pacific northwest dgs presentation - measuring the value of it - m delaplane

8/11/2019 Pacific Northwest DGS presentation - Measuring the Value of IT - M Delaplane

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Moving From TransactionOrientation To Outcome

Orientation

Washington State Department ofLabor & Industries


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FORRESTER STUDY


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Business Leaders' Perception

IT Holding Back Business50%


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IT Budget

Maint. & Ops.66%

Business Leaders Over Estimate Available IT Spend


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Accelerating Business Requires IT To Change Focus and Metrics


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IT and Business Leader Measurement Perspectives

IT cost per business service supported

Internal customer satisfaction survey score

IT spend by business objective (margin, revenue, growth, etc.)

Percentage of IT projects that meet or exceed expected benefitsPercentage of IT spend on run, grow, change the business

Yr/Yr IT budget growth vs. revenue growth

Yr/Yr unit cost of infrastructure, systems, apps maintenance

IT spend as a percentage of business revenue

Percentage of IT budget spend on R&D, emerging tech, etc.External customer satisfaction (organizations customers) survey

score

Business Rank IT Rank

13

Not in top 20

?

?


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Rethinking the CIO Dashboard Relevance for IT and Business


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DELIVERY Key Performance Indicator

Measures ITs Abil ity To Fulfi ll Its Obligations

Domains Help Desk response time for tickets and incidents

PMO on-time, on-budget performance Customer Satisfaction - internal and external


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DELIVERY Key Performance Indicator


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L&I Key Performance Indicator - Delivery

Measures ITs ability to fulfill its obligations

Mission: Do No Harm

Deployment Process Exceptions (Hot Fixes)

Goal - 0

Note: We had 17 Hot Fixes in July of 2012 when we beganmonitoring them.

May 2014 Jun 2014 Jul 2014 Aug 2014 Sept 2014

# of exceptions 1 2 1 2 2

% of deploymentsw/o an exception

93.8% 88.2% 80% 81.8%


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OUTCOME Key Performance Indicator

Tie Technology Spending To Business Resul ts

Domains Financial Measure benefits and value of technology Market Dynamics ITs contribution to achieving changing

business outcomes Industry/sector KPIs - benchmarks


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OUTCOME Key Performance Indicator


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L&I Key Performance Indicator - Outcome

Ensure the linkage between spending and business results

% of IT spend on run, grow, or transform the businessGoal Decrease Run, Increase Grow and/or Transform

Run activities that support core business operations

Grow organic growth and increased cus tomer demandTransform changes in the business model, introduction of new products and services


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HEALTH Key Performance Indicator

Measure The Fitness Of Existing IT Investments

Domains Governance - appropriate ownership, oversight, and alignment

among project stakeholders Performance - scalable, and secure technology environments Efficiency - in conjunction with an industry benchmark


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HEALTH Key Performance Indicator


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L&I Key Performance Indicator Health

BenchmarksL&I % of IT Category Spend Compared to Govt Benchmark

Remaining71% in the Categories: Application Maintenance,Compute (Mainframe/Servers), Database, Delivery Services (PM/BA), Storage,

User Service, Voice Network


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AGILITY Key Performance Indicator

Assess Flexibility And Speed In Current And Future TechnologyInvestments

Domains People Agility Measuring the current skill sets and planning for

future competency needs Technology Agility Having flexible technologies that can offerreusable components and modular functions

Financial Agility - quickly move to new technologies and systemsto support business needs


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AGILITY Key Performance Indicator


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L&I Key Performance Indicator Agility

Services ManagementGoal Maximum Re-use

Mar 2014 Apr 2014 May 2014 Jun 2014# of services NA NA NA 121# of services re-used NA NA NA 81 (67%)

Service Purpose

Revenue Recording Look up fee schedule information, menu items and inquire about money paid foran activity.

Messaging Service Provides data exchange between mainframe and web.

Data Protection Service Allows encryption and decryption of "key" data

Purchase Transaction Creates purchase transaction records (non-permit items) and retrieve apurchase transaction record.

Account Standard Account Standard Message returns information about the employer of a claim.

Document Retrieve Retrieves a *.TIFF document from the imaging system, converts the documentto a PDF document and returns the PDF document.

Claim Standard 2 Returns information detail about a claim.

Work List Service

Composite process as part of claim submission


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Key Recommendations

Delivering consistent, reliable technology is table stakes Anticipate future business needs

Technology-centric view creates silos

Develop and execute on customer life-cycle view to createcohesion

Alignment is not enoughEnsure joint accountability for business outcomes

Velocity of change is unprecedentedDrive people, process, and technology agility

Consider KPIs as managing a portfolio and drive a portfoliomindset for BT decisions

CIO role has shifted from technology leader to business leaderNew perspective Business Technology


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pacific northwest dgs presentation - measuring the value of it - m delaplane

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