S U C C E S S STRATE GY

BUSINESS
UTILIZING

INFORMATION TECHNOLOGY
RiyanartoSarno

ALIGNMENT

BUSINESS & IT
VALUE CREATION

 Computer Science Corp. : whileIThasbecomeanincreasingly criticalcomponentofbusinesssuccess, informationsystemexecutivesmust ensurethattheirplaninsyncwiththe strategiesdirectingtheoverallinterprise

(Aligning Technology and Corporate Goals is Top IS issue)

Measuringyourstrategy:Itssimplebutnoteasy

STRATEGI BISNIS

Measuring Business Performance

Optimizingthemanagementofbusinessproseses EnhancingBusinessGoals AcknowledgingITcontributiontoBusiness Strategy Acknowledgingdegreeofalignmentbetween Business&ITgoals

Balanced Scorecard (Performance Measurement Framework)

INTERNAL/BUSINESS PROCESS CUSTOMER

FINANCIAL

LEARNING AND GROWTH

Four Balanced Scorecard Perspectives

Balanced Scorecard Perspectives

Finance: Strategicthemes=Financialstrategies(growth,
sustain,harvest)vsFinancialthemes(Revenuegrowthand mix,Costreduction/productivityimprovement,Asset utilization/investmentstrategy)

Customer: marketshare,customeracquisition,customer
retention,customersatisfaction dancustomerprofitability

Internal/BusinessProcess: innovationprocess,
operationsprocess andpostsaleserviceprocess

Learning&growth: continuousimprovementtoproducts
andservices

Strategic Themes

Measuring Customer Perspective

Internal/ Business Proses Value Chain Model

Innovation Process

Operations Process Build the Deliver the Product/ Product/ Services Service

Postsale Service Process Service the Customer

Customer Indentify Create the Product/ Need the Market Service Identified Offering

Customer Need Satisfied

AligningITwithbusiness meansbridgingthegap betweenwhat technology promisesand whatitactuallydelivers

ALIGNING

BUSINESS & IT

Business Goals
Thetop10mostimportant BusinessGoalsbasedon ITGIsresearchfindings BusinessGoalsin COBIT

BalancedScorecard FourPerspectives
Financial Perspective

No
1.

Business Goals

. . . . . .

. . . . . .

ProvideagoodreturnoninvestmentofITenabledbusiness investments Improvecorporategovernanceandtransparency Improvecustomerorientationandservice

3. 4. Customer Perspective

9. InternalBusinessProcess Perspective LearningandGrowth Perspective

Obtainreliableandusefulinformationforstrategicdecision making Improveandmaintainbusinessprocessfunctionality

. . .

10.

. . .

15. 16. 17.

Improveandmaintainoperationalandstaffproductivity Manageproductandbusinessinnovation Acquireandmaintainskilledandmotivatedpeople

IT Goals
Thetop10mostimportant ITGoalsbasedonITGIs researchfindings ITGoalsinCOBIT

No. 1. 2. 3. 4. 5. . . . 28.

ITGoals Respondtobusinessrequirementsinalignmentwiththe businessstrategy Respondtogovernancerequirementsinlinewithboarddirection Ensuresatisfactionofenduserswithserviceofferingsand servicelevels Optimise theuseofinformation CreateITagility . . . EnsurethatITdemonstratescostefficientservicequality, continuousimprovementandreadinessforfuture

Linking Business Goals to IT Goals

Thestatementandits relevancenumberof BusinessGoalsinCOBIT

Balanced Scorecard Four Perspectives

No BusinessGoals

ITGoals
Therelevancenumber ofITGoalsinCOBIT

Financial Perspective

1. 2. 3.

Provideagoodreturnon investmentofITenabled businessinvestments ManageITrelatedbusiness risk Improvecorporate governanceandtransparency

24

14

17

18

19

21

22

18

Linking Business Goals to IT Goals

Thestatementandits relevancenumberof BusinessGoalsinCOBIT

Balanced Scorecard Four Perspectives

No

BusinessGoals

ITGoals
Therelevancenumber ofITGoalsinCOBIT NomorTujuanTI dalamCOBIT 23 24 16 5 8 4 22 25 7 2 10 12 24 20 26 23

Customer Perspective

4. 5. 6. 7. 8. 9.

Improvecustomerorientationand service Offercompetitiveproductsandservices Establishservicecontinuityand availability Createagilityinrespondingtochanging businessrequirements Achievecostoptimisation ofservice delivery Obtainreliableandusefulinformation forstrategicdecisionmaking

3 5 10 1

Linking Business Goals to IT Goals

Thestatementandits relevancenumberof BusinessGoalsinCOBIT

Balanced Scorecard Four Perspectives

No.

