanningShared Goals, Risk, Rewards/Penalties

IT Program ManagementRelationship/Trust Style

Business Sponsor/Champion

Scope & ArchitectureTraditional, Enabler/Driver, External

Standards ArticulationArchitectural Integration:

- Functional- Enterprise

- Inter-enterpriseArchitectural Transparency, Flexibility

SkillsInnovation, Entrepreneurship

Locus of PowerManagement StyleChange ReadinessCareer crossover

Education, Cross-TrainingSocial, Political, Trusting Environment

CommunicationsUnderstanding of Business by ITUnderstanding of IT by BusinessInter-/Intra-organizational learning

Protocol rigidityKnowledge sharing

Liaison(s) effectiveness

Value measurementIT Metrics

Business MetricsBalanced Metrics

Service Level AgreementsBenchmarking

Formal assessments/reviewsContinuous Improvement

GovernanceBusiness Strategic Planning

IT Strategic PlanningReporting/Organization Structure

Budgetary ControlIT Investment Management

Steering Committee(s)Prioritization Process

Six IT Business alignment maturity criteria

Processen

Structures

CapaciteitenVisies /Gedrag

Business IT Alignment MaturityVariables

PartnershipBusiness Perception of IT Value

Role of IT in Strategic Business PlanningShared Goals, Risk, Rewards/Penalties

IT Program ManagementRelationship/Trust Style

Business Sponsor/Champion

Scope & ArchitectureTraditional, Enabler/Driver, External

Standards ArticulationArchitectural Integration:

- Functional- Enterprise

- Inter-enterpriseArchitectural Transparency, Flexibility

SkillsInnovation, Entrepreneurship

Locus of PowerManagement StyleChange ReadinessCareer crossover

Education, Cross-TrainingSocial, Political, Trusting Environment

CommunicationsUnderstanding of Business by ITUnderstanding of IT by BusinessInter-/Intra-organizational learning

Protocol rigidityKnowledge sharing

Liaison(s) effectiveness

Value measurementIT Metrics

Business MetricsBalanced Metrics

Service Level AgreementsBenchmarking

Formal assessments/reviewsContinuous Improvement

GovernanceBusiness Strategic Planning

IT Strategic PlanningReporting/Organization Structure

Budgetary ControlIT Investment Management

Steering Committee(s)Prioritization Process

Six IT Business alignment maturity criteria

Luftman 2007

Question

How does Alignment relate to Business Performance?

Does alignment matter?

Alignment matters!

Alignment matters!

Strategic Alignment Maturity makes a significant contribution to company performance.

SAMs impact on company performance is .34. This is a very good validation of the relationship between

SAM and company performance.

Question

How does Alignment relate to Strategy? To Business Strategy To IT Strategy

Does strategy matter?

Relationships??

BusinessStrategy

ITStrategy

Business IT Alignmentcapability

OperationalExcellence

ProductLeadership

CustomerIntimacy

Business Strategy

Operational ExcellenceEmphasis on efficiency and reliability, price leadership, cost control and supply chain optimization.

Product LeadershipEmphasis on continuing product development, innovation, fast time-to market and high margins.

Customer IntimacyEmphasis on customer service, responsiveness, tailoring products and services to individual customer needs.

IT Strategie (Visie)

Perceptionof external

impact of IT

high

low

highlowPerception of internal impact of IT

Conservative•IT saves costs•Proven technology•Efficiency orientation

Essential•IT essential in realising strategy•New technologies•Effectiveness orientation

Innovative•IT as competitive edge•Experimental technologies•Innovation orientation

Business•IT is business•All technologies•Service orientation

PartnershipBusiness Perception of IT Value

Role of IT in Strategic Business PlanningShared Goals, Risk, Rewards/Penalties

IT Program ManagementRelationship/Trust Style

Business Sponsor/Champion

Scope & ArchitectureTraditional, Enabler/Driver, External

Standards ArticulationArchitectural Integration:

- Functional- Enterprise

- Inter-enterpriseArchitectural Transparency, Flexibility

SkillsInnovation, Entrepreneurship

Locus of PowerManagement StyleChange ReadinessCareer crossover

Education, Cross-TrainingSocial, Political, Trusting Environment

CommunicationsUnderstanding of Business by ITUnderstanding of IT by BusinessInter-/Intra-organizational learning

Protocol rigidityKnowledge sharing

Liaison(s) effectiveness

Value measurementIT Metrics

Business MetricsBalanced Metrics

Service Level AgreementsBenchmarking

Formal assessments/reviewsContinuous Improvement

GovernanceBusiness Strategic Planning

IT Strategic PlanningReporting/Organization Structure

Budgetary ControlIT Investment Management

Steering Committee(s)Prioritization Process

Six IT Business alignment maturity criteria

Relationships??

