it for manager

8/9/2019 IT FOR MANAGER

1/26

IT Strategic Planning

Chapter 12

12-1Copyright 2012 John Wiley & Sons,Inc.

Course

Part V. Managing IT, Business Processes,andSocial/Ecology Responsibility


2/26

Chapter 12 Outline

12.1 IT Strategies

12.2 orporate and IT !o"ernance

12.# $ligning IT %it& Business Strategy

12.' IT Strategic Planning Process

12.( IT )utsourcing Strategies

Copyright 2012 John Wiley & Sons,Inc. 12-2


3/26

Chapter 12 Learning Objectives

E*plain t&e "alue o+ aligning t&e IT and businessstrategies, and &o% t&is alignent can beac&ie"ed.

Recogni-e t&e iportance, +unctions, andc&allenges o+ IT go"ernance.

escribe t&e reasons and benets o+ aligning ITstrategy and business strategy.

escribe t&e IT strategic planning process.

0nderstand aor types o+ outsourcing, reasons

+or outsourcing, and t&e riss and benets.



4/26


5/26

12.1 IT Strategies

"ain points o$ I strategic plans are

1. o i"pro!e "anage"ent's un%erstan%ing o$I opportunities an% li"itations

2. o assess current per$or"ance

3. o i%enti$y capacity an% hu"an resourcere/uire"ents

. o clari$y the le!el o$ in!est"ent re/uire%

Copyright 2012 John Wiley & Sons,Inc. 12-


6/26

I strategies can #e %i!i%e% into 2categories

1. In-house %e!elop"ent

2. +utsource %e!elop"ent, or outsourcing

on-shore %o"estic sourcing oshoring

+rgani)ations use co"#inations o$ these Istrategiesin-house, on-shore sourcing,

oshoring, clou% co"puting, an% SaaS.



7/26


8/26

When an I $ailure causes har" topeople or the en!iron"ent, thenregulatory agenciesan% the pu#lic--ill hol% the C7+ accounta#le.

89 C7+ ony :ayar% as hel%accounta#le $or kille% 11 orkers an% release%40,000? #arrels per %ay into the @ul$

o$ Me(ico. :ayar%'s atte"pts toclai" ignorance o$ the risks an% usethe S)I de+ense so"e other%u%e %i% it %i%n't ork.

Copyright 2012 John Wiley & Sons,Inc. 12-A

A company can outsourcethe work, but not the

responsibility or it

Bigure 12.2 cti!ists

9rotest the 89 +il Spillat a 89 @as Station inSoho, De Eork #yspilling


9/26

12.2 orporate and IT!o"ernance

IT go"ernance is concerne% ith insuring thatorgani)ational in!est"ents in I %eli!er $ull!alue.

IT per+orance anageent--#eing a#le topre%ict an% anticipate $ailures #e$ore it's too

late-- is a #ig part o$ I go!ernance.

I per$or"ance "anage"ent $unctions inclu%ethe $olloing

• !eri$y that strategic I o#5ecti!es are #eingachie!e%

• re!ie I per$or"ance

• assess the contri#ution o$ I to the #usiness

Copyright 2012 John Wiley & Sons,Inc. 12-F


10/26


11/26

12.# $ligning IT %it& BusinessStrategy

I#usiness align"ent can #e i"pro!e% in se!eralays

1. n%erstan%ing I an% corporate planning

2. CI+ is a "e"#er o$ senior "anage"ent

3. Share% culture an% goo% co""unication

. Co""it"ent to I planning #y senior"anage"ent

. Kinks #eteen #usiness an% I plans shoul%#e "a%e at the strategic, tactical, an%operational le!els.



12/26

T$B4E 12.# 5ey Resource $ttributes T&at reateopetiti"e $d"antage



13/26

12.' IT Strategic PlanningProcess


6igure 12.'. IT strategicplanning process.


