uly-2016 overview of the new it operating model …...key features of the it operating model for...

28-July-2016

CEB IT Practice

Overview of the New IT Operating Model for Digital

IT Operating Model for Digital Webinar Series

January 2017

28-July-2016

A Framework for Member Conversations

The mission of CEB Inc. and its affiliates is to unlock the potential of organizations and leaders by advancing the science and practice of management. When we bring leaders together, it is crucial that our discussions neither restrict competition nor improperly share inside information. All other conversations are welcomed and encouraged.

Confidentiality and Intellectual Property

These materials have been prepared by CEB Inc. for the exclusive and individual use of our member companies. These materials contain valuable confidential and proprietary information belonging to CEB, and they may not be shared with any third party (including independent contractors and consultants) without the prior approval of CEB. CEB retains any and all intellectual property rights in these materials and requires retention of the copyright mark on all pages reproduced.

Legal Caveat

CEB Inc. is not able to guarantee the accuracy of the information or analysis contained in these materials. Furthermore, CEB is not engaged in rendering legal, accounting, or any other professional services. CEB specifically disclaims liability for any damages, claims, or losses that may arise from a) any errors or omissions in these materials, whether caused by CEB or its sources, or b) reliance upon any recommendation made by CEB.

3© 2016 –2017 CEB. All rights reserved. CIO170142PR

28-July-2016

QUESTIONS THIS WEBINAR WILL ADDRESS

What’s driving the need to change the IT operating model?

What’s the New IT Operating Model for Digital?

What do we mean by “Products Over Projects” in the model?


28-July-2016

WHAT TODAY'S IT OPERATING MODEL MUST DELIVER

Source: CEB analysis.

Flexible ways of working

Faster clock speed

Greater business domain knowledge

Improved customer experience

No reduction in reliability and cost efficiency

1

2

3

4

5


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DIGITIZATION CHANGES THE MEANING OF IT

Cost Center (SG&A) Digital Transformation Driver (COGS)

All IT Projects Are Business Projects All Business Projects Are IT Projects

Sole Provider of Technology Partner with Business Led-IT

Business Strategy Drives IT Strategy Business Strategy = IT Strategy



28-July-2016

Project # 165211

Catalog # CIO165211PR

Year Range 2016

NEW IT OPERATING MODEL FOR DIGITALKey Features of the IT Operating Model for Digital

PM

O

Adaptive Business Engagement 2

Strategy Over Governance, Management Over Operations

7

Data Strategy Over Ownership

Adaptive Skills and Mindset

Agile, DevOps, Continuous Delivery

3

Operations and Support

Infrastructure Engineering

Cloud-Based Scalable Infrastructure6

Products Over Projects 14 Customer-

Centric Design

Applications Building Blocks5

Enterp

rise Architecture

Inform

ation R

isk

8

9Applications Development



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1 Products Over Projects: Priorities and budgets set for business capabilities and products, not projects.

2 Adaptive Business Engagement: Business engagement approach flexes based on business context.



Products Over Projects 1


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Applications Development


3

4 Customer-Centric Design

3 Agile, DevOps, Continuous Delivery: Integrated delivery, engineering, and support boost responsiveness and output.

4 Customer-Centric Design: Customer journey mapping used to guide design.



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3


5 Applications Building Blocks: APIs, platforms, data, and reusable services reduce effort and accelerate delivery.

6 Cloud-Based Scalable Infrastructure: IT automation and cloud platforms cut time to scale.






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7


8

7 Strategy Over Governance, Management Over Operations: Central groups refocus on facilitating strategy, innovation, change, and enterprise data.

8 Data Strategy Over Ownership: Coherent strategy and guidelines around data allow for rapid exploitation by distributed teams.



