This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/build-an-it-service-strategy-leveraged-by-itil-v2-and-3-build-set-it-processes-and-key-performance-indicators-283
The "Deliver Business Value with IT" series provides a good overview and actionable material of the ways a CIO can provide valuable and effective support to your company strategy and leverages business model concepts to deliver business value from IT. Martin Palmgren propose an extremely solid piece of work that comes across as the A-Z reference of how to execute and implement IT strategy from a CEO and CIO level perspective."
Executive Summary:
The CIO and the IT Department need to position as premium provider of IT services and focus on value to cost.
Call Girls In Panjim North Goa 9971646499 Genuine Service
Build an IT Service Strategy Leveraged by ITIL V2 & 3 Build - Set IT Processes and Key Performance Indicators
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Copyright 2012 COMMUNICATE!
Build an effective IT Delivery Model to
meet Business Needs!
- To deliver to set business strategy and objectives !
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Break Out or How do we do this!
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CEO, CFO, CIO, CTO, SVP, Architects, Strategy, Business Executives
and the IT function in general. !
Target Audience!
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BrightTalk Thought Leadership: http://www.brighttalk.com/community/it-service-management/webcasts?q=martin+palmgren !
Get your cloud strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/29211 !
Get your IT Service Strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/23630!
Leverage Strategy with IT: http://www.brighttalk.com/community/it-service-management/webcast/534/22934 !
Cloud Computing: Fluff or Lightening? http://www.brighttalk.com/community/it-service-management/webcast/534/21892 !
Run IT as a Service Business! http://www.brighttalk.com/community/it-service-management/webcast/534/21389 !
In French: !
Cloud Computing : La tête dans les nuages?: http://www.brighttalk.com/community/it-service-management/webcast/534/21919 !
Baseline: Coût, Consommation, chargeback et contribution IT aux objectifs de l'entreprise : !
http://www.brighttalk.com/community/it-service-management/webcast/534/21388!
Deliver Business Value with IT (the book) https://www.smashwords.com/books/view/290604 (the blog) http://
deliverbusinessvaluewithit.wordpress.com /!
I also share perspective @ some of the top French Business Schools, notably EDHEC!
International Thought Leadership!
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Design the IT Service Strategy!
- Leveraged by ITIL V 2 & 3!
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By
Martin Palmgren, IT Strategy and Transformation Executive @ .COMMUNICATE
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Design, Build, Run!
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Define “to be” state with established KPI’s ()!
Design the IT Plan with a project portfolio ()!
An Effective (IT) Business Model ()!
Manage the Business of IT ()!
Develop & Manage IT Customer Relationships ()!
Manage Business Resiliency and Risk ()!
Manage Enterprise Information ()!
Develop and Manage IT Solutions ()!
Deploy Information Technology Services ()!
Deliver and Support IT Services ()!
Manage IT Knowledge ()!
Leverage Business Strategy Execution ()!
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Business Drivers & Processes!
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Cost Effectiveness!
Cycle Time!
Manage information technology
Manage the Business of Information Technology!
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Develop the enterprise IT strategy
Build
strategic
intelligence
Iden0fy
long-‐term
IT
needs
of
the
enterprise
in
collabora0on
with
stakeholders
Define
strategic
standards,
guidelines,
and
principles
Define
and
establish
IT
architecture
and
development
standards
Define
strategic
vendors
for
IT
components
Establish
IT
governance
organiza0on
and
processes
Build
strategic
plan
to
support
business
objec0ves
! !
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ITIL: SERVICE CATALOGUE MANAGEMENT
COBIT: PO1 Define a Strategic IT Plan
Develop and Manage IT Customer Relationships
Manage Business Resiliency and Risk
Manage Enterprise Information
Develop and Manage Information Technology Solutions
Deploy Information Technology Solutions
Deliver and Support Information Technology Services
Manage IT Knowledge
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Articulated!
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Key Performance Indicators!
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- Time in weeks to complete projects that address an identified business exposure or opportunity (More than 80% of
total annual revenue)!
- Time in weeks to close an identified IT skill or capability gap!
- Average time in weeks to fulfill a simple information need!
- Average time in weeks to fulfill a medium information need!
- Average time in weeks to fulfill a complex information need!
