Chapter © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Capability ability to marshal resources to affect a predetermined outcome Competency degree of proficiency in marshalling resources to affect a predetermined outcome Processes well-defined activities within capabilities Procedures & Methods How-to or step-by-step instructions for implementing a process 17-2

© 2012 Pearson Education, Inc. Publishing as Prentice Hall Uniting Business & IT Vision Delivering IT Services Designing an IT Architecture 17-3

© 2012 Pearson Prentice Hall Leadership Business system thinking Relationship thinking Architecture planning Making technology work Informal buying Contract facilitation Contract monitoring Vendor development 17-4

© 2012 Pearson Education, Inc. Publishing as Prentice Hall Strategies needed to build IT Capabilities IT Capabilities must be identified, developed, and managed 17-5

© 2012 Pearson Education, Inc. Publishing as Prentice Hall 17-6 Figure 1

© 2012 Pearson Education, Inc. Publishing as Prentice Hall Create a set of activities, structures policies & governance principles Capability Management Office should be focal point for capability development & management 17-7

© 2012 Pearson Education, Inc. Publishing as Prentice Hall Define & assign responsibility for all capabilities Develop strategies for development of capabilities. Ensure adequate resources funding provided Secure software support for these activities Adopt continuous capability improvement approach Develop organizational training plans Report status of organizational capability performance 17-8

© 2012 Pearson Education, Inc. Publishing as Prentice Hall Capabilities should not be aligned to current business practices only Identifying capabilities is an introspective analysis of key activities that IT must execute effectively Capabilities should be described in business terms 17-9

© 2012 Pearson Education, Inc. Publishing as Prentice Hall Result of this step should be sets of well- defined activities that can be measured & managed Consider an outside-in approach to capabilities management such as Six Sigma, ISO, CMMI, or CobiT 17-10

© 2012 Pearson Education, Inc. Publishing as Prentice Hall Figure 2

© 2012 Pearson Education, Inc. Publishing as Prentice Hall Level 1 (initial): Software development follows few rules. The project may go from one crisis to the next Level 2 (repeatable): Software development processes repeatable. Some basic PM used to track schedule & cost Level 3 (defined): Software development across organization uses same rules & events for project management. Same used even under schedule pressure Level 4 (managed): Software development controlled using precise measures; adjustments without quality loss Level 5 (optimizing): Quantitative feedback from previous projects used to improve PM NOTE: Maturity levels must be effective in driving continuous improvement

© 2012 Pearson Education, Inc. Publishing as Prentice Hall Table 17.2

© 2012 Pearson Education, Inc. Publishing as Prentice Hall Skills such as (1) business, (2) technical and (3) interpersonal are mapped to IT capabilities Mapping is used by companies to identify levels for each role needed 17-14

© 2012 Pearson Education, Inc. Publishing as Prentice Hall Improvement of IT capabilities & processes result in enhanced IT investment benefits When IT departments identify & develop those capabilities & processes that are vital to business to advance maturity levels, rewards may be dramatic 17-15