IT Processes
Managing the Information Technology Resource Jerry N. Luftman
1
Chapter Outline
!"#"ก%&'#"ก!%(" IT Strategic, Tactical, and Operational layers of IT processes ,#!-.!,/0123ก!%#!345" ก%&'#"ก!%678.!,/0 9 ก!%:;<": =!1231234>?@&ก%&'#"ก!% !"#"6%/AB!ก%678(C=("4>?@&ก%&'#"ก!% ;%&.D6ED5@123ก%&'#"ก!%>?!3 9 (Effectiveness of processes) @!J/',#!-.!,/0("ก!%;%/';%K3ก%&'#"ก!% (Priority on improving processes)
FeeneyMs 9 Core IT Processes
,#!-,DJ:CD3%&''EK%กD (Business systems thinking) ก!%."/'."K"./00!>?!3 9 (Contract facilitation) ก!%A/Q"!,#!-./-A/"ERก/'>/#46" !S"?!B (Vendor development) ก!%:UV!JW1=2./00! (Contract monitoring) "!:6,X"X@B7-!(C=3!" (Making technology work) ก!% /JS!1=2-W@:ก78B#ก/'ก!% /JZ[\2 (Informed buying) ก!%#!345".^!;_>Bก%%-123 IT (Architecture planning) .%=!3,#!-./-A/"ER (Relationship building) :;<"5W="! (Leadership)
Business objectives
IT Governance
CobiT CobiT Information Monitoring Planning and organization
IT Resources Delivery and support
Acquisition and implementation
38 IT Management Processes 1) ก%&'#"ก!%("%&J/'ก@BK6ER (Strategic Level Processes) %&B&B!# (Long Term)
2) ก%&'#"ก!%("%&J/'BK6E#DE7 (Tactical Level Processes) %&B&./\" (Short Term)
3) ก%&'#"ก!%("%&J/';dD'/>Dก!% (Operational Level Processes) #/">?2#/" (Day-to-Day)
1) Strategic Level Process ก!%,#',K-4@&ก!%#!345"ก@BK6ER (Strategic Planning and Control) 1.1) ก!%#!345"ก@BK6ER6!3EK%กD (Business strategic planning) (1) 1.2) ก!%#!345"6!3.^!;_>Bก%%-123%&'' (Architecture planning) (2) 1.3) ก!%,#',K-4@&ก!%#!345"ก@BK6ER123 IT (IT strategic planning and control) (3)
(3 ก%&'#"ก!%4@=#"&,%/')
1.1) Business Strategic Planning ก?2(S=:กDJ/1/':,@[82"XJB IT (Enabled/driven by IT) ก!S"J,#!->=23ก!%123 enterprise #?!>=23ก!%h_3กRC/"678:ก78B#1=23ก/' IT (IT Functions) 2&i%'=!3 ("C?#3%&B&:#@!12345"ก@BK6ER X2ก!.123,#!-:;<"i;iJ=678 &'%%@K,#!->=23ก!%123 enterprise demands
1.2) Architecture Scanning and Definition ก!S"J.^!;_>Bก%%-123 1=2-W@ .!%.":6j 4@& 23,R,#!-%W= 678 enterprise >=23ก!%(C=3!" ก!S"J.^!;_>Bก%%-123X;%4ก%-;%&BKก>R678 enterprise >=23ก!%(C=3!" ก!S"JX,%3.%=!3123:6,X"X@B76!3J=!" IT enterprise >=23ก!%(C=3!" Integrating architectures
1.3) Information Technology Strategic Planning and Control 1k\"2BW?ก/' goals 12323,Rก%4@& IT ก!S"J6Dj6!3ก#=!3 9 :ก78B#ก/'ก!%iJ=-!Zk83 Goals 5?!"6!345"ก@BK6ER123 IT
2) Tactical Level Processes 2.1) ก!%#!345"J=!"ก!%'%DS!% (Management Planning) ก!%#!345" (planning) 4@&ก!%:UV!-23 (monitoring) %&'''%DS!% (Management System) (4)
2.2) ก!%#!345"J=!"ก!%A/Q"! (Development Planning)
