Accelerating IT Transformation with Data & Analytic s

Accelerating
Transformation…. with Data
Driving Decisions with Data
HMG Palo Alto
Presented by: Matt Mandich, Director
Innovation & Strategy

Info-Tech Research Group 2Info-Tech Research Group 2
A Story….
Billy’s Key Metric
On Base
Percentage

IT’s Key Metric: Return on Business Satisfaction
Value Driven Improvement
Innovator - Transforms the Business
Reliable Technology Innovation
90-100%
Satisfaction
Business Partner - Expands the Business
Effective Execution on Business Projects, Strategic
Use of Analytics and Customer Technology
80-90%
Satisfaction
Trusted Operator - Optimizes the Business
Effective Fulfillment of Work Orders, Functional
Business Applications and Reliable Data Quality
70-80%
Satisfaction
Firefighter - Supports the Business
Reliable Infrastructure and IT Service Desk
60-70%
Satisfaction
Unstable - Struggles to Support
Inability to Provide Reliable Business Services
<60%
Satisfaction

Lets explore 3 of our Programs & How it affects Your decision making
Focus Area Audience N Count
CIO Business
Vision
Stakeholder
Satisfaction
• Business Leaders/
Business Divisions
Management &
Governance
IT Team
Capability &
Effectiveness
• IT Team Leaders &
Practitioners
2,500+ IT Staff
Members
29,000+ Business
Leaders
CEO/ CIO
Alignment
IT/ Business
Alignment
• 2 Survey’s - CEO/ CIO 250+ CEOs

Business Satisfaction
Findings from CIO Business Vision

How Effective is the Process You Use to Measure and Manage
Business Stakeholder Satisfaction?
Our process is fairly ad hoc. Typically we use conversations
in the hallway or ad hoc meetings” – CIO
“Understanding the business’s needs is important to us like
breathing, but it isn’t something we really have a lot of
processes around” – CIO
“We don’t really have much in place” – CIO

The Overwhelming Majority Of IT Departments
Do Not Achieve More Than 80% Satisfaction from the Business
0%
2%
4%
6%
8%
10%
12%
14%
3.75 4 4.25 4.5 4.75 5 5.25 5.5 5.75 6 6.25 6.5 6.75 7 7.25 7.5 7.75 8 8.25 8.5 8.75 9 9.25 9.5 9.75 10
73% of firms have an Overall
Satisfaction score between
6.0 and 8.0
Just 16% of firms
score above 8.0 in
Overall Satisfaction
11% of firms score
lower than 6.0 in
Overall Satisfaction
Average Score: 7.4

Wide Ranges in IT Performance
Relationships Satisfaction
71%
71%
70%
Needs
Execution
Communication
Satisfaction
74%
Net IT Support Score: Satisfaction Percentage
+30%
Net IT Support Score: Value Percentage
-2%
Value
72%
Service*
Business
Importance
Satisfaction Range
Network Infrastructure 1 75% 45% - 91%
Service Desk 2 79% 48% - 95%
Devices 5 75% 56% - 92%
Work Orders 8 75% 45% - 93%
Business Applications 3 72% 41% - 90%
Data Reliability 4 72% 47% - 89%
IT Policies 11 71% 43% - 91%
Projects 10 71% 40% - 91%
Requirements Gathering 12 69% 43% - 94%
Analytical Capability 6 67% 42% - 86%
Customer Facing
Technology
7 66% 47% - 83%
Innovation Leadership 9 66% 39% - 93%

More Mature IT Departments Have Drastically
Higher Satisfaction Levels
Date Driven
Insight:
Progression up
Info-Tech’s
operating model
tower means
improvement
across every core
service. However,
largest differences
are observed in
work orders
fulfillment, project
satisfaction, and
innovation
leadership.
Most IT departments
score very similarly in
Device Satisfaction.
Service Desk is a
high-scoring core
service at all levels.
Significant variance in
Innovation Capability
and Project Satisfaction

IT Departments in Large Organizations achieve Lower Satisfaction,
likely due to Higher Stakeholder Expectations
79%
69%
77%
71%
78%
70%
78%
73%73%
66%
73%
68%
60%
64%
68%
72%
76%
80%
Devices Innovation Leadership Work Orders IT Projects
CoreServiceSatisfaction
Date Driven
Insight
Large organizations are the least satisfied due to the
heightened expectations at large firms and the complexity
of managing large-scale IT environments.

