Matakuliah : Pengantar IT Governance Tahun : Feb - 2010 IT Governance Archetypes for allocating decision rights Pertemuan ke-7 s/d 10

Governance Model Three Major Components What decisions need to be made? (Domains) Who has decision and/or input rights? (Styles) How are the decisions formed and enacted? (Mechanisms) Bina Nusantara University

What Decisions Need to be Made? (Domains) There are five major decisions domains Principles Infrastructure strategies Architecture Business application needs Investment and prioritization Bina Nusantara University

Who has Decision & /or Input Rights? (Styles) Business Monarchy IT Monarchy Feudal IT Duopoly Federal Anarchy Bina Nusantara University

Archetypes To describe the combinations of people who have either decision rights or input to IT decisions. Archetypes could describe how your enterprise makes one or more of the five keys IT decisions or provides input to the decision makers. Bina Nusantara University

IT Governance Archetypes Bina Nusantara University

Key Players in IT Governance Archetypes Bina Nusantara University

Business Monarchy In a business monarchy, senior business executives make IT decisions affecting the entire enterprise. Business monarchy rely on input for key decisions from many sources A group of, or individual senior managers (SVP; VP; Dean, Chair). Senior IT manager does not act independently. Bina Nusantara University

IT Monarchy IT Professionals make IT decisions. Enterprises implement IT monarchies in many different ways, often involving IT professionals from both corporate teams and business units. This group proposes architecture rules to the senior IT management team. The senior IT management team ensures the clarity of the rules and owns the enforcement of architectural standards. Individuals or groups of IT senior managers. Bina Nusantara University

Feudal The feudal model is based on the traditional model where the business unit make their own decisions, optimizing their local needs. The feudal modal was not very common because most enterprises were looking for synergies across business units. Unit leaders, key process owners or their delegates. Bina Nusantara University

Federal The federal decision making model has a long tradition in government. Federal arrangements attempt to balance the responsiblities and accountability of multiple governing bodies. Shared by HSC senior management and other College/Unit senior management. May include senior IT management. Bina Nusantara University

IT Duopoly IT Duopoly is a two party arrangement where decisions represent a bilateral agreement between IT executives and one other group (business unit). IT senior management and one other group, e. g., HSC senior management or College/Unit senior management. Bina Nusantara University

Six Styles of IT Governance Centralized Business Lead Business monarchy Top Managers Federal Combination of corporate center and SBUs Feudal Each SBU makes independent decisions IT Duopoly IT group and one other group IT monarchy IT specialists Anarchy Isolated individual or small group decision making Specifying the decision rights and accountability framework to encourage desirable behavior in the use of IT Centralized IT Lead Bina Nusantara University

IT Investment and Priority Business Applications Anarchy Duopoly Federal Feudal IT Monarchy Business Monarchy IT Investment and Priority Business Applications IT Infrastructure IT Architecture IT Principles 3 3 3 2 3 1 1 2 2 1 3 1 2 2 1 Bina Nusantara University

Anarchy Anarchies are the bane of the existence of many IT groups and are expensive to support and secure. Individual users or small groups of users. Bina Nusantara University

How the typical enterprise govern IT Domains Principles Architecture Infrastructure Business Applications Investment & Priorities Styles Input Decision Business Monarchy   IT Monarchy 1 Feudal Federal Duopoly Anarchy 30 27 6 7 1 12 1 73 59 18 20 10 8 9 3 1 2 1 18 3 83 46 59 81 30 93 27 14 4 6 15 36 34 15 30 23 17 27 6 30 1 1 3 1 Bina Nusantara University

Typical Governance arrangements for IT Principles Typical Governance arrangements for IT Architecture Typical Governance arrangements for IT Infrastructure Strategies Typical Governance arrangements for IT Business Application Needs. Typical Governance arrangements for IT Investment and prioritization. Bina Nusantara University

Analyzing different governance patterns across enterprises Strategic and performance goals Organizational structure Governance experience Size and diversity Industry and regional differences Bina Nusantara University

Key IT Governance Decisions IT Principles Decisions High-level statements about how IT is used in the business IT Architecture Decisions Organising logic for data, applications, and infrastruc- ture captured in a set of policies, relationships, and technical choices to achieve desired business and technical standardisation And integration IT Infrastructure Centrally co-ordinated, shared IT services that provide the foundation for the enterprise’s IT capability. Business Applications Needs Specifying the business need for purchasing or internally developed IT applications. IT Investment and Prioritisation decisions Decisions about how much and where to invest in IT, including project approvals and justification techniques. Bina Nusantara University

The Governance Model The “Harmony ‘What-How’ Framework” Strategy Governance Arrangements Performance Goals Desirable Behaviors Mechanisms Metrics & Accountabilities How What Bina Nusantara University

The Governance Model The “Harmony ‘What-How’ Framework” Strategy Governance Arrangements Performance Goals Desirable Behaviors Mechanisms Metrics & Accountabilities How What Bina Nusantara University

Industry & Regional Differences in IT Governance Many factors influence governance requirements : Industry Region And so on Industry differences : For profit vs Not-for-profit and Government sectors Financial services Bina Nusantara University

Region differences : European firms vs Asia-Pacific firms European firms vs American firms. And so on Bina Nusantara University

CASE Bina Nusantara University

LJMU Federal Governance Model Continuing) Business Applications Needs Information Management Steering Group Business Membership Development Programme IT Steering Group Architecture Principles Infrastructure IT Membership Investment & prioritisation Monitoring Compliance Review Bina Nusantara University

LJMU Governance Membership 7 members of the LJMU Senior Management team, out of a total of 16 School Directors Service Directors – Library, Estates, HR Admin/project/resource managers All ICT Senior Managers Bina Nusantara University

What Can Governance Do For You? Get buy-in across the board Do it with them, even if they don’t do it to themselves Change behaviour, not just technology Bina Nusantara University

EA & Governance Executive buy-in to EA approach Within LJMU Governance structure, Architecture already identified as responsibility of Information Management Steering Group Demonstrate value of EA approach ‘burning platform’ required, provided by existing Student Experience Review initiative Visibility Exposes Senior Management to EA approaches Bina Nusantara University

Selling EA & Governance Speak the language of the business Or something as close as you can get It’s all about value The business has to see that this will promote better IS decision-making to support the business better Show them pictures Not like I’ve been doing in this presentation… EA development will provide the pictures See JISC SOA animation http://www.jisc.ac.uk/whatwedo/programmes/programme_eframework/soa.aspx Bina Nusantara University

Selling EA & Governance Business value: Business wants to know how to analyse staffing requirements in light of increasing self-service ‘As Is’ Architecture – self-service capability mapped to business processes as of now ‘To Be’ Architecture – self-service capability mapped to business processes in light of move to Campus Solutions Giving a visual representation that addresses the business problem Bina Nusantara University

What will you do with it when you’ve got it? So, Governance… What is it ? Why do you want it? How can you get it? What will you do with it when you’ve got it? Bina Nusantara University

Quiz Bina Nusantara University