ก!%#!345"J=!"ก!%;%&BKก>R(C= (Application planning) (5) ก!%#!345":ก78B#ก/'1=2-W@ (Data planning) (6) ก!%#!345":ก78B#ก/'X,%31?!B (Network planning) (7) ก!%#!345":ก78B#ก/'%&'' (System planning) (8) ก!%#!345":ก78B#ก/'X,%3ก!% (Project planning) (9)
Tactical Level Processes 2.3) ก!%#!345"J=!"6%/AB!ก% (Resource Planning) ก!%'%DS!%4@&ก!%#!345"J=!",#!-.!-!%^ (Capacity planning and management) (10) ก!%'%DS!%4@&ก!%#!345"J=!"6/กs& (Skills planning and management) (11) ก!%#!345"J=!"3';%&-!t4@&ก!%'%DS!%,Kt,?! (Budget planning and value management) (12) ก!%'%DS!%4@&#!345"J=!" Vendor (Vendor planning and management) (13)
2.4) ก!%#!345"J=!"ก!%(S='%Dก!% (Service Planning) ก!%'%DS!%4@&ก!%#!345"J=!"%&J/'ก!%(S='%Dก!% ( Service level planning and management) (14) ก!%'%DS!%4@&ก!%#!345"J=!"ก!%กW=ก@/',[" ( Recovery planning and management) (15) ก!%'%DS!%4@&ก!%#!345"J=!",#!-;@2Ju/B (Security planning and management) (16) ก!%'%DS!%4@&ก!%#!345"J=!"ก!%>%# ;%&:-D" (Audit planning and management) (17)
( 17 ก%&'#"ก!%4@=#"&,%/')
2.1) Management Systems Planning
(C=ก%&'#"ก!%:CD3ก@BK6ER (strategic processes)4@&ก!%>%# ;%&:-D"45"3!"123 IT ก!S"J@!J/',#!-.!,/0(S-?(S=ก/' portfolio 123X,%3ก!%4@&45">?!3 9 ;%/';%K3%&'''%DS!% "!4"#6!3123ก!%'%DS!%X,%3ก!% (Project management) -!(C=
2.2) Development Planning Processes ก!%#!345"J=!"ก!%;%&BK>R(C= (Application planning) Portfolio 4@& schedule 123 applications 678>=23.%=!3S%[24ก=i1("C?#3:#@6784"?"2" C/J: "
ก!%#!345":ก78B#ก/'1=2-W@ (Data planning) 6'6#"45"3!"678 &"! application -!(C= S!#?!1=2-W@(J'=!3678>=23ก!%"!-!(C=3!" S%[2 (C=ก/' application 1=!3>="
ก!%#!345":ก78B#ก/'X,%31?!3 (Network planning) S! !"#",#!->=23ก!%678 &:1=!:C[82->?2ก/'%&''
ก!%#!345":ก78B#ก/'%&'' (System planning) 4;@ strategic goals i;:;<">!%!3:#@!("ก!% update :ก78B#ก/' hardware, software, network, 4@& facilities
ก!%#!345":ก78B#ก/'X,%33!" (Project planning) ก!S"JX,%33!"678:;<"i;iJ=("6!3:6,"D,4@&.!-!%^'%DS!%iJ=
2.3) Resource Planning Processes ก!%'%DS!%4@&#!345":ก78B#ก/',#!-.!-!%^123%&'' (Capacity planning and management) ก!S"J#?!6%/AB!ก%123%&'' &%23%/',#!->=23ก!%1235W=(C=iJ=2B?!3i%
ก!%'%DS!%4@&#!345":ก78B#ก/'6/กs&123A"/ก3!" (Skills planning and management) ก!S"J#?!A"/ก3!" &>=23-76/กs& ,#!-%W=2&i%'=!3 k3 &.!-!%^6!3!"iJ=.!:%v
ก!%'%DS!%,Kt,?!4@&ก!%#!345"3';%&-!t (Budget planning and value management) :;@78B"45"3!">?!39(S=2BW?("%W;123 financial terms %&'K678-!123:3D"678>=23(C= 4@&4"#6!3ก!%"!:3D"-!(C= (allocation)
ก!%'%DS!%4@&#!345":ก78B#ก/':#":J2%R (Vendor planning and management) ก!%:2!>RZ2%RC3!"'%Dก!%678:ก78B#1=23ก/' IT 4@&ก!%;%&.!"3!"