Infrastructure Engineering Agile, DevOps, Continuous Delivery

3







PM

O

Enterp

rise Architecture

Inform

ation R

isk


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7


8



Infrastructure Engineering Agile, DevOps, Continuous Delivery

3







PM

O

Enterp

rise Architecture

Inform

ation R

isk


9

9 Adaptive Skills and Mindset: Staff become technically versatile, collaborative, and open to innovation.


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PROJECTS VERSUS PRODUCTS

Project Product Line

Lifespan ■ Point-in-time ■ Ongoing

Scope ■ Deploys a specific application or infrastructure technology (e.g., ERP or network) and related business change

■ Supports a product (e.g., a customer-facing platform) or a capability (e.g., customer support)

Managed by ■ Project/program manager ■ Product line manager/service manager

Funding Approach

■ By project, based on individual business cases.

■ By product line/capability, based on their strategic importance

Metrics ■ Project inputs (e.g., schedule, budget, scope)

■ Product outcomes (e.g., quality, cost, volume, value delivered)




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Business Unit 2

Product Lines Online Banking

Sales Customer Support

...

Product Line Managers

Business Analysts --

Architects

Agile and DevOps Teams

Infrastructure Engineering,

Ops and Support

Business Unit 1

Create a coordination mechanism across product lines to spot opportunities for scaling innovation.

ORGANIZE AROUND PRODUCT LINESProduct Line IT Organization

Empower the product line manager to reallocate funding and resources.

Define product lines that align to the most critical business capabilities.


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Sales

FUND PRODUCTS NOT PROJECTSFunding Process for IT Product Lines

Funding Prioritized by Enterprise Capability

■ Determine the relative importance of product lines annually and allocate funding proportionally.

■ Guide senior business partners through a structured tradeoff exercise.



Product Lines Online Banking

Product Line Managers

■ Product line managers have discretion to allocate funds to enhancements, technology refreshes, innovation, etc.

■ Product line managers can reallocate funding dynamically across the year as priorities change.

IT Budget

...Customer Support


28-July-2016

BEST IN CLASS EXAMPLES

Define IT services/ product lines using groups of related business capabilities. See Business Capability-Based Service Definitions.

Allocate IT investment by business capability. See Strategic Pillar Investment Targets.

Align delivery resources to product lines. See Business Service-Aligned DevOps Teams.

Create empowered product line managers. See Product/Service Manager Responsibilities and Skills.

Set up services/product lines to help experiment with digital innovation. See End-to-End Services Management.

Involve business partners in the process of determining how service/ product costs will be allocated. See Business-Driven Service Cost Allocation.



https://www.cebglobal.com/content/cio/us/en/member/research/study/13/business-capability-driven-it-planning1/use-business-capabilities-to-impact-business-outcomes/business-capability-based-service-definitions-metlife.html/?searchString=metlife&screenContentId=200754448

https://www.cebglobal.com/member/cio/research/case_study/13/strategic-pillar-investment-targets-brocade1.html

https://www.cebglobal.com/member/cio/research/case_study/13/strategic-pillar-investment-targets-brocade1.html

https://www.cebglobal.com/member/infrastructure/research/study/15/business-service-aligned-devops-team-autodesk.html

https://www.cebglobal.com/member/infrastructure/research/study/15/business-service-aligned-devops-team-autodesk.html

https://www.cebglobal.com/member/cio/assetviewer.html?filePath=/content/dam/cio/us/en/General/PDF/12/06/CIOEB%2520-%2520Portfolio%2520Management%2520for%2520Flexible%2520and%2520Transparent%2520Services%2520-%2520Cisco.pdf&contentType=researchstudy&searchString=cisco&pageContentId=200752563

https://www.cebglobal.com/member/cio/assetviewer.html?filePath=/content/dam/cio/us/en/General/PDF/12/06/CIOEB%2520-%2520Portfolio%2520Management%2520for%2520Flexible%2520and%2520Transparent%2520Services%2520-%2520Cisco.pdf&contentType=researchstudy&searchString=cisco&pageContentId=200752563