- Average time in weeks to create the enterprise information management strategic plan!
- Time in weeks to report on compliance status of the information architecture!
- Average time in weeks to set up a simple technical interface for a user of a defined data content source!
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Cycle Time!
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Key Performance Indicators!
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- Personnel cost of the process "perform enterprise data and content management" per $1,000 revenue!
- Systems cost of the process "perform enterprise data and content management" per $100,000 revenue!
- Personnel cost of the process "develop and maintain information technology solutions" per $1,000 revenue!
- Systems cost of the process "develop and maintain information technology solutions" per $100,000 revenue!
- Personnel cost of the process "deploy IT solutions" per $1,000 revenue!
- Systems cost of the process "deploy IT solutions" per $100,000 revenue!
- Personnel cost of the process "deliver and support IT services" per $1,000 revenue!
- Systems cost of the process "deliver and support IT services" per $100,000 revenue!
- Total cost of the process "manage the business of IT" per $1,000 revenue!
- Total cost of the process "develop and manage IT customer relationships" per $1,000 revenue!
- Total cost of the process "manage business resiliency and risk" per $1,000 revenue!
- Total cost of the process "manage IT knowledge" per $1,000 revenue!
- Total cost of the process "develop information and content management strategies" per $1,000 revenue!
- Total cost of the process "define enterprise information architecture" per $1,000 revenue!
- Total cost of the process "manage information and IT knowledge resources" per $1,000 revenue!
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Cost Effectiveness!
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Key Performance Indicators!
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- Control of IT expenses percentage, over or under IT budget, allocation to different budget items !
- IT budget as a percentage of turnover !
- IT expenses per staff member !
- Business value of the IT function percentage of the development capacity engaged in strategic
projects relationship between new developments/infrastructure investments/replacement investments !
- Business value of new IT projects financial evaluation based on ROI, NPV, IRR, PB business
evaluation based on information economics !
Corporate Contribution!
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Key Performance Indicators!
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- Efficient software development !
- Average days late in delivering software !
- Average unexpected budget increase !
- Percentage of projects performed within SLA !
- Percentage of maintenance activities !
- Efficient computer operations !
- Percentage unavailability of network !
- Response times per category of users !
- Percentage of jobs done within time !
- Efficient help desk function !
- Average answer time of help desk !
- Percentage of questions answered within time !
Operational Excellence!
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Design, Build, Run!
• Design the IT Plan with a project portfolio ()!
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- Report Gap analysis findings ()!
- Focus on Strategy Execution ()!
- And articulation ()!
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12. Strategy Execution!
IT Infrastructure Portfolio Management!
Application Portfolio Management!
Service Portfolio Management!
Enterprise Portfolio Management:!
Process based IT Architecture!
Project Portfolio Management !
Performance Management:!
Process based Business Architecture !
Product / service life cycle management!
Business Strategic Intent!
Strategy Articulation!
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Business Drivers & Processes!
Cost Effectiveness!
Cycle Time!
Time to Market (Governance: Performance & Conformity)!
Focus on Strategy Execution!
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13. Vision, Principles and strategy : Strategic Intent: set by the Board, Executive Management, Business
operations management with objectives on a: Strategic, Tactic & Operational level! !
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Strategic Intent: Product / service life cycle management: Interprets, models and articulates the
strategic intent in to business strategy!
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Business Strategy: Process based Enterprise Architecture: Interprets, models and articulates the
business strategy and ensures capability!
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Business & IT objectives: Project Portfolio Management: Interprets, models and articulates the
business objectives and ensures capability!
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IT Strategy: Process based IT governance: Levers formulated operating processes with best in class
IT solutions!
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Aligned on business requirements: Service Portfolio Management: Levers formulated operating
processes with portfolio management!
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Software Asset Management: Application Portfolio Management: Levers formulated operating
processes application portfolio management solutions!
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Infrastructure Asset Management: IT Infrastructure Portfolio Management: Levers formulated
operating processes with IT infrastructure portfolio management !
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Copyright 2012 COMMUNICATE!
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And articulation!
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Business Drivers & Processes!
!
Cost Effectiveness!
Cycle Time!
