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Management Information Systems Best Practices in I/T

Management Information Systems Best Practices in I/T. William R. Mussatto CyberStratgies, Inc. mussatto@csz.com. Topics Best Practices in I/T. Overview: What do we mean by “best practices?” Operational and Strategic Alignment. Best Practices Topics. What Are Best Practices?

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Management Information Systems Best Practices in I/T

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  1. Management Information SystemsBest Practices in I/T William R. Mussatto CyberStratgies, Inc. mussatto@csz.com

  2. TopicsBest Practices in I/T • Overview: What do we mean by “best practices?” • Operational and Strategic Alignment

  3. Best PracticesTopics • What Are Best Practices? • Why Study Best Practices? • Which Best Practices Do You Study? • Benchmarking • Best Practice Types • Summary / Conclusions

  4. What Are Best Practices? • End-to-End Management of Business Processes • Characteristics • Recognition • as a model • by “experts” • “widely” recognized • What does “best” mean?

  5. What Are Best Practices? • Complex system of many processes • but not just processes • People - Process - Technology • Examples • AMEX Billing • accurate • highly leveraged • FedEx Logistics

  6. Best Practice Criteria • Public Press Exposure • watch out for PR and marketing • Awards • Case Studies • Benchmarking Studies • metrics and insight • comparison • analysis

  7. What Practices are Not Best Practices? • Literal Transplantation • must tailor • Failure to Validate • Yesterday’s News • Irrelevant • Fads • Vaporware/Abandon-ware

  8. Which Best Practices? • Relevant to Your Organization • Industry & Environment • Potentially High Payoff • process improvement • radical process innovation • must pass the “so what?” test

  9. Benchmarking • Two Kinds • measurement based • process based

  10. Measurement Based Benchmarking • Traditional in I/T Organizations • data center audits • product testing and evaluation • cost measurements • performance measurements

  11. Process Based Benchmarking • More Subtle • Strategic Orientation • linked to high level business objectives • Less Mechanical

  12. Comparison of Two Kinds of Benchmarking Characteristic Measurement Based Process Based Scope Single Work Group Cross-Functional Focus Efficiency Effectiveness Objective Problem Solving Improve Business Support Result Value Assessment Increase Quality Impact Narrow, Tactical Broad, Strategic

  13. Comparison of Two Kinds of Benchmarking Characteristic Measurement Based Process Based Useful Life Short term Multiyear Participants Technical manager Business managers Approach Comparative Insight based Comparisons Industry focus Best in class Expense Less than $50,000 Up to $500,000 Work Effort Weeks Months

  14. Summary / Conclusions • Study of Best Practices … • helps identify what projects are necessary • provides good introduction into challenges of project management • people, process, technology • Study of Best Practices in I/T … • highlights new role of I/T organizations • underscores importance of alignment with business goals

  15. Operational and Strategic Alignments • Planning • Funding • Communications

  16. Operational and Strategic Alignments: Planning • Do I/T activities fit business unit plans? • Best practices mean continuous planning for both I/T and business • continuous resynching and re-validating • monthly, not yearly • Right balance between short and long-term plans? • time lags in order to execute

  17. Operational and Strategic Alignments: Funding • Investing the right amount on I/T? • putting money where their mouths are? • Investing in right areas of I/T? • Investing adequately in infrastructure? • capital expenditures • skills development and acquisition • Answer: earmarking funds to strategic projects and/or infrastructure

  18. Operational and Strategic Alignments: Communications • Human Communications • very important today because there is so much more information (data) to communicate • data + understanding = information • Does I/T communicate its strategic value to its constituency? • training: programming the humans • helping people understand the big picture

  19. Operational and Strategic Alignments: Communications • Does I/T coordinate appropriately with its key stakeholders? • customers • employees • shareholders • Answers: • distribute I/T personnel throughout the enterprise • treat communications as critical activities

  20. Operational vs. Strategic Planning I/T and Long-Term Business Plan Integration High Operational Fit Strategic Fit Operational Fit Mismatch Low Enabler Differentiator View of I/T

  21. Operational FitBest Practices in Planning • Responsive to business unit requirements • somehow, someway • as enterprise is responsive to customers • internal customers • Priorities set by business units • what about resource contention among different business units? • need for conflict resolutions

  22. Operational FitBest Practices in Planning • Flexible Plans • reviewed frequently by business units • Timely Approval

  23. Operational FitBest Practices in Funding • Business Units Obtain Funding • I/T initiatives now business initiatives • More Flexible Budgets • not once a year allocation • more true in private sector than in government • Incentivize Investments in Infrastructure • not put off until end of year

  24. Operational Fit: Best Practices in Communications • Effective Communications from End-Users to I/T Organizations • keep developers focused on end-users needs • can lead to requirements creep • Rapid Teaming • to meet market opportunities • requires agility • data mining

  25. Operational FitSome Notes • Such practices begin in I/T, but only work if whole enterprise follows similar planning methods • consistent process engineering language across whole enterprise

  26. Strategic Fit • Aligning I/T Strategies with Business Strategies • higher level decisions and planning • what technology is needed to support business scope? • Best practice firms have processes supporting strategic planning and have I/T-related activities built into these processes

  27. Strategic FitBest Practices in Planning • Involvement by all key stakeholders • business units • I/T • strategic partners • Planning process leads to single, well-integrated business plan • including clearly stated I/T component

  28. Strategic FitBest Practices in Funding • Multiyear Plans • two to three years not uncommon • Senior Execs remain actively engaged • Forums for cross-functional conflict resolution • Funding in I/T Infrastructure viewed as crucial to future competitiveness

  29. Strategic Fit: Best Practices in Communications • Continuous Collaboration between I/T and Business Units • I/T experts invited to key meetings • I/T execs wind up in “inner circle”

  30. Infrastructure Investment Funding Communication Aligned Action Coordinated Communications Planning Aligned Planning Cycle

  31. Group Project • Break into groups of about 5. • Situation: • Multi-national operating in 3 countries. • Want to centralize decision making. • Questions: • What areas will need MIS support? • Outline a plan to integrate: accounting, shipping, or customer relationship. • Explain your answers in ~15 minutes.

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