BusinessGoals

ITGoals
Therelevancenumber ofITGoalsinCOBIT

Internal Business Process Perspective

10. Improveandmaintainbusiness processfunctionality 11. Lowerprocesscosts laws,regulationsandcontracts 13. 14. 15. Providecompliancewithinternal policies Managebusinesschange andstaffproductivity 12. Providecompliancewithexternal

6 7 2 2 1

7 8 19 13 5 8

11 13 20 15 21 24 22 26 27

6 11

11 13

28

Improveandmaintainoperational 7

Linking Business Goals to IT Goals

Thestatementandits relevancenumberof BusinessGoalsinCOBIT

Balanced Scorecard Four Perspectives

No

BusinessGoals

ITGoals
Therelevancenumber ofITGoalsinCOBIT

Learning and 16. Growth Perspective 17.

Manageproductand businessinnovation

25

28

Acquireandmaintainskilled 9 andmotivatedpeople

IT Governance Frameworks
InformationTechnology InfrastructureLibrary(ITIL) ISO17799(27002) ControlObjectivesforInformationand relatedTechnology(COBIT)

IT Governance Frameworks

ITIL Framework

COBIT Domains
ITprocessesareusuallydividedintotheresponsibility domainsofplan,build,runandmonitor
Plan and Organise (PO)

Acquire and Implement (AI)

Deliver and Support (DS)

Monitor and Evaluate (ME)

Each Domain hasprocesses

Processes of PO Domain
PO1 PO2 PO3 PO4 PO5 PO6 PO7 PO8 PO9 PO10 Define a Strategic IT Plan Define the Information Architecture Determine Technological Direction Define the IT Processes, Organisation and Relationships Manage the IT Investment Communicate Management Aims and Direction Manage IT Human Resources Manage Quality Assess and Manage IT Risks Manage Projects

PO Answers :
AreITandthebusinessstrategyaligned? Istheenterpriseachievingoptimumuseofits resources? Doeseveryoneintheorganisation understandthe ITobjectives? AreITrisksunderstoodandbeingmanaged? IsthequalityofITsystemsappropriatefor businessneeds?

Processes of AI Domain
AI1 AI2 AI3 AI4 AI5 AI6 AI7 Identify Automated Solutions Acquire and Maintain Application Software Acquire and Maintain Technology Infrastructure Enable Operation and Use Procure IT Resources Manage Changes Install and Accredit Solutions and Changes

AI Answers :
Arenewprojectslikelytodeliversolutions thatmeetbusinessneeds? Arenewprojectslikelytobedeliveredon timeandwithinbudget? Willthenewsystemsworkproperlywhen implemented? Willchangesbemadewithoutupsetting currentbusinessoperations?

Processes of DS Domain
DS1 DS2 DS3 DS4 DS5 DS6 DS7 DS8 DS9 DS10 DS11 DS12 DS13 Define and Manage Service Levels Manage Third-party Services Manage Performance and Capacity Ensure Continuous Service Ensure Systems Security Identify and Allocate Costs Educate and Train Users Manage Service Desk and Incidents Manage the Configuration Manage Problems Manage Data Manage the Physical Environment Manage Operations

DS Answers :
AreITservicesbeingdeliveredinlinewith businesspriorities? AreITcostsoptimised? IstheworkforceabletousetheITsystems productivelyandsafely? Areadequateconfidentiality,integrityand availabilityinplaceforinformationsecurity?

Processes of ME Domain
ME1 Monitor and Evaluate IT Performance ME2 Monitor and Evaluate Internal Control ME3 Ensure Compliance With External Requirements ME4 Provide IT Governance

ME Answers :
IsITsperformancemeasuredtodetectproblems beforeitistoolate? Doesmanagementensurethatinternalcontrols areeffectiveandefficient? CanITperformancebelinkedbacktobusiness goals? Areadequateconfidentiality,integrityand availabilitycontrolsinplaceforinformation security?

Linking IT Goals to IT Processes

ITGoalsinCOBITand itsrelevancenumber ITProcessesin COBIT

1. 2. 3. 4. 5.

