gilbert silvius on business it alignment
DESCRIPTION
Contribution to the \'Dag van de ICT Manager\' (June 2008).TRANSCRIPT
Does alignment matter?
Feiten en fictie over de afstemming van ICT en Business
Drs. A.J.Gilbert Silvius MBALector Hogeschool Utrecht enprincipal consultant Van Aetsveld
Does alignment matter?A.J. Gilbert Silvius
Gilbert Silvius
Koninklijke Militaire Academie Fender Precision Bass 19631963
Vlaardingen Koninklijke Landmacht Erasmus Universiteit
2 kinderen MBAMBA Getronics Synergie Consultancy .
Lector Business, ICT en InnovatieLector Business, ICT en Innovatie
Projectmanagement Business ICT Alignment
2027Katholieke Universiteit Leuven Ede PhD .
. Utrechtse Ondernemers Academie Bedrijfseconomie Master of Informatics
Aetsveld
Afghanistan Master of Project Management
Does alignment matter?A.J. Gilbert Silvius
Lectoraat Business IT Innovatie
Beroepspraktijk
Wetenschap Onderwijs
Does alignment matter?A.J. Gilbert Silvius
Does alignment matter?
Wat is Business ICT Alignment?
Problemen met BIA
BIA in de praktijk
BIA strategieën
Relatie Business strategie / IT strategie / BIA volwassenheid
Does alignment matter?A.J. Gilbert Silvius
Does alignment matter?A.J. Gilbert Silvius
2004
De alignment belofte is niet waargemaakt!
Menno van Doorn & Jaap Bloem (Sogeti/VINT)
Does alignment matter?A.J. Gilbert Silvius
Does alignment matter?A.J. Gilbert Silvius
Business IT Alignment
Business IT
Alignment
Does alignment matter?A.J. Gilbert Silvius
Klare taal?
Business IT Alignment
IT Governance
IT Planning
Information Planning
IT Service Management
IT Strategy
Does alignment matter?A.J. Gilbert Silvius
Alignment?
Does alignment matter?A.J. Gilbert Silvius
Alignment?
‘fit’ (Venkatraman, 1989) ‘harmony’ (Luftman et al. 1993) ‘integration’ (Weill and Broadbent 1998) ‘linkage’ (Henderson and Venkatraman 1993) ‘bridge’ (Ciborra 1997) ‘fusion’ (Smaczny 2001)
Does alignment matter?A.J. Gilbert Silvius
Vragen
Alignment:
Proces of Toestand?
Weill and Broadbent (1998): ‘Alignment is a journey, not an event’
Does alignment matter?A.J. Gilbert Silvius
Vragen
Alignment:
Proces of Toestand?
Eenrichtingverkeer of wederzijdse beïnvloeding?
Does alignment matter?A.J. Gilbert Silvius
Wieringa et al. (2005): ‘the problem of matching IT services with the
requirements of the business’
Poels (2006): Alignment implies a ‘mutual influence’ between
business and IT.
Does alignment matter?A.J. Gilbert Silvius
Het Strategic Alignment Framework
Vier afstemmingsperspectieven:
1. Strategierealisatie
2. Technologie potentieel
3. Concurrentiepotentieel
4. Service niveau
Does alignment matter?A.J. Gilbert Silvius
Business IT Alignment
Business IT Alignment is the degree to which the IT applications, infrastructure and organization, the business strategy and processes enables and shapes, as well as the process to realize this.
Does alignment matter?A.J. Gilbert Silvius
Does alignment matter?
Wat is Business ICT Alignment?
Problemen met BIA
BIA in de praktijk
BIA strategieën
Relatie Business strategie / IT strategie / BIA volwassenheid
Does alignment matter?A.J. Gilbert Silvius
Issues
A fuzzy target
target
start
doel
start
Does alignment matter?A.J. Gilbert Silvius
Issues
A fuzzy target
Alignment versus Economies of Scale
B
IT
Market
Standardisation: IT efficiency
Alignment:IT effectiveness
Does alignment matter?A.J. Gilbert Silvius
Issues
A fuzzy target
Alignment versus Economies of Scale
Multiple businesses
B
IT
BB
Market MarketMarket
Standardisation: IT efficiency
Alignment:IT effectiveness
Does alignment matter?A.J. Gilbert Silvius
Does alignment matter?
Wat is Business ICT Alignment?
