Tut 5 Business / IT Strategy Alignment More insights into Capability Maturity Models

Examples of IT strategy plan Sample reports: http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Department_of_Parliamentary_Services/Publications/ICT_Strategic_Plan_2013_-_2018 http://www.anao.gov.au/bpg-projectplanning/2_1_2_understanding_of_ICT_strategy.html http://www.state.gov/documents/organization/147678.pdf Procedural guidelines for developing IT strategy plans: http://www.leadingage.org/uploadedFiles/Content/About/CAST/Resources/Seven_Steps%20_IT_Strategic_Plan.pdf http://www.csus.edu/irt/cio/strategicplanning/documents/itspstrategicplanning.pdf http://www.ictparliament.org/sites/default/files/panel12_soufiane_benmoussa_tools_for_execution.pdf

Capability Maturity Models (CMM) in General Are assessment models are “health checking” tools that help to determine what a company needs to do in order to build or strengthen its people skills and systems to lift the company as: a whole organisation, or one of its business units or An specific function to the next level. Such measures indicate the performance level of a company in terms of its whole enterprise capacity, or one of its business unit’s capacity or one of its functional capability when compared with other similar organisations. (adapted from CMMI definition, 2015)

Luftman & Kempaiah ‘s IT Alignment Maturity Model Is an example of CMM, specifically for assessing the performance level of how well a company performs in aligning its IT to its business. This IT/business alignment is assessed via 6 dimensions Communication effectiveness between IT & business units Value measures of IT to the business Enterprise Architecture Capacity (scope and architecture) IT/Business partnership development & management capabilities IT Governance and compliance capabilities in decision making and other management activities IT and IT leverage Skills – the competency levels of the organisation in acquiring and using its IT resources to not just support business activities but to leverage strategic advantage

Luftman & Kempaiah ‘s IT Alignment Maturity Model Source: http://aisel.aisnet.org/cgi/viewcontent.cgi?article=1047&context=amcis2008

CMMI’s Capability Maturity Ladder Luftman & Kempaiah’s CM Ladder 1 2 3 4 5 Levels 5. Optimised processes 4. Improved managed processes 3. Established Focused Processes 2. Committed Processes Initial Ad hoc processes Source: http://www.qaiglobalservices.com/Minisites/High_Maturity_Leadership/index.asp

Case Study Level 1 Level 2 Level 3 Level 4 Level 5

Discussion If one capability area is lacking, how does this diagram guide you to identify improvement suggestions? Each box recommends the progressive improvement areas that can uplift the capability performance level.

Q&A What IT management practice, system & decision improvements had been made to uplift the case’s CM level from 2 to 3? CM Dimension IT Management improvements IT system improvements IT decision making improvements Communications Value Governance Partnership Scope & Arch Skills

To do B1 & B2 You need to recall Business Strategy Types

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Q&A B1) What are the types of business & IT strategies mix can be adopted by the case during the different stages of its growth development. Justify why you recommend the business/IT strategy types Stage Business Strategy Type IT strategy Type Stage 1 (1990 to 1993) Stage 2 (post 1993) B2) Evaluate the business/IT alignment level for each mix of business/IT strategies. Include in your evaluation the rating of the closeness (use: close, partial or lacking); the reasons or supporting commentaries for your selected rating Stage Business Strategy Type IT strategy Type Business/IT Alignment Evaluation Results Stage 1 (1990 to 1993) Stage 2 (post 1993)