CAPABILITY IMPROVEMENT FOR BUSINESS VALUE: THE TRANSFORMATION AGENDA

Martin Curley,

Vice President - Intel Corporation,

Director - Intel Labs Europe,

Co-Director - Innovation Value Institute

2

Copyright © 2011, Intel Corporation. All rights reserved.

Setting the Context

“The CIO is done with mere technology, their job now is to make money.”

–Paul Strassman, 2001

The changing role of IT Foundation

Copyright © IVI 2013

IT Capability Maturity Framework™ A CIO Compass to Meet New Challenges

IT-C

MF

Mac

ro P

roce

sses

• Value-centric IT management

• State-of-the-art practices and

outcomes

• Benefits from IT investments

quantified and communicated

• Practices and outcomes well

above industry average

• IT/business interaction forma-

lized for all critical processes

• Transparent investment decisions

• Delivering basic IT services

• Some IT/business interactions

formalized

• No formal processes

• Ad-hoc management of IT

Optimizing

Advanced

Intermediate

Basic

Initial

Ma

turity

Low

High

Based on a framework originally developed by Intel IT

Refined and extended by the Innovation Value Institute (www.ivi.ie)

Reviewed and tested with 300+ CIOs

insp

ired

by

CM

MI

Ensures the IT organisation capability is soundly anchored on delivering business value

Copyright © IVI 2013

© Innovation Value Institute 2013

The IT-Capability Maturity Framework - The IT Capability Maturity Framework™ (IT-CMF™) provides a holistic evaluation of IT

organizational capability, together with management best-practices for organizational

improvement.

- It is designed to reduce complexity for CIOs and senior IT decision-makers by

systematically narrowing IT organizational capability gaps

for optimising costs and managing IT for value and innovation.

Copyright © IVI 2013

Design Patterns

• The way is long if one follows precepts (rules), the way is short if one follows…patterns

Seneca

The currency of IVI is design patterns

• Generally reusable solutions to commonly re-occurring problems

Copyright © IVI 2013

Patterns are the DNA of the IT-CMF Architecture

4x Macro-capabilities

35x IT management capabilities (Critical

Capabilities)

>300x Capability Building Blocks + individual maturity profiles

>800x maturity assessment questions

>2,500x recommendations (POMs)

Copyright © IVI 2013

Challenge/problem based design patterns Archetypal Challenge Outcomes Primary Secondary

New CIO What is the organisation-wide ability of IT to perform?

Understand IT capability health. Agree key areas of concern across IT staff

Alignment How to align IT to meet the future needs of the firm?

Deliver to the business needs. Synchronize corporate and IT planning .

Funding Management

Is spending on IT reasonable and transparent?

Adequately budget for IT. Develop transparency to IT costs

Value Stewardship How to better prioritise IT investments and realise business value impact?

Establish IT investment rules, define value KPIs, track and realise value

Solution Delivery / M&A

How to reduce technology complexity to boost agility.

Establish global standards, run a solid development model and reliable delivery execution.

Service Management

How to sustain or improve IT service levels and customer satisfaction?

Improve IT service quality management.

Sourcing Arrangements

How to leverage the increasing potential of IT service providers

Optimize sourcing strategies and stimulate co-innovation.

Governance & Risk Management

How to balance decision-making effectiveness with organisational control?

Design governance structures, embed IT risk management discipline, IT organization design , strengthen business / IT relationships.

Resource Planning How to right-size fulfilment with IT consumption trends?

Reliable horizon forecasting and resource impact analysis.

Enable Innovation How to catalyse innovation leveraging IT?

Develop innovation competencies, harvest ideas, test new technologies.

These generic cluster templates are provided to help accelerate knowledge transfer

DSM CFP SAI SICT

PAM

ITG RM ODP RAM

IM KAM RDE

TIM SRP UTM

EAM BPM

SD

UED PPM

SRC SUM

BP SP CAM

FF

TCO

AA BGM BOP

PPP BAR PM

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… Re-imagining the World at Light Speed

From the Obvious…

Knowledge

Educating

Shopping

Travelling

Sharing

Industries established over a Century re-architected in under a Decade

Communicating

Entertaining

to

to

to

to

to

to

to

Copyright © Intel 2013

Cities New Services Smart Grid

… Re-imagining the World at Light Speed

… to the Not so Obvious

Agriculture The Way We Work Cars

Freelenace

Google

Home

When the impossible… becomes possible

to

to

to

to

to

to

Copyright © Intel 2013

Open Innovation 2.0: A new paradigm

Firm

Start-up

University

Firm

Nascent Start-up

User

Co-innovator

Creative Commons

Government Ecosystem support

20 snap shots of Open Innovation 2.0

Copyright © OISPG 2013

Quadruple Helix Innovation

Government, Academia, Industry and Citizens collaborating together to drive structural

changes far beyond the scope of any one organization could achieve on it’s own

Government/Public

Academic

Industry

Citizen

Copyright © Intel 2013

© Innovation Value Institute 2013

IVI membership 90+ organizations from leading enterprises, consulting, not-for-profit,

government and academic organizations.

IVI is a great exemplar of Open Innovation 2.0 in action

Dublin as an exemplar of Open Innovation

Fostering Digital Services Capability

Leveraging Urban Data

Building Ubiquitous City Network

City Im

pact

Re

alisation

Digital C

ity Platfo

rm Laye

rs D

igital City

Services Do

main

s

Digital City Governance

Dynamic Capabilities in Cities

Economy &

Innovation Community

& Citizenship Culture and

Entertainment Environmental

Practices

Urban Places

& Spaces

Movement &

Transport

Dig

ital

Acc

ess

&

Ski

lls P

rofi

cie

ncy

Digital City Service Users (Citizens & City Employees)

Copyright © IVI 2013

Transform the way public and private

sector organizations manage IT for value

and innovation