Cost budget management 79 4 stakeholder management 75

Cost & Budget Management
7.9%
4 Stakeholder Management
7.5%
5 Project Management
7.4%
*Gap between innovator and firefighter effectiveness
Source: Info-Tech Benchmarking and Diagnostic
Programs

Info-Tech Research Group 214
Target-state vision options: IT organizational
structure
CIO
BU BU BU BU
Option 1: Centralized Model
BU BU BU BU
CIO CIO CIO CIO
Option 2: Decentralized Model
CIO
CIO
CIO
CIO
CIO
Option 3: Hybrid Model
A 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 Group 215
Identify a target-state vision for sourcing using
trade-off analysis
Example
1. 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 services
IT
Budget
Risk
Impact
Resource
Availability
Resource
Impact
Total
Importance
5 4 3 2 1
In-source
4 2 4 1 5 47
Co-source
3 3 3 1 3 41
Outsource
3 4 2 3 1 44

Info-Tech Research Group 216
WHAT 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).