Manage information technology
Manage the Business of Information Technology
Develop and Manage IT Customer Relationships
Manage Business Resiliency and Risk
Manage Enterprise Information
Develop and Manage Information Technology Solutions
Deploy Information Technology Solutions
Deliver and Support Information Technology Services
Manage IT Knowledge
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!
Manage Information Technology!
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Business Drivers & Processes!
!
Cost Effectiveness!
Cycle Time!
Manage information technology
Manage the Business of Information Technology!
Develop the enterprise IT strategy
Define the Enterprise Architecture
Manage the IT Portfolio
Perform IT Research and Innovation
Perform IT Financial Management
Evaluate and Communicate IT business Value and Performance
Perform IT Staff Management
Manage IT Supplier and Contracts
Develop and Manage IT Customer Relationships
Manage Business Resiliency and Risk
Manage Enterprise Information
Develop and Manage Information Technology Solutions
Deploy Information Technology Solutions
Deliver and Support Information Technology Services
Manage IT Knowledge
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Manage the Business of IT!
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Manage the Business of IT!
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Developing the enterprise IT strategy consists of the activities required to define and maintain a
business-focused enterprise IT strategy. This includes building strategic intelligence for the enterprise,
collaborating with stakeholders to identify the long-term IT needs of the enterprise, and the development
and maintenance of the business-focused strategy.!
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- Build strategic intelligence!
- Identify long-term IT needs of the enterprise in collaboration with stakeholders!
- Define strategic standards, guidelines, and principles!
- Define and establish IT architecture and development standards!
- Define strategic vendors for IT components!
- Establish IT governance organization and processes!
- Build strategic plan to support business objectives!
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Develop the Enterprise IT Strategy!
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Manage the Business of IT!
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Management of the IT portfolio results in the establishment of criteria for economic and strategic
value and the provisioning of resources in accordance with strategic priorities and efforts to achieve a
balanced portfolio. The activities included within the IT portfolio management process are maximizing
the value of the IT portfolio for the enterprise, provisioning resources in accordance with strategic
priorities, and achieving a balanced portfolio. !
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- Establish the IT portfolio!
- Analyze and evaluate the value of the IT portfolio for the enterprise!
- Provision resources in accordance with strategic priorities!
Manage the IT Portfolio!
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Manage the Business of IT!
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Performing IT financial management involves establishing unit-level visibility into the costs of
services in order to provide internal customers with the ability to manage demand—which requires
publishing service rates and cost structures—and to establish project based accounting. IT financial
management interlocks project and functional expense accounting, tying project funding to business
case development checkpoints.!
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- Develop and maintain IT services and solutions cost transparency!
- Establish and maintain accounting process!
- Tie project funding to business case decision checkpoints!
Perform IT Financial Management!
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Manage the Business of IT!
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Performing IT staff management consists of organizing staff development activities to foster
business technology leadership, developing IT staff skills, and administering HR performance.
Developing business technology leadership includes identifying high-potential staff for leadership
positions; providing training, rotations, and project-based work experience; and managing a leadership
succession plan. Developing IT staff involves establishing role-specific competency requirements,
providing opportunities for developing technical and business skills, and managing the IT staff
development plan. Administering HR performance is defined by compensation of the leadership team
based on business outcomes realized and compensation of the IT staff based on business technology
performance achieved.!
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- Develop IT leadership and staff!
- Manage IT staff performance!
Perform IT Staff Management !
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Design, Build, Run!
• Develop & Manage IT Customer Relationships ()!
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- Key Performance Indicators ()!
- Develop IT Services and Solutions Strategy ()!
- Develop and Manage IT Service Levels ()!
- Perform Demand Side Management (DSM) for IT Services ()!
- Manage IT Customer Satisfaction ()!
- Market IT Services and Solutions ()!
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Developing and managing IT customer relationships involves managing communications and
interactions between the customers of IT and the providers of IT services and solutions; gathering
business requirements; helping customers develop justifications for requested IT services and solutions;
providing the initial interface to IT architects responsible for designing the IT services and solutions; and
monitoring the customersʼ satisfaction with the development, deployment, and ongoing support of the IT
services and solutions. !
!
Key performance indicators for this process group typically include:!
!
!
!
- Number of IT FTEs for developing and managing customer relationships per $1 billion revenue!
