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Understanding Your IT Maturity Is

Key to Business Success

Colleen Young

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2010 Gartner, Inc. and/or its affiliates. All rights reserved.

written permission of Gartner, Inc. or its affiliates. © 2010 Gartner, Inc. and/or its affiliates. All

IT Contributes Directly to Business Goals

Know Where YOU Need to Be

Functional

Enabling

Contributing

Differentiating

Transformational

 

What the enterprise Chief Executive says …

 

We must keep our business running well and efficiently

Business leaders have the leeway to use or invest in technology as

Business and IT leaders are held accountable for enhancing

We depend on information and technology to develop and sustain sources

By operating at the cutting edge of information and technology, we

required to meet

operations and

of competitive

change markets

their objectives

raising business performance

advantage

and rules of competition

With that intention, the enterprisewide CIO will focus on …

IT performance and assets

Business

Business

Scale, reach time to market

Ingenious application of info and tech

support

performance

 

And the IT

organization will look

like this …

 

IT= utility

IT= responder

IT = problem solver

IT = differentiator

IT = market maker

Measure =

Measure = response time

Measure = business

Measure = new products and

Measure = new market, revenue,

uptime

 

performance

services

competitors

Emphasis = budget, FTEs

Emphasis = run portfolio

Emphasis = run and grow portfolio

Emphasis = grow and transform

Emphasis = transform

Focus = cost and efficiency

Focus = meeting expectations

Focus = business results

Focus = markets

Focus = breaking the rules

 
 
 

Enterprise IT Maturity Five Levels

Business Focus

Contributing

Transformational

Five Levels Business Focus Contributing Transformational Differentiating Back Office Bias Front Office Bias Technical

Differentiating

Business Focus Contributing Transformational Differentiating Back Office Bias Front Office Bias Technical Focus Enabling

Back

Office

Bias

Front

Office

Bias

Focus Contributing Transformational Differentiating Back Office Bias Front Office Bias Technical Focus Enabling Functional
Focus Contributing Transformational Differentiating Back Office Bias Front Office Bias Technical Focus Enabling Functional

Technical Focus

Enabling

Focus Contributing Transformational Differentiating Back Office Bias Front Office Bias Technical Focus Enabling Functional

Functional

Enterprise IT Maturity A Story of

Compounding Leverage and Value

Enterprise IT maturity measures the enterprise's collective willingness and ability to leverage IT in pursuit of business objectives.

Level 1 Level 2 Level 3 Level 4 Functional Enabling Contributing Differentiating Level 5 Transformational
Level 1
Level 2
Level 3
Level 4
Functional
Enabling
Contributing
Differentiating
Level 5
Transformational
The enterprise
regards IT as
a commodity
most useful for
cost-effective
transaction
The enterprise is on
a path of continuous
reinvention. IT is a
primary driver of
business model
innovation.
processing.
The enterprise
is focused on
continuous
improvement.
Business unit
leaders
independently
leverage IT as
and when they
consider it
necessary.
The enterprise
is focused on
pushing its
boundaries
through
scientific
management.
IT is critical to
achieving
business
performance
goals.
The enterprise is
committed to
dominating its
industry. IT is a
source of agility
and product/
service
innovation.
IT is a utility. It
efficiently
delivers a limited
set of core
capabilities.
IT is engaged in
addressing
explicit business
problems or
opportunities. Its
contributions to
business
performance are
well-understood.
IT collaborates
with other
disciplines, such
as R&D, BPM,
and OT, to
IT is leveraged
to redefine
markets and
rules of
competition.
IT reliably and
predictably
delivers
technology
services and
solutions on
demand.
deliver new
products,
services and
differentiating
operations.
technology services and solutions on demand. deliver new products, services and differentiating operations.

Enterprise IT Maturity Seven Defining

Dimensions

Strategy and Vision

Executive Leadership

Business Mind-Set Toward IT

Business and Financial Management

People and Skills

Technology Leadership and Management

Performance Management

Toward IT Business and Financial Management People and Skills Technology Leadership and Management Performance Management

IT's Path to Strategic Contribution

Representative Milestones

The CIO and Senior Executive maturity assessment measures the IT organization's capability to deliver against enterprise expected contribution levels