BusinessStrategy

ITStrategy

Business IT Alignmentcapability

OperationalExcellence

ProductLeadership

CustomerIntimacy

BusinessStrategy Perception

of externalimpact of IT

high

low

Perceptionof external

impact of IT

high

low

highlow

Perception of internal impact of IThighlow

Perception of internal impact of IT

Conservative•IT saves costs•Proven technology•Efficiency orientation

Essential•IT essential in realisingstrategy•New technologies•Effectiveness orientation

Innovative•IT as competitive edge•Experimental technologies•Innovation orientation

Business•IT is business•All technologies•Service orientation

Strategies combined

Strategie geeft AlignmentIT

str

ateg

y

Innovative

Conservative

HighLowAlignment capability

Essential

Business IT Alignment

Business IT Alignment MaturityVariables

PartnershipBusiness Perception of IT Value

Role of IT in Strategic Business PlanningShared Goals, Risk, Rewards/Penalties

IT Program ManagementRelationship/Trust Style

Business Sponsor/Champion

Scope & ArchitectureTraditional, Enabler/Driver, External

Standards ArticulationArchitectural Integration:

- Functional- Enterprise

- Inter-enterpriseArchitectural Transparency, Flexibility

SkillsInnovation, Entrepreneurship

Locus of PowerManagement StyleChange ReadinessCareer crossover

Education, Cross-TrainingSocial, Political, Trusting Environment

CommunicationsUnderstanding of Business by ITUnderstanding of IT by BusinessInter-/Intra-organizational learning

Protocol rigidityKnowledge sharing

Liaison(s) effectiveness

Value measurementIT Metrics

Business MetricsBalanced Metrics

Service Level AgreementsBenchmarking

Formal assessments/reviewsContinuous Improvement

GovernanceBusiness Strategic Planning

IT Strategic PlanningReporting/Organization Structure

Budgetary ControlIT Investment Management

Steering Committee(s)Prioritization Process

Six IT Business alignment maturity criteria

Wat is belangrijk?

28

13,4 14,3 15,712,7

15,9

0

5

10

15

20

25

30

Perceived weight of variablesPerceived weight of variables

Wat is belangrijk?

31,1

15,8 14,69,9 11,7

17,0

0,05,0

10,015,020,025,030,035,0

Perceived weight of subvariablescommunication

Wat te doen?

PartnershipBusiness Perception of IT Value

Role of IT in Strategic Business PlanningShared Goals, Risk, Rewards/Penalties

IT Program ManagementRelationship/Trust Style

Business Sponsor/Champion

Scope & ArchitectureTraditional, Enabler/Driver, External

Standards ArticulationArchitectural Integration:

- Functional- Enterprise

- Inter-enterpriseArchitectural Transparency, Flexibility

SkillsInnovation, Entrepreneurship

Locus of PowerManagement StyleChange ReadinessCareer crossover

Education, Cross-TrainingSocial, Political, Trusting Environment

CommunicationsUnderstanding of Business by ITUnderstanding of IT by BusinessInter-/Intra-organizational learning

Protocol rigidityKnowledge sharing

Liaison(s) effectiveness

Value measurementIT Metrics

Business MetricsBalanced Metrics

Service Level AgreementsBenchmarking

Formal assessments/reviewsContinuous Improvement

GovernanceBusiness Strategic Planning

IT Strategic PlanningReporting/Organization Structure

Budgetary ControlIT Investment Management

Steering Committee(s)Prioritization Process

Six IT Business alignment maturity criteria

Verdiep je in de business

(maar andersom ook!)

Weestransparant

Creëer stuur-mogelijkheden

Creëerbetrokken-

heid

Creëer een effectieve

architectuur

Ontwikkel de kwaliteit van medewerkers

Reality bitesDe realiteit van business IT alignment

A.J.Gilbert SilviusLector

Business,ICT en Innovatie

What we know

Algemeen

BIA is multidimensionaal (processen, structuren, capaciteiten en visie)

Géén ‘silver bullit’

Kan bij alle business strategieën

Het levert op!

What we know

Wat helpt?

Tweerichtingsverkeer Visie en (IT) strategie Transparantie en stuurmogelijkheden (Business) kennis in IT IT kennis in de business IT architectuur Procesvolwassenheid in IT én business Cultuur heeft invloed

Kijk uit voor bestuurders!

Basistype Kenmerken

Hypocriet Verklaart de IT belangrijk te vinden, ontkracht dit geloof door zijn handelen

Weifelaar Accepteert aarzelend het strategisch belang van de IT. Wil echter niet zelf betrokken raken bij de IT-vraagstukken

Atheïst Vindt de IT niet belangrijk. Verkondigt die overtuiging in het openbaar

Fanaat Vindt de IT van strategisch belang. Beschouwd zichzelf als een autoriteit op het gebied van IT

Agnost Geeft toe dat de IT van strategisch belang is. Moet daar steeds opnieuw van overtuigd worden

Koning Accepteert dat de IT strategisch belangrijk is. Benoemt de best denkbare CIO en trekt zich dan terug

Gelovige Gelooft dat de IT een strategisch voordeel kan bieden. Benadrukt die overtuiging door zijn dagelijkse optreden

What we don’t know

Nog niet goed onderzocht

BIA in MKB

Multibusiness IT alignment

Effect van outsourcing

Vragen??