Business

Business- IT Alignment Increases Value Of IT

"Managing Value IT During Uncertain Times“

Presented By

Dinesh BarejaCISA, CISM, ITIL, BS7799 (Imp, LA)

Indian Honeynet ProjectOpen Security Alliance(www.honeynet.in)

Business – IT Alignment Increases Value of IT

Me

Dinesh BarejaBA, CISA, CISM, ITIL, BS 7799 (LA, Imp)

Work in Information Security consulting, advisory and technical services; identifying emerging opportunities; strategic business planning; training, mentoring and awareness. & more…

Dot-com boom rider.Past life (pre-.com) was spent in mfg, trdg, exports.Study and Learn.Indian Honeynet Project and other groups.

Email: [email protected]


Agenda

Professional Clichés Alignment Business-IT alignment paradigm Value for IT Innovation in IT

Business- IT Alignment Increases Value Of IT

Agenda


Profess

ional Clic

hés

Profess

ional Clic

hés

Profess

ional Clic

hés

Profess

ional Clic

hés


Professional Clichés Or Facts ?

Align IT with Business InfoSecurity must be aligned with Business IT is a cost center IT Security is an overhead

We are 100% secure Our processes are efficient...


Do We Ever Hear This…

There is a need to align Finance HR Admin Sales Delivery Facilities .. Etc

With Business (!) ?


But Why Do Clichés Survive

Lingua franca for one is geekspeak and anyone who does not understand it belongs to a subhuman species

FUD is the weapon of choice for both sides The constant Management v/s IT tussle and the

new dimension where we have IS/IT or IS/Mgt IT is to blame for all problems known and

unknown ! Even when the power is not switched on

Lack of understanding technology by management (or the interest to understand .. It’s not my job)


But Why Do Clichés Survive

No one is going to b-school or t-school to study “Technology for Managers” or “Understanding Balance Sheets for Techies”

Management gurus “know” that the techie cannot understand numbers and can only spend

Business team considers IT to be a support function !

…. etc etc


And Why Is IT Different ?

Business is afraid to own up to the lack of understanding of technology !

……it is a known unknown Everything is highly dependent on technology and it is

something I don’t understand (the coding, the holes, the machines…)

Innovation is so fast it does not fit in the window of normalcy

Even my life depends on it ….. and I hate it (my kid knows computers more than

I do)

Is it because…


The Paradox

Every forum, paper, professional (on both sides) says the same thing so are we yet to understand this fundamental truth

None of you are in IT all of you are in Business

- Andy Kyte, VP, Gartner. 2007 Annual Gartner Symposium in Australia

A Fundamental Truth


Time This Tone At The Top Changed


HRHRBusinessBusiness

ITIT

All All FunctionsFunctions

FinanceFinance


Our Theme

B-IT Alignment


Keywords….

"shared vision“ "we are all driving toward the same goals" (true

north) "we do things consistently“

Alignment must be Vertical and Horizontal to be effective and efficient (“Power of Alignment”, Labovitz and Rosansky)

Alignment


Geesey Alignment ExampleAlignment

Synchronizing a variety of opinions and views

"why we're doing this” is not about getting everyone to see "the right answer"

It is about incorporating everyone's viewpoint into a "shared vision" of what that means.

"we are all driving toward the same goals" (True North)

or it can mean "same way’’

The flock of geese does both – “shared / synchronized vision” and “drive for the same goal” … can a modern organization work in the same way without stifling creativity?

Not about "getting people to buy in" with an idea that is already formed.


… will the twain meet

BalloonGuy : "Excuse me, can you tell me where I am?“

eGuy: "Yes, you're in a hot-air balloon, about thirty feet above this field.“

BalloonGuy : "You must work in information technology,"

eGuy: "Yes, I do, and how did you know that?"

BalloonGuy : "Well, what you told me is technically correct, but of no use to anyone.“

eGuy: "You must work in management."

BalloonGuy : "I do, how did you know?“

eGuy: "Well, you don't know where you are, or where you're going, but you expect my immediate help. You're in the same position you were before we met, but now it's my fault!“

BalloonGuy

eGuy

Alignment

A man piloting a hot-air balloon discovers he’s wandered far off course and is lost. He descends to a lower altitude and sees a man on the ground, lowers the balloon and shouts,


Summing Up

The BalloonGuy strayed off course and turned to the technologist eGuy for help to solve the problem.

eGuy does not know where the Bguy is going, and he can only respond to what he knows, which is where the Bguy is this very moment.

.. Both parties move away questioning the value (intelligence ? Importance ? Utility ??) of the other.

There is clearly the result of a lack of definition and commitment to an overarching goal that business and IT truly understand. It makes strategic or vertical alignment impossible.


Two types of alignment that must be present for an organization to be effective and efficient. - Power of Alignment, Labovitz and Rosansky

Vertical, or top-down, alignment occurs when your employees truly understand the organizational goals of the company and their individual role for achieving them.