2.4) Service Planning Processes ก!%'%DS!%4@&#!345":ก78B#ก/'%&J/'ก!%(S='%Dก!% (Service level planning and management) 6!,#!->ก@3:ก78B#ก/':%[823 SLA (service level agreements)
ก!%'%DS!%4@&#!345"J=!"ก!%กWก= @/',[" (Recovery planning and management) >=23-/8"( #?!ก!%;dD'/>D3!"B/3,3:;<"i;2B?!3>?2:"[823(".^!"ก!%tR678:กDJu/BAD'/>D (disaster) ก!%'%DS!%4@&#!345":ก78B#ก/':%[823,#!-;@2Ju/B (Security planning and management) /J6!45":A[82(S=-/8"( iJ=#?!,#!-;@2Ju/B123%&''2BW(? "%&J/'678ก!S"Ji#= ก!%'%DS!%4@&#!345"ก!%,%# ;%&:-D" (Audit planning and management) /J6!45":A[82-/8"( iJ=#?!ก!%>%# ;%&:-D"2BW?("%&J/'67ก8 !S"J 4@&-7,#!-.2J,@=23 ( compliance)
3) Operational Level Processes 3.1) ก!%'%DS!%X,%3ก!% (Project Management)
ก!%-2'S-!BX,%3ก!% (Project assignment) (18) ก!%ก!S"J>!%!3:#@!678(C=("X,%3ก!% (Project scheduling) (19) ก!%,#',K-X,%3ก!% (Project controlling) (20) ก!%,#',K-1=2ก!S"J123X,%3ก!% (Project requirements control) (21) ก!%;%&:-D"X,%3ก!% (Project evaluating) (22)
3.2) Resource Control ก!%,#',K-ก!%:;@78B"4;@3 (Change control) (23) ก!%'%DS!%.D"6%/ABR (Asset management) (24)
Operational Level Processes 3.3) ก!%,#',K-ก!%(S='%Dก!% (Service Control) >!%!3:#@!("ก!%5@D>4@&ก!%4 ก ?!B (Production and distribution scheduling) (25) ก!%,#',K-;_0S! (Problem control) (26) ก!%;%&:-D"ก!%(S='%Dก!% (Service evaluating) (27)
3.4) ก!%A/Q"!4@&ก!%JW4@%/กs! (Development and Maintenance)
ก!%A/Q"!Z2h>R4#%R4@&ก!%2/A:ก%J(S=6/".-/B (Software development and upgrade) (28) ก!% /JZ[\2Z2h>R4#%R4@&ก!%2/A:ก%J(S=6/".-/B (Software procurement and upgrade) (29) ก!% /JZ[\2x!%RJ4#%R4@&ก!%2/A:ก%J(S=6/".-/B (Hardware procurement and upgrade) (30) ก!%JW4@%/กs!%&'' (Systems maintenance) (31) ก!%;%/'4>?34@&.-JK@BR%&'' (Tuning and system balancing) (32)
Operational Level Processes 3.5) ก!%(S='%Dก!%J=!"ก!% /Jก!% (Administration Services)
;%&.D6EDu!A6!3ก!%:3D" (Financial performance) (33) ;%&.D6EDu!A123.>!hhz (Staff performance) (34) ก!%jkกs!/ก!%2'%- (Education/training) (35) ก!%.%%S! ก!%#?! =!3 ก!%%/กs!A"/ก3!" (Recruiting, hiring, retention) (36)
3.6) ก!%(S='%Dก!%J=!".!%.":6j (Information Services) ก!%5@D>S%[2.%=!3.!%:.":6j (Production) (37) ก!%>@!J(":CD3(S='%Dก!% (Service marketing) (38)
,%'4@=#"&,%/' 38 ก%&'#"ก!%123 IT
3.1) Project Management Processes Project assignment
