The document discusses emerging approaches to improving IT operating models. It notes that businesses face increasing pressures from technology proliferation, cost pressures, and a faster competitive cadence. IT struggles to keep up and manage complexity across old and new systems separately. The document then summarizes several emerging approaches that can help address these challenges, including continuous delivery, automation, agile practices, digital strategies, DevOps, Lean startup principles, and integrated governance models. It proposes a new "IT operating model" that weaves these approaches together across various dimensions like strategy, processes, organization design, and governance to better deliver value from the IT portfolio.

1. Bridging the Old and the New Worlds of IT
A New IT Operating Model Emerges
David Favelle
November 2013
All Slides Copyright © 2013 ValueFlowIT

2. Current State of Play
Business
Competitive cadence increasing
Proliferation of technology
options
Relentless cost pressures
Technology
Struggling to keep up
Growing complexity
Managing the old world
and the new separately
Missing opportunities…
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3. What are some leading companies doing about it?
Adopting Continuous Delivery
(thank you Thoughtworks)
Building in resilience
(thank you NetFlix)
Relentlessly automating
(Ummm….”we’re not worthy” ;-])
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4. Maybe there is something different we should be doing in Enterprise IT …
In 2013 and beyond, can we really afford these
tradeoffs?
Good news is…
There are emerging ways of doing things
Better, Faster AND Cheaper
Today’s topics
1.
2.
3.
4.
5.
6.
7.
8.
9.
LeanStartup
Digital Strategy Framework
Pace Layering
DevOps
Scaled Agile
Service Design Thinking
Social Business
COBIT 5
Weaving this into an IT Operating Model
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5. The Minimum Viable Product Concept drives an Innovation “Fast Lane”
A recent webinar with Eric Ries and friends:
http://tinyurl.com/n7yjumu
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6. Digital Strategy Framework to Organise & Focus Digital Program
People
Innovation
Client Engagement
Client insights
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Analytics based segmentation
Socially informed knowledge
Service experience enhancement
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Digitally enhanced selling
Augment service offering
Predictive marketing
Streamlined customer processes
Knowledge Management
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•
Communities of practice
Information leverage
External communities & repositories
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Working anywhere anytime
Right device for context
Right information for context
New digital tools
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Collaboration tools
Engaging external expertise
Cross boundary utilisation
Coaching & QA
Top line growth
Client touch points
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Customer service
Cross channel coherence
Self service
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Unified Data and Processes
Analytics capability
Business
Model
Operational Process
Process Digitization
Performance improvement
New features
New automation
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Operations Dashboards
Periodical Scorecards
Customer feedback
Employee Feedback
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Worker Enablement
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Digitally-Modified Business
Operational transparency
Data driven decision making
Virtual teams
•
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Product/Service augmentation
Transitioning physical to digital
Digital wrappers
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Digital products
Reshaping organisational boundaries
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Enterprise Integration
Redistribution decision authority
Shared digital services
Digital Analytics
New Digital Business
Performance Management
Digital Capabilities
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Digital globalisation
Business and IT Integration
Solution delivery
Adapted from MIT Sloan Digital Strategy Framework:
http://www.capgemini.com/resources/digital-transformation-a-roadmap-for-billiondollar-organizations

7. A new way of looking at the portfolio…
Facebook
presence
iPhone
App
Sentiment analysis
service
Open innovation
submission box
Product review
service
Droid
App
Recommendations
engine
The “Fast Lane” driven by
market cadence and requiring
a rapid release cycle
System of Innovation
Customer Service
Processes & systems
R&D and Product development
Processes & systems
Configurator
System of Differentiation
Customer
Product
Suppliers
Orders
The “Medium Lane” driven by
business plans and ability to absorb
Change into the business
i.e. internal cadence
The “Steady Lane” driven by
major product upgrades and
major business transformation
System of Record
Source: Gartner 2011
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8. DevOps: ITSM Fast Lane or “keeping up with Agile!”
Organisations implementing DevOps have seen these
Benefits:
Improved quality of
63%
software developments
Development
(Software
Engineering)
https://puppetlabs.com/2013-state-of-devops-infographic
Improved visibility into IT
process and requirements
61%
55%
55%
More agile
development
51%
More agile change
management process
Technology
Operations
63%
More responsive
to business need
DevOps
More frequent
software releases
Culture change
collaboration/ cooperation
Quality
Assurance
(QA)
45%
Improved quality
of code
38%
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9. Toward the Agile Enterprise
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10. Where the rubber meets the road!
Dean Leffingwell
http://www.youtube.com/watch?v=pCaroLfl__4
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11. http://thisisservicedesignthinking.com/
Service Design Thinking: Make it all about the end user…

12. How does the Social Media shift impact IT Management?
A move toward personal Digital & Social technologies drives up business and user expectations and
capabilities for engaging IT Socially and for integration of Social in day to day business processes.
IT has been slow to adopt social but could quickly adopt this new channel for an more integrated and real
team user engagement

