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CIO Best Practices: Enabling Strategic Value with Information Technology

Book Description

If you are a CIO, or intend to become a CIO, or simply want to understand the strategic importance of IT for your entire enterprise, CIO Best Practices provides you with the best practice guidance on the key responsibilities of the CIO and its important role in modern organizations. This is the most definitive and important work you will find on achieving and exercising strategic IT leadership.

Table of Contents

  1. Copyright
  2. Wiley and SAS Business Series
  3. Preface
    1. CHAPTER 1 EXECUTIVE SUMMARY
      1. Harnessing IT to Drive Enterprise Strategy by Mike Hugos
    2. CHAPTER 2 EXECUTIVE SUMMARY
      1. Architecture, Portfolio Management, Organizational Development—Integrated Foundations for Strategy Realization by Anthony Hill
    3. CHAPTER 3 EXECUTIVE SUMMARY
      1. A Strategically Focused, Tactically Agile IT Organization by Mike Hugos
    4. CHAPTER 4 EXECUTIVE SUMMARY
      1. The Sum of IT Can be Greater than its Parts: The Role of Strategic Cost and Performance Management in IT Maturity by William Flemming, SAS, and Alan Stratton
    5. CHAPTER 5 EXECUTIVE SUMMARY
      1. IT Performance Management Using the Balanced Scorecard by Paul Niven
    6. CHAPTER 6 EXECUTIVE SUMMARY
      1. How to Measure and Manage Customer Value and ustomer Profitability by Gary Cokins, SAS
    7. CHAPTER 7 EXECUTIVE SUMMARY
      1. Consider the Outsource: Right from the Start by Karl Schubert
    8. CHAPTER 8 EXECUTIVE SUMMARY
      1. Managing for Returns on IT Investments by Mike Hugos and Joe Stenzel
  4. About the Contributing Authors
  5. 1. Harnessing IT to Drive Enterprise Strategy
    1. 1.1. RELATIONSHIP OF IT STRATEGY TO ENTERPRISE STRATEGY
      1. 1.1.1. IT Strategy Follows Enterprise Strategy
      2. 1.1.2. Defining the IT Strategy
    2. 1.2. FORMULATING STRATEGY IN HIGHCHANGE ENVIRONMENTS
    3. 1.3. STRATEGIC GUIDELINES FOR DESIGNING IT SYSTEMS
      1. 1.3.1. Positive Guidelines
      2. 1.3.2. Negative Guidelines
      3. 1.3.3. Using these Guidelines A Real-World IT Strategy
    4. 1.4. MATCH STRATEGY EXECUTION TO THE TEMPO OF YOUR BUSINESS
    5. 1.5. TACTICS ARE THE METHODS THAT GET THINGS DONE
    6. 1.6. PART 2 GETTING THINGS DONE AND DELIVERING VALUE
      1. 1.6.1. Illustrate and Quantify the IT Strategy
      2. 1.6.2. Communicate Constantly
      3. 1.6.3. Explain and Train
      4. 1.6.4. Use a Participatory Decision-Making Process
      5. 1.6.5. Master the "Operational Art"
      6. 1.6.6. CIO Risk Know the Difference Between Boldness and Recklessness
    7. 1.7. HOW TO TELL A WINNING PROJECT FROM A LOSER
      1. 1.7.1. Three Main Areas of Concern
      2. 1.7.2. Project Evaluation Checklist
  6. 2. Architecture, Portfolio Management, Organizational Development—Integrated Foundations for Strategy Realization
    1. 2.1. INTEGRATED DISCIPLINES
    2. 2.2. PART 1 ENTERPRISE ARCHITECTURE
    3. 2.3. THE ARCHITECTURAL APPROACH TO IT
    4. 2.4. COMPONENTS OF ENTERPRISE ARCHITECTURE
      1. 2.4.1. Approaches to Enterprise Architecture Methodology