Horizontal alignment within the organization is achieved when processes and infrastructure are aligned to meet the real needs of the customer.

Once the BalloonGuy and the eGuy have achieved both horizontal and vertical alignment, they both know the destination / goal; the reason or why one needs to get there and they work together to develop the process and the resources required to achieve their overarching goal.

Alignment

Vertical / Horizontal Alignment


if and when … the twain meet

BalloonGuy : "Excuse me, can you tell me where I am?“

eGuy: "Yes, you're about half way to your destination, but you are off course by an eighth of a mile.

BalloonGuy : " Okay, thanks."

eGuy: “But wait, here’s a GPS that will get you quickly back on course. Also, there’s a tail wind at 6,000 feet that will reduce your fuel consumption and will increase your speed by 5 knots. You are also running low on propane so here’s an extra tank that will get you to our destination.”

BalloonGuy : "Thanks again. But why did you say “our” destination?“

eGuy: " Well you and I are supposed to work together. We both have the same goal to get you to our destination. Also, I understand my role and have the processes and resources to achieve our common goal. "

BalloonGuy : "Alignment is a great thing when it works!“

eGuy: "Well, you don't know where you are, or where you're going, but you expect my immediate help. You're in the same position you were before we met, but now it's my fault!“

BalloonGuy

eGuy

Alignment


And they lived happily ever…

Both now have a clear understanding of the business drivers, goals, roles and responsibilities. They have achieved vertical and horizontal alignment


You speak the same language i.e. both understand each other and do not walk away from a conversation scratching their heads !

Open Communication is driven by the knowledge of a common objective

Understand and accept organization goals and put in effective and serious work towards it

Understand and accept roles and responsibilities and ensure collective participation where they meet or overlap

No attitude (!) Business teams realize that IT is not just the “helpdesk” IT teams realize that business teams are not there to

just log helpdesk calls and make life difficult for them IT teams make serious efforts to bring knowledge to

their (business) doorstep

Alignment

To Recap


Value Extraction

Looking for an

Increase in Value

for IT


Uncertain Times or Not

CIO / CTO / CISO …. Technology office is under continuously increasing pressure to demonstrate value of IT / IS..

To introduce the business aspect in their domain and work towards making profits or saving through changes and development of capabilities that increases efficiency, productivity, availability…

In the survey carried out by IT service management provider, Axios, more than a third (39 per cent) said the decision makers within the business aren't able to understand the value that IT brings to the business.*

Organizations are expecting more for less from their IT investment.

Global economic uncertainty, triggered by the burst credit bubble, has created volatile working conditions for today’s CIOs.

- EuroCIO Conference (Geneva)


The Triads

Confid

entia

lity

Integrity

Availab

ility

Solutions

FunctionalityEfficiency

Liquidity

Security

Profitability


Imperative to Align The Triads

Confid

entialityIn

tegrity

Availab

ility

Solutions

Functionality Efficiency

Liquid

ity

Sec

urity

Pro

fita

bili

ty

BITA(x) = ROI(y)


Aligned = Lower Costs & More Goodies


Increased IT Value From Alignment

Direct presence in executive leadership Participation in strategic planning Ability to influence business Larger spectrum for growth Demonstrated return from deployed assets Returns may be tangible or intangible Successes like efficiency, productivity, time-to-

market etc can be claimed Easier path for budgets


Increased IT Value From Alignment

IT is now an investment and not an expense An enabler and not a means to an end Part of the organization fabric More new friends from business


How to

HOW DO WE GET THERE


Ideas For Identifying Value Areas

Align innovation initiatives with company goals. Follow the money trail. Create / conceptualize projects that will contribute to the firm's vision of success.

Look for opportunities in customer experience innovation, in addition to product and service innovation.

Look at weak spots in your portfolio. A slow economy reveals weaknesses that may not have been noticeable in stronger times.

Focus on projects that can create cost reduction. Look at major trends, e.g. cloud, energy and health care. Anything that

could affect your industry?

Get executive sponsorship / buy-in Communicate effectively. Get beyond technical jargon. Sell from your

audience's point of view. People need to like you, in addition to your idea. Develop your political savvy. You may hate to schmooze. To be

successful, You may have to get over it. - Knowledge@Wharton


Think - Out.. Of.. The … Box..

Another cliché !

Everyone tells everyone to think O2TB Everyone “is” thinking O2TB Yet nothing seems to be O2TB because no one

seems to be excited about IT


O2TB Ideas / Thoughts

Change is the order of the day Be the Change through thought, action and

communication Create some excitement in their dull lives !