14/26

Tools an# $etho#ologies o IT %trategic&lanning

'usiness %ervice $anagement( links L9Is o$ I to#usiness goals to %eter"ine their i"pacts on the#usiness


6igure 12.( Business Ser"ice Manageent7+ro 6ireScope8


15/26

Tools an# $etho#ologies o IT %trategic&lanning

'usiness systems planning )'%&* developedby IBM.Bro" this architecture, planners %eGneorgani)ational %ata#ases an% apps that support#usiness strategies.


6igure 12.9 Business systes planning7BSP8 approac&


16/26

Other Tools an# $etho#ologies o IT %trategic&lanning

Balanced Scorecard

Critical Success Factors (CSF)

Scenario Planning

Resource llocation


6igure 12.:


17/26

12.( IT )utsourcing Strategies

+utsourcing can #e %one %o"estically or oshore, or!ia clou% co"puting or SaaS

SaaS pro!i%es an a#ility to easily e(ten% internalprocesses outsi%e the organi)ational #oun%ary to

support business processing outsourcing 7BP)8 arrange"ents

BP)3

• the process o$ hiring another co"pany to han%le

#usiness acti!ities• inclu%es non-core $unctions, such as Gnancial an%

a%"inistration processes, :* $unctions, call centeran% custo"er ser!ice acti!ities, an% accounting



18/26

Outsourcing

+utsourcing %eals are "ulti-year contracts that canrun into hun%re%s o$ "illions o$ %ollars.

+$ten, people per$or"ing the ork internally $or theclient Gr" are trans$erre% an% #eco"e e"ployees $orthe ser!ice pro!i%er.

+utsourcing ser!ice pro!i%ers I8M, ccenture, an%:eitt ssociates in the .S. an% 7uropean an% sianco"panies Capge"ini, @enpact, CS, Wipro an%In$osys.

Many o$ these 89+ eorts in!ol!e oshoring, ithIn%ia one o$ the "ost popular location $or 89+acti!ities.

Copyright 2012 John Wiley & Sons,Inc. 12-1A


19/26

IT at !ork 12+ e'ay Challenging Transition to'&O In 200, e8ay "igrate% all o$ its 9 operations to @enpact,

a 89+ pro!i%er. his "igration to @enpact as not ithout challenges, #ut

as ulti"ately a success.

Kessons learne%

Manage c&ange #y securing the co""it"ent o$ seniorlea%ers

$ssess organi-ational readiness $or a 89+ transitionan% set realistic e(pectations

$nticipate riss an% $or"ulate a plan $or "itigating the"

Build proect anageent in+rastructure to "anagethe transition an% the processes #eing transitione%

reate a go"ernance ec&anis that pro!i%es$ee%#ack an% o!ersight

Properly dene &o% success %ill be easured,

/ualitati!ely & /uantitati!elyCopyright 2012 John Wiley & Sons,Inc. 12-1F


20/26

"rowth in Outsourcing as an IT %trategy

Since the late 1FA0s, "any organi)ations ha!eoutsource% the !a"ority o# t$eir I% #unctions, ratherthan only inci%ental parts.

he tren% #eca"e classic in 1FAF hen 7ast"an

Lo%ak trans$erre% its %ata centers to I8M un%er a 10-

year, 00 "illion contract.• his e(a"ple, at a pro"inent "ulti#illion-%ollar co"pany, ga!e a

clear signal that outsourcing as a legiti"ate I strategy.

ren% is toar% using "ulti-!en%ors to capture the

ser!ices o$ #est-o$-#ree% !en%ors.

+rgani)ations are le!eraging e(isting global cloudin#rastructures $ro" "a)on, @oogle, *ackspace, an%Win%os )ure.



21/26

%, one o# !a&on's eb services

S# Si!ple Storage Service lets #usinesses store their%ata in the clou%, a!oi%ing the nee% to operate their onser!ers. httpNNas.a"a)on.co"Ns3N

S3 is part o$ the sa"e online in$rastructure that "a)onuses to run its on #usiness.

itter uses S3, as %oes %$e e* +or %i!es to store an%%eli!er articles $ro" its historical archi!es.