Business Leaders Misjudge Which Services
Really Matter to Them
Network Infrastructure
Service Desk
Business Applications
Data Quality
Devices
Analytical Capability
Client-Facing Technology
Work Orders
Innovation Leadership
Projects
IT Policies
Requirements Gathering
Projects
Work Orders
Service Desk
Data Quality
IT Policies
Devices
Data Driven Insight:
Rethink your priorities; invest
in services with the highest
return on IT satisfaction.
Projects, work orders, and
innovation leadership drive IT
satisfaction.
Ensure projects deliver value, remain on
budget, and finish on time.
Data needs to be good, but truly
spectacular data may go unnoticed.
Investing in state-of-the-art devices won’t
significantly bolster satisfaction.
11
10
12
1
2
4
5
8
9
7
6
3
11
10
12
1
2
4
5
8
9
7
6
3
Info-Tech Business Vision Survey
N = 21,367
Achieve fast turnaround on work requests.
Reported Importance Actual Importance*
Overrated Services Underrated Services

Provide the Right Level of Core Service….
but Focus on the Services that Drive Business Satisfaction
OverallITSatisfaction
Satisfaction in Core IT Services
10
9
8
7
6
5
4
4 5 6 7 8 9 10
Projects
Work Orders
Business Applications Requirements Gathering
Service Desk
Client Facing Technology
Data Quality
Devices
IT Policies
Establishing IT Value
IT Value Threshold
*Created Based on
Correlation Coefficients

Business Leaders below the Executive Level Undervalue IT
Innovation, Data Quality, and Customer-facing Technology
Service Desk
Data Quality
Devices
Work Orders
Client-Facing
Technology
Projects
IT Policies
Data Quality
Service Desk
Devices
Projects
Work Orders
IT Policies
Management Level Executive Level
Date Driven
Insight
There is a much larger disconnect between Executives and Manager than
between Managers and their Direct Reports, particularly with regards to Work
Orders and Devices.

Identifying and Serving the Needs of Shadow IT Factions Can Bolster
Overall IT Satisfaction
Those among the
“Shadow IT Factions”
are 13% less satisfied
with Project Execution
and Availability than
those among the
Complying Majority.
“Lost-Cause Outliers”
are no more dissatisfied
with IT than their
Shadow IT Faction
counterparts; their more
blatant disregard for IT
policy is not explained
statistically.
Target the needs of shadow IT factions. The majority of shadow IT is driven by a subset of dissatisfied
individuals with similar complaints. Ask what IT needs to do to meet their needs, and mobilize to enable them.

Building Relationships with Business Stakeholders is a
Key Driver Of Overall Satisfaction and Perceived Value
OverallITSatisfaction
Perceived Value of IT
Firefighters Operators Innovators
Relationships are 24% stronger
among Innovators than Operators.
Operators score a 71% average
in relationship satisfaction.
Relationships are 22% weaker
among Firefighters than Operators.
N = 21,367
Invest in building
relationships with your
stakeholders.
Stronger relationships will
drive improved satisfaction
across all IT services.

CEO-CIO Alignment
Findings from the Office of the CEO

CEOs And CIOs Rarely See Eye To Eye
of CIOs/CEOs are not aligned on IT’s
current performance49%
67%
are somewhat misaligned
of CIOs/CEOs are unclear on
the target role for IT
33%
34% are highly misaligned

Many CIOs Overestimate the Size of their Next IT Budget
Increase
16–30%
Increase
> 30%
Increase
6–15%
Increase
1–5%
Decrease
1–5%
Increase
16–30%
Increase
6–15%
Increase
1–5%
Decrease
1–5%
Decrease
6–15%
CIO Expectation CEO Expectation
CIOs Accurately
Estimated
CIOs
Overestimated
CIOs
Underestimated
43% of CIOs
overestimate the
size of their next
budget.
23% of CIOs are too
conservative and
underestimate their
future IT budget

CIOs frequently have a stronger appetite for Transformational IT than
their CEOs
66% of CEOs don’t
want IT to transform
the business.
38% of CIOs aim
higher than their CEO
wants them to.
We asked CIOs and CEOs to “describe the role of IT in your organization in the future.”
17%
34%57%
26%
19%
42%
5%
% of CIO Respondents % of CEO Respondents
Date Driven Insight:
Come to consensus on what your CEO expects from you. Operating under the false expectation that IT should
strive for innovation can result in wasted resources and unwanted spending.

When does your CEO want involvement?
Frequency IT Strategy IT Budgeting
IT Project
Funding
Major IT
Project Review
IT Quality
Management
Vendor
Management
IT Risk
Assessment
Annually 29.2% 55.8% 34.2% 9.2% 28.3% 25.8% 51.7%
Semi-annually 31.7% 20.0% 25.0% 23.3% 30.0% 14.2% 20.0%
Quarterly or
more
frequently
37.5% 22.5% 32.5% 64.2% 29.2% 7.5% 21.7%
Less than
annually
1.7% 0.8% 2.5% 2.5% 7.5% 21.7% 5.8%
Never 0.0% 0.8% 5.8% 0.8% 5.0% 30.8% 0.8%
CEOs want to be frequently
involved in IT project planning.
Failure to involve
your CEO in IT
budgeting is risky.
Your CEO may not
want to be involved in
vendor management.