    5. 2.5. ORGANIZING FOR THE ENTERPRISE ARCHITECTURE
    6. 2.6. THE VALUE OF STRATEGICALLY ALIGNED ARCHITECTURE
      1. 2.6.1. IT Governance and Portfolio Management
      2. 2.6.2. IT Strategic Sourcing
      3. 2.6.3. Business Agility and Innovation Capacity
      4. 2.6.4. Communications and Transparency
      5. 2.6.5. IT Organizational and Human Capital Development
    7. 2.7. PART 2 IT GOVERNANCE AND PORTFOLIO MANAGEMENT-THE PROCESSES THAT LINK EA TO THE REALIZATION OF BUSINESS STRATEGY
      1. 2.7.1. The Challenges of Linking Architecture to Outcomes
    8. 2.8. TYING IT ALL TOGETHER-LINKING EA TO IT GOVERNANCE AND PORTFOLIO MANAGEMENT
      1. 2.8.1. IT Portfolio Management
    9. 2.9. INTEGRATED PROCESSES
    10. 2.10. PART 3 ALIGNING EA AND ORGANIZATIONAL DEVELOPMENT FOR STRATEGY REALIZATION
    11. 2.11. AN ARCHITECTURE-LED E-BUSINESS AND IT TRANSFORMATION CASE STUDY
      1. 2.11.1. Senior Management Understanding and Commitment to Architecture
      2. 2.11.2. Pursue Architectural Transformation Incrementally
      3. 2.11.3. Portfolio and Business Alignment
      4. 2.11.4. Organizational Development
      5. 2.11.5. IT Governance
      6. 2.11.6. Communications and Alignment
    12. 2.12. CHAPTER CHECKLIST
  7. 3. A Strategically Focused, Tactically Agile IT Organization
    1. 3.1. AGILITY IS A PROCESS
      1. 3.1.1. Loop 2 and 3 Agility Skills
    2. 3.2. LOOP 1: MONITORING AND DECIDING
      1. 3.2.1. Following the Four Steps
      2. 3.2.2. Most Important Step: Orient
    3. 3.3. Loop 2: Improving Existing Processes
      1. 3.3.1. Define
      2. 3.3.2. Measure
      3. 3.3.3. Analyze
      4. 3.3.4. Improve
      5. 3.3.5. Control
    4. 3.4. LOOP 3: CREATING NEW PROCESSES: DEFINE-DESIGN-BUILD
    5. 3.5. DYNAMICS OF THE AGILE IT ORGANIZATION
    6. 3.6. CREATING AGILE NEW PROCESSES
      1. 3.6.1. Benefits of the Define-Design-Build Process
      2. 3.6.2. Managing the Encounter with Complexity
      3. 3.6.3. Time-Boxing
      4. 3.6.4. A Small Set of Techniques
    7. 3.7. THE CORE TECHNIQUES
      1. 3.7.1. Joint Application Design
      2. 3.7.2. Process Mapping
      3. 3.7.3. Data Modeling
      4. 3.7.4. System Prototyping
      5. 3.7.5. Object-Oriented Design & Programming
      6. 3.7.6. System Test & Roll Out
    8. 3.8. DEFINE—THE FRAMEWORK FOR ACTION
      1. 3.8.1. Defining the Project Goal
      2. 3.8.2. Creating the Strategy
      3. 3.8.3. The Conceptual System Design
      4. 3.8.4. Apply the Seven Strategic Guidelines
      5. 3.8.5. Define Project Objectives
      6. 3.8.6. Create Initial Plan and Budget
      7. 3.8.7. Outputs of the Define Phase
    9. 3.9. DESIGN—WORKFLOW AND TECHNICAL SYSTEM DESIGN
      1. 3.9.1. The Role of the System Builder
      2. 3.9.2. The Design Process
      3. 3.9.3. Creation of the Detailed Project Plan and Budget
      4. 3.9.4. The Decision to Proceed or Not to Proceed
      5. 3.9.5. Design Phase Deliverables
    10. 3.10. BUILD-SYSTEM CONSTRUCTION AND ROLL OUT
      1. 3.10.1. The System Blueprints
      2. 3.10.2. The Project Office
      3. 3.10.3. System Test and Rollout
      4. 3.10.4. Lead by Staying Involved
      5. 3.10.5. Build Phase Deliverables
