Chapter 5
IT Processes
Managing the Information
Technology Resource
Jerry N. Luftman
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 1
Chapter Outline
• Number of processes in IT
• Strategic, Tactical, and Operational layers of IT
processes
• Importance of planning
• Most important processes
• Ownership of each process container
• Amount of resource applied to each process
• Effectiveness of processes
• Priority on improving processes
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 2
Feeney’s 9 Core IT Processes
• Business systems
thinking
• Contract facilitation
• Vendor development
• Contract monitoring
• Making technology
work
• Informed buying
• Architecture
planning
• Relationship
building
• Leadership
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 3
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 4
Business objectives
IT Governance
CobiT
Information
Monitoring
Planning and
organization
IT Resources
Delivery and
support
Acquisition and
implementation
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 5
38 IT Management Processes
• Strategic Level Processes
– Long Term
• Tactical Level Processes
– Short Term
• Operational Level Processes
– Day-to-Day
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 6
Strategic Level Process
• Strategic Planning and Control
– Business strategic planning
– Architecture planning
– IT strategic planning and control
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 7
Business Strategic Planning
• Enabled/driven by IT
• Defines enterprise demands on IT function
through strategic plan period
• Opportunity occurs through meeting
enterprise demands
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 8
Architecture Scanning and Definition
• Defining data, information, and knowledge
architecture for the enterprise
• Defining the application architecture for
the enterprise
• Defining IT technology architecture for the
enterprise
• Integrating architectures
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 9
Information Technology Strategic
Planning and Control
• Based on goals of firm and IT
• Defines general direction regarding how to
attain goals through IT strategic plan
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 10
Tactical Level Processes
• Management Planning
– Management System monitoring and planning
• Development Planning
– Application planning
– Data planning
– Network planning
– System planning
– Project planning
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 11
Tactical Level Processes
• Resource Planning
– Capacity planning and management
– Skills planning and management
– Budget planning and value management
– Vendor planning and management
• Service Planning
– Service level planning and management
– Recovery planning and management
– Security planning and management
– Audit planning and management
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 12
Development Planning Processes
• Application planning
• Network planning
– Network connectivity
demands
– Portfolio and schedule of
applications to be built or
• System planning
modified in certain time
– Translate strategic
period
goals into scheduled
update of hardware,
• Data planning
software, network, and
– Reviews application plan
facilities
– Determines data needs • Project planning
– Defines technically
feasible and
manageable projects
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 13
Service Planning Processes
• Service level planning
and management
– Negotiates service level
agreements
• Recovery planning and
management
– Ensures continuation of
operations in event of
disaster
• Security planning and
management
– Builds plan to ensure
agreed levels of security
for systems are met
• Audit planning and
management
– Builds plan to ensure
agreed levels of audit
and compliance
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 14
Resource Planning Processes
• Capacity planning
and management
– Defines how system
resources support
demand
• Skills planning and
management
– Defines manpower
needs to compete
• Budget planning and
value management
– Converts plans into
financial terms
– Identifies funding and
allocation
• Vendor planning and
management
– Outsourcing IT services
and coordination
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 15
Management Systems Planning
• Uses strategic processes and assessment
of IT plan
• Defines new prioritized portfolio of projects
and plans
• Improves management system
• Project management approach is used
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 16
Operational Level Processes
• Project Management
– Project assignment
– Project scheduling
– Project controlling
– Project requirements control
– Project evaluating
• Resource Control
– Change control
– Asset management
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 17
Operational Level Processes
• Service Control
– Production and distribution scheduling
– Problem control
– Service evaluating
• Development and Maintenance
– Software development and upgrade
– Software procurement and upgrade
– Hardware procurement and upgrade
– Systems maintenance
– Tuning and system balancing
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 18
Operational Level Processes
• Administration Services
– Financial performance
– Staff performance
– Education/training
– Recruiting, hiring, retention
• Information Services
– Production
– Service marketing
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 19
Project Management Processes
• Project assignment
– Defines scope,
leadership, and
business partner
involvement
– Ensures successful
project completion
– Selects project leader
– Defines IT and business
involvement
– Obtains management
commitment
• Project scheduling
– Define deliverables
– Define tasks
– Estimate project time
and costs
– Schedule resources
– Finalize a detailed
project plan
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 20
Project Management Processes
• Project Controlling
– Track progress against plan
– Report status
– Conduct project reviews
– Resolve development problems
– Review make/buy decisions
– Submission of change requests
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 21