https://www.cebglobal.com/member/cio/research/case_study/15/end-to-end-services-management-intel.html/?referrerTitle=Search&referrerContentType=systempage&referrerComponentName=Search%20Results&searchString=Intel&screenContentId=200754448&referrerlinktext=End-to-End%20Services%20Management%20(Intel)

https://www.cebglobal.com/member/cio/research/study/14/the-new-model-for-it-service-delivery-volume-i/providing-flexible-service-cost-allocation/business-driven-service-cost-allocation-norgesgruppen.html

https://www.cebglobal.com/member/cio/research/study/14/the-new-model-for-it-service-delivery-volume-i/providing-flexible-service-cost-allocation/business-driven-service-cost-allocation-norgesgruppen.html


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ADAPT ENGAGEMENT ACROSS FIVE ACTIVITIESFive Engagement Activities


Own the process of delivering technology functionality, or provide integration capabilities for business-led technology investments.Delivering

5

Enable employees to make full use of the enterprise’s technology and information.

Coaching4

Provide the internal and external connections needed for business leadership of technology investments.

Brokering3

Offer advice and frameworks to enable successful business leadership of technology investments.

Consulting2

Keep abreast of emerging digital trends, and educate business partners on opportunities to create value from technology.Evangelizing

1

For more on the five engagement activities, see CEB’s work on Adaptive IT

Flex between the five activities based on business partners’ digital ambition and ability.

Project # 161782

Catalog # CIO5504116SYN

Year Range 2016

Adaptive Business Engagement2

https://www.cebglobal.com/member/cio/topics/the-future-of-corporate-it--adaptive-it.html


28-July-2016

Improve innovation outcomes by coaching

employees on developing and pitching

their ideas.

EXAMPLES OF NEW ENGAGEMENT ACTIVITIES

1

23 4 5

6

7

1

1

1 Pseudonym.

Promote digital marketing capabilities

through an internal digital agency run by enterprise architects.

Offer consultancy services to support part-time project managers through the PMO.

Connect business partners to sources of technology expertise and funding to

expedite their ideas.

Improve employee ability to exploit data by

providing coaching.

Guide business partners on due diligence

conversations as they work with technology vendors themselves.

Evangelizing

Influence emergent vendors and startups

so that business partners can work with

them directly.


CoachingBrokeringConsulting

Adaptive Business Engagement2


28-July-2016

CEB IT Leadership Academy’s Blended Learning Approach1

■ Focused on solving real-world IT challenges

■ Configurable to specific organization needs

■ Work-based application for immediate on-the-job impact

■ Choice of live or virtual learning interventions

■ Ability to measure the impact of learning with CEB Metrics That Matter™

Equip IT Professionals to Succeed in an Adaptive Environment

Build an Adaptive workforce by developing 12 critical competencies proven to drive high performance.CEB IT Leadership Academy develops these 12 competencies, enabling participants to effectively collaborate with the business, analyze IT enablement opportunities, and respond to a constantly shifting business and technology environment.

IT Competencies

1Premium offering not included in standard membership

■ Business Results Orientation

■ Communication

■ Influence

■ Relationship Management

■ Teamwork

■ Analytic Ability

■ Decision Making

■ Prioritization

■ Process Orientation

■ Creativity

■ Learning Agility

■ Organizational Awareness

Collaborative Analytical Responsive

CEB IT LEADERSHIP ACADEMY


28-July-2016

Project # 165211


Year Range 2016




7







PM

OAgile, DevOps, Continuous Delivery

3


Enterp

rise Architecture

Inform

ation R

iskData Strategy Over Ownership


8

9

1 Products Over Projects: Priorities and budgets set for business capabilities and products, not projects.

2 Adaptive Business Engagement: Business engagement approach flexes based on business context.

3 Agile, DevOps, Continuous Delivery: Integrated delivery, engineering, and support boost responsiveness and output.

4 Customer-Centric Design: Customer journey mapping used to guide design.

6 Cloud-Based Scalable Infrastructure: IT automation and cloud platforms cut time to scale.

7 Strategy Over Governance, Management Over Operations: Central groups refocus on facilitating strategy, innovation, change, and enterprise data.

