IT ALIGNMENT: IT Governance LIS 4776 Advanced Health Informatics Week 3-2 Instructor: Dr. Sanghee Oh College of Communication & Information, Florida State University

Building Strong Governance for Health IT https://www.youtube.com/watch?v=oLl31T5DhtA

Presentation Information IT Governance Definition: Specifying the ______________ and _________________ to encourage ___________________ in using IT IT Governance is not about making specific IT decisions – management does that IT Governance is about determining _________ systematically makes and contributes to those decisions IT Governance is about encouraging and leveraging the ingenuity of the enterprise’s people in IT usage and __________________ with the enterprise’s overall vision and values CONFIDENTIAL

Presentation Information IT Governance Needs Need for Strategic Planning (V/M/G) Sharing data among departments, among facilities, and among enterprises Systems have to be: ____________ (DO SOMETHING) ____________ (GROW) ____________ (ADAPT to new things) What do those mean? CONFIDENTIAL

Presentation Information IT Governance All organizations have IT governance but few are effective Effective IT governance means An ______________________________________________that encourage behaviors consistent with the organization’s mission, strategy, values, norms, and culture Effective IT governance does not mean…IT governance by default (tactical governance) Good governance design allows enterprises to deliver superior results on their IT investments CONFIDENTIAL

Presentation Information IT Governance Specifically, IT Governance is: the manner in which ____________________________ for the IT portfolio are organized and integrated describes the differentiation and integration of _________________________ specifies the ____________________________ that provide direction to strategic IT decision-making plots a path for achieving business objectives describes coordination mechanisms to be applied to decisions CONFIDENTIAL

Presentation Information IT Governance ANOTHER WAY: IT Governance is: How things are _______________ ________________ are made (Centralized vs. decentralized) Includes: Strategic alignment Risk management Resource management Performance management Value delivery Records management/compliance Control Objectives for Information and Related Technology (COBIT) is a framework created by ISACA for information technology (IT) management and IT governance. It is a supporting toolset that allows[citation needed] managers to bridge the gap between control requirements, technical issues and business risks. From: http://en.wikipedia.org/wiki/COBIT CONFIDENTIAL

Presentation Information IT Governance Delivering Value: _______________ Costs decreases Revenue increased More productivity [which means more revenue relative to cost?] Adherence to standards Better outcomes Stakeholder [what’s that?] satisfaction Risk reduction CONFIDENTIAL

Presentation Information IT Governance Effective IT governance is the single most important predictor of the value an organization generates from IT Must address three questions: _____________ must be made to ensure effective management and use of IT? ________ should make these decisions? ________ will these decisions be made and monitored? Borrowed from Abell** CONFIDENTIAL

IT Governance Arrangements Matrix Nokia NEBIC & IT Governance Program 2005 IT Governance Arrangements Matrix Evidence to date shows that there are typical IT governance input and decision rights patterns. The federal style dominates, with IT making infrastructure and architecture decisions IT Principles IT Architecture IT Infra- structure Strategies Business Application Needs IT Investment Monarchy IT Feudal Federal Duopoly Anarchy Don’t Know Domain Style Source: MIT Sloan CISR Dr. Brad Wheeler, Indiana University & JOKO Executive Education Oy

Presentation Information IT Governance IT Principles Clarifying the business role of IT IT Architecture Defining integration and standardization requirements IT Infrastructure Determining shared and enabling services Business Application Needs Specifying the business need for IT applications (either purchased or internally developed) IT Investment and Prioritization Choosing which initiatives to fund and how much to spend Domain Style IT Principles IT Architecture IT Infra- structure Strategies Business Application Needs IT Investment CONFIDENTIAL

Presentation Information Domain Style IT Styles Business Monarchy Business Monarchy - Top management makes decisions - the CXOs IT Monarchy - IT specialists make decisions Feudal - Each business unit makes independent choices Federal - Combination of the corporate center and the business units with or without IT people involved IT Duopoly - IT group and one other group (i.e. top management or business unit leaders) Anarchy - Isolated individual or small group decision making IT Monarchy Feudal Federal Duopoly Anarchy Don’t Know CONFIDENTIAL

Presentation Information IT Principles A related set of high-level statements about _____________________________ They can be used as a tool for educating executives about technology strategy and investment decisions The hallmark of an effective set is a clear trail of evidence from the business to the IT management principles Detailed IT principles should clarify at least three expectations for IT in the enterprise: What is the enterprise’s desired operating model? How will IT support the desired operation model? How will IT be funded? Domain Style IT Principles IT Architecture IT Infra- structure Strategies Business Application Needs IT Investment CONFIDENTIAL

IT Principle Example: U.S. General Service Administration Key IT Principles: Platform Reuse First Open Source First Cloud First Open, Shared Data Single/Seamless Sign-on Digital Services Improvements Records Management Cyber Security Effective Vendor/Partner Engagement