CEOs And CIOs Are Aligned On What IT Issues Impede Innovation…
0
1
2
3
4
5
6
7
Legacy Systems
Overhaul
Poor
Communication
IT Staff
Resistance
Business
Understanding
(IT Leadership)
IT Leadership
Resistance
CIO CEO
We asked: “How significant of a barrier to IT-enabled Innovation are the following IT issues?”
ITBarrierSignificance
Largest
barrier
Data Driven
Insight:
CEOs and CIOs
generally agree on IT
barriers. There is very
high alignment
between CEO and CIO
barrier significance
averages.
Data Driven
Insight:
CEOs do not perceive
IT leaders as
resistant. IT leaders
have demonstrated
willingness to improve
and deliver value.
Smallest
barrier

CEOs/ CIOs are Highly Misaligned On What Business Barriers Impede
Innovation
0
1
2
3
4
5
6
7
Lack of
Direction from
Business
Inadequate IT
Funding
Poor Project
Execution
Employee
Resistance
Business
Leadership
Resistance
CIO CEO
We asked: “How significant of a barrier to IT-enabled Innovation are the following business issues?”
BusinessBarrierSignificance
Data Driven
Insight:
CIOs are much more
critical of the
business than CEOs.
There is little value in
pointing the finger. IT
must become proactive
in overcoming business
barriers.
• Seek out direction
from business
leaders.
• Help manage critical
projects.
• make a strong case
for funding.

CEO’s are focused on Delivering Benefits to Align with Business
Needs
45%
30%
25%
Resource Optimization
Benefits Delivery
Risk Mitigation
“Which business
objectives should
IT be able to
support best?”
Historically, IT
departments have
been mandated to
optimize resources
and mitigate risks.
Today, IT success
means delivering
benefits by
generating revenue
and creating value
for stakeholders.

What IT Metrics do CEO’s want???
Business Value
Metrics
Stakeholder
Satisfaction
Reporting
Technology
Performance &
Operating
Metrics
Risk Metrics Cost & Salary
Metrics
37%
25% 22% 25% 20%
35%
45%
45% 38%
42%
Some
improvement
necessary
Significant
improvement
required
CEOs consistently demand better
metrics around business value and
Satisfaction reporting.
CIOs must prioritize measuring these.
Cost, Salary, and Risk-related
metrics are typically more well-
regarded by the CEO.

The Importance of Knowing your Stakeholders
Info-Tech’s Perspective:
The most important thing an IT leader can do is understand business
needs and actively measure that business stakeholders are satisfied
 If you don’t have a clear understanding of the needs of your
stakeholders, you are flying blind
of C-Suite Executives believe IT
needs to improve how they
measure business satisfaction
74%

Management &
Governance
Findings from IT Organizations

The IT Management & Governance Program

What we See: Your Team See’s Red

Why? Process Enable the Business –
We Have to Be Good at All of Them…. right

Align the Process that Enable the Greatest Business Satisfaction
Improvement
Service Desk
Data Quality
Devices
Work Orders
Projects
IT Policies
Projects
Work Orders
Service Desk
Data Quality
IT Policies
Devices
Rethink your priorities; invest
in services with the highest
return on IT satisfaction.
Projects, work orders, and
innovation leadership drive IT
satisfaction.
Ensure projects deliver value, remain on
budget, and finish on time.
Data needs to be good, but truly
spectacular data may go unnoticed.
Investing in state-of-the-art devices won’t
significantly bolster satisfaction.
11
10
12
1
2
4
5
8
9
7
6
3
11
10
12
1
2
4
5
8
9
7
6
3
N = 21,367
Achieve fast turnaround on work requests.
Reported Importance Actual Importance*
Overrated Services Underrated Services