Innovation Emerging Technologies Environment Metrics / KPI Compliance


EXCITE Your Stakeholders

In the knowledge economy the rulers are PPT… People, Process, Technology and of course … Business (supreme ruler)

Excite People with innovation, empathy, growth, understanding…

Excite Processes with change – efficiency, optimization, automation

Excite Technology by riding the cutting edge

Excite Business with your understanding of their work, pains, aches, warts, f!$%@ and show them how your work can give them a high

Exciting Change

Environment

Config Mgmt

Metrics KPIs

Innovate

New Tech


Value Innovation

A few pointers from Blue Ocean Strategy (Blue Ocean Strategy, By W.Chan Kim & Reneé Mauborne)

Create what people understand and value Create a “leap value” Link Technology with elements valued by

the customer Do not follow the competition make it

irrelevant

Exciting Change

Environment

Config Mgmt

Metrics KPIs

Innovate

New Tech


New Technologies

Bring the Cloud home Go the SOA way SaaS

Optimize existing systems

Exciting Change

Environment

Config Mgmt

Metrics KPIs

Innovate

New Tech


Environment

Green IT … its happening all over Green Security … yes it is possible Energy efficiency Power Management

Exciting Change

Environment

Config Mgmt

Metrics KPIs

Innovate

New Tech


Metrics

What you measure is what you get. … but did you even know what you want !

Or … what you wanted - is it of value !! If it is of value, did you derive the benefits of

the measure !!! Increased business , customer satisfaction,

lowered incidents, higher efficiency ?

Provide measures that “Everyone wanted but was afraid to ask for fear of sounding unreasonable / silly / out-of-the world !”

Exciting Change

Environment

Config Mgmt

Metrics KPIs

Innovate

New Tech


KPIs I would like to see

Savings quantified through correlation with non-compliance penalties

Metrics based on industry baselines

Meaningful metrics program tailored for tech / functional team; business mgt; tech mgt; public

Exciting Change

Environment

Config Mgmt

Metrics KPIs

Innovate

New Tech

In a survey conducted by Axios an ITSM provider, 64% respondents said the main problem was their inability to provide the rest of the business with quantifiable metrics related to the actual value IT services or assets are delivering


Compliance

Leveraging compliance requirements to brings about change, efficiency

Demonstrating compliance as an enabler rather than as a legal annual necessity

Exciting Change

Environment

Compliance

Metrics KPIs

Innovate

New Tech


BITA Successes

Google eBay Amazon Facebook Twitter Start-ups Apple

And they are successful…


Newton’s Laws of Motion

Objects at rest tend to stay at rest. We are in a constant state of thinking that we shall start

innovation or a new product / service / action and that that day will arrive by magic !

The velocity of acceleration is mass times force. Example is of a rocket – stage1 launch has max fuel

consumption, stage2 guiding optimum. Stage3 orbiting uses minimum fuel and usually the comfort zone from where companies do not move.

For every action there is an equal and opposite reaction. The competition will react with new products, strategies…


BITA … Increased Value of IT


Thank You !


About

Open Security Alliance … a group of professionals working in Information Security got together to discuss life beyond technical stuff which non-geeks find difficult to understand.

As a result of not being able to understand this technical security stuff and how it permeates into the organization DNA, these guys found that the non-geek person a.k.a. the Business Owner / Manager did not consider it necessary to provide adequate budgetary allocation !

So these guys got together and want to work under OSA to present the risks, threats and vulnerabilities in an easy and understandable language. Just to make sure the non-geek understands the problems as well and gets as scared as the IS guy.

OSA - an open community of individuals who are committed to providing the benefit of their knowledge and expertise to community.

OSA - individual initiatives to undertake research and studies in Information Security (India centric) then provide learning to community.

…. The underlying thought is to Be The Change.


References

Ryma’s Adaptive Product Management Methodology http://communicationnation.blogspot.com/2007/08/alignment.html Practices in IT Governance and Business/IT Alignment

By Steven De Haes, Ph.D., and Wim Van Grembergen, Ph.D. Control : Volume 2, 2008

http://management.silicon.com/itpro/0,39024675,39535795,00.htm

http://communicationnation.blogspot.com/2007/08/alignment.html

http://www.isaca.org/Template.cfm?Section=Home&template=/ContentManagement/ContentDisplay.cfm&ContentID=40282

http://management.silicon.com/itpro/0,39024675,39535795,00.htm


Alignment is not Agreement

One Thought To Remember

IT Alignment is not IT Governance

Agreement =

Everyone gets their first choice (difficult and time-

consuming to obtain.)

Alignment =

Everyone can fully support the choice that is made (much easier to obtain.)

IT Alignment

Performance OrientedStrategy Focused

EffectivenessCore & Mission Critical

Make a Difference

IT Governance

Compliance OrientedOperations derivedEfficiencyMission CriticalDon’t Make a Mistake


A BITA Model

Business - IT Alignment Increases Value Of IT

Transcript of Business - IT Alignment Increases Value Of IT