Thursday, 5 July 2007

IT Governance – the “enabler” for business agility?

Traditionally, IT has been viewed as the "technology provider" but the paradigm must become an agile "enabler" for business by aligning closer to business processes in order to provide the agility that business requires to compete in today's markets.

A framework needs to be established to provide that agility”.


With the pressure to maximize on investments and ensure the highest return, and meet future business needs, companies are shifting their focus on how they utilize IT.

This refocus includes:
Focusing on driving down costs to meet lower budgets
While in today’s economic climate driving down costs involves limiting IT expenditures, it increasingly involves looking at the existing IT infrastructure and determining how it can be leveraged to offset limitations in making future IT purchases.


Centralizing IT infrastructures
We have recently witnessed a shift in IT environments away from legacy based centralized mainframes to support a geographically distributed world. Now, in an effort to gain better control over IT budgets and operations while organizing around the arrival of advanced technologies, networks, and systems, companies are once again shifting back to a centralized model of service delivery.

Leveraging infrastructure to support business processes.
The need to find new sources of revenue is pushing companies to focus on leveraging IT to support business processes and ensure that business processes are integrated more seamlessly.

Maximizing utilization of IT infrastructure
As part of centralizing IT infrastructures, companies are looking to maximize the utilization rates of these environments, whether servers, storage, or applications.

Shifting to leverage utility based on-demand services
Many firms are beginning to examine the potential of leveraging IT as part of a set of utility based capabilities and services, similar to energy and communications.


On one end of the governance spectrum (top down), you can manage to control IT spend by delivering a centrally architected set of solutions, probably on platforms (like SAP, ORACLE,) and without bringing SOA discussion into the picture, force the businesses process change to these “out-of-the-box” solutions & processes. Your IT costs can come under control, but your business change costs can sky rocket, and you may even forget about the IT department positioning as a strategic partner for the business.

On the other end (bottom up), you can empower the business by allowing the business to buy any type of solution. Business intelligence suffers and the overall cost of IT grows uncontrollably.


HOW DE PROVIDE FOR BUSINESS AGILITY?

Do we work towards a blended approach? and Allow for the freedom of projects that bring efficiencies to the business. The blended approach (Middle out) where the central group provides all key standards, communication mechanisms, monitoring infrastructure, and encourages teams to use it to build around services that can be shared.

1 comment:

Anonymous said...

PPM (Project Portfolio Management) provides insight into application development from the planning and strategic level. It ensures transparency in investment and capital decisions, manages the risks of those investments, and maximizes return on investments.
However the PPM solution doesnt provide the EXECUTION PLATFORM for the strategically funded projects that are either developed internally or outsourced. If PPM is a solution to enable senior management to minimize risks and do a strategic investment, the SDLC framework enables the PMO office to execute the projects and track it at minute details. Thus to understand the value of the business derived from application development, it is important to incorporate a framework that enables the organization to have a feedback loop and understand what is happening to promote tighter control.

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