    11. 3.11. TWO WINS, A LOSE, AND A DRAW: LESSONS IN COMPLEXITY
      1. 3.11.1. Takeaway Lessons
  8. 4. The Sum of IT Can be Greater than its Parts
    1. 4.1. WHY IT SECTIONS PLAY IN ISOLATON
    2. 4.2. BUILDING A MATURE IT ORGANIZATION WHILE LEARNING NEW SYMPHONIES
    3. 4.3. IT STRATEGY MAPPING
      1. 4.3.1. Strategy Mapping Top-Down Prong
      2. 4.3.2. Service-Level Agreements
    4. 4.4. IT FINANCE'S STRATEGIC ROLE— ILLUMINATION
    5. 4.5. ALTERNATIVE TOOLS FOR IMPLEMENTING STRATEGIC IT FINANCE
    6. 4.6. DEPLOYING ABC/M FOR IT FINANCE
      1. 4.6.1. Data Sources
    7. 4.7. DECISION INFORMATION
    8. 4.8. UNDERSTANDING CAPACITY
    9. 4.9. CONCLUSION
  9. 5. IT Performance Management Using the Balanced Scorecard
    1. 5.1. CHAPTER ROADMAP
    2. 5.2. THE BALANCED SCORECARD'S RISE TO PROMINENCE: SOLVING THREE FUNDAMENTAL IT CHALLENGES
      1. 5.2.1. Financial Measurement and its Limitations
      2. 5.2.2. The Rising Prominence of Intangible Assets
      3. 5.2.3. The Strategy Story
    3. 5.3. THE BALANCED SCORECARD
      1. 5.3.1. Origins of the Balanced Scorecard
      2. 5.3.2. What Is a Balanced Scorecard?
      3. 5.3.3. Balanced Scorecard Perspectives
    4. 5.4. BUILDING THE IT BALANCED SCORECARD
      1. 5.4.1. The Planning Phase
      2. 5.4.2. The Development Phase
    5. 5.5. PUTTING IT ALL TOGETHER—THE JOURNEY OF THE ORANGE COUNTY TRANSPORTATION AGENCY
      1. 5.5.1. Laying the Foundation for Balanced Scorecard Success
      2. 5.5.2. The IS Strategy Map and Measures
      3. 5.5.3. The Results
      4. 5.5.4. Challenges in Creating the OCTA IS Balanced Scorecard
  10. 6. How to Measure and Manage Customer Value and Customer Profitability
    1. 6.1. PART 1 THE RISING NEED TO FOCUS ON CUSTOMERS
      1. 6.1.1. Shareholder Wealth Creation Is More Than Just Growing Sales
      2. 6.1.2. How to Measure the Return on Investment (ROI) on Sales and Marketing
    2. 6.2. THE PERFECT STORM IS CREATING TURBULENCE FOR MARKETING MANAGEMENt
    3. 6.3. A FOUNDATION FOR CUSTOMER PORTFOLIO MANAGEMENT
      1. 6.3.1. Single View of the Customer
      2. 6.3.2. An Understanding of Customer Value and Profitability Drivers
      3. 6.3.3. Meaningful Customer Segmentation Schemes
      4. 6.3.4. Targeted and Appropriate Cross-Selling, Up-Selling, and Retention Programs
      5. 6.3.5. Effective Marketing Delivery Systems
    4. 6.4. REALIGNING THE ORGANIZATION AROUND CUSTOMERS RATHER THAN PRODUCTS
    5. 6.5. PREPARING FOR CUSTOMER ANALYTICS INTEGRATION
    6. 6.6. DISTINGUISHING HIGH FROM LOW ECONOMIC CUSTOMER VALUE
    7. 6.7. ALL CUSTOMERS ARE NOT CREATED EQUAL
    8. 6.8. SHOULD WE PURSUE THE MOST PROFITABLE OR THE MOST VALUABLE CUSTOMERS
    9. 6.9. MEASURING CUSTOMER LIFETIME VALUE
    10. 6.10. CUSTOMER LIFETIME VALUE—INVESTMENT ANALYSIS MATH
      1. 6.10.1. Challenges with Using CLV Math
    11. 6.11. BALANCING SHAREHOLDER VALUE WITH CUSTOMER VALUE
    12. 6.12. THE TRADE-OFF BETWEEN CUSTOMER VALUE AND SHAREHOLDER VALUE CREATION OR DESTRUCTION
    13. 6.13. CLV OR ONLY CUSTOMER PROFITABILITY? WHEN IS CLV APPLICABLE
    14. 6.14. THE CFO AND CIO MUST SHIFT EMPHASIS
    15. 6.15. HOW DO BUSINESS INTELLIGENCE AND PERFORMANCE MANAGEMENT RELATE TO EACH OTHER?