ITGoals Respondtobusinessrequirements inalignmentwiththebusiness strategy Respondtogovernance requirementsinlinewithboard direction Ensuresatisfactionofendusers withserviceofferingsandservice levels Optimise theuseofinformation CreateITagility

ITProcesses

PO1

PO2

PO4

PO10 AI1

AI6

AI7

DS1

DS3

ME1

PO1

PO4

PO10 ME1

ME3

PO8 PO2 PO2

AI4 DS11 PO4

DS1 PO7

DS2 AI3

DS7

DS8

DS10

DS13

. . .
28.

. . .
EnsurethatITdemonstratescost efficientservicequality,continuous improvementandreadinessfor future

PO5

DS6

ME1

ME3

MeasuringITperformance: onewaytoovercomeITinvestmentparadox

PENGUKURAN KINERJA TI

PO1 Goals and Metrics

ITGoals outcome
measure

Respondtobusiness requirementsin alignment withthebusinessstrategy

Set

Degreeofcompliancewith businessandgovernance requirements

drive
ProcessGoals
measure

performanceindicator

Definethestrategytodeliver service offerings

Set

PercentofITobjectivesin theIT strategicplanthat supportthestrategic businessplan

drive
ActivitiesGoals
measure

performanceindicator

TranslatingITstrategicplanning into tacticalplans

Percentofstrategic/tactical ITplans meetingswhere businessrepresentatives haveactivelyparticipated

AI1 Goals and Metrics

ITGoals outcome
measure

Definehowbusiness functionaland control requirementsaretranslated into effectiveandefficient automatedsolutions

Set

Numberofprojectswhere statedbenefits werenot achievedduetoincorrect feasibilityassumptions

drive
ProcessGoals performanceindicator
measure

Identifysolutionsthatare technically feasibleandcost effective

Set

Percentoftheapplication portfolionot consistentwith architecture

drive
ActivitiesGoals performanceindicator
measure

Undertakingfeasibility studiesasdefined inthe developmentstandard

Percentofprojectsinthe annualITplan subjecttothe feasibilitystudy

DS1 Goals and Metrics

ITGoals outcome
measure

Ensuresatisfactionofend userswith serviceofferings andservicelevels

Set

Percentofuserssatisfied thatservice deliverymeets agreeduponlevels

drive
ProcessGoals
measure

performanceindicator

FormaliseandmonitorSLAs and performancecriteria

Set

Percentofservicesmeeting servicelevels

drive
ActivitiesGoals performanceindicator
measure

Reportingonservicelevel achievements (reportsand meetings)

Percentofservicelevels reported

ME1 Goals and Metrics

ITGoals outcome
measure

EnsurethatITdemonstrates costefficient servicequality, continuousimprovementand readinessforfuturechange

Set

Amountofreductioninthe numberof outstanding processdeficiencies

drive
ProcessGoals
measure

performanceindicator

Measure,monitorandreport process metrics

Set

Percentofcriticalprocesses monitored

drive
ActivitiesGoals performanceindicator
measure

Reviewingperformanceagainst agreedupontargetsand initiatingnecessaryremedial action

Numberofmetrics(per process)

COBIT Management, Control, Alignment & Monitoring

BUSINESSGOALS
GovernanceDrivers BusinessOutcomes Information Criteria

Infrastructure

Applications

Information

People

ITResources

ITProcesses

IT Processes

Performance Indicators

ITGoals

Process Descriptions

Outcome Measures

Maturity Levels
Agarperbaikanyangkontinu terhadapProsesTIdapat dilakukan,makaharus dievaluasikondisieksistingnya COBITmenyediakankerangka identifikasisejauhmana perusahantelahmemenuhi standarpengelolanProsesTI yangbaik levelkedewasaan

Maturity Attribute Table

Maturity Attribute Table

Continuous Improvement
Define Goals Business Goals
measured with set

IT Goals

set

Process Goals
with

set

Activity Goals
with

drive measured with

drive measured

drive measured

Improve and Realign

Business Outcome

IT Outcome

Performance indicators of IT Process

Performance indicators of IT Activities

Outcome measure

Business Performance Metrics indicator Outcome ITMetrics measure Performance indicator Outcome measure Process Performance Metrics indicator

Indicate Performance

Measure Achievement

Continuous Improvement (Traditional Audit Approach)

Expectation Control Environment

Reality

Audit rotation schedule based on annual risk assessment function

Asses 1

t1

Asses 2

t2

Time

Continuous Improvement (Ongoing Measurement of Risk Indicators)

Expectation Control Environment
Ongoing Measurement

Report Report Reality t1

Report

t2 Assess 2

Time

Assess 1

t1

Thank you
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