Problemen met BIA
BIA in de praktijk
BIA strategieën
Relatie Business strategie / IT strategie / BIA volwassenheid
Does alignment matter?A.J. Gilbert Silvius
BITA in praktijk
Creëer overzicht en inzicht
Centraliseer inkoop
Centraliseer autorisatie van projecten
Ontwikkel standaarden
Rationaliseer assets
Does alignment matter?A.J. Gilbert Silvius
Conclusie
Business IT Alignment is niet een objectief methodologisch proces
Business IT Alignment heeft een meer fuzzy context dan geïmpliceerd in de theorie
IT afdelingen hebben een eigen verantwoordelijkheid
Business IT Alignment is in praktijk de subjectieve uitkomst van de interactie tussen actoren met soms tegenstrijdige verantwoordelijkheden
Does alignment matter?A.J. Gilbert Silvius
Jerry LuftmanBusiness IT Alignment Maturity
Does alignment matter?A.J. Gilbert Silvius
Maturity of theBusiness IT Alignment process
Initial / Ad-Hoc Process
CommittedProcess
Established/FocusedProcess
Improved/ManagedProcess
OptimizedProcess
BusinessStrategy / Organization
ITStrategy / Organization
Alignment gap
Does alignment matter?A.J. Gilbert Silvius
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
Does alignment matter?A.J. Gilbert Silvius
De sociale dimensie
Keen (1991)Key to alignmentis relationships,
not strategy
Does alignment matter?A.J. Gilbert Silvius
Does alignment matter?
Wat is Business ICT Alignment?
Problemen met BIA
BIA in de praktijk
BIA strategieën
Relatie Business strategie / IT strategie / BIA volwassenheid
Does alignment matter?A.J. Gilbert Silvius
BIA strategies
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
Does alignment matter?A.J. Gilbert Silvius
Relationships??
BusinessStrategy
ITStrategy
Does alignment matter?A.J. Gilbert Silvius
OperationalExcellence
ProductLeadership
CustomerIntimacy
Business Strategy
Operational ExcellenceEmphasis on efficiency and reliability, price leadership, cost control and supply chain optimisation.
Product LeadershipEmphasis on continuing product development, innovation, fast time-tomarket and high margins.
Customer IntimacyEmphasis on customer service, responsiveness, tailoring products and services to individual customer needs.
Does alignment matter?A.J. Gilbert Silvius
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
Does alignment matter?A.J. Gilbert Silvius
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
Does alignment matter?A.J. Gilbert Silvius
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
Does alignment matter?A.J. Gilbert Silvius
Strategies combined
Does alignment matter?A.J. Gilbert Silvius
Does alignment matter?A.J. Gilbert Silvius
Relationships??
BusinessStrategy
ITStrategy
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
Not much relationship visible, but….
Does alignment matter?A.J. Gilbert Silvius
Relationships??
BusinessStrategy
ITStrategy
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
I nfrastructure
Transactional
Str
ate
gic
Info
rmatio
nal
Does alignment matter?A.J. Gilbert Silvius
Relationships??
BusinessStrategy
ITStrategy
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
I nfrastructure
Transactional
Strategic
In
form
atio
nal
Does alignment matter?A.J. Gilbert Silvius
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??
ITStrategy
Business IT Alignmentcapability
Perceptionof external
impact 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
Does alignment matter?A.J. Gilbert Silvius
Dual case study
Perceptionof external
impact of IT
high
low
highlow
Perception of internal impact of IT
Conservative Essential
InnovativeBusiness
PartnershipScope &
Architecture Skills
CommunicationValue
measurement Governance
Six IT Business alignment maturity criteria
IT strategy Business & IT alignment
Does alignment matter?A.J. Gilbert Silvius
Dual case study
Perceptionof external
impact of IT
high
low
highlowPerception of internal impact of IT
Conservative Essential
InnovativeBusinessBank A
Bank B
Does alignment matter?A.J. Gilbert Silvius
B vs A
2,5
2,1
2,8
2,9
2,3
3,1
0
1
2
3
4Communications
Value measurement
Governance
Partnership
Scope and architecture
Skills
3,2
3,1
3,7
3,8
3,0
3,2
0
1
2
3
4Communications
Value measurement
Governance
Partnership
Scope and architecture
Skills
0
1
2
3
4
5Understanding of business by IT
Understanding of IT by businessInter/Intra-organizational learning
Protocol Rigidity
Know ledge Sharing
Liaison(s) breadth / effectiveness
IT Metrics
Business Metrics
Balanced Metrics
Service Level Agreements
Benchmarking
Formal Assessments/Review s
Continuous Improvement
Business strategic planning
IT strategic planning
Reporting/Organization structure
Budgetary ControlIT investment management
Steering committee(s)Prioritization process
Business perception of IT valueRole of IT in strategic business planning
Shared goals, risk, rew ards/penalties
IT Program Management