Project Management Processes
• Project Requirements Control
– Receipt of requests for requirement changes
from users/other sources
– Analysis of specifications of new requests
– Acceptance or rejection of requests
– Revision of project plan
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 22
Project Management Processes
• Project Evaluating
– Documentation of final status of
project/deliverables
– Comparison of project achievement with
project plans
– Identification and reporting reasons for
variances
– Obtaining approval to terminate project and
report completions
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 23
Resource Control
• Change control
– Record change
requests
– Prioritize and group
changes
– Schedule, defer, reject
changes
– Monitor testing
– Monitor installation
– Report and control
status of changes
• Asset management
– Identification of systems,
applications, data,
personnel, supplies, and
financial resources
– Update inventory
– Maintenance of security
or resources
– Administer access to
resources
– Report and control on
inventories
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 24
Service Control Processes
• Production and Distribution Scheduling
– Plan production and distribution service
workload
– Develop maintenance and measurement
schedule
– Develop work schedule
– Negotiate deviations from service agreements
– Publish work, maintenance, and measurement
schedules
– Monitor and modify schedules
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 25
Service Control Processes
• Problem Control
– Recognize problems
– Report/log problems
– Determine nature, impact, and extent of problem
– Select predefined bypass and recovery
procedures
– Initiate action to resolve problems
– Report and control status of all problems on
hand
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 26
Service Control Processes
• Service Evaluating
– Translate operational data into service-level
terms
– Assess user rating of the service
– Evaluate compliance to service agreements
– Identify and report reasons for variance
– Report service status and new service
requests
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 27
Development and
Maintenance Processes
• Software Development and Upgrade
– Define detailed requirements
– Design externals and internals of application
– Structure data
– Negotiate design compromises with users
– Develop and test programs
– Integrate and test applications
– Install software
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 28
Development and
Maintenance Processes
• Software Procurement and Upgrade
– Define detailed requirements
– Review integrity and performance
– Negotiate compromises with vendors and users
– Confirm or amend buy decisions
– Define system recovery for operating
environment
– Generate system and execute provided tests
– Publish instructions for integration
– Install, integrate, and test application/software
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 29
Development and
Maintenance Processes
• Hardware Procurement and Upgrade
– Define detailed requirements
– Select hardware/network/facility
– Lay out physical planning
– Define hardware, network, and facility recovery
– Test new units
– Test complete systems
– Install hardware, network, facility
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 30
Development and
Maintenance Processes
• Systems Maintenance
– Revalidate cause of problem
– Understand environment of suspect
component
– Diagnose suspect component
– Determine fix for failing components
– Test fixes
– Change management review
– Install fixes
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 31
Development and
Maintenance Processes
• Tuning and System Balancing
– Define detailed requirements
– Develop solutions
– Execute testing of new or modified units
– Test complete systems
– Change management review
– Install new systems
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 32
Administrative Services Processes
• Financial Performance
– Calculate charges due for services
– Administer vendor and other contracts
– Execute cost accounting procedures
– Purchase equipment, supplies, services
– Report accounting and financial status
– Track vendor performance
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 33
Administrative Services Processes
• Staff performance
– Collect data on
absences,
accidents,
attendance
– Collect data on job
performance
– Compare and report
productivity
• Education and training
– Perform training and
education for
information systems
services
– Develop and maintain
educational
documentation
– Maintain education and
training profile for IT
staff
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 34
Administrative Services Processes
• Recruiting, Hiring, and Retention
– Recruitment and promotion
– Training and qualification requirements
– Cross-training and job rotation
– Hiring and firing
– Measuring performance
– Respond to technical and market changes
– Balance internal and external demands
– Succession plan for key staff
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 35
Information Services Processes
• Production
– Receive jobs, transactions, and input data from
distribution
– Set up, initiate, and run jobs and transactions
– Make jobs, transactions, and output data
available for distribution
– Monitor progress of production work against
schedules
– Execute predefined or emergency production
procedures
– Record and report information on status,
incidents, actions taken, and results
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 36
Information Services Processes
• Service Marketing
– Select service offerings to fit client needs
– Market offerings appropriately
– Report user needs for new services
– Initiate actions to provide services
– Execute public relations activities on behalf of
I/S organization
– Provide interface among IT and business
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 37
Ownership of Processing
• Consider:
– Financial conditions
– Services
– Relationships
– Reliability
– Outsourcing
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 5 - Slide 38