+utsourcing co"panies ha!e starte% to oer so"einteresting ne #usiness "o%els an% ser!ices aroun% clou%co"puting.

hese inno!ati!e ne I "o%els ha!e a%%e% to the nu"#ero$ options to #e consi%ere% in I strategic planning.


http://aws.amazon.com/s3/http://aws.amazon.com/s3/


22/26

Outsourcing -isks an# .i##en Costs

S$iring- Hen%or un%erper$or"s hile clai"ing $ullpay"ent.

Poac$ing- Hen%or %e!elops a strategic app $or a clientan% then uses it $or other clients.

pportunistic repricing- Hen%or o!er-charges $orunanticipate% enhance"ents.

Inability to deliver

/oss o# control over data



23/26

IT O/shoring, or IT o/shore outsourcing

+shoring so$tare %e!elop"ent has #eco"e aco""on practice %ue to glo#al "arkets, loercosts, an% increase% access to skille% la#or.

=uke ni!ersityOs Center #or International Business

0ducation and Researc$ stu%ie% I oshoringresults at Bortune 00 co"panies.

• 43P o$ the co"panies cut costs 30P per year

• 1P o$ the" achie!e% sa!ings o!er 0P

ccor%ing to a 200F report #y M* *esearch onthe state o$ I outsourcing, A0P o$ enterprisesplanne% to increase their a"ount o$ I oshoringor keep it constant.



24/26

Types o work that are not rea#ily o/shore#

Work that has not #een routini)e%

Work that i$ oshore% oul% result in the clientco"pany losing too "uch control o!er criticaloperations

Situations in hich oshoring oul% place the client

co"pany at too great a risk to its %ata security, %atapri!acy, or intellectual property.

8usiness acti!ities that rely on an unco""onco"#ination o$ speciGc application-%o"ainknole%ge an% I knole%ge in or%er to %o the orkproperly.



25/26

Outsourcing Lie0Cycle

1. Strategy

2. *eassess"ent

3. Selection

. Degotiation

. I"ple"entation

4. +!ersight "anage"ent

6. 8uil% co"pletion

A. Change

F. 7(it



26/26

Chapter 12 Link Library

8alance% Scorecar% Institute balancedscorecard.org1 +utsourcing 9ro$essionals' #est outsourcing ser!ice

pro!i%ers outsourcingpro#essional.org1content1231452144671

Hisual rk virtualar.co!1

Win%os )ure !icroso#t.co!1*indo*sa&ure1

*ackspace :osting racspace.co!1 CI+ Insights an% Strategy IBM.co!1CI1

=e#ate +!er +shore +utsourcing 8uality9*eb9solutions.co!1o:s$ore9outsourcing9debate.p$p

+utsource 8log t$eoutsourceblog.co!1

8loo"#erg *eal-ti"e In$or"ation Ser!ices bloo!berg.co!1

I @o!ernance Institute itgi.org1

Hi%eo on SaaS & +utsourcing *elationship Manage"ent "aneeva.co!1blog1

Copyright 2012 John Wiley & Sons,

Inc. 12-24
http://balancedscorecard.org/http://outsourcingprofessional.org/content/23/152/1197/http://virtualark.com/http://microsoft.com/windowsazure/http://rackspace.com/http://ibm.com/CIO/http://quality-web-solutions.com/offshore-outsourcing-debate.phphttp://theoutsourceblog.com/http://bloomberg.com/http://itgi.org/http://janeeva.com/blog/http://janeeva.com/blog/http://itgi.org/http://bloomberg.com/http://theoutsourceblog.com/http://quality-web-solutions.com/offshore-outsourcing-debate.phphttp://ibm.com/CIO/http://rackspace.com/http://microsoft.com/windowsazure/http://virtualark.com/http://outsourcingprofessional.org/content/23/152/1197/http://balancedscorecard.org/

it for manager

Documents