- Total cost of the process “develop and manage IT customer relationships” per $1,000 revenue!
!
Key Performance Indicators!
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Develop and Manage IT Customer Relationships!
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Developing and managing IT service levels requires creating and maintaining the IT services and
solutions catalog, establishing and maintaining business and IT service level agreements, evaluating
and reporting service level attainment results, and communicating business and IT service level
improvement opportunities. !
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- Create and maintain the IT services and solutions catalog!
- Establish and maintain business and IT service level agreements!
- Evaluate and report service-level attainment results!
- Communicate business and IT service-level improvement opportunities!
Develop and Manage IT Service Levels!
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Develop and Manage IT Customer Relationships!
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Management of IT customer satisfaction includes capturing and analyzing customer satisfaction and
assessing and communicating customer satisfaction patterns. Capturing and analyzing customer
satisfaction consists of tasks required to manage and monitor IT customer complaints and feedback,
conduct qualitative and quantitative assessments, and identify customer satisfaction issues and
opportunities for improvement. Assessing and communicating customer satisfaction patterns consists of
tasks required to evaluate satisfaction with IT services and solutions, evaluate satisfaction with
complaint resolution, and determine IT customer loyalty/lifetime value. !
!
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- Capture and analyze customer satisfaction!
- Assess and communicate customer satisfaction patterns!
- Initiate improvements based on customer satisfaction patterns!
Manage IT Customer Satisfaction!
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Design, Build, Run!
• Manage Business Resiliency and Risk ()!
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!!
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- Key Performance Indicators ()!
- Develop and Manage Business Resiliency ()!
- Develop and Manage Regulatory Compliance ()!
- Perform Integrated Risk Management ()!
- Develop and Implement Security, Privacy, and Data
Protection Controls ()!
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Managing business resiliency and risk includes the processes required to enable firms to rapidly
adapt and respond to any internal or external opportunity, demand, disruption, or threat; continue
operations without significant impact to the business; and develop a more dynamic, strategic, and
integrated approach to managing compliance obligations. !
!
Key performance indicators for this process group typically include:!
!
!
- Number of IT FTEs for managing business resiliency and risk per $1 billion revenue!
- Total cost of the process “manage business resiliency and risk” per $1,000 revenue!
Key Performance Indicators!
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Manage business Resilience and Risk!
!
Developing and managing regulatory compliance is defined as developing the regulatory
compliance strategy, establishing regulatory compliance controls, and managing regulatory compliance
remediation. Some of the tasks required to develop and manage regulatory compliance include
instituting technology-based strategies for meeting regulatory requirements; establishing and
maintaining compliance objectives and strategies for maintaining an audit-ready posture; assessing the
ability of current policies, procedures, and architectures to meet compliance requirements; establishing
compliance monitoring and reporting procedures; executing compliance management projects; testing
compliance controls; and performing compliance audits and producing reports. !
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- Develop the regulatory compliance strategy!
- Establish regulatory compliance controls!
- Manage regulatory compliance remediation!
Develop and Manage Regulatory Compliance!
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Manage business Resilience and Risk!
!
Developing and implementing security, privacy, and data protection controls includes the
establishment of information security, privacy, and data protection strategies and levels as well as the
testing, evaluation, and implementation of information security, privacy, and data protection controls. !
!
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- Establish information security, privacy, and data protection strategies and levels!
- Test, evaluate, and implement information security and privacy and data protection controls!
Develop and Implement Security, Privacy, and
Data Protection Controls !
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Business Drivers & Processes!
!
Manage information technology
Manage the Business of Information Technology!
Develop and Manage IT Customer Relationships
Manage Business Resiliency and Risk
Manage Enterprise Information
!
!
!
Cost Effectiveness!
Cycle Time!
Develop the Information and Content Management Strategies
Define the Enterprise Information Architecture
Manage Information Resources
Perform Enterprise Data and Content Management
!
Develop and Manage Information Technology Solutions
Deploy Information Technology Solutions
Deliver and Support Information Technology Services
Manage IT Knowledge
! !
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Manage Enterprise Information!
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Manage Enterprise Information!
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Developing information and content management strategies within the IT organization includes
understanding information needs and the role of IT services in executing the business strategy,
assessing the information and IT knowledge management implications of new technologies, and
planning information and IT knowledge management actions and priorities. !