Presentation Information IT Architecture The organizing logic for ______________________________ , captured in a set of policies, relationships, and technical choices to achieve desired business and technical standardization and integration ________________________ are the defining characteristics of enterprise architecture Enterprise architecture defines data and infrastructure as a stable platform supporting faster-changing (flexible/agile) applications Domain Style IT Principles IT Architecture IT Infra- structure Strategies Business Application Needs IT Investment CONFIDENTIAL

Enterprise Architecture

Presentation Information IT Architecture What are the _______________________ of the enterprise? How are they related? ________________ these core processes? How must this data be integrated? What ________________ should be standardized enterprise-wide to support IT efficiencies and facilitate process standardization and integration? ________________ must be standardized enterprise-wide to support data integration? ________________ will guide the enterprise’s approach to IT initiatives? Domain Style IT Principles IT Architecture IT Infra- structure Strategies Business Application Needs IT Investment CONFIDENTIAL

IT Architecture Example: Burton Group (merged to Gartner Inc.) Source: http://blogs.msdn.com/b/architectsrule/archive/2008/04/22/reference-architecture-principles.aspx

Presentation Information IT Infrastructure The ________________(both technical and human) available throughout the business as shared and reliable services and used by multiple applications In the typical enterprise, infrastructure accounts for about 55% of the total IT investment Domain Style IT Principles IT Architecture IT Infra- structure Strategies Business Application Needs IT Investment CONFIDENTIAL

Presentation Information IT Infrastructure ________________ are most critical to achieving the enterprise’s strategic objectives? For each capability cluster what infrastructure services should be implemented enterprise-wide and what are the service-level requirements of those services? How should infrastructure services be __________? What is the plan for ________________? What infrastructure services should ________________? Domain Style IT Principles IT Architecture IT Infra- structure Strategies Business Application Needs IT Investment CONFIDENTIAL

Business Application Needs Presentation Information Business Application Needs Defining and delivering value through business applications remains a significant organizational challenge. ________________ ________________ often has two conflicting objectives – creativity and discipline. Finite resources an investment test or strategic purpose. Identifying business experiments that have the potential to become strategically important may be more of an art than a science. Successful enterprises consistently demonstrate a willingness to sacrifice functionality to sustain architectural integrity. Domain Style IT Principles IT Architecture IT Infra- structure Strategies Business Application Needs IT Investment CONFIDENTIAL

Business Application Needs Presentation Information Business Application Needs What are ________________ for new business applications? How are experiments designed to assess whether they are successful? How can business needs be addressed within architectural standards? When does a business need justify an exception to standard? ________________ the outcomes of each project and institute organizational changes to ensure the value? Domain Style IT Principles IT Architecture IT Infra- structure Strategies Business Application Needs IT Investment CONFIDENTIAL

Presentation Information IT Investments You must make a decent return or you go bust. It just happens faster with IT! How much do you spend? On What? Three basic dilemmas exist: ________________ to spend? ________________ to spend it on? ________________ to reconcile the needs of different constituencies? Domain Style IT Principles IT Architecture IT Infra- structure Strategies Business Application Needs IT Investment CONFIDENTIAL

Presentation Information IT Investments What process changes or enhancements are strategically ________________ to the enterprise? What is the distribution in the current IT portfolio? Is this portfolio consistent with the enterprise’s strategic objectives? What is the relative importance of enterprise-wide versus business unit investments? Do actual investment practices reflect their relative importance? Domain Style IT Principles IT Architecture IT Infra- structure Strategies Business Application Needs IT Investment CONFIDENTIAL

It Governance At Carlson Companies Carlson Companies allocates IT decision making to encourage business unit autonomy while ensuring strategic use of corporate IT funds. Five decision-making mechanisms implement this objective. The IT investment committee, a subset of the senior executive committee, makes IT investment decisions. Source: http://sloanreview.mit.edu/article/a-matrixed-approach-to-designing-it-governance/

Nokia NEBIC & IT Governance Program 2005 IT Principles IT Architecture IT Infra- structure Strategies Business Application Needs IT Investment Monarchy IT Feudal Federal Duopoly Anarchy Don’t Know Over 70% relied on IT monarchies to choose IT architecture Domain Style Evidence to date shows that there are typical IT governance input and decision rights patterns. The federal style dominates, with IT making infrastructure and architecture decisions Over one-third of the 256 enterprises in the MIT/CISR study used a duopoly in the three less technical IT decision domains IT principles Business application needs IT investment Also frequently used to provide input into architecture and infrastructure decisions Source: MIT Sloan CISR Dr. Brad Wheeler, Indiana University & JOKO Executive Education Oy