Does IT Governance & Portfolio Management benefit the business?download.microsoft.com/download/2/5/f/25f1c7d9-2014-4aed... · 2018-10-13 · Slide 6 Author: XXX • Approved by: XXX

Does IT Governance & Portfolio Management benefit the business?

Microsoft Conference

April 17, 2007

by Johann Gautier, Manager, NNIT Business Consulting

Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 2

Agenda

Presentation of speaker and NNIT

The Competitive Power in Denmark

Conclusions of market analysis

Does IT Governance and Portfolio Management benefit the business?

NNIT’s approach to Governance and Portfolio Management

GAP model

How to get started

1

2

4

3


NNIT is a Full Service provider

NNIT

Solutions

Consulting Operations

Analysis Implementation Realisation Operation

Sales and Internal Project Management


The Competitive Power in Denmark, 2006- Purpose & Background

Scope 152 advanced companies

50 public institutions

Competitive Power is measured by financial results

ability to innovate products and processes

Companies divided into 3 groups by profit margin Top15

Rest

Bottom15

Analysis conducted in cooperation Brøndum & Fliess

Analyse Instituttet Vilstrup Synovate

NNIT

Berlingske Nyhedsmagasin

Purpose To investigate how high innovation and best practices within Strategic

Execution, IT Governance and organisation, process and culture improve the a company’s ability to compete / its financial success.


The Competitive Power in Denmark, 2006- Findings on Innovation

Has the company within the last 3 years realised product innovations (i.e. marketed and sold new products/services) to the same degree as main competitors?

6,7

40

53,3

6,7

26,7

13,3

6,7

1,6 2,5

38,5

46,7

37,7

19,7

0

10

20

30

40

50

60

To a very lowdegree

To a lowdegree

To a mediumdegree

To a highdegree

To a veryhigh degree

Don't know

Perc

enta

ge

Top 15 Bottom 15 Other private companies



6,7 6,7

40 40

6,7

20

46,7

26,7

6,7

1,6

4,9

23

38,5

27,9

4,1

0

10

20

30

40

50

To a very lowdegree

To a lowdegree

To a mediumdegree

To a highdegree

To a veryhigh degree

Don't know

Perc

enta

ge

Top 15 Bottom 15 Other private companies

Has the company within the last 3 years realised process innovations (i.e. implemented process development) to the same degree as main competitors?



Profit rate over the last 3 years

7,4

10,8

13,0

-2,2

3,4

-2,3

8,57,8 7,7

-4,0

-2,0

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

1 2 3 Year

%

Top15 Bottom15 Other Private Companies


The Competitive Power in Denmark, 2006- Overall Conclusions

Companies with financial success, work differently…

Financial success

Innovation

Synergy

Strategic Execution IT-Governance

Organisation, Process and Culture


The Competitive Power in Denmark, 2006- Findings on Organisation, process and culture

Important factors are:

Value driven leadership

Development of a LEAN culture


The Competitive Power in Denmark, 2006- Findings on Strategic Execution

Involvement of executive

management

Clearly defined roles and

responsibilites when prioritising

projects

Systematic and continuous portfolio

management of current strategic

initiatives

Systematic follow up on benefit

realisation

The IT strategy links directly to

the business strategy

Author: XXX • Approved by: XXX • NN Month 2004 NNIT - PowerPoint templateSlide 11 Benefit management

Idea Initiate Analyse Execute Realise

The Competitive Power in Denmark, 2006- Findings on IT Governance



Roles and Responsibilities must be clearly defined throughout the project lifecycle

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

To a very low

degree

To a low

degree

To a medium

degree

To a high

degree

To a very high

degree

Don't know

Are roles and responsibilities clearly defined in relation to prioritisation of IT projects?

Are roles and responsibilities clearly defined in relation to implementation of IT projects?

Are roles and responsibilities clearly defined in relation evaluation of implemented IT projects?



To a very high

degree and even

more today than 3

years ago; 14%

To some degree;

50%

To a high degree; 7%To a low degree;

24%

To a low degree and

even less today than

3 years ago; 1%

Don't know; 4%

Corporations use business cases as basis for decisions


The Competitive Power in Denmark, 2006- prioritised improvement areas

Percentage who answered "To a high degree and even more today than 3 years ago"

32%

32%

33%

34%

53%

0% 10% 20% 30% 40% 50% 60%

Does the company have a continuous overview of the IT

project portfolio?

To what degree are the internal knowledge processes

structured and IT supported, e.g. through active use of an

intraweb?

Are business cases systematically used in connection with

decisions about strategic initiatives and other larger

investments?

Is change management (focus on communication, innovation

and competence development) systematically used to

improve the possiblity of success for strategic projects?

Do you conduct a systematic and continuous portfolio

management of current strategic initiatives?


Strategy execution

The Competitive Power in Denmark, 2006- Conclusions on Bottom15

Management involvement

Business strategy broken into

substrategies

Portfolio man of strategic initiatives

Business cases used

systematically

IT Governance

Roles and responsibilities i prioritisation of IT projects

Link between IT strategy and business strategy

Common project management model

Portfolio management of critical IT technologies

Roles and responsibilty in implementation of IT projects

Business cases systematically used in decisionmaking

Evaluation of benefit realisation

Organisation, process and culture

Self governing teams

Internal knowlegde processes structured and IT supported

Value based leadership

Coaching by management

Continuous proces development


Why IT Governance and Portfolio Management?

It empowers companies to Execute their Strategy.

It empowers companies to Prioritize their Portfolio of Projects and enables them to be Innovative

IT Governance can be improved in almost all companies participating in the analysis

Strategic Execution(IT-Governance, Portfolio Management, Culture)

Innovation

Competitive Power



Software Solutions to Support Execution of Strategy


Case – ALK-Abelló A/S- An IT strategic turnaround

Step 1 Step 2 Step 3 Step 4 Step 5

Documentation of IT systems at the time

Targets for new IT Strategy

New IT Governance Model with heavily involvement of top management

New IT organisation –and standards for cooperation between IT and the business

Portfolio management on strategic initiatives

Portfolio management on IT Projects

Improved project organisation

Use of business cases and benefit management

Implementation of portfolio management system


How to get started…- 4 steps

Identify current state

Decide on Roadmap

(Business Case)

Design & Implement

Manage & Improve

Does IT Governance & Portfolio Management benefit the business?download.microsoft.com/download/2/5/f/25f1c7d9-2014-4aed... · 2018-10-13 · Slide 6 Author: XXX • Approved by: XXX

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