ก!S"J12':1> (scope), u!#&5W="! (leadership) 4@& (S= business partner :1=!-!-7.?#"%?#Ak3-/8"( #?! X,%33!";%&.'5@.!:%v XJBJ!:"D"ก!%,%'^=#".-'W%tR :@[2ก5W="!X,%33!" ก!S"J5W=-7.?#"%?#-6/\3J=!" IT 4@& business iJ=%/',#!--K?3-/8" !ก%&J/'5W='%DS!%
Project scheduling
ก!S"J.D83678>=23.?3-2' (deliverables) ก!S"JกD ก%%- (tasks) ;%&-!t3';%&-!t4@&:#@!678(C=("X,%3ก!% ก!S"J6%/AB!ก%678>=23(C=("C?#3:#@!>?!3 9 /J6!45"4.J3%!B@&:27BJ123X,%33!"1/"\ .KJ6=!B
Project Management Processes Project Controlling
>DJ>!-,#!-,['S"=!:67B'ก/'45"678#!3i#= %!B3!".^!"&ก!%tR>?!3 9 (Report status) /J(S=-7ก!%;%&CK-:A[826'6#"X,%3ก!% 4ก=i1;_0S!678:กDJ:"[823-! !กก!%A/Q"! 6'6#"ก!%>/J.D"( (":%[823:ก78B#ก/' &6!:23S%[2 &Z[\2 (make/buy decisions) :."2:%[823:ก78B#ก/'ก!%%=23126!ก!%:;@78B"4;@3 (Submission of change requests)
Project Management Processes Project Requirements Control
%/'ก!%%=23126!ก!%:;@78B"4;@3 !ก5W=(C=S%[24S@?32[8" 9 6!ก!%#D:,%!&SR@3i;("%!B@&:27BJ>?!3 9 :ก78B#ก/'ก!%%=231267:8 1=!-!(S-? 6!ก!%B2-%/' S%[2 ;dD:.Eก!%%=23121=!3>=" 6'6#"/4ก=i1 45"123X,%3ก!% 2/":"[823-! !กก!%%=2312
Project Management Processes Project Evaluating
/J6!.^!"&1/"\ .KJ6=!B123X,%3ก!%4@&.D83678>=23.?3-2'(S=:;<":2ก.!% 6!ก!%:;%7B':67B'5@678'%%@KiJ=123X,%3ก!%ก/'678ก!S"Ji#=("45"678#!3i#= '?3C7\4@&6!%!B3!":ก78B#ก/':S>K5@6786!(S=:กDJ,#!-5/"4;%22กi; !ก45"678#!3i#= J!:"D"ก!%122"K-/>D:A[82;{JX,%3ก!%4@& /J6!%!B3!"("ก!%;{JX,%3ก!%2B?!3:.%v .D"\ .-'W%tR
3.2) Resource Control Change control
/J6!ก!%'/"6kกก!%%=23126!ก!%:;@78B"4;@3 /JS-#JS-W?4@&@!J/',#!-.!,/0123ก!%:;@78B"4;@3 ก!S"J:#@!6!ก!%:;@78B"4;@3 S%[2 :@[82" S%[2 i-?B2-%/'ก!%:;@78B"4;@3 :UV!JWก!%6J.2' :UV!JWก!%>DJ>/\3 %!B3!"4@&,#',K-.^!"&123ก!%:;@78B"4;@3
Resource Control Asset management
'?3C7\%&'' ก!%;%&BKก>R(C= 1=2-W@ 5W=(C= 5W= /JS! 4@& 6%/AB!ก%6!3ก!%:3D" ;%/' inventory (S=6/".-/B JW4@%/กs!,#!-;@2Ju/B4@&6%/AB!ก%>?!3 9 5W= /Jก!%:%[823>?!3 9 .!-!%^:1=!^k36%/AB!ก%>?!3 9 iJ= %!B3!"4@&,#',K- inventory >?!3 9
3.3) Service Control Processes Production and Distribution Scheduling
#!345"ก!% /J(S=-74@&ก%& !B3!"678:ก78B#ก/'ก!%'%Dก!% /J6!>!%!3:#@!("ก!%'!%K3%/กs!4@&ก!%#/J /J6!>!%!3ก!%6!3!" (work schedule) : % !>ก@3:ก78B#ก/'ก!%:'78B3:'"22กi; !ก service agreements 4 =3 work, maintenance, and measurement schedules (S=5W=678:ก78B#1=236%!' :UV!JW4@&4ก=i1>!%!3:#@!
