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IT Operating Model

The document outlines an IT operating model with four domains: Governance, Solution Development, Service Delivery, and Service Integration. Governance provides strategic guidance, Solution Development creates business-aligned solutions, Service Delivery manages and provides IT services, and Service Integration ensures demands are met through integrated services. Service Integration coordinates the domains for increased speed, agility, quality and lower costs by facilitating end-to-end visibility across demand and supply.

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Rene Corvo
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1K views

IT Operating Model

The document outlines an IT operating model with four domains: Governance, Solution Development, Service Delivery, and Service Integration. Governance provides strategic guidance, Solution Development creates business-aligned solutions, Service Delivery manages and provides IT services, and Service Integration ensures demands are met through integrated services. Service Integration coordinates the domains for increased speed, agility, quality and lower costs by facilitating end-to-end visibility across demand and supply.

Uploaded by

Rene Corvo
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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IT Operating Model

DEVELOP BUSINESS AND PROCESSES WITH IT


Demand
Demand Service Integration

Budgets
Policies
Structures
Targets
KPIs

Concept development
Process development
Master data management

Release management
Solution management
Key user support

Program Management

Infrastructure Management

Portfolio management
Project and solution planning
Solution development
Roll-out and value realization

Service Development

Business engagement
Sourcing & vendor portfolio
Continuity management
Service harmonization

Platform management
Capacity management
Workplace management
Lifecycle management

Service Support

SPOC / Service Desk


On-site support
Training & informing
Self-help / automation

Supply Service Integration

Catalog
Service portal

Services

Roadmaps

Governance

Architecture

Application Management

Development

Strategy

Capability Development

Service requests
Workstation + apps
Access rights
Guidelines
SLA

Supply

DELIVER RELIABLE AND COST EFFICIENT IT SERVICES

usiness is constantly developing and


restructuring its operations in order to
ensure and maintain profitability and to
gain a competitive edge. To adequately
respond to the needs of the business, in a timely
manner, IT operations need to be aligned with the
business and feature great operational agility.
Therefore, a well-defined and easy-to-understand IT
Operating Model is of the essence.
Demand-Supply Principle
IT operations strive towards a single goal: to fulfill
business needs by delivering reliable and cost
efficient IT services. The fundamentals of the IT
Operating Model support this goal:
-

Manage demand to guide the IT operations


on the basis of business requirements
(Governance)
Develop
business-aligned
solutions
according to the governance model (Development)
Provide the developed solutions to the
business as fully functional services that are
continuously improved (Services).

The principle is clear enough but to deploy it in


practice may present challenges:

Absence of shared areas of interest as


various businesses have conflicting or very
business-specific needs
Long lead times from business needs to
new solutions and services due to
organizational inertia and churn, legacy
systems, rigid structures, and outstanding
commitments
Missing synergies and responsibilities
due to too many counterparts.

The IT Operating Model introduced in this document


was developed to mitigate the impact of and to
overcome these challenges.
IT Operating Model with Four Domains
The IT Operating Model is divided into four domains,
each individually targeting excellence in the
performance area indicated:
-

Governance provides the guidance (run by


CIO Office).
Solution Development creates the
solutions for the business (run by Project
Management Office/PMO or Development
Management Office/DMO).
Service Delivery manages, provides and
runs services for businesses and their users.
(run by Service Management Office/SMO)

Service Integration manages and executes


demand and supply integration and, also,
aligns the service providers service-related
KPIs (Key Performance Indicators) with the
needs of the business (run by Service
Management Office/SMO). In a contemporary IT operating model, service
integration may be purchased from a
separate service integrator, who is held
accountable for materializing business KPIs
and for the fine-tuning of the services
ecosystem.

indirect additional costs to the business in a matter


of just days, even hours. Therefore, service
continuity and quality of operations rank highest on
the list of important topics within IT. Opportunity
for cost advantage and risk mitigation drive towards
consolidating services to a few key service providers
only. Sourcing should be based on long-term
agreements, as transitions to a new service provider
are very costly and projected cost reductions over
time only require continuity.
Service Integration (I, color: orange)
The characteristics of Governance, Solution
Development, and Service Delivery (S) vary from
one another. Governance (G) initiates long-term
development projects and short-term requests for
services. Solution Development (D) focuses on
solutions aligned with both the present and the
future, and Service Delivery (S) concentrates on full
24/7 operational availability with short response
times. Service Integration (I) encircles the other
domains. It ensures that the demands and priorities
coming from both the Governance and the business,
are accurately interpreted into fully functional
services.

Picture 1. Four Domains of IT Operating Model

Speed and Agility with Service Integration

Governance (G, color: purple)


Governance aligns IT with the business and is
managed by the CIO Office and/or Solutions Unit in
the IT organization. Regardless of a companys IT
operating model, outsourced or not, IT governance
is the core - it stays with the company. Adequate IT
governance practices are defined in the guidebook
ICT Standard for Management. Governance
provides the guidelines for all the other domains.
Solution Development (D, color: green)

Service Integration determines how the various


functions in the IT Operating Model operate and
communicate with each other. While it does not
participate in the actual execution of the operations,
this function coordinates the related activities and
ensures full end-to-end visibility. Thus, Service
Integration is an integral part of the IT demandsupply principle. With this wider definition, Service
Integration provides a better opportunity for service
consolidation, automation, and harmonization. This,
in turn, results in dramatically increased service
quality and in substantially lower costs.

Supply Service Integration

Sourcing and
Service Relationship
Management

ITSM System

Service Catalogue

Solution