IT Strategy 7 - Reposting

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Chapter 17

Capability – ability to marshal resources to affect a predetermined outcome. Competency – the degree of proficiency in marshalling resources to affect a predetermined outcome.

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Processes – well-defined activities within capabilities. Procedures and Methods – How-to or step-by-step instructions for implementing a process.

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Uniting Business and IT Vision Delivering IT Services Designing and IT Architecture

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Leadership Business system thinking Relationship thinking Architecture planning Making technology work

Informal buying Contract facilitation Contract monitoring Vendor development

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Strategies are needed to build IT Capabilities. IT Capabilities must be identified, developed, and managed.

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Figure 17.1

Create a set of activities, structures policies, and governance principles. The Capability Management Office should be the focal point for capability development and management.

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Define and assign responsibility for all capabilities. Develop strategies for the development of these capabilities. Ensure that adequate resources and funding are provided to develop them. Secure software support for these activities.

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Adopt a continuous capability improvement approach. Develop organizational training plans. Report the status of organizational capability performance.

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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.

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The result of this step should be sets of well-defined activities that can be measured and managed.

Consider an outside-in approach to capabilities management such as Six Sigma, ISO, CMM, or CobiT

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Figure 17.2

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Table 17.1

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Level 1 (initial): Software development follows few rules. The project may go from one crisis to the next. Level 2 (repeatable): Software development processes are repeatable. Some basic project management used to track schedule and cost.

Level 3 (defined): Software development across the organization uses the same rules and events for project management. Same processes used even under schedule pressure. Level 4 (managed): Software development controlled using precise measures. Adjustments to projects are made without a loss in quality.

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Level 5 (optimizing): Quantitative feedback from previous projects is used to improve project management. Maturity levels must be effective in driving continuous improvement.

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Table 17.2

Skills such as (1) business, (2) technical and (3) interpersonal (Feeny and Willcocks, 1998) are mapped to IT capabilities. Mapping is used by companies to identify the levels for each role that is needed.

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Improvement of IT capabilities and processes will result in enhanced IT investment benefits. When IT departments identify and develop those capabilities and processes that are vital to the business to advance maturity levels, then the rewards may be dramatic.

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