Service Control Processes Problem Control
>%&S"/ก^k3;_0S!>?!3 9 (Recognize problems) /J6!%!B3!"/'/"6kก ;_0S!1=!3>=" ,="S! E%%-C!>D 5@ก%&6' 4@& .D8367>8 !--! 123;_0S! :@[2ก predefined bypass and recovery procedures :%D8-J!:"D"ก!%:A[824ก=i1;_0S! %!B3!"4@&,#',K-.^!"&123;_0S!>?!3 9 6782BW?("-[2
Service Control Processes Service Evaluating
:;@78B" operational data (S=i;2BW?("%W;123 service-level terms ;%&:-D",&4"" (:กt}R) 678iJ= !ก5W=(C='%Dก!% >%# JW ก!%.2J%/'ก/' service agreements '?3C7\4@&%!B3!":S>K5@2/"6!(S=:กDJ,#!-5/"4;%i; %!B3!" service status 4@&ก!%%=2312ก!%(S='%Dก!%(S-? 9
3.4) Development and Maintenance Processes Software Development and Upgrade
ก!S"J%!B@&:27BJ678>=23ก!% 22ก4''JW#?!:;<"ก!%;%&BKก>R(C= externals 4@&S%[2 internals /J1=2-W@(S=:;<"X,%3.%=!3 >ก@3/S!1=2.%K;ก/'5W=(C=>?!3 9 A/Q"!4@&6!ก!%6J.2'X;%4ก%%#-3!"J=!"ก!%;%&BKก>R(C=:1=!J=#Bก/"4@&6!ก!%6J.2' >DJ>/\3Z2h>R4#%R
Development and Maintenance Processes Software Procurement and Upgrade
ก!S"J%!B@&:27BJ678>=23ก!% 6'6#"ก!%'W%t!ก!%4@&;%&.D6EDu!A : % !S!1=2.%K;ก/' vendors 4@& users B["B/"S%[24ก=i1ก!%>/J.D"( Z[\2 (buy decision) ก!S"Jก!%กW=ก@/',["123%&'' (system recovery) (".u!A4#J@=2-ก!%6!3!" .%=!3%&''4@&J!:"D"ก!%6J.2'>?!3 9 ก%& !B instructions for integration i;B/35W:= ก78B#1=23 >DJ>/\3 ,#'%#- 4@& 6J.2'ก!%;%&BKก>R(C=3!"/Z2h>R4#%R
Development and Maintenance Processes Hardware Procurement and Upgrade
ก!S"J%!B@&:27BJ.D83678>=23ก!% :@[2ก hardware/network/facility #!345"ก!% /J#!36!3ก!Bu!A (Lay out physical planning) ก!S"J hardware, network, 4@& facility recovery 6J.2' new units 6J.2'%&''%#- (complete system) >DJ>/\3 hardware, network, facility
Development and Maintenance Processes Systems Maintenance
Revalidate >=":S>K123;_0S! 6!,#!-:1=!( .u!A4#J@=2-1232K;ก%tR678,!J#?!"?! &'กA%?23 6!ก!%6J.2' (Diagnose) 2K;ก%tR678,!J#?!"?! &:กDJ,#!-'กA%?23 S!4"#6!3("ก!%4ก=i1 (fix) 2K;ก%tR678C!%KJ:.7BS!B (failing components) 6J.2'S@/3 !ก4ก=i14@=# (Test fixes) 6'6#"ก!%'%DS!%ก!%:;@78B"4;@3 >DJ>/\32K;ก%tR678Z?2-4Z-4@=#:1=!%&''
Development and Maintenance Processes Tuning and System Balancing
ก!S"J%!B@&:27BJ678>=23ก!% A/Q"!,!>2'>?!3 9 (solutions) 1k"\ -! 6!ก!%6J.2' new S%[2 modified units 6!ก!%6J.2'%&''67:8 >v-%W;4'' 6#'6#"ก!%'%DS!%ก!%:;@78B"4;@3 >DJ>/\3%&''(S-?