8 Data Strategy Over Ownership: Coherent strategy and guidelines around data allow for rapid exploitation by distributed teams.

9 Adaptive Skills and Mindset: Staff become technically versatile, collaborative, and open to innovation.

5 Applications Building Blocks: APIs, platforms, data, and reusable services reduce effort and accelerate delivery.



28-July-2016

IT OPERATING MODEL FOR DIGITAL WEBINAR SERIESNext Webinar: Products Over Projects

IT Operating Model for Digital Webinar Series

CEB Enterprise ArchitectureCEB CIOCEB Applications

CEB IT Midsized CEB Infrastructure

CEB Information Risk CEB PMO

https://www.cebglobal.com/member/enterprise-architecture/events/webinars/16/it-operating-model-for-digital-webinar-series.html/?

https://www.cebglobal.com/member/cio/events/webinars/16/it-operating-model-for-digital-webinar-series.html/?

https://www.cebglobal.com/member/applications/events/webinars/16/it-operating-model-for-digital-webinar-series.html/?

https://www.cebglobal.com/member/it-midsized/events/webinars/16/it-operating-model-for-digital-webinar-series.html/?

https://www.cebglobal.com/member/infrastructure/events/webinars/16/it-operating-model-for-digital-webinar-series.html/?

https://www.cebglobal.com/member/information-risk/events/webinars/16/it-operating-model-for-digital-webinar-series.html/?

https://www.cebglobal.com/member/pmo/events/webinars/16/it-operating-model-for-digital-webinar-series.html/?


28-July-2016

Additional Resources and Upcoming Events


28-July-2016

Project # 164926


CEB CIO LEADERSHIP COUNCIL WEBINAR SERIESWebinars for January–February 2017

January February March

IT Operating Model for Digital Webinar Series: Products Over Projects26 January 2017 12:00 p.m. EST

IT Operating Model for Digital Webinar Series: Adaptive Business Engagement23 February 2017 12:00 p.m. EST

Tactics to Improve Gender Balance in IT8 February 2017 11:00am EST

Registration information and audio for past webinars is available on the member website in the Events section.

Increasing IT Scorecard Effectiveness for Digitization 9 March 2017 12:00 p.m. ET

IT Operating Model for Digital Webinar Series23 March 2017 12:00 p.m. ET


28-July-2016

ADDITIONAL SUPPORT FROM CEB IT PRACTICE

CEB Applications CEB CIO CEB Enterprise Architecture

Understand the key features of the new IT operating model for digital by reviewing The New IT Operating Model for Digital.



Improve your maturity in 20 areas critical to Agile using Agile Handbook.

Define an end-to-end IT service/product line using CEB Ignition™ Guide to Defining End-to-End IT Services.

Understand how EA groups are rethinking the value of and approaches to traditional areas of EA focus by reviewing The Future of EA.

Understand, plan, and roll out DevOps at your organization using DevOps Implementation Roadmap.

Understand the changes IT functions are making to create an adaptive IT–business engagement model by reviewing Adaptive Business Engagement.

Support a successful transition to Agile at scale by reviewing Adapting Enterprise Architecture for Agile at Scale.

