Exploring the management of IT in the North East of England

Is there an IT ‘attention deficit’?

How can we help organizations realize the strategic potential of IT?

Outline of this session

• The research – drivers and outline

• Findings– Strategic contribution of IT– Insights into the current IT capability of organizations– Key issues and themes

• Making a difference: next steps

The research: drivers for the study

• Continued IT innovation: pervasive impact and strategic opportunities

• General evidence of a serious IT attention (& skill) deficit

• To develop the role / contribution of the CIO and IT function

• To contribute to business performance by developing a stronger capability to realize the strategic potential of IT

The research: outline of the study

• Short questionnaire

• Dec 2009 / Jan 2010

• 117 responses– 55% from Board level management– 75% senior business & IT management– 78% of respondents have head office in North East

STRATEGIC CONTRIBUTION OF IT

Benefits being realized from investments in IT

% of responses

Contribution of IT to strategic objectives

% of responses

Contribution of IT to strategic objectives

% of responses

% of IT projects successful in realizing benefits

% of responses

INSIGHTS INTO THE CURRENT IT CAPABILITY IN THE NORTH EAST

There is a CIO who is a full member of the senior management team

% of responses

There is a CIO who is a full member of the senior management team

% of responses

IT is a major topic at senior management team meetings

% of responses

Key issues considered by the senior management team

% of responses

Senior management are effectively engaged in the IT strategy

% of responses

IT are engaged from the very beginning of a strategic initiative

% of responses

The IT vision is clearly aligned with the corporate vision

% of responses

Senior business and IT managers speak the same language

% of responses

The senior management team has expertise in IT strategy and project

delivery

% of responses

Leadership development activities address business manager engagement in IT

strategy and project sponsorship

% of responses

WHAT ARE THE KEY ISSUES?

Key points (Note – IT is critical to business in 94% of responses)

Statement %

There is a CIO / IT Director who is a full member of the senior management team

45%

The senior management team takes action to obtain information on IT trends and business opportunities enabled by IT

27%

The ‘ IT vision’ is clearly aligned with the corporate vision 40%

Senior business and IT managers speak the same language 29%

The senior management team has expertise in IT strategy and project delivery

35%

Leadership development addresses business manager engagement in IT strategy and project sponsorship

27%

% agree / strongly agree

Success factors: contributing to realization of benefits from IT

• High quality training, support and encouragement• IT people understanding the business• Business people understanding the potential use of IT• Business sponsorship• Alignment with business objectives• Clear goals• Engagement at all levels – from earliest opportunity• Communication• Openness to new ideas• Resource allocation• Technical and change skills Direct from the free

text responses

Barriers to realization of benefits from IT

• Time to implement systems

• Short term investment horizon

• Resistance to change

• Lack of business engagement

• IT is regarded as a cost

• Lack of training

• Lack of vision

• Skills shortages

• Lack of clear priorities

• Inability of IT professionals to communicate with non IT managers

Direct from the free text responses

MAKING A DIFFERENCE: NEXT STEPS

Exploring three key areas….

Three priority areas

1. Establish a programme of action to increase the benefits realized from existing systems and information

2. Develop the role of the CIO and IT leadership team to make a greater strategic contribution.

3. Develop an ‘IT savvy’ business leadership team.

EXPLOITATION OF EXISTING SYSTEMS AND INFORMATION

What are the specific opportunities?

What would we like to know?

Exploit current systems and information

Exploitation: ITDF workshop

• The key challenge from the survey: realizing benefits from current systems and information.

• The opportunity: a workshop session to share ideas and opportunities with colleagues– The workshop will tackle a number of key themes based on the

discussion on 15th June and the interests of participants

– There will be input on good practices

• Timing and format: 9.00am - 1.00pm on 17th Sept 2010 at Durham Business School (breakfast from 8.30 & lunch at 1.00)

Three priority areas

• Establish a programme of action to increase the benefits realized from existing systems and information

• Develop the role of the CIO and IT leadership team to make a greater strategic contribution.

• Develop an ‘IT savvy’ business leadership team.

What can we do to tackle these areas?

Aligning the role of the CIO to the strategic contribution of IT

IT Director IT supply. Technical focus.

Evangelist CIO Changing mindsets about information. Identifying sources of competitive advantage.

Innovator CIO Delivering opportunities for securing advantage. Raising profile of IT as a business partner.

Facilitator CIO Empowering and enabling the business with information capabilities.

IT Director (II) IT supply orientation. Develops agile infrastructure.

From ongoing work by Prof Joe Peppard at Cranfield

Building the IT leadership capability:a project at Newcastle University

• Initial assessment

• 5 * 1-day workshops introducing the benefits toolkit and building skills (25 people – business & IT)

• Apply the ideas in ‘real-time’ to specific projects

• Follow up activity to work with 5 key projects

• Provide a foundation for a new approach to ‘business as usual’

Building the IT leadership capability:a project at Newcastle University