13. COBIT 5: Integrated Management & Governance Models
We now have guidance well understood by audit and compliance stakeholders on how to integrate
governance and management across the full technology lifecycle
http://www.isaca.org/COBIT/Pages/Product-Family.aspx
Source: COBIT® 5, figure 15. © 2012 ISACA® All rights reserved.
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14. COBIT 5 Process Model: Speak the language of compliance
The guidance extends
down to practitioner
level in all aspects of
IT process, policy,
roles and measures
Source: COBIT® 5, figure 16. © 2012 ISACA® All rights reserved.
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15. Bringing it all together
All of this non-proprietary (free!) thinking can be woven into a
full lifecycle view that takes advantage of emerging frameworks
and technologies
Let’s call this the
IT Operating Model
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16. Dimensions of an IT Operating Model
The Operating Model for IT must incorporate many dimensions, in harmony as a “system”
if IT is the deliver optimal value from the IT portfolio
Business Engagement
& Demand
Service Lifecycle
(Phases & Processes)
Strategy, Architecture &
Governance
Organisational Design
IT Operating Model
Leadership & People
Service Brokerage
& Partner Integration
Measurement &
Improvement
Automated Workflows,
Controls & Reporting
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17. Integrating the Dimensions: ValueFlow IT Multi-Speed Operating
Model™
Service Portfolio
Service Pipeline
3 Service Portfolio speeds
Business Demand
Disruptive
Innovations
Business
Line of Differentiation
Business
Strategy
Corporate
capabilities
Transform
Change
Renewal
Lifecycle
Phases
Innovation
portfolio
Business Unit
Portfolios
Enterprise
Portfolios
Concept
Design
Build
Service Catalogue
Transition
Operate
Improve
Fast Lane
Medium Lane
Steady Lane
Process Framework
Organisational Structure
IT Management platform & specialist tools
Governance Controls
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18. Frameworks Across the ValueFlow IT Multi-Speed Operating
Model™
Service Portfolio
Service Pipeline
Business Demand
Disruptive
Innovations
Business
Line of Differentiation
Business
Strategy
Corporate
capabilities
Transform
Change
Renewal
Innovation
portfolio
Concept
Design
Digital Strategy Open Innovation
Build
Transition
Operate
Scaled Agile DevOps
Business Unit
Portfolios
Agile or SDLC
Enterprise
Portfolios
SDLC or Agile
Improve
Lean
3 Service Portfolio speeds
ITIL
Lifecycle
Phases
Service Catalogue
Process Framework
Organisational Structure
IT Management platform & specialist tools
Governance Controls
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19. Process Framework
Engage
Strategise & Plan
Govern IT
Investment Management
Strategy Generation
Risk & Compliance
Management
Demand Management
Service & Asset Portfolio Management
Performance Management
Relationship Management
Architecture Management
Operating Model Assurance
Concept
Design
Build
Experience
Design
Options
Analysis
Development
Management
ITSM
Design
Requirements
Definition
Workload
Management
Solution
Design
Innovation
Management
Quality
Assurance
Project/Programme Management
Transition
Release
Management
Change
Management
Configuration
Management
Testing
Management
Incident
Management
Operate
IT Continuity
Management
Security
Management
Financial
Management
Request
Fulfillment
Event
Management
Availability
Management
Capacity
Management
Service Level
Management
Access
Management
Supplier
Management
Improve
Problem
Management
Knowledge
Management
Service
Reporting
Asset
Management
Improvement
Management
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20. Minimum Process System
Engage
Strategise, Plan & Manage
Govern IT
Investment Management
Strategy Generation
Risk & Compliance
Management
Demand Management
Service & Asset Portfolio Management
Portfolio Assurance
Relationship Management
Architecture Management
Operating Model Assurance
Concept
Design
Build
Experience
Design
Options
Analysis
Development
Management
ITSM
Design
Requirements
Definition
Workload
Management
Solution
Design
Innovation
Management
Quality
Assurance
Project/Programme Management
Transition
Release
Management
Change
Management
Configuration
Management
Testing
Management
Incident
Management
Operate
IT Continuity
Management
Security
Management
Financial
Management
Request
Fulfillment
Event
Management
Availability
Management
Capacity
Management
Service Level
Management
Access
Management
Supplier
Management
Improve
Problem
Management
Knowledge
Management
Service
Reporting
Asset
Management
Improvement
Management
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21. Tuning Operating Model for Multiple Speeds
1.
1.
2.
3.
2.
3.
5.
Adapt controls to pace layers
Integrate the pace layer approach into the
architectural thinking
Bring multi-speed roadmaps into the strategy
Tune workflows
Tune governance controls
Design across the lifecycle phases
3.
Automation
1.
Automate as much as you can to ensure
visibility and standardisation
4.
6.
Align with process and compliance
Build automation in concert with process and
controls rather than after
Organisation
1.
2.
Multi-speed Processes
1.
2.
3.
4.
What are the cadences?
How can we organise by portfolio?
Categorise by Pace layer and or risk
Align Strategy, Architecture and Governance
1.
2.
3.
2.
3.
Engage Business in Shaping demand
Structure according to value, flow and risk
Leadership is key in ensuring that the system is
not “gamed” and that staff are fully supported
in their efforts
Don’t re-organise until you’ve figured out what
problem you’re solving e.g. bottlenecks, focus
Consider cross-functional and self organising
teams to drive value and throughput
Measurement:
1.
2.
3.
4.
Throughput of each lane
Bottlenecks/delays
Customer satisfaction
Costs and realisation of risk

22. Key Takeaways
1. Better, faster, cheaper is possible. You can be “Cloud Like”
2. Take advantage of the eco-system of frameworks
3. A multi-speed approach is required to straddle the old and the new worlds
4. Your business context, cadence/rhythms, investment portfolios, sourcing
models and current capabilities must drive how you go about it
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23. Which part of the IT Operating model
would you like to explore in more
detail ?
Know with the flow…
www.valueflowit.com.au
@DaveFavelle, @ValueFlowIT
info@ValueFlowIT.com.au
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