IVI Introduction

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0IVI External Briefing Pack-27Feb08-kc.ppt

IVI CONFIDENTIAL Selected Distribution OnlyIVI CONFIDENTIAL DO NOT DISTRIBUTE

IVI Briefing Package

DRAFT

October 2007

IVI CONFIDENTIAL

DO NOT DISTRIBUTE

Managing IT for Business ValueIntroduction to the Innovation Value Institute

February 2008


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IVI CONFIDENTIAL Selected Distribution Only

Introduction

Context This document provides an overview of the Innovation Value Institute, current efforts to

develop a new standard for measuring maturity in managing IT for business value (IT-

CMF), and next steps / plans for future development

Target audience of briefing pack

Potential new members (CIOs, Business leaders)

Organisations who may have an interest in validating / refining initial outputs

Permitted distribution

External parties please provide a list of organisations to the IVI office for membershipdevelopment planning and follow-up


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Introduction

Who are we?

The innovation Value Institute a consortium of leading players interested in improving thebusiness value that IT delivers

What are we developing?

Developing an industry standard for managing IT for business value, the IT capabilityMaturity Framework (IT-CMF)

The framework covers 36 critical processes to run an IT organisations, built on foundationallearning in IT transformation at Intel, refined by academic and industry input

Includes maturity curves, assessment tools, practices, outcomes and metrics to increasematurity level, case studies and illustrations of best practices

Why should this interest you?

Improve practices within your organisation and deliver more business value

Contribute to industry thought-leadership, share experiences with other leading companies

Develop staff and expertise


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IT value management is a key topic for CIOs

... with a tangible opportunity... with a tangible opportunity

Budget flexibility coupled with strategic ITalignment leads to 50% greater IT payoffs2

Improving management practices alongside ITinvestment drives 20% higher IT yields3

Growing evidence of an important gap in the IT industry

Important issue for CIOs ...Important issue for CIOs ...

71

62

52

45

40

0 20 40 60 80 100

CEO/CFO demanding better waysto demonstrate value

Find it difficult to calculate ROI

Executives "skeptical" of ROI from IT

Metrics don't adequately capture

business value

Do not measure bus iness valuefrom IT investments

Source: Industry surveys1. CIO Insight Survey 2. CRTO research 2. LSE, IVI Survey

% of respondents1


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CIOs lack a framework for describing business contribution

Financial value delivered

Cash flow ROI

ROCE ROE NPV

EVA

Operational value of IT

Customer

Employee Partner

Supplier

Societal

Managerial

Business valueBusiness valueIT process frameworksIT process frameworks

How to deploy service oriented architecture? How to implement best in class security? How to manage a data center? How to deploy virtualization?

What is the average return from your ITinvestments?

What is the cumulative return from your ITinvestments?

?




IVI is focused on realizing more business value from IT

"IVI's vision is to transform organizations toconsistently realise IT value from IT investmentand practices...

... through researching, developing and disseminatingan empirically proven and industry validated IT bestpractice model.

IVI's mission is to develop a unifying approach formanaging the delivery (or realisation) ofInformation Technology investments ...

... and to validate that these approaches have a broadapplicability across differing industriesand contexts."

-Innovation Value Institute

Provide new perspectives onvalue-based IT management

Develop an end-to-end view of ITprocesses and capabilities

Develop a roadmap to help CIOsselect strategies andimprove capabilities

Collect best practice case studiesacross industries, understand key

value drivers

Consortium of leading industry, consulting, not-for-profitand academic organisations




Consortium of leading players designing approaches tomanaging IT for business value

One of the largest,most successful,and active IT R&Dorganizations

$1.6B IT budgetmanaged for costand innovation;primary sponsorand contributor

IT providesinnovative productsthat drive corebusiness revenue

Strategy consulting.Cross-functionalindustry expertise,intellectual capital Best practices,

particularly in

EnterpriseArchitecture,systems design

IT services viewed ascompetitive differentia-tor; integral tobrand, image

Niche provider of ITservices and businessvalue analyticsAccess to academicresources, consortium

infrastructure

Strong investors invalue based mgmt,innovation value

Expertise andcustomer experiencein technical assetmanagement andfinancial management

Additional 20+ non-core medium and

large sized companies(EU and US)

