Model of IT Consulting

Strategic Alignment Model

Strategic Alignment Maturity Summary
IT Systems
Management by Maxim Framework
Competitive value disciplines/ strategies

Aritra
Aritra
Rubal
Sudheer
Fahim
Sudheer

Portfolio Management
Financial value Measures
Portfolio Application Model

Rahul Das
Fahim / RD
RD

Why, What, Which and How

Business Strategy, IS Strategy, IT and Information Management
Change of Strategy Alignment
Define the shift from current level to future level
Divide into Informational, Strategic, Transactional and Infrastructure
Business Maxim, IT Maxim
Operational excellence, customer intimacy and product leadership

ROI
Value Vs Ability Succeed

ation Management

Present
Different IT standards

various IT methodologies

Data Centers & Networks

37 Data centers

Outsource IT services

Owned Hardware maintainence and

help desk

Server hardware & Platforms

ERP

Multiple platforms being used

Presently not in all the centers

Proposed
common approach
3 data centers with virtual
network
Outsource the two
Standardize the platforms used,
Implementation

reduce project cycles and encourage knowledge cycles over IT development teams,
improving future system development capability
saves 1.1 million with the possibility of network issues
realise saving in 12 months
Reducing the maintainence cost,support cost
Crucial Cornor stone

Communication

Competency and value measurements

Governance

Partnership

Scope & architecture

Scope & architecture

skill

UNDERSTANDING OF BUSINESS BY IT
IT management not aware
Limited IT awareness
Senior and mid-management
Pushed down through organization
Pervasive
UNDERSTANDING OF IT BY BUSINESS
Business management not aware
Limited business awareness
Emerging business awareness
Business aware of potential
Pervasive
INTER/INTRA-ORGANIZATIONAL LEARNING
Casual, ad-hoc
Informal
Regular, clear
Unified, bonded
Strong and structured
PROTOCOL RIGIDITY
Command and control
Limited relaxed
Emerging relaxed
Relaxed, informal
Informal
KNOWLEDGE SHARING
Ad-hoc
Semi structured
Structured around key processes
Institutionalized
Extra-enterprise
LIAISON(S) BREADTH / EFFECTIVENESS
None or ad-hoc
Limited tactical technology based
Formalized, regular meetings
Bonded, effective at all internal levels
Extra-enterprise
IT METRICS
Technical; Not related to business
Cost efficiency
Traditional financial
Cost effectiveness
Extended to external partners
BUSINESS METRICS
Ad-hoc; Not related to IT

At the functional organization

Traditional financial
Customer based
Extended to external partners
BALANCED METRICS
Ad-hoc metrics unlinked
Business and IT metrics unlinked
Emerging business and IT metrics linked
Business and IT metrics linked
Business, partners and IT metrics linked
SERVICE LEVEL AGREEMENTS
Sporadically present
Technical at the functional level
Emerging across the enterprise
Enterprise wide
Extended to external partners
BENCHMARKING
Not generally practiced
Informal
Focussed on specific processes
Routinely performed
Routinely performed with partners
FORMAL ASSESSMENTS/REVIEWS
None
Some; Typically for problems
Emerging formality
Formally performed
Routinely performed
Continuous Improvement
None
Minimum
Emerging
Frequently
Routinely performed
BUSINESS STRATEGIC PLANNING
Ad-hoc
Basic planning at the functional level
Some inter-organizational planning
Managed across the enterprise
Integrated across and outside the enterprise
IT STRATEGIC PLANNING
Ad-hoc
Functional tactical planning
Focussed planning, some inter-organizational
Managed across the enterprise

Integrated across and outside the enterprise

REPORTING/ORGANIZATION STRUCTURE
Central/Decentral; CIO reports to CFO
Central/Decentral; Some co-location; CIO reports to CFO
Central/Decentral; Some federation; CIO reports to
COO
Federated; CIO reports to COO or CEO
Federated; CIO reports to CEO
BUDGETARY CONTROL
Cost Center; Erratic spending
Cost Center by functional organization
Cost Center; Some investments
Investment Center
Investment Center; Profit Center
IT INVESTMENT MANAGEMENT
Cost based; Erratic spending
Cost based; Operations and maintenance focussed
Traditional; Process enabler
Cost effectiveness; Process driver
Business value; Extended to business partners
STEERING COMMITTEE(S)
Not formal/regular
Periodic organized communication
Regular clear communication
Formal effective committees
Partnership
Prioritization Process
Reactive
Occasional responsive
Mostly responsive
Value add, responsive
Value added partner
BUSINESS PERCEPTION OF IT VALUE
IT perceived as a cost of business
IT emerging as an asset
IT is seen as an asset
IT is part of the business strategy
IT business co-adaptive
ROLE OF IT IN STRATEGIC BUSINESS PLANNING
No seat at the business table
2. Business process enabler 5 5 5 2 2 5 4 5
3. Business process driver 0 0 0 0 0 0 0 1
4. Business strategy enabler/driver 0 0 0 0 0 0 0 0
5. IT Business co-adaptive 0 0 0 0 0 0 0 0

SHARED GOALS, RISK, REWARDS/PENALTIES

1. IT takes risk with little reward 5 5 3 5 5 5 4 4
2. IT takes most of the risk with little reward 4 5 5 2 2 4 3 5
3. Risk tolerant; IT some reward 1 0 1 0 0 0 3 1
4. Risk acceptance and rewards shared 0 0 0 0 0 0 0 0
5. Risk and rewards shared 0 0 0 0 0 0 0 0
IT PROGRAM MANAGEMENT
1. Ad-hoc 2 1 1 1 2 2 4 2
2. Standards defined 5 5 5 4 4 3 4 4
3. Standards adhered 2 4 3 2 2 2 2 2
4. Standards evolved 2 3 3 2 0 0 0 2
5. Continuous improvement 0 0 1 0 0 0 0 0
RELATIONSHIP/TRUST STYLE
1. Conflict/Minimum 3 3 3 4 4 4 4 3
2. Primarily transactional 4 4 5 3 3 4 5 4
3. Emerging valued service provider 2 3 3 0 0 0 0 2
4. Valued service provider 1 1 1 0 0 0 0 0
5. Valued partnership 1 0 0 0 0 0 0 0
BUSINESS SPONSOR/CHAMPION
1. None 2 4 3 5 4 3 4 4
2. Limited at the functional organization 2 4 4 2 4 3 4 4
3. At the functional organization 4 2 3 0 0 0 4 3
4. At the HQ level 1 1 1 0 0 0 0 1
5. At the CEO level