https://www.cebglobal.com/member/applications/research/16/the-new-it-operating-model-for-digitial.html

https://www.cebglobal.com/member/applications/research/16/the-new-it-operating-model-for-digitial.html

https://www.cebglobal.com/member/cio/research/16/the-new-it-operating-model-for-digitial.html

https://www.cebglobal.com/member/cio/research/16/the-new-it-operating-model-for-digitial.html

https://www.cebglobal.com/member/enterprise-architecture/research/16/the-new-it-operating-model-for-digitial.html

https://www.cebglobal.com/member/enterprise-architecture/research/16/the-new-it-operating-model-for-digitial.html

https://www.cebglobal.com/member/applications/research/study/13/agile-handbook.html

https://www.cebglobal.com/member/applications/research/study/13/agile-handbook.html

https://www.cebglobal.com/content/cio/us/en/member/ignition-guides/ceb-ignition-guide-to-defining-end-to-end-it-services.html



https://www.cebglobal.com/member/enterprise-architecture/topics/the-future-of-ea.html

https://www.cebglobal.com/member/enterprise-architecture/topics/the-future-of-ea.html

https://www.cebglobal.com/content/applications/us/en/member/topics/agile/devops-implementation-roadmap.html

https://www.cebglobal.com/content/applications/us/en/member/topics/agile/devops-implementation-roadmap.html

https://www.cebglobal.com/content/cio/us/en/member/research/white-paper/16/preparing-it-business-collaboration-for-digitization.html

https://www.cebglobal.com/member/enterprise-architecture/research/report/16/adapting-enterprise-architecture-for-agile-at-scale.html

https://www.cebglobal.com/member/enterprise-architecture/research/report/16/adapting-enterprise-architecture-for-agile-at-scale.html


28-July-2016

ADDITIONAL SUPPORT FROM CEB IT PRACTICE

CEB Information Risk CEB Infrastructure CEB PMO




Navigate the new organizational context to build a strong foundation for success by reviewing First Steps for Creating a New Information Security Function.

Identify the key steps for building and implementing a cloud strategy using Cloud Strategy Roadmap and Checklist.

Understand the high-value opportunities, beyond the methodology, that PMOs can use to help the organization attain value from Agile by reviewing Defining the PMO’s Role in Driving Agile Value.

Coordinate risk management activities with other risk management functions by reviewing Formalizing Interfaces Between Risk Management Functions.

Bring clarity on how to implement change for DevOps by reviewing Implementing DevOps.

Adjust the type of support the PMO can provide to business partners using Context-Based PMO Engagement (Air Products and Chemicals, Inc.).

https://www.cebglobal.com/member/information-risk/research/general/16/the-new-it-operating-model-for-digitial.html

https://www.cebglobal.com/member/information-risk/research/general/16/the-new-it-operating-model-for-digitial.html

https://www.cebglobal.com/content/infrastructure/us/en/member/research/16/the-new-it-operating-model-for-digitial.html

https://www.cebglobal.com/content/infrastructure/us/en/member/research/16/the-new-it-operating-model-for-digitial.html

https://www.cebglobal.com/member/pmo/research/16/the-new-it-operating-model-for-digitial.html

https://www.cebglobal.com/member/pmo/research/16/the-new-it-operating-model-for-digitial.html

https://www.cebglobal.com/member/information-risk/research/report/15/first-steps-for-creating-a-new-information-security-function.html

https://www.cebglobal.com/member/information-risk/research/report/15/first-steps-for-creating-a-new-information-security-function.html

https://www.cebglobal.com/member/infrastructure/topics/technology-management/cloud-strategy-roadmap-checklist.html?

https://www.cebglobal.com/member/infrastructure/topics/technology-management/cloud-strategy-roadmap-checklist.html?

https://www.cebglobal.com/member/pmo/research/white-paper/16/defining-pmo-s-role-in-driving-agile-value.html/?

https://www.cebglobal.com/member/pmo/research/white-paper/16/defining-pmo-s-role-in-driving-agile-value.html/?

https://www.cebglobal.com/content/information-risk/us/en/member/research/study/15/formalizing-interfaces-between-risk-management-functions.html



https://www.cebglobal.com/member/infrastructure/research/report/16/implementing-devops.html

https://www.cebglobal.com/content/pmo/us/en/member/research/case_study/16/context-based-pmo-engagement-air-products-and-chemicals-inc.html



uly-2016 overview of the new it operating model …...key features of the it operating model for...

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