Relationship/trust style
Business sponsor/champion
Traditional, Enabler/Driver, External
Standards Articulation
Architectural integration Func
Architectural integration Ent
Architectural transparency, f lexibility
Innovation, Entrepreneurship
Locus of Pow er
Management style
Change readiness
Career crossoverEducation, cross-training
Social, political, trusting environment
0
1
2
3
4
5Understanding of business by IT
Understanding of IT by businessInter/Intra-organizational learning
Protocol Rigidity
Know ledge Sharing
Liaison(s) breadth / effectiveness
IT Metrics
Business Metrics
Balanced Metrics
Service Level Agreements
Benchmarking
Formal Assessments/Review s
Continuous Improvement
Business strategic planning
IT strategic planning
Reporting/Organization structure
Budgetary ControlIT investment management
Steering committee(s)Prioritization process
Business perception of IT valueRole of IT in strategic business planning
Shared goals, risk, rew ards/penalties
IT Program Management
Relationship/trust style
Business sponsor/champion
Traditional, Enabler/Driver, External
Standards Articulation
Architectural integration Func
Architectural integration Ent
Architectural transparency, f lexibility
Innovation, Entrepreneurship
Locus of Pow er
Management style
Change readiness
Career crossoverEducation, cross-training
Social, political, trusting environment
IT
BM
0
1
2
3
4
5Understanding of business by IT
Understanding of IT by businessInter/Intra-organizational learning
Protocol Rigidity
Know ledge Sharing
Liaison(s) breadth / effectiveness
IT Metrics
Business Metrics
Balanced Metrics
Service Level Agreements
Benchmarking
Formal Assessments/Review s
Continuous Improvement
Business strategic planning
IT strategic planning
Reporting/Organization structure
Budgetary ControlIT investment management
Steering committee(s)Prioritization process
Business perception of IT valueRole of IT in strategic business planning
Shared goals, risk, rew ards/penalties
IT Program Management
Relationship/trust style
Business sponsor/champion
Traditional, Enabler/Driver, External
Standards Articulation
Architectural integration Func
Architectural integration Ent
Architectural transparency, f lexibility
Innovation, Entrepreneurship
Locus of Pow er
Management style
Change readiness
Career crossoverEducation, cross-training
Social, political, trusting environment0
1
2
3
4
5Understanding of business by IT
Understanding of IT by businessInter/Intra-organizational learning
Protocol Rigidity
Know ledge Sharing
Liaison(s) breadth / effectiveness
IT Metrics
Business Metrics
Balanced Metrics
Service Level Agreements
Benchmarking
Formal Assessments/Review s
Continuous Improvement
Business strategic planning
IT strategic planning
Reporting/Organization structure
Budgetary ControlIT investment management
Steering committee(s)Prioritization process
Business perception of IT valueRole of IT in strategic business planning
Shared goals, risk, rew ards/penalties
IT Program Management
Relationship/trust style
Business sponsor/champion
Traditional, Enabler/Driver, External
Standards Articulation
Architectural integration Func
Architectural integration Ent
Architectural transparency, f lexibility
Innovation, Entrepreneurship
Locus of Pow er
Management style
Change readiness
Career crossoverEducation, cross-training
Social, political, trusting environment
IT
BM
Does alignment matter?A.J. Gilbert Silvius
IT strategy
offensive
defensive
highlowBIA capability
ConservativeIT strategy
EssentialIT strategy
InnovativeIT strategy
Conclusion
Does alignment matter?
Feiten en fictie over de afstemming van ICT en Business
Drs. A.J.Gilbert Silvius MBALector Hogeschool Utrecht enprincipal consultant Van Aetsveld
Does alignment matter?A.J. Gilbert Silvius
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
Does alignment matter?A.J. Gilbert Silvius
Wat te doen?
Creëer een visie!
Bouw alignment volwassenheid
Does alignment matter?A.J. Gilbert Silvius
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
Weestransparant
Creëer stuurmogelijk-heden voor de
business
Creëerbetrokken-
heid
Creëer een effectieve
architectuur
Ontwikkel de kwaliteit van medewerkers
Does alignment matter?A.J. Gilbert Silvius
Wat te doen?
Creëer een visie!
Bouw alignment volwassenheid
Mensen maken het verschil
Does alignment matter?A.J. Gilbert Silvius
Mensen maken het verschil
Interventies die ertoe doen! Herinrichten van ICT-functie vanuit externe oriëntatie Stimuleren en initiëren van experimenten Belonen van een multidisciplinaire teamprestatie Instellen van ICT-awards Iemand aanstellen als of (zich laten) ontwikkelen tot
hybride CIO Trainen van IT’ers: denken en praten in businesstaal Job-rotation tussen business en IT Optimaliseren service proces
Bron: Rob Poels
Does alignment matter?A.J. Gilbert Silvius
Vragen??
Bedankt voor uw aandacht!