Independent providersof IT advice &assurance to supportthe business agenda




Initial focus is on developing Capability MaturityFramework (IT-CMF)

WhatDevelop an integrating framework that enables CIOs and business management todeliver more value from IT investments and practices

WhyTo assess current practicesTo understand opportunity and value of increasing maturityTo bridge structural gaps in other assessment frameworks

How

Working Groups that input from consortium members, academics and companyexperienceReviewing material with Technical Committee for Consortium

Testing and validating and validating findings over time

When and

where

Initial outputs in early 2008Output initially for Consortium members, then to wider audience




IT-CMF : Four key macro processes

IT Capability Maturity FrameworkIT Capability Maturity Framework

Managing IT Like a Business IT management functions

Delivering IT CapabilityTraditional information technologyoperations, development, and services

Managingthe

IT Budget

Realising &Assessing

ValueFinancial investment/value delivered

IVI CONFIDENTIAL S l t d Di t ib ti O l




IT-CMF : 36 critical processes to run an IT organisation

IT Leadership & Governance

Business Process Mgmt

Business Planning

Strategic Planning

Demand & Supply Mgmt

Capacity Forecasting &Planning

Risk Management

Accounting & Allocation

Organisation Planning &Design

Sourcing

Resource Mgmt

Innovation Mgmt

Performance & Quality MgmtService Analytics &Intelligence

Managing IT Like aBusiness

Funding and Financing

Budget Management

Portfolio Planning &

PrioritisationBudget Oversight &Performance analysis

Managingthe

IT Budget

Realizing &Assessing

Value

DeliveringIT Capability

Enterprise Architecture

Infrastructure Mgmt

People Asset Mgmt

Intellectual Capital MgmtRelationship Asset Mgmt

Research, Development &Engineering

Solutions Delivery

Service Provisioning

User Mgmt & Training

User Experience Design

Program & Project Mgmt

Supplier Mgmt

Value Chain Mgmt

Capability Assessment &Mgmt

Total Cost of OwnershipMgmt

Benefits Assessment &Realisation

Portfolio Mgmt

Service analytics andIntelligence

LG

BM

BP

SP

DS

CP

RM

AA

OP

SO

RM

IM

PQ

SA

FF

BM

PP

BO

EA

IM

PA

IC

RA

RD

SD

SP

UM

UA

PM

SM

VC

CA

TC

BR

PM

IP

IVI CONFIDENTIAL Selected Distrib tion Onl




Each process has a maturity curve and an assessment tool

InnovationStrategy

Organization

IT Production

Corecapabilities

Assessingvalue

Funding

Innovation

... with an assessment tool toassign maturity level

... with an assessment tool toassign maturity level

1 532 4

1 532 4

1 532 4

1 532 4

1 532 4

1 532 4

IM: InnovationManagement

1 Ad hoc/unstructured

2 Emerging/sporadic

3 Defined/implemented

4 Managed/some value

5 Optimized value

Maturity level defined foreach process ...

Maturity level defined foreach process ...

Source: Intel, inspired by SEI CMM





Target: An objective way of assessing maturityof IT management practices ...

