Date post: | 25-Jan-2015 |
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Session 601: Two ITIL Processes That Pack Big Business Punch!
Mauricio Corona, PhD
@MauricioCorona
Agenda
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1. The research 2. Research questions and background 3. Scope 4. Variables 5. Main findings 6. Main conclusions
The research
Addressing the dilemma of Information Technologies (IT)/Business alignment is an extremely important area to investigate. IT/Business Alignment is considered as a main important issue in order to harmonize IT strategic goals with organizational goals (Tapscott & Caton, 1993).
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These findings add credence to the importance of achieving a high level of maturity in the IT/Business alignment.
Recent studies have found a positive correlation between high levels of IT/Business alignment and high levels of Competitive Advantage for Businesses (Luftman, 2008).
4 1. (Hu and Huang, 2005; Duffy, 2002; Marchand, Kettinger and Rollins, 2001; Bergeron, Raymond and Rivard, 2001; Maes, Rijsenbrij, Truijens and Gondola, 2000; Reich and Benbasat, 1996, 2000; Tallon and Kraemer, 1998; Teo and King, 1996, 1997; Luftman, 2000; Henderson and Venkatraman, 1993)
Information Technology Alignment
Business
The research
Research Questions
Is it important to get IT/Business alignment?
How can organizations get the IT/Business alignment?
Most executives and organizations are turning to see “the promise of ITIL (Information technology infrastructure Library)”
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Research background
This research has been conducted for more than 6 years.
Main objective
To find if there is any kind of correlation between the maturity of some ITIL processes and the maturity of the alignment dimensions considered as part of the alignment phenomenon.
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Scope of research
41 organizations from these sectors:
– 12 Financial
– 6 Academic
– 4 Oil, gas, energy
– 8 Outsourcing
– 4 Government
– 7 Telecommunications
Alignment variables To assess the alignment variables the research is based on (Luftman’s, 2006) strategic alignment model. This model was adopted and adapted to the context of this research, the main dimensions translated into variables are:
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Communication
Business Value
Governance
Business Relationship Management
IT Architecture
Staff Skills
Communications Is the effective exchange of ideas and a clear understanding of what it takes to ensure successful strategies. This variable is high on the list of enablers and inhibitors to alignment
Business Value Is necessary when too many IT organizations cannot demonstrate their value to the business in terms that the business understands. Frequently, business and IT metrics of
value differ
Governance Takes the considerations for IT governance that includes how the authority for resources, risk, conflict resolution, and responsibility for IT is shared among business partners, IT management and service providers
Business Relationship Management
Considers the relationship that exists among the business and IT organizations is another criterion that ranks high among the enablers and inhibitors of alignment
IT Architecture This set of criteria assesses the extent to which IT is able to: • Go beyond the back office and the front office of the
organization • Assume a role supporting a flexible infrastructure that is
transparent to all business partners and customers • Evaluate and apply emerging technologies effectively • Enable or drive business processes and strategies as a true standard • Provide solutions customizable to customer needs
Staff Skills
Encompasses all IT human resource considerations, such as how to hire and fire, motivate, train and educate, culture….
ITIL variables
The ITIL processes and function were translated into variables:
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Financial Management for IT Services
Service Level Management
Availability Management
IT Service Continuity Management
Capacity Management
Incident Management
Problem Management
Change Management
Release & Deployment Management
Service Asset and Configuration Management
Service Desk
Service Level Management
Ensure that all current and planned IT services are delivered to agreed achievable targets.
'I think most of us want service-level assurance more than we want a service-level agreement.' Peter Coffee
Incident Management
Restore normal service operation as quickly as possible and minimize the adverse impact on business operations
Service Desk
Is a functional unit and should be the single point of contact for IT users on a day-by-day basis
Main findings
Business Value
Government
Business Relationship Management
Communication
Main findings
Business Value
Communication
Main findings
Business Value
Business Relationship Management
Communication
Main conclusions 1. Stop thinking that……..
Customers and users perception about alignment is the same IT thinks it is; SLM process showed 4 positive correlations, this is the stronger punch to IT - Business alignment.
Main conclusions 2. Stop thinking that……..
Incident Management process is an operational process and it does not help IT to get business alignment.
Main conclusions 3. Stop thinking that……..
Service Desks is the function that has to be conformed by inexperienced people with less skills than other lines of support.
Main conclusions 4. Stop thinking that……..
ITIL framework is the only thing that you need in order to get IT business alignment.
Thank you for attending this session. Don’t forget to complete the evaluation!
@MauricioCorona
Support slides for questions
RESEARCH METHOD
To provide a representation of each
organization’s alignment maturity level at the
time of the study, a cross-sectional design
was employed utilizing 12 survey
assessment instruments that were
developed based on ITIL theory and
Strategic Alignment Model.
INSTRUMENT DEVELOPMENT
The alignment instrument were developed using Likert
items for the scales to be able to measure maturity levels
(do not confuse this with CMM model).
To assess the maturity of each variable all of the ITIL
instruments were developed using nominal scales and
each item were assessed on a dichotomous scale (do not
confuse this with CMM model). The ITIL processes were
operationalized as independent variables and the
alignment model operationalized as dependent variable
through a congruence matrix.
Outputs from Atlas Ti
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Reliability and Validity
Reliability is defined as the extent to which a questionnaire, test, observation or any measurement procedure produces the same results on repeated trials. In short, it is the stability or consistency of scores over time or across raters.
Validity is defined as the extent to which the instrument measures what it purports to measure.
Cronbach Alpha
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Chi-square sample
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1. Ho:xy1=o
a. Chi C < Chi T ∴ can’t reject H0.
2. Ho:xy2=o
a. Chi C > Chi T ∴ H0 is rejected.
3. Ho:xy3=o
a. Chi C < Chi T ∴ can’t reject H0.
4. Ho:xy4=o
a. Chi C < Chi T ∴ can’t reject H0.
5. Ho:xy5=o
a. Chi C > Chi T ∴ H0 is rejected.
6. Ho:xy6=o
a. Chi C > Chi T ∴ H0 is rejected.