The Challenge of IT-Business Alignment

IT Governance IT governance Elements bridging the gap between corporate expectations and perceptions of the IT function. Elements Top management direction and oversight Value, risk and control constitute the core of IT governance.

IT Governance IT governance is the responsibility of executives and the board of directors, and consists of the leadership organizational structures and processes that ensure that the enterprise’s IT sustains and extends the organization's strategies and objectives.

Val IT and COBIT http://www. isaca. org/Template. cfm Val IT is a governance framework Relates to evaluation and selection of IT-enabled business investments Based on the COBIT framework Control Objectives for Information and related Technology Val IT provides guidance to Define relationship between IT and business Manage IT Portfolio Define key financial indicators, quantify intangible benefits and appraisal of downside risk

Harmonising the Elements of IT Governance Resource Management Strategic Alignment Value Delivery Performance Measurement Risk Management COBIT is based on the analysis and harmonisation of existing IT standards and good practices and conforms to generally accepted governance principles. It is positioned at a high level, driven by business requirements, covers the full range of IT activities, and concentrates on what should be achieved rather than how to achieve effective governance, management and control. Therefore, it appeals to executive management; business and IT management; governance, assurance and security professionals; and IT audit and control professionals. • Strategic alignment focuses on ensuring the linkage of business and IT plans; defining, maintaining and validating the IT value proposition; and aligning IT operations with enterprise operations. • Value delivery is about executing the value proposition throughout the delivery cycle, ensuring that IT delivers the promised benefits against the strategy, concentrating on optimising costs and proving the intrinsic value of IT. • Risk management requires risk awareness by senior corporate officers, a clear understanding of the enterprise’s appetite for risk, understanding of compliance requirements, transparency about the significant risks to the enterprise and embedding of risk management responsibilities into the enterprise. • Resource management is about the optimal investment in, and the proper management of, critical IT resources: applications, information, infrastructure and people. Key issues relate to the optimisation of knowledge and infrastructure. • Performance measurement tracks and monitors strategy implementation, project completion, resource usage, process performance and service delivery, using, for example, balanced scorecards that translate strategy into action to achieve goals measurable beyond conventional accounting.

COBIT Element • Strategic alignment focuses on ensuring the linkage of business and IT plans; defining, maintaining and validating the IT value proposition; and aligning IT operations with enterprise operations. • Value delivery is about executing the value proposition throughout the delivery cycle, ensuring that IT delivers the promised benefits against the strategy, concentrating on optimizing costs and proving the intrinsic value of IT. •

COBIT Elements Risk management requires risk awareness by senior corporate officers Resource management is about the optimal investment in, and the proper management of, critical IT resources Performance measurement tracks and monitors strategy implementation, project completion, resource usage, process performance and service delivery

The Open Group Architecture Framework TOGAF

Architecture Concept Independent/Unstructured Architected The difference between an architecture and an architecture managed by a framework? UG D-DOC BPI BOS Thousands of Process Documents Both are Architectures Copyright © 2009 Boeing. All rights reserved. Independent/Unstructured Architected

Copyright © 2009 Boeing. All rights reserved. Definition Architecture Framework: Framework for enterprise architecture which provides a comprehensive approach to the design, planning, implementation, and governance of an enterprise information architecture. Copyright © 2009 Boeing. All rights reserved. Copyright © 2008 Boeing. All rights reserved.

Architecture Main Components TOGAF is based on four pillars, called architecture domains: Business architecture or business process architecture which defines the business strategy, governance, organization, and key business processes of the organization Applications architecture which provides a blueprint for the individual application systems to be deployed, the interactions between the application systems, and their relationships to the core business processes of the organization with the frameworks for services to be exposed as business functions for integration. Data architecture which describes the structure of an organization's logical and physical data assets and the associated data management resources Technical architecture or technology architecture which describes the hardware, software and network infrastructure needed to support the deployment of core, mission-critical applications Process Applications Data Technology Without all four pillars evaluated your house is not well architected Copyright © 2009 Boeing. All rights reserved.

Enterprise Architecture Outcomes Strategic Goals and Objectives Defined Architecture Roadmap Integrated Business Architecture Integrated Data Architecture Integrated Application Architecture Integrated Technical Architecture Implementation Plan Strategies and Tactics to Deliver System Improvement Budget Requirements & Benefit Realization Governance Model for continuous Improvement Where are we going How will we get there How much will it cost What are the benefits How will we manage change Copyright © 2009 Boeing. All rights reserved. Slide - 12 -

Architecture Framework Define the architecture principles Define Architectural Roles and Responsibilities Define the framework and detailed associated methodologies to be used to develop enterprise architectures Establish an architecture change management process for the new enterprise architecture baseline that is achieved with completion of Phase G. This process will typically provide for the continual monitoring of such things as new developments in technology and changes in the business environment, and for determining whether to formally initiate a new architecture evolution cycle Define the business principles, business goals, and strategic business drivers of the organization Define stakeholders and their concerns and objectives Define the key business requirements to be addressed Articulate an Architecture Vision for the scope of the architecture effort Describe the business strategy for each business model Define the organizational, functional processes, information, and geographic needs of the business environment.. Define the major configurations of application system capabilities necessary to support the business in system agnostic terms for each business model The goal is to establish a baseline to facilitate changes in how technology is used to realize business capability in application systems over time as business needs change. Formulate recommendations for each implementation project. Document the strategic roadmaps for change, and the top-level work packages or projects to be undertaken to transition from the current to the target environment. Perform appropriate governance functions as the system is being implemented and deployed to ensure conformance with the defined architecture. Define a process whereby requirements for enterprise architecture are identified, stored, and fed into and out of the relevant ADM phases Define the major configurations of application system capabilities required to realize the information and business architecture specifications in/as production systems. Determine how the application and software services required in the target system will be grouped and arrayed. Initiate gap analysis between the Baseline and Target Domain Architectures. Assess the gaps, overlaps, disjoints, organizational readiness and data conversion constraints Sort the various implementation projects into priority order. Evaluate and select among the implementation options identified in the development of the various Target Architectures Assess the dependencies, costs, and benefits and generate an implementation and migration strategy. Copyright © 2009 Boeing. All rights reserved. Copyright © 2009 Boeing. All rights reserved. The Open Group Architecture Framework (TOGAF)

Benefit: Architecture Framework Enables Consistent End User Delivery Establishing a standard TOGAF Business Architecture not only facilitates IT optimization but also provides a foundation for Integrated Standard End User Delivery Integrated Standardized Business Processes aligned to supporting systems, tools, etc. Copyright © 2009 Boeing. All rights reserved. 14

A key lesson is that IT investment is no longer just about implementing IT solutions, it is about implementing IT-enabled change.

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