Managing IT Like a BusinessDelivering

IT Capability


Value

Managing the

IT Budget

1

2

3

4

5 Industryaverage

Current

maturitylevel

LG BM BP SP DS CP RM AA OP SO RM IM PQ VA FF BM PP BO EA IMPA IC RA RD SD SPUM UA PM SM VC CA TC BR PM IP

Could be applied across all IT functionsor in a selected set of areas

Gaps reflectopportunities for

investment, growth



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Total Cost of OwnershipMgmt


Portfolio Mgmt

Service Analytics &Intelligence

Significant amount of research underway

IT Leadership & Governance

Business Process Mgmt

Business Planning

Strategic Planning

Demand & Supply Mgmt

Capacity Forecasting &Planning

Risk Management

Accounting & Allocation

Organisation Planning &Design

Sourcing

Resource Mgmt

Innovation Mgmt

Performance & Quality Mgmt

Managing IT Like aBusiness

Funding and Financing

Budget Management

Portfolio Planning &Prioritisation

Budget Oversight &

Performance analysis

Managingthe

IT Budget


Value

DeliveringIT Capability

LG

BM

BP

SP

DS

CP

RM

AA

OP

SO

RM

IM

PQ

FF

BM

PP

BO

EA

IM

PA

IC

RA

RD

SD

SP

UM

UA

PM

SM

VC

CA

TC

BR

PM

SAI

CurrentWorking Groups

Initial BackgroundResearch1

Proposal for newworking group

Enterprise Architecture

Infrastructure Mgmt

People Asset Mgmt

Intellectual Capital Mgmt

Relationship Asset Mgmt

Research, Development &Engineering

Solutions Delivery

Service Provisioning

User Mgmt & Training

User Experience DesignProgram & Project Mgmt

Supplier Mgmt

Value Chain Mgmt

Capability Assessment &Mgmt

1. Not reviewed by technical committee



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Content developed using robust processBroad Input, validation, and QA

Initialbackground

research

WorkingGroup

Adjustcontent, develop

key insightsFinal approval

Validate &

TestDevelop

prose

1 2 3

4

5 6

Technical review / QA



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Very positive reactions to the work so farFrom contributing organisations

IVI is working on topics of great importance to our business, whereinnovation in IT is a way of life, and managing value is critical to oursuccess. ... I see materials here that I can bring back to myorganisation immediately, today.

The industry is looking to the IVI industry consortium to lead the way inresearching the challenges facing IT today. I have great faith in thevalue

of this approach to the field of IS management.

This consortium is a great way to see how other industries have solved theproblems were tackling. I think there istremendous value inparticipating, and contributing to IVI.

I have no doubt of the value of IVI... when I look at the output we have

produced. Thereturn has been incrediblecompared to the investment Ihave made.

Valuablecontent

Industrythought

leadership

Learning &

development

Return on

investment



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CO Se ected st but o O y

Assess your current practices(initial area of focus)

Innovation Management Enterprise Architecture Benefits Assessment & Realisation

Understand improvement opportunities Key practices Metrics Transitions to increase maturity

Develop network of subject matter experts

Two ways you could be involved

Test early versions of contentTest early versions of content Become a memberBecome a member

Contribute to development of leadingindustry framework

Gain exposure to leading practices,industry trends

Create development opportunities for staff

Access a cross-industry network of ITleaders



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y

Opportunities to pilot initial content in three areas

Innovation ManagementInnovation Management

Create, identify, fund and measureinformation technology basedinnovations to create business value.

IT innovation

New IT solutions to businessneeds

New products / services

Enterprise ArchitectureEnterprise Architecture

Provide models and practices todefine, plan and manage thebusiness and IT capabilities.

Architecture framework,processes, governance andvalue

Architecture Planning

Organisation structure and skillsmanagement, communicationand stakeholder management



Measure the actual return andforecast the expected value fromproject level investments.

Identification, documentationand measurement of benefits ofIT investments

Benefits tracking and reporting

Realisation planning of benefitsof IT investments

Impact Accelerate time to market

Improve quality of ideas andopportunities pursued

Achieve bigger / broader businessvalue and impact

Improve architecture managementpractices

Simplify architectural design

Reduce development time

Improve governance and regulatory

compliance

Increase ITs ability to forecastand deliver value from IT investments

Demonstrate ITs contributionto achieving business goals anddelivering business value



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Benefits of IVI membership

Content

Framework for assessing IT maturity Leading practices, industry trends, "hot topics" Assessment tools, "health check"

Better understanding of value/return from increasing maturity

Relationships Extended network of leading organisations, with broad and deep

experience in IT Network of key opinion leaders, academics

Marketing Potential be seen as contributing to leading industry thought

Staffdevelopment

Platform to develop expertise, networks, lead content development Approaches/tools for collaborative development



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For further information, please contact

http://ivi.nuim.ie/

[email protected]+353 1 708 6931

http://ivi.nuim.ie/http://ivi.nuim.ie/


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Backup slides



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Glossary of acronyms

ABR = Accelerated Background Research

CIO = Chief Information Officer

CMM = (SEI) Capability Maturity Model

IT-CMF = Information Technology-Capability Maturity Framework

IVI = Innovation Value Institute

IVIC = Innovation Value Institute Consortiums

NUI = National University of Ireland

ROI = Return On InvestmentSEI = Software Engineering Institute

WG = Working Group

Documents

IVI Introduction