Bvit framework
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Organizations should address three core issues when implementing IT projects: organizational readiness, the specific projects, and the technologies. However, over 70% of projects fail due to insufficient focus on organizational readiness. The Business Value of IT Framework assesses organizational readiness across three layers - the deeper reality of culture and structure, surface-level manifestations, and the IT consequences. It examines seven factors of the organizational context to understand issues. Three levers of the framework - purpose, alignment, and maturity - are mapped to identify the organization's position and plan improvements. Coeus Age then provides advisory services including readiness assessments, project support, and technology roadmaps. The lead consultant, Kapil Dev Singh, has over 20 years of research experience developing the
Bvit framework
- 1. Building Business Value From IT A Framework kds@kdsnext.com, +91 9811771187, www.coeusage.com www.cioleadingchange.com, www.emergententerprise.com
- 2. 3 Core Issues for IT Success Organizational Readiness Structural, Cultural, Behavioral and Technological State Projects What and How? ERP, SCM, CRM, eCommerce Technology What and How? DC, Cloud, Security, Network Ideally, organizations should address three core issues when it comes to IT. IT projects of significant importance need to assess the organizational readiness at one level and the specific technology solutions at another. Unfortunately, more often than not, organizations leave the organizational readiness aspect unaddressed. More than 70% of projects fail due to this one reason. This should addressed on priority before undertaking any major IT driven business solution. Coeus Age brings a holistic approach of focusing on assessing the organizational readiness in the form of the Business Value of IT Framework. The framework can help an organization enhance its readiness for IT adoption.
- 3. Business Value of IT Framework Integrating the Three Layers of Organizational Existence Source: Coeus Age 1 2 Cultural, Structural, Behavioral and Technological 3 Business IT Alignment Strategic Intent Competitive Environment IT Maturity Core Purpose IT Impact on Processes Firm Performance Business Capabilities Customer Needs Organizational 3 Levers Process Impact of IT Context of Business Value of IT Operational Efficiency or Strategic Advantage Layer 1 Deeper Reality Layer 2 Surficial Manifestation Layer 3 IT Consequences Understand and Change Measure and Map Plan and Achieve
- 4. Layer 1- Deeper Reality (Understand) 7 Boxes to Look for Trouble- With or Without Theory External Environment Core Purpose of IT Information Leadership Process Capability IT Maturity Performance Impact People Practices Source: Coeus Age Cultural Envisioned Purpose of IT Structural IT Leadership, Governance Behavioral Human, Social and Relational Technological IT Mgmt., Infra., Apps, Skills
- 5. 7 Boxes of The Context Box Formal Informal Core Purpose of IT What is the stated purpose for IT? Does the organization want to move up the purpose maturity scale? Has the purpose been communicated clearly to all organizational members? Who all wants to move up, what is preventing them from doing so? Is there a conflict in open regarding the purpose of IT? Why there is a conflict of views in regards to the purpose of IT? Is the organization stuck? Information Leadership What are the formally defined roles and responsibilities with respect to IT? Is information leadership adequate to meet the core purpose of IT? Where and why is the organization stuck? How are decisions regarding IT taken? What role does the CEO and other CxOs play in IT decisions? How is the relationship between the CEO, CxOs and the CIO? What the experience is of and what kind of actions the CEO, CxOs and the CIO take? And why? People What is the agreement on the role of the CIO? How do people use IT? Do they simply adhere or they also What kind of skills are developed through trainings? consume information in their day to day life? What really motivates the people on the ground to do what they What are the formal ways of motivating people to do? do what is expected? What is expected from people in regards with IT?
- 6. 7 Boxes of The Context Box Formal Informal Practices What formal practices enable communication between business and IT? How do the informal ‘Information Leadership’ aspects impact the practices? What formal structural mechanisms, processes and What kind of informal practices prevailing? Do they practices exist at the top and at the broader organizational support or thwart the formal practices? levels? What do people do with the information system and what What is the adequacy of these practices? do they do with information? IT Maturity What kind of experience people have with IT? What people do with IT and with information? What formal IT management processes are practiced? What is the adequacy of the IT skills required? What specific IT competencies exist in the organization? What is the adequacy of the IT, communications, storage and security infrastructure? What is the adequacy of the business applications in terms of functionalities, breadth and integration? Process Capability What strategic process capabilities are planned? What is the rationale behind the decision? How long have you been using the IT? How are the learnings over time impacting IT infrastructure maturity? How is skill inventory built? What is IT’s reputation? What is the CIO’s control on IT Infrastructure Maturity? What is the adequacy of IT budgets? What unplanned capabilities have evolved over time, which the organization is aware of? What can be come unplanned capabilities, which the organization is unaware of? Performance Impact How is the performance impact of IT measures? What capabilities are exploited strategically? Is there a opinion difference between IT’s impact on performance? Is the organization really aware how IT can further impact performance?
- 7. Layer 2 (Measure and Map) Three Levers of Business Value of IT Cultural Envisioned Purpose of IT Behavioral Human, Social and Relational Core Purpose of IT Business IT Alignment Structural IT Leadership, Governance IT Maturity Technological IT Mgmt., Infra., Apps, Skills 1 2 3
- 8. 3 Levers- The Dynamic Interplay (Map) Map Your Organization IT Purpose- transform at the organization or the industry level Value Source: Coeus Age, 2013 IT Driven 4 06% IT Purpose- informate down to empower the larger organization 3 27% 43% IT Purpose- informate up to enhance the control by few at top High 23%* BIA Low 2 IT Purpose- Automate the basic processes to save human labor IT Laggard Low ITIM 1 High BIA- (Adequacy of) Business IT Alignment; ITIM- (Adequacy of) IT Infrastructure Maturity * Figure represents % organizations at different levels of IT purpose. Based on a survey of 305 Indian Organizations Time
- 9. Building Block 3 (Plan and Achieve) The Process Impact EFORCE FRAMEWORK FOR ASSESSING THE IT IMPACT ON THE ORGANIZATION Performance Competitive Edge Organizational Capability CE OR Functional Capability F Local Process Efficiency E Period Source: Coeus Age
- 10. Coeus Age Advisory Outcomes Organizational IT Readiness Assessment Report This is the differentiator as it helps create the right context for IT to provide value in terms of performance Project Specific Support Technological Road Map Coeus Age can help create a holistic assessment report on your organization’s reality and the need for change & development. It can help develop a change & development plan and implement it by involving the key stake- holders Coeus Age can provide project specific support in terms of functional document, project management, vendor management, training etc. Coeus Age can provide support in designing the IT architecture and identifying the right technology to support your business priorities
- 11. Coeus Age Lead Consultant Kapil Dev Singh kds@kdsnext.com +91 9811771187 www.coeusage.com www.cioleadingchange.blogspot.in Kapil has 20 years of experience, of which 16 years has been in business research. He headed IDC, a research & advisory major, in India for around 8 years. Kapil has completed his PhD from MDI, Gurgaon with specific focus on CIO role effectiveness. His broader area of research was business value of IT. The Business Value of IT Framework has been a result of his 5 years of rigorous research efforts Kapil works closely with the senior management teams on the issue of deriving business value from IT Other Consultants’ Profiles can be shared as and when required, depending on the nature of the work involved Kapil is an MBA and BE. He is also a lead auditor for ISO 9000, a six sigma green belt and has basic orientation on PCMM. Kapil is a certified Organization Development Consultant, he was certified at the highest level of competency by the Indian Society for Applied Behavioral Sciences Kapil has been a regular speaker at various industry forums and is widely quoted in the media. He is also an avid blogger and writes regularly for the CIOs and the CxOs