1、1,The Challenge of ValueThe Governance of IT InvestmentsUsing Val IT 2.0 to Deliver on the Promise,PRESENTER NAME: PHOTO OPTIONAL,2,2,Agenda,The challenge of value The role of IT governance Val IT 2.0 overview Applying Val IT 2.0,3,3,The value of IT is being increasingly questioned.,The Information

2、Paradox,yet enterprises continue to spend more and more on IT.,4,4,Are we maximising the value of our IT- enabled business investments such that: We are getting optimal benefits At an affordable cost With an acceptable level of risk,The Fundamental Question,over the full economic life cycle of the i

3、nvestment?,5,Gartner: More than US $600 billion thrown away annually on ill-conceived or ill-executed IT projects Standish Group: 24 percent of projects fail outright, 44 percent are challenged and only 32 percent are successful (2009 results) ISACA 2008 survey findings confirm concerns,The Reality,

4、2000,2002,2004,Successful,Failed,Challenged,2006,6,Investments are increasing and complexity is increasing!,Evolution of Use of IT,EfficiencyRun the business,Effectiveness Change the business,InnovationChange the rules,Source: The Information Paradox,7,A New Perspective,IT Investments,Source: The In

5、formation Paradox,8,Managing the change that IT both enables and requires through a governance approach that: Ensures clarity of, and accountability for, desired outcomes Enables understanding of the full scope of effort Breaks down the silos and connects the dots Manages the full economic life cycl

6、e Senses and responds to changes and deviations,The Role of IT Governance,The Business Challenge,This is a significant leadership challenge, opportunity and responsibility.,9,9,Leadership, process and structure to ensure that the enterprises IT enables and supports the enterprises strategies and obj

7、ectives by defining: Focusing on five areas,What Is IT Governance?,What key decisions need to be made Who is responsible for making them How they are made The process and supporting structures for making them, including monitoring adherence to the process and the effectiveness of decisions,10,10,Ano

8、ther Definition,Kubernn (Gr): To steer a ship; the process of continually orienting and adjusting,“Managing an uncertain journey to an uncertain destination”,any organisation is multifaceted, and the range of organisational variables is mind-boggling John Roberts The Modern Firm,11,Key Governance Qu

9、estions,Continually asking,Enterprise Value Management,Source: The Information Paradox,12,The Good News,Enterprises that actively design their top-level IT governance arrangements make and implement better IT-related decisions. Gartner Firms with focused strategies and above-average IT governance ha

10、d more than 20 percent higher profits than other firms following the same strategies. Peter Weill and Jeanne W. Ross, IT Governance Enterprises focused on converging their business and technology disciplines exhibited superior revenue growth and net margins relative to their industry groups and exhi

11、bited consistently greater rates of return than those of their competitors. BTM Institute,13,Only 38 percent of executives/senior management can describe their enterprises IT governance process. In most cases, IT governance has not been designed; it has just developed piecemeal in response to specif

12、ic issues.,Peter Weill and Jeanne W. Ross, IT Governance,The Bad News,Only 40 percent of approved projects have valid (realistic) benefit statements. Less than 10 percent of enterprises ensure that benefits are realised post-project. Less than 5 percent of enterprises hold project stakeholders respo

13、nsible for benefit attainment.,META Group, July 2004,In many enterprises, less than 8 percent of the IT budget is actually spent on initiatives that bring value to the enterprise. Butler Group, 2005,14,14,Source: Fujitsu,Without Effective Governance,15,We Can Do Better!,Value Management as applied t

14、o IT-enabled investments has been evolving over the last 15 years. A lot of it coming from the experiences of the financial services sector in managing value from investment portfolios In that time many enterprises globally have adopted Value Management practices. Some enterprises developed the appr

15、oaches themselves, but many adopted approaches developed by the pioneers in better value management practice (e.g., Cranfield, OGC, Fujitsu Consulting) Val IT is based on this collective experience.,16,Val IT Principles,IT-enabled investments will: Be managed as a portfolio of investments Include th

16、e full scope of activities that are required to achieve business value Be managed through their full economic life cycle Value delivery practices will: Recognise that there are different categories of investments that will be evaluated and managed differently Define and monitor key metrics and will

17、respond quickly to any changes or deviations Engage all stakeholders and assign appropriate accountability for the delivery of capabilities and the realisation of business benefits Be continually monitored, evaluated and improved,17,17,The strategic question. Is the investment: In line with our visi