!
- Understand information and content management needs and the role of IT services for executing
the business strategy!
- Assess the information and content management implications of new technologies!
- Identify and prioritize information and content management actions!
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Develop the Information and Content
Management Strategies!
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Manage Enterprise Information!
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Managing information resources includes defining the enterprise information/data policies and
standards as well as developing and implementing data and content administration.!
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- Define the enterprise information/data policies and standards!
- Develop and implement data and content administration!
Manage Information Resources!
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Design, Build, Run!
• Develop and Manage IT Solutions ()!
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- Key Performance Indicators ()!
- Develop the IT Development Strategy ()!
- Perform IT Services and Solutions Life Cycle Planning ()!
- Develop and Maintain IT Services and Solutions Architecture ()!
- Create IT Services and Solutions ()!
- Maintain IT Services and Solutions ()!
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Developing and managing information technology solutions involves producing, developing, and
testing new, enhanced, and improved solutions; enabling services that meet all confirmed requirements;
maintaining and managing solutions; supporting services to continue meeting all confirmed
requirements; and sunsetting solutions/discontinuing services no longer needed.!
!
Key performance indicators for this process group typically include:!
!
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- Number of IT FTEs for developing and maintaining IT solutions per $1 billion revenue!
- Total cost of the process “develop and maintain information technology solutions” per $1,000 revenue. !
- Time to market (in months) for new or enhanced IT services!
Key Performance Indicators!
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Develop and Manage IT Solutions!
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Performing IT services and solutions life cycle planning includes tasks to maintain the long-term
viability of a family of services and solutions from “cradle to grave.” This includes ensuring that new
solutions are created and new services enabled when needed and that existing services and solutions
are properly repaired/enhanced or sunset/discontinued in an orderly fashion when no longer needed. !
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- Plan development of new requirements!
- Plan development of feature and functionality enhancement!
- Develop life cycle plan for IT services and solutions!
Perform IT Services and Solutions Life Cycle
Planning !
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Develop and Manage IT Solutions!
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Creating IT services and solutions is defined as the installation of service and/or solution design
while ensuring that all functional and non-functional requirements are met and that solutions comply
with organizational standards. Tasks include understanding service or solution requirements, designing
the service or solution, building or integrating components, testing the solution or service, and gaining
customer acceptance and certification. !
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- Understand confirmed requirements!
- Design IT services and solutions!
- Acquire/Develop IT service/solution components!
- Train services and solutions resources!
- Test IT services/solutions!
- Confirm customer acceptance!
Create IT Services and Solutions!
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Design, Build, Run!
• Deploy Information Technology Services ()!
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- Key Performance Indicators ()!
- Develop the IT Deployment Strategy ()!
- Plan and Implement Changes ()!
- Plan and Manage Releases ()!
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Deploying information technology solutions involves introducing new, enhanced, or improved
functionality into the environment with minimal or no disruption to the services schedules; ensuring
consideration of appropriate security and contractual constraints; and properly balancing business
benefit with technical and business risk.!
!
Key performance indicators for this process group typically include:!
!
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- Number of IT FTEs for deploying IT solutions per $1 billion revenue!
- Total cost of the process “deploy IT solutions” per $1,000 revenue!
- Percentage of unscheduled outages from change requests!
- Percentage of unscheduled outages from release introductions !
- Average time in weeks to make a change to the production environment !
- Average time in weeks to deploy a new release into the production environment !
Key Performance Indicators!
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Deploy Information Technology Services!
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Planning and implementing changes includes all tasks necessary to administer and plan individual
change requests (including accepting or rejecting the request), assessing the business and technical
risks of changes, determining which individual changes can be performed simultaneously without
increasing overall risk factors, and creating a master change schedule. Other tasks include requesting
services, such as procurement and security, from other components to ensure component availability
and obtainment of necessary security authorities. !
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- Plan change deployment!
- Communicate changes to stakeholders!
- Administer change schedule!
- Train impacted users!
- Distribute and install change!
- Verify change!
Plan and Implement Changes !
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Design, Build, Run!
• Deliver and Support IT Services ()!
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- Key Performance Indicators ()!