Level 1: Level 2: Level 3: Level 4: Level 5: Functional Enabling Contributing Differentiating Transformational
Level 1:
Level 2:
Level 3:
Level 4:
Level 5:
Functional
Enabling
Contributing
Differentiating
Transformational
CIO is a
fully-vested
business
leader
CIO has formal
accountability for at
least some business
outcomes
Tech-
nology
Strategy is
Portfolio
Management
is applied to
all major
Explicitly
Aligned to
Business
IT
Performance
Measures
are tied to
key business
indicators
IT Leaders
Goals
drive
resource
People
IT is run
like a
business
innovation,
classes and
Strategic
human capital
management
processes
maintain
appropriate
short, mid and
long term
IT leaders
programs
fuel agility
pursuing IT
investment
shift from
talent
through
Process
enabled
decisions
skill to
pipelines
extensive
management
opportunity
results
external
disciplines
where
orientation
relation-
are adopted
external
IT organization
ships,
competitors
Sourcing is
proactively
partner-
find
IT Service
approached
identifies &
ships and
constraint
and
strategically
pursues
personal
Service & Solution
outcomes are
Solution
and based
opportunities to
networks
Capabilities
on explicit
leverage
measured against
are rock-
business
technology for
formal performance
obligations
solid
maxims
strategic
Integrated tools
support IT process
and cost optimization
advantage

Gartner's ITScore

A holistic set of maturity

assessments that through

a series of questions and

answers allows clients to obtain not only a maturity rating for a specific role, but to also obtain an

enterprise IT maturity

score that is sensitive to the interdependencies across

roles within an organization.

ITScore goes beyond the IT

organization … by assessing business leadership, culture and behaviors to identify

ALL maturity prerequisites

and impacts.

… by assessing business leadership, culture and behaviors to identify ALL maturity prerequisites and impacts.

ITScore Is Different

 

Maturity Models

ITScore

Focus

Attributes

Results

Maturity

Linear

Exponential

Levels

Cumulative

Integrative

Advice

Descriptive

Prescriptive

Scoring

Static

Adaptive

Insights

Where are you?

Where do you need to be?

Where are you?

How do you get there?

Static Adaptive Insights Where are you? Where do you need to be? Where are you? How

Know Where You Are

Three Perspectives to Consider

ITScore Enterprise Attributes Role Perspective(s) CIO Perspective
ITScore
Enterprise
Attributes
Role
Perspective(s)
CIO Perspective

1. Complete the required enterprise attributes survey.

2. Complete a survey

questionnaire for one or

more perspectives.

3. Receive a maturity score and interpretive report for each perspective.

4. Receive an enterprise ITScore

and explanatory report.

5. Enhance the accuracy of the enterprise perspective by completing additional survey questionnaires.

explanatory report. 5. Enhance the accuracy of the enterprise perspective by completing additional survey questionnaires.

Digging Deeper

IT Leader Role Assessments

There are 8 optional role surveys

I&O
I&O
EA APPS
EA
APPS
PPM
PPM
BI SRM
BI
SRM
BPM Sourcing
BPM
Sourcing

Each produces a score and results report

2SRM BPM Sourcing Each produces a score and results report Available scores are integrated, producing the

Available scores are integrated, producing the Enterprise IT Maturity score and results report

4scores are integrated, producing the Enterprise IT Maturity score and results report 4 1 3 5

scores are integrated, producing the Enterprise IT Maturity score and results report 4 4 1 3
scores are integrated, producing the Enterprise IT Maturity score and results report 4 4 1 3
scores are integrated, producing the Enterprise IT Maturity score and results report 4 4 1 3
scores are integrated, producing the Enterprise IT Maturity score and results report 4 4 1 3
scores are integrated, producing the Enterprise IT Maturity score and results report 4 4 1 3
4
4
4

1

3

5

2
2
2

3scores are integrated, producing the Enterprise IT Maturity score and results report 4 4 1 3

scores are integrated, producing the Enterprise IT Maturity score and results report 4 4 1 3
scores are integrated, producing the Enterprise IT Maturity score and results report 4 4 1 3
scores are integrated, producing the Enterprise IT Maturity score and results report 4 4 1 3
scores are integrated, producing the Enterprise IT Maturity score and results report 4 4 1 3
scores are integrated, producing the Enterprise IT Maturity score and results report 4 4 1 3

Taking It All In

A Summary of Dimensions by Level

Management

Level 1:

Level 2:

Level 3:

Level 4:

Level 5:

Practices

Functional

Enabling

Contributing

Differentiating

Transformational

No. 1

IT keeps the business

IT responds to

IT improves business

IT and the business

IT operates at the

Strategy and Vision

running and manages operational performance.

business leaders who have the leeway to select and use technology to achieve their objectives.

operations and

use information and technology as a basis for competitive advantage.

leading edge of technology to evolve the business model and change the rules of competition.

performance in

partnership with

 

business leaders.

No. 2 Executive Leadership

The CIO is not a member of the senior leadership team and does not report to a C- level executive.