    16. 6.16. OPTIMIZING THE BALANCE BETWEEN CUSTOMER VALUE AND SHAREHOLDER VALUE
  11. 7. Consider the Outsource:Right from the Start
    1. 7.1. THE WHYS OF OUTSOURCING
      1. 7.1.1. Cost Savings—Costs and Total Cost
      2. 7.1.2. Access to Key Skills
      3. 7.1.3. Requirements for Doing Business
      4. 7.1.4. Productivity
      5. 7.1.5. Business Continuity
    2. 7.2. WHAT CAN AND WHAT SHOULD BE OUTSOURCED
    3. 7.3. HOW TO OUTSOURCE
      1. 7.3.1. Definition, Rationale, and Benefits Expected
      2. 7.3.2. Timeline and Path to Project Kick-off
      3. 7.3.3. Survey
      4. 7.3.4. Request for Information
      5. 7.3.5. Review and Select the Best RFI Responses
      6. 7.3.6. Request for Proposal
      7. 7.3.7. Review and Select the Best RFP Responses
      8. 7.3.8. Site Visit(s)
      9. 7.3.9. Select the Best
      10. 7.3.10. Negotiate the Contract
      11. 7.3.11. Kick-off the Project
    4. 7.4. MANAGING WHAT IS OUTSOURCED
      1. 7.4.1. Outsourcing Management Opportunities
      2. 7.4.2. Ending the Relationship
    5. 7.5. OUTSOURCING AND THE ANNA KARENINA PRINCIPLE
    6. 7.6. APPENDIXES
      1. 7.6.1. 7A. Sample Request for Information Letter
      2. 7.6.2. 7B. Sample Communiqué for In-person Meetings to Present RFI Submission
      3. 7.6.3. 7C. Sample Agenda for RFI Review-and-Select Meeting
      4. 7.6.4. 7D. Sample Request for Proposal Letter
      5. 7.6.5. 7E. Sample Outline for Request for Proposal
      6. 7.6.6. 7F. Site Visit Preparation Letter and Agenda Proposal
  12. 8. Managing for Returns on IT Investments
    1. 8.1. PART I BY MICHAEL HUGOS IS THIS PROJECT WORTH DOING?
    2. 8.2. THE ROI PROCESS
    3. 8.3. DEFINE THE SPECIFIC COSTS AND BENEFITS
      1. 8.3.1. System Costs
      2. 8.3.2. System Benefits
    4. 8.4. THE PORTFOLIO OF SYSTEMS INVESTMENTS
    5. 8.5. IT SYSTEMS INVESTMENTS
    6. 8.6. DEFINE A PROJECT EVALUATION PROCESS
    7. 8.7. PART 2 BY JOE STENZEL RETURN ON INTANGIBLES: MEASURING AND MANAGING IT CAPABILITES
    8. 8.8. A FRAMEWORK FOR MEASURING AND MANAGING IT INTANGIBLES
      1. 8.8.1. Identifying Intangibles Worth Managing
      2. 8.8.2. Choosing the Scope of Your Intangible Architecture
      3. 8.8.3. Gathering IT Capability Performance Information
      4. 8.8.4. Pool the Responses and Look for Capability Performance Gaps
      5. 8.8.5. Capabilities Improvement Action Planning
    9. 8.9. FACTORING INTANGIBLES INTO THE ROI EQUATION
      1. 8.9.1. Examining and Weighting Intangibles
    10. 8.10. ITEM PRICING SYSTEM—TOTAL ESTIMATED COSTS & BENEFITS
      1. 8.10.1. Project Description
    11. 8.11. DETAILED SCHEDULE OF COSTS
    12. 8.12. DETAILED SCHEDULE OF BEEFITS
      1. 8.12.1. DIRECT BENEFITS (revenue and cost savings due to productivity improvements)
      2. 8.12.2. INCREMENTAL BENEFITS (benefits due in part to new system e.g., attract new customers, make better decisions, etc.)
      3. 8.12.3. COST AVOIDANCE BENEFITS (savings related to growing business without needing to add new staff or incurring other expenses)
      4. 8.12.4. INTANGIBLE BENEFITS (benefits that are hard to quantify in dollar amounts but which should be identified and listed)