3.5) Administrative Services Processes Financial Performance
,!"#t,?!(C= ?!B2/":"[823-! !กก!%(S='%Dก!% (S=,!4"&"!ก/' vendor 4@& ,W?./00!2[8" 9 J!:"D"ก!%>!- cost accounting procedures /JZ[\2 equipment, supplies, services %!B3!"^k3.^!"&6!3ก!%:3D"4@&'/0C7 >DJ>!- vendor performance
Administrative Services Processes Staff performance %#'%#-1=2-W@:ก78B#ก/'ก!%1!J3!" 2K'>/ D:S>K 4@&ก!%:1=!6!3!" %#'%#-1=2-W@:ก78B#ก/';%&.D6EDu!A("ก!%6!3!" (job performance) :;%7B':67B'4@&%!B3!"5@D>5@678iJ=
Education and training /J(S=-7ก!%2'%-4@&ก!%jkกs!("J=!"ก!%(S='%Dก!%123 IS A/Q"!4@&%/กs! :2ก.!%:ก78B#ก/'ก!%jkกs!>?!3 9 %/กs! education and training profile 123 IT staff
Administrative Services Processes Recruiting, Hiring, and Retention
ก!%.%%S! 4@& ก!%X;%X-> (promotion) ,#!->=23ก!%("ก!%2'%-4@&6J.2'>!--!>% !"678>=23ก!% ก!%2''%-1=!-.!B3!" 4@& ก!%S-K":#7B"3!" ก!%#?! =!3 4@& ก!%(S=22ก 6!ก!%#/J;%&.D6EDu!A ."23>2'>?2ก!%:;@78B"4;@3:CD3:6,"D,4@&ก!%>@!J ;%/',#!->=23ก!% !กu!B("4@&u!B"2ก(S=.-JK@BR Succession plan for key staff
3.6) Information Services Processes Production
%/' jobs, transactions, 4@& input data !กก!%.?3-!(S= /J>/\3 :%D8->=" 4@& J!:"D"3!"4@&EK%ก%%->?!3 9 /J(S=-71=2-W@:ก78B#ก/' jobs, transactions, 4@& output 4@&A%=2-678 &.?3i;(S=5W=:ก78B#1=23 :UV!JW,#!-,['S"=!1233!"67.8 %=!3 k\"-!:67B'ก/'>!%!3:#@! J!:"D"ก!%>!- predefined or emergency production procedures '/"6kก4@&6!%!B3!":ก78B#ก/'.!%.":6jJ=!" status, incidents, actions taken, and results
Information Services Processes Service Marketing
:@[2ก4@&:."2ก!%(S='%Dก!%678:S-!&.-ก/'.D83678 client >=23ก!% ก%& !B1?!#.D8367:8 %!>=23ก!%:."2(S='%Dก!%22กi; %!B3!".D836785W=(C=>=23ก!%("43?123ก!%'%Dก!%(S-? 9 :%D8->="(S=-7ก!%J!:"D"ก!%:A[82 /JS!ก!%(S=B%Dก!%1=!3>=" J!:"D"กD ก%%-:ก78B#ก/'.!",#!-./-A/"ER>?2.!E!%t(""!-123 IS organization /J(S=-7ก!%:C[82->?2%&S#?!3 IT 4@& business
Ownership of Processing 1=2,#%AD !%t!:
1=2ก!S"J6!3ก!%:3D" ก!%'%Dก!%>?!3 9 ,#!-./-A/"ER>?!3 9 ,#!-"?!:C[82^[2 Outsourcing
''6678 5 ,!^!- ..