The CIO is not a member of the senior leadership team but reports to a C-level executive.

The CIO is a member of the senior leadership team and reports to a C-level executive or the CEO.

The CIO reports to the CEO and is a member of the most senior management team.

The CIO is a member of the executive leadership team. The CIO influences the board of directors or may be a member of the board.

No. 3 Business Expectations for IT

IT is a provider of functional infrastructure.

IT is a reactive service provider that responds to business plans, wants and needs for

IT is a proactive service provider working with business leaders to improve

IT is a leader in using technology and information to differentiate the

The IT team is composed of innovators and experts in the leading-edge

IT.

business performance.

business.

application of

technology.

No. 4

IT budget and management concentrates on service quality and the cost of IT.

IT budgets include operations and applications. IT leverages PPM to ensure that work budgets and schedules are met and portfolios are well-managed.

IT budgets include all technology assets. IT financial management is focused on ensuring the achievement of business value.

IT budgets spending and revenue generation. Business and IT jointly share responsibility for definition, design and development of solutions.

IT financial management is broad and includes revenue generation. IT performance contributes to the market value of the company.

Business and

Financial

Management

generation. IT performance contributes to the market value of the company. Business and Financial Management

Taking It All In

A Summary of Dimensions by Level (cont.)

Management

Level 1:

Level 2:

Level 3:

Level 4:

Level 5:

Practices

Functional

Enabling

Contributing

Differentiating

Transformational

No. 5

IT skills are focused on

IT people and skills

IT blends business and

IT has good knowledge

IT people and skills are

People and Skills

"run the business" requirements.

align with the application systems and technology solutions IT supports.

technical skills. Industry skills are valued.

of business strategy, operations, products and services. Some cross-organization skills are also available.

comparable to those of business executives and leaders. Leadership of transformational technology is valued.

No. 6

Architecture represents the technical assets and their relationships.

Architecture includes information systems and relationships.

Architecture covers IT information flows and business processes.

Architecture is extended to the company's operating model.

Architecture describes the organization's technical and business model.

Technology

Leadership and

Management

     

No. 7

Performance is measured by operational metrics related to cost, quality of service and availability

Performance is measured by how well IT responds and conforms to the plans, scope, schedules and quality for addressing

user wants and needs.

Performance is measured in terms of business value created and improvements delivered.

Performance Is measured in business terms, including changes in business performance and financial metrics.

Performance is measured in terms of

Performance

Management

business and market value-add.

financial metrics. Performance is measured in terms of Performance Management business and market value-add.

Best Practices in Using the

Maturity Assessment

Sample Assessment:

Your Overall Maturity is 2

Strategy

& Vision

5.0 Executive Technology 4.0 Leadership Leadership 3.0 2.0 1.0 Business & Financial Mgt. Business Mindset
5.0
Executive
Technology
4.0
Leadership
Leadership
3.0
2.0
1.0
Business &
Financial Mgt.
Business
Mindset
Performance
People &
Management
Skills

Strive for balance:

- Organizations will not have

even maturity across all their

management practices, but they should work toward that

Elevate key

management practices:

- Where pain points with the business are most critical

- Where quality and credibility is suffering

- Where IT direction is misaligned with the business

are most critical - Where quality and credibility is suffering - Where IT direction is misaligned

Recommendations

Become familiar with the ITScore components and capabilities. Complete as many as apply to your enterprise.

Conduct "what if" scenarios to understand whether the opportunity costs of investing in new capabilities are worth it.

Leverage the results as a vehicle for communication

and planning.

Repeat assessments across the organization to test differences in maturity and/or perception.

Take advantage of comparative results across the enterprise to more broadly identify and instill best practices.

Repeat the surveys periodically to track progress.

Leverage Gartner Peer Connect to learn from external peers

that have also completed the assessments.

track progress.  Leverage Gartner Peer Connect to learn from external peers that have also completed

Related Gartner Research

"CIO Advisory: Are You Poised to Meet or Miss Executives' Intended Business Results"

Diane Morello (G00172003)

"ITScore for the Enterprise" Colleen Young (G00205879)

"ITScore Overview for CIOs and Senior Executives"

Colleen Young (G00xxxxxx)

"ITScore for CIOs and Senior Executives"

Colleen Young (G00170892)

"Identifying CEO Expectations and Executing Against Them"

Colleen Young (G00170607)

For more information, stop by Gartner Solution Central or e-mail us at solutioncentral@gartner.com.

Young (G00170607) For more information, stop by Gartner Solution Central or e-mail us at solutioncentral@gartner.com .

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