18、on? Consistent with our business principles? Contributing to our strategic objectives? Providing optimal value, at affordable cost, at an acceptable level of risk?,The value question. Do we have: A clear and shared understanding of the expected benefits? Clear accountability for realising the benefi

19、ts? Relevant metrics? An effective benefits realisation process over the full economic life cycle of the investment?,The architecture question. Is the investment: In line with our architecture? Consistent with our architectural principles? Contributing to the population of our architecture? In line

20、with other initiatives?,The delivery question. Do we have: Effective and disciplined delivery and change management processes? Competent and available technical and business resources to deliver: The required capabilities? The organisational changes required to leverage the capabilities?,Some fundam

21、ental questions,about thevalue enabledby IT,The Four AresContinually Asking:,Source: The Information Paradox,18,18,Portfolio Management,Programme Management,Project Management,P3MProjects, Programmes and Portfolios,Source: The Information Paradox,19,19,DRAFT,Complete, Comparable and Operational Busi

22、ness Cases,Source: The Results Chain, Fujitsu,Results-focused programmes,20,20,Portfolio Management,TRANSPARENCY,21,21,Getting Ahead of the Curve!,Requires an effective full-cycle governance process that,Prevent/Plan,Contain/React,Recover/Throw Away or Start Again,$s,How does a project get to be a y

23、ear behind schedule? One day at a time. Fred Brooks,22,The Val IT Initiative,Framework 2.0, includes Maturity models Management guidelines RACI charts Inputs/outputs Metrics Getting Started guide Building the Business Case for COBIT and Val IT Val IT Mapping,DONE,Available for complimentary download

24、 from: ,23,Val IT 2.0 Domains and Processes Relationships,24,24,Val IT 2.0 Domains and Processes,25,VG Key Management Practices,26,PM Key Management Practices,27,IM Key Management Practices,28,IM3 Management Guidelines,29,RACI Roles,30,Accountabilities and Responsibilities by Role,31,IM

25、 High-Level Maturity Model,32,IM Detailed Maturity Model(Levels 0 and 1 only),33,Summary of Val IT 2.0 Changes,Framework VG processes restructured and extended to include a broader range of IT operational portfolios, including IT services, assets, and other resources that might be added to as a resu

26、lt of investments managed by Val IT, but which would be managed by COBIT, with performance being reported back to Val IT. PM processes include key management practices specifically related to the investment portfolio. IM processes include more explicit links to COBIT related to populating and monito

27、ring the performance of IT operational portfolios. Maturity modelsboth high-level models and detailed, attribute-level modelshave been provided for each of the three Val IT domains. Key Management Practices A number of new key management practices, related to: Enterprises better defining value More

28、emphasis on the opportunity for IT to influence business strategy Defining, populating and monitoring a broader range of portfolios More explicit alignment with enterprise financial planning practices More explicit linkage to business targets, forecasts and budgets More focus on business human resou

29、rces Distinguishing between solution delivery, service delivery and benefits realisation performance Management Guidelines Similar to the COBIT management guidelines, including: Inputs and outputs Activities and associated roles and responsibilities Goals and metrics Accountabilities and Responsibil

30、ities by Role Consolidation of RACI designations in the management guidelines by roles, identifying for each role tasks for which they are accountable (A), accountable and responsible (A/R), or responsible (R).,34,Val IT 2.0 Initiative A Value Lens Into COBIT,35,Comparison of Val IT 2.0 With COBIT 4

31、.1,36,Board / Senior Executive,Business Management,IT Operations,IT (Functional Mgt),Auditors,What fits where?,37,The Val IT framework provides a road map for organisations to follow on their way to improved IT investment decisions. The Val IT framework is grounded in real-world practices. Organisat

32、ions struggling to execute IT strategies that deliver business value and to communicate this value to stakeholders should evaluate Val IT as a tool for improved value delivery. From IT Governance to Value Delivery Craig Symons, Forrester Research 22 June 2007 Val IT should be considered by CIOs as a

33、 best practice model for IT value management. EA Adds A Fourth Pillar To IT Value Management Alexander Peters, Ph.D., Forrester Research 18 January 2008,Val IT Road Map,38,Why Isnt Everyone Doing This?,We do this already. It is not exciting. You are making it much too complex. It is not easy. It is

34、an IT problem. Business engagement/ accountability is lacking. We do not know where to start!,39,Getting Started GuidePain Points/Trigger Events,Internal Problems in delivering technical capabilities Limited or no understanding of IT expenditures Business abdicating decision making to the IT function Communication gaps between the IT function and the business Questioning the value of IT Major IT investment failure External. Change in funding Occurrences of significant market or economic changes