- Develop the IT Services and Solutions Delivery Strategy ()!
- Develop the IT Support Strategy ()!
- Manage IT Infrastructure Resources ()!
- Manage IT Infrastructure Operations ()!
- Support IT Services and Solutions ()!
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Delivering and supporting information technology services involves delivering IT services and
solutions within the budget provided; meeting service commitments as measured by customer-defined
service criteria; and achieving customer satisfaction targets.!
!
Key performance indicators for this process group typically include:!
!
!
!
- Number of IT FTEs for developing and maintaining IT solutions per $1 billion revenue!
- Total cost of the process “deliver and support IT services” per $1,000 revenue!
- Average time (in hours) to resolve a service commitment disruption!
Key Performance Indicators!
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Deliver and Support IT Services!
!
To develop the IT support strategy requires defining the organizational approach to delivering key
enabling services and assisting in the use of information technology. This strategy would address help
desk activities, desk-side support, and third- level technical support. Tasks include coordination of
vendor support and evaluation of sourcing alternatives.!
!
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- Establish sourcing strategy for IT support!
- Define IT support services!
Develop the IT Support Strategy!
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Deliver and Support IT Services!
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Managing IT infrastructure operations consists of activities required to manage the organizational
workload and operation of physical assets, irrespective of their physical location. This includes providing
and executing the requested services, preparing and handling customer input and data, managing
security requests, and releasing resources employed in the delivery of the requested service and
subsequently returning them to the resource pool. !
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- Deliver IT services and solutions!
- Perform IT operations support services!
Manage IT Infrastructure Operations!
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Design, Build, Run!
• Manage IT Knowledge ()!
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- Key Performance Indicators ()!
- Develop the IT Knowledge Management Strategy ()!
- Develop and Maintain IT Knowledge Map ()!
- Manage the IT Knowledge Life Cycle ()!
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Managing IT knowledge within an enterprise includes managing knowledge related to the industry
and business of the enterprise served by IT; managing knowledge of the important business processes
and business functions supported by the services and solutions developed and maintained by IT;
managing knowledge of the enterpriseʼs information, application, and technology infrastructure
architectures and of the services and solutions provided; managing knowledge of processes and
techniques for developing, maintaining, and delivering services and solutions; and managing knowledge
of the current and emerging technologies underlying the services and solutions provided. The goals of
managing IT knowledge are to determine the knowledge requirements of the IT function; to establish
objectives and priorities for knowledge within IT that are aligned with IT strategies and priorities; to
establish knowledge management policy for the IT function; and to monitor, analyze, and report on the
use and management of knowledge by IT resources.!
!
Key performance indicators for this process group typically include:!
!
!
- Number of IT FTEs for managing IT knowledge per $1 billion revenue!
- Total cost of the process “manage IT knowledge” per $1,000 revenue!
Key Performance Indicators!
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Manage IT Knowledge!
!
Developing and maintaining the IT knowledge map includes defining knowledge elements, logical
relationships and constraints, and currency rules; identifying IT knowledge sources and repositories;
identifying IT knowledge-sharing opportunities; and defining IT knowledge processes and approaches. !
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!
!
- Define knowledge elements, logical relationships and constraints, and currency rules!
- Identify IT knowledge sources and repositories!
- Identify IT knowledge-sharing opportunities!
- Define IT knowledge processes and approaches!
Develop and Maintain IT Knowledge Map!
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The material in this presentation is derived from identified “best in class practise”
used by some of the worlds largest groups (Fortune 100 and 1000) and top
performers within the IT domain.
This walkthrough is a part of a set of reports proposed to provide pragmatic guidance
on how to develop and execute your IT Strategy to support the Business Strategy
and Business Objectives.
Reference!
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We work with a number of large French and International groups on the
Business IT roadmap; that is how do we (as CIO, IT Department)
support business objectives and processes leveraged by IT and an
effective IT Services strategy.!
.COMMUNICATE!
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Martin Palmgren, EVP .COMMUNICATE – Deliver Business Value with
IT / martin.palmgren@pscommunicate.com (mail)!
Deliver Business Value with IT (the book) https://www.smashwords.com/books/view/290604 (the
blog) http://deliverbusinessvaluewithit.wordpress.com /!
CONTACT!
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