Matakuliah : A0774/Information Technology Capital
Budgeting
Tahun
: 2009
Managing IT Capital Investment
Pertemuan 25-26
Manage IT as a Strategic Asset
• Partnering for Success
• The Importance of Relationships
• Investing in Values
Manage IT as a Strategic Asset
• Partnering for Success
– IT needs to be organized to rapidly respond to the needs of
individual business groups
• The Importance of Relationships
• Investing in Values
Manage IT as a Strategic Asset
• Partnering for Success
• The Importance of Relationships
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Competence
Mutual respect
Credibility
Business knowledge and perspective
Communication
• Investing in Values
Manage IT as a Strategic Asset
• Partnering for Success
• The Importance of Relationships
IT is no longer a cost center and a growing number of highly successful
firms are recognizing this. IT is an investment and should be managed
as such to increase revenue and profits. However recognizing and
managing IT as an investment rather than a cost center is a difficult task
and requires a significant cultural shift in most companies
• Investing in Values
Manage IT as a Strategic Asset
• Partnering for Success
• The Importance of Relationships
• Investing in Values
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Consistent
Strategic
Adaptable
Repeatable under dynamically changing circumstances
Manage IT as a Strategic Asset
• Partnering for Success
• The Importance of Relationships
• Investing in Values
Values are guiding principles, basic beliefs that are fundamental
assumptions on which all subsequent actions are based.
Values are the essence of an individual or group and provide
guidelines by which to make consistent decisions.
Investing in Actions
Where
We
Are
Inseparable from the
business completely
aligned with
business goals
Actions
Success
Partnering Business
teams
Managing IT as a
strategic assets
Investing in Values
Values
Where
We
Are
Inseparable from the
business completely
aligned with
business goals
Actions
Success
Partnering Business
teams
Managing IT as a
strategic assets
Partnering
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Business Cases
Business Teams
Partnering Within IT
Operating Principles
Partnering
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Business Cases
Business Teams
Partnering Within IT
Operating Principles
• Business Cases
• Are the instruments through which project priorities are
created and set by a joint business unit/technology
teams.
• Are required to address questions of enterprise business
goals and technology goals
• Process forces individuals and organizational units to
engage in a continuing dialogue.
• Business Cases
Alignment with business objectives is a natural consequence of jointly
developed business cases for projects that fall within the business’s
strategic plan.
Approval of the business case moves the business agenda forward and
creates partnership and understanding during the process
A not insignificant objectives of this process is the respect of the
business for IT’s understanding of the business and its strategic
needs.
• Business Teams
• Represent the fundamental relationship for
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Identifying
Specifying
Prioritizing
Creating IT value
• Business Teams
IT Systems Manager
Business Unit Champion
Chief Liaison with IT
Manages Project Champions
IT Systems Leader
Business Project Champion
Defines Business Requirements and Scope
Manages Business Team
IT Developers
Business Unit Champion
Dedicated Team of Business Users
Accountable for Successful Capture and
Implementation of Business Requirement
Partnering Within IT
• Every member of a department needs to understand and be kept up
to date on any information that relates to what they are doing and
what their partner are doing.
• Delegation of authority to the lowest practical level allows new ideas
to be tested constantly on the front lines in multiple situations
simultaneously.
• Many opportunities are recognized only at the front lines. This
opportunities may be fleeting if not recognized at the source when
they occur.
Partnering Within IT
The evolution of IT as a business partner
Necessary
Evil
* Fix it Staff
* Maintenance
* No Client Services
* No Business
Coordination
Service
Provider
* Customer Service
Oriented
* Performance
Management
* Standards
* Help Desk
* Training
* Productivity
* Business Apps
Business
Partner
* Partnering Matrix
* Revenue Enabling
* Product Creation
* Business Alignment
* Relationship
Management
* Education
Partnering Within IT
Evolution of Alignment
Necessary Evil
Service Provider
Business Partner
INFORMATION
Maintenance
Customer service oriented
Performance management
Metrics
Standards
Strategic Asset
Aligned with the business
APPLICATIONS
Back office
Productivity tools
Management information
Back office
Revenue enabling
Product creation
Workflow management
Nonexistent
Workstation Support
Training
Help Desk
Desktop Development
Education
Integrated support
Personal relationship
Dedicated by mainframe
No application architecture
needed
Discipline and consistency of
unavailable as an enterprise
Systems integration shows the need
architecture
Application architects only available
firms and systems integrators
Strategic architecture includes
architecture
Aligned with the business
Operating efficiencies
Leveragability
Speed to market
Cost effective
Web enabled
PERSONAL RPODUCTIVITY
APPLICATION
Operating Principles
Managing IT as a Cost Center vs Managing IT as an Investment
Cost Center Management
Managing IT as an Investment
Business throws projects requirements over transom
masquerading as requirements)
Business teams including IT as a "business" work
Priority set by user intuition
Jointly developed business case used to determine
Acceptations testing done by users when time permitted
Acceptance Testing done to exacting standards and
and deliverables
Infrastructure as a reactive afterthought
Strategic architecture/infrastructure as a competitive
Application development as an art
Application development as a science (discipline and
Operating Principles
Cost Center Management
Managing IT as an Investment
Infrastructure as overhead
IT Infrastructure as an Internal Service Provider
Task related communication (isolated)
Relationships
Accept user requirements verbatim. Even worse, creating
the user
Ask the right questions and jointly specify requirements
No iterative requirements document
Prototypes and proof of concepts
Projects belong to IT only
All projects require business units champions and
Technology for technology's sake
Alignment with business objectives
Reactionary/task oriented
Proactive/relationship-objectives
Operating Principles
Cost Center Management
Managing IT as an Investment
Working in silos
Teamwork/synergy
Mistrust
Credibility
IT for IT's sake
Customer-centric
Lack of metrics
Performance metrics
Bureaucratic
Adaptable
Follow orders
Creative-Solutions
Authoritarian decision making
Decentralization of decision making
Cost containment
Build for efficiency and effectiveness, architect for growth
Venders managed by the users
Vendors managed by IT
Vendor invoices go to the user
Vendor invoice go to IT