| Despite all the marketing hype from computer vendors, | | | | provide a blueprint for managing IT services in the |
| the true and lasting competitive advantage from IT | | | | corporation. There are no silver bullets and no magic |
| does not result from implementing the latest gee whiz | | | | answers, but by learning from what has worked well |
| technology or a "better mousetrap" - instead, it is | | | | (and sometimes not so well) over many years, a clear |
| achieved by a disciplined commitment to Operational | | | | picture emerges on what a company needs to be |
| Excellence in IT management. By applying a strict | | | | very good at. Success is the result of meticulous |
| management discipline and following proven best | | | | preparation, following sound, proven processes and a |
| practices, the IT function can be transformed from a | | | | great deal of hard work. Excellence in IT operations |
| difficult-to-manage cost center into a value-added | | | | results from a habitual and relentless commitment to |
| service to the corporation. This approach has been | | | | executing quality IT processes that are tightly coupled |
| proven to be a winning strategy throughout the highs | | | | with the business processes they serve, a strong |
| and lows of business cycles and is an even more | | | | focus on managing the details, and a pervasive culture |
| important discipline for companies weathering the | | | | of continuous improvement. It starts with the |
| storms of a severe recession. | | | | engagement and commitment of the CEO and the |
| After many years of leading and managing virtually all | | | | senior executive team and implementing mechanisms |
| aspects of Information Technology in the corporate | | | | to ensure that all of the IT activities are fully aligned |
| world, I have witnessed an enormous amount of | | | | with business priorities and that they continue to be |
| change, both in the rapidly evolving technology itself, | | | | aligned. Important concepts such as developing and |
| but also in the approach to effective management of | | | | adhering to an IT architecture and key strategic |
| these very necessary but complex systems. | | | | principles, organizing and delivering services (as |
| The good news is that IT has been a huge enabler of | | | | opposed to products or applications), measuring and |
| productivity and, with the powerful networks, | | | | stewarding performance and implementing a culture of |
| computing platforms and sophisticated application | | | | continuous improvement are all critical to the success |
| environments available today, enterprises can do so | | | | of the enterprise. |
| much more (and do it much more rapidly and | | | | Excellence in managing the IT processes and |
| economically) than ever before. With the advent of the | | | | consistently executing best practices is the key to |
| PC, the internet and other portable and wireless | | | | success. Yes, there is a need to stay abreast of |
| personal devices, businesses and consumers can | | | | emerging technologies and to capitalize on these at the |
| employ an impressive array of capabilities such as | | | | right time in the product cycle, and companies do need |
| information access, information sharing, knowledge | | | | to monitor the marketplace and quickly identify new |
| acquisition, decision making, automation and market | | | | trends that can offer an advantage. From time to time, |
| development that were not possible even just a few | | | | individual companies will realize significant advantages |
| years ago. However, while much has changed, many | | | | from implementing new technologies, but these will |
| of the challenges experienced by business leaders - | | | | tend to be short-lived as competitors follow suit and |
| as they try to make sense of the complexities, | | | | catch up. It is also very true that, depending on the |
| opportunities, risks and costs associated with IT - | | | | industry, there will be specialized areas of technology |
| remain the same. Moreover, many companies, as they | | | | that companies need to stay on top of in order to be |
| struggle with these challenges, are missing out on | | | | industry leaders, but the enduring competitive edge will |
| opportunities that go well beyond the immediate | | | | be achieved through operational excellence in |
| internal efficiencies that directly result from an | | | | managing the IT services. |
| operationally excellent IT function. IT today is absolutely | | | | Those companies that master the discipline of |
| critical to any business and while some business | | | | Operational Excellence in managing their IT services |
| leaders may still consider IT to be non-core or | | | | will see benefits in a number of critical areas: |
| non-strategic, most CEOs do recognize that their | | | | - Flawless execution |
| businesses cannot survive and prosper without a | | | | - Robust, reliable operations |
| well-functioning IT service underpinning and supporting | | | | - Lower costs |
| every transaction and activity throughout the | | | | - Effective change management |
| enterprise. The average company today spends | | | | - A 'great deal' for the customer |
| between four and five percent of revenue on IT and | | | | A new book on this topic, Unlocking the Power of |
| the figure can be 10% or more in industries highly | | | | Information Technology, describes how IT services |
| dependent on IT, such as the financial and | | | | should be aligned with business goals, what critical |
| telecommunications sectors. Information technology is | | | | capabilities need to be established and how to |
| an integral and vital element of any organization, and a | | | | organize and manage IT services across the |
| smooth-running IT operation will not only directly impact | | | | company. Best practices used by operationally |
| the bottom line, but it will also project a quality, | | | | excellent companies are described in considerable |
| professional image of the company externally. | | | | detail, as well as insights and guidance on staff |
| From a business leader's perspective, the world of | | | | development, procurement and sourcing. |
| Information Technology can be an intimidating maze of | | | | The description of an operationally excellent IT function |
| terminology and hype with an insatiable appetite for | | | | is organized into seven key focus areas, with chapters |
| ongoing and new project funding. Business leaders | | | | devoted to each: |
| struggle with questions on how much to spend on IT, | | | | - Business Alignment, Strategic Planning and IT |
| how to be sure benefits will accrue from the very | | | | Governance |
| significant investments, and how to effectively | | | | - The IT Architecture |
| organize and manage IT when it is not the main | | | | - Manage IT Systems as Services |
| mission of the enterprise or the core competence of | | | | - Project Management Discipline |
| the senior business leaders. Even within IT | | | | - The IT Organizational Model |
| management circles, the complexities can be | | | | - Develop and Nurture the IT Staff |
| overwhelming in the absence of a disciplined approach | | | | - Use of Contracted Services, Outsourcing and |
| to managing IT services. | | | | Offshoring |
| As a consequence, there is ample evidence today in | | | | A summary of the key points is included at the end of |
| trade journals and the popular press about IT | | | | the chapter dealing with each of these critical areas, |
| management failures, and many published surveys | | | | and these summaries can serve as an excellent |
| show a low level of satisfaction with the performance | | | | starting point for a meaningful dialogue between |
| of internal IT departments. Across all industries there is | | | | business executives and IT managers on how their IT |
| a widespread need to demystify Information | | | | services measure up, and what to do about |
| Technology from a business perspective and to | | | | dramatically improving these services. |