Where do we see the need for Most Improvement?
STRATEGY &
GOVERNANCE
APPS DATA & BI
IT Governance
Application Portfolio
Management
Business Intelligence
& Reporting
Effectiveness = 5.7
Importance = 8.3
Effectiveness = 5.4
Importance = 8
Effectiveness = 5.4
Importance = 8.1
IT Strategy
IT Management &
Policies
Security Strategy
Enterprise Application
Selection &
Implementation
Data Architecture
Effectiveness = 6
Importance = 8.5
Effectiveness = 6
Importance = 8.3
PEOPLE & RESOURCES SECURITY & RISK Effectiveness = 6.3
Importance = 8.7
Effectiveness = 6.1
Importance = 8.3
Effectiveness = 5.6
Importance = 8.2
Performance
Measurement
Innovation
Human Resources
Management
Security Management
Business Process
Controls & Internal
Audit
Application
Development
Throughput
Data Quality
Effectiveness = 5.1
Importance = 7.8
Effectiveness = 5.7
Importance = 7.9
Effectiveness = 6.1
Importance = 8.3
Effectiveness = 6.5
Importance = 8.9
Effectiveness = 5.4
Importance = 7.9
Effectiveness = 5.4
Importance = 7.4
Effectiveness = 5.5
Importance = 8.5
Business Value Stakeholder Relations
IT Organizational
Design
Enterprise
Architecture
Availability & Capacity
Management
Change Management Risk Management External Compliance
Application
Development Quality
Portfolio Management
Effectiveness = 6.2
Importance = 8.4
Effectiveness = 6.2
Importance = 8.7
Effectiveness = 6.3
Importance = 8.3
Effectiveness = 5.7
Importance = 8.2
Effectiveness = 6.2
Importance = 8.4
Effectiveness = 6.1
Importance = 8.5
Effectiveness = 5.9
Importance = 8.3
Effectiveness = 6.4
Importance = 8.3
Effectiveness = 5.6
Importance = 7.7
Effectiveness = 5.4
Importance = 8.1
Cost & Budget
Management
Knowledge
Management
Leadership, Culture &
Values
Service Management Asset Management
Configuration
Management
Release Management Business Continuity
Application
Maintenance
Project Management
Effectiveness = 6.7
Importance = 8.4
Effectiveness = 5.8
Importance = 8.4
Effectiveness = 6.5
Importance = 8.5
Effectiveness = 6.1
Importance = 8.4
Effectiveness = 6
Importance = 7.9
Effectiveness = 5.5
Importance = 7.8
Effectiveness = 5.7
Importance = 8.1
Effectiveness = 6.1
Importance = 8.7
Effectiveness = 6
Importance = 8
Effectiveness = 6
Importance = 8.5
Vendor Management Cost Optimization
Manage Service
Catalog
Quality Management
Operations
Management
Service Desk
Incident & Problem
Management
Disaster Recovery
Planning
Organizational
Change Management
Requirements
Gathering
Effectiveness = 6.4
Importance = 8
Effectiveness = 6.2
Importance = 8.4
Effectiveness = 4.3
Importance = 7.3
Effectiveness = 5.6
Importance = 8.2
Effectiveness = 6.4
Importance = 8.4
Effectiveness = 7
Importance = 8.8
Effectiveness = 6.5
Importance = 8.7
Effectiveness = 6.1
Importance = 8.8
Effectiveness = 5.4
Importance = 8.3
Effectiveness = 5.9
Importance = 8.5
FINANCIAL MANAGEMENT PPM & PROJECTS
Above Average Importance and
Above Average Effectiveness
Below Average Importance and
Above Average Effectiveness
Above Average Importance and
Below Average Effectiveness
Below Average Importance and
Below Average Effectiveness
*Average is based on the overall average
Legend
INFRASTRUCTURE & OPERATIONS
SERVICE PLANNING & ARCHITECTURE
IT Management & Governance Framework
Benchmarking Results for the Management &
Governance Diagnostic

Too many people think they own the same processes, or Too Many
Processes

Innovators & Firefighters Agree on Which Processes are Most
Important: Security, Risk, and Basic Operations
IT Process
Average
Importance Score
1 Service Desk 89%
2 Security Management 89%
3 DRP 88%
4 Security Strategy 88%
5 Incident & Problem Management 88%
6 Stakeholder Relations 87%
7 Business Continuity 87%
8 IT Strategy 87%
9 Leadership, Culture, and Values 86%
10 Requirements Gathering 86%

Innovators are Significantly More Effective at 7 Key Processes
IT Process
Effectiveness
Surplus*
1 Innovation 9.7%
2 Project Management 9.2%
3 Stakeholder Relations 9.1%
4 Availability & Capacity Management 9.0%
5 Change Management 9.0%
6 Vendor Management 8.9%
7 IT Management & Policies 8.8%
*Gap Between Innovator and Firefighter Effectiveness

There are key Projects/Capabilities that drive maturity

When Performance is Measured it Can be Improved, Dramatically
22%
25%
31%
13%
9%
0% 10% 20% 30% 40%
<1%
1-4%
5-9%
10-19%
20%+
% of Organizations
SatisfactionImprovement
Improvement after 1 Year
Largest Gain: 24% in One Year
53% of Orgs improved by > 5%
Least Improvement Achieved: - 3%
(From 92% to 89% - who are we to judge!)

A few Last Thoughts
• Challenge yourself and your team on how to Change
the conversation from “cost” to “value”
• Leverage tools, standards, and Data to accelerate
decision making
• You can’t do it alone – understand your team and their
capabilities – bring them to the level you need
• Be relentless – dedication, discipline and drive are
more important to success than anything you can buy

Accelerating IT Transformation with Data & Analytic s

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