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Cost & Budget Management7.9%4Stakeholder Management7.5%5Project Management7.4%*Gap between innovator and firefighter effectivenessSource: Info-Tech Benchmarking and Diagnostic Programs
Info-Tech Research Group214Target-state vision options: IT organizational structureCIOBUBUBUBUOption 1: Centralized ModelBUBUBUBUCIOCIOCIOCIOOption 2: Decentralized ModelCIOCIOCIOCIOCIOOption 3: Hybrid ModelA hybrid model operates somewhere along the centralized-decentralized spectrum.The corporate CIO sets IT strategy, and works with the business unit leaders to develop and manage governance policies and practices, and allocates decision rights accordingly. Generally, common and enterprise-wide services are centralized, while unique business unit applications are decentralized to that business unit. The business determines what IT services they require; IT decides how best to provide the services.Control is centralized to one IT group in a centralized model. Decisions regarding what and how IT services will be delivered are made by that central group. Services are centralized to the greatest extent possible, and reporting is to the corporate CIO. Reducing IT costs and improving IT services and processes were reported as the key drivers toward an increase in centralization of IT services.Focus of control is with the lines of business in a decentralized model. Decisions as to what and how IT services will be delivered are made at the local level. IT staff report to the line of business. There may or may not be a corporate CIO with responsibility to set enterprise-wide policies for some functions, for example, architecture standards.Example
Info-Tech Research Group215Identify a target-state vision for sourcing using trade-off analysisExample1.Target-state options for sourcing: In-source, Co-source, and Outsource.2.Decision criteria and importance weighting: 5: Likelihood that satisfaction with IT service will increase (driver).4: Likelihood that overall IT budget will decrease.3: Risk impact is low.2: Resources are easy to acquire. 1: Low impact on existing resources (morale, etc.) Decision matrix:3.In this scenario in-sourcing has the highest score and is the best decision according to these criteria.Satisfaction with IT servicesIT BudgetRisk ImpactResource AvailabilityResourceImpactTotalImportance54321In-source4241547Co-source3331341Outsource3423144
Info-Tech Research Group216WHAT ARE OBJECTIVES AND MEASURES?Objectives and measures are used to indicate the performance of your IT strategy and can apply to several strategic elements including target-state visions and strategic initiatives. To be useful, objectives and measures must be SMART (specific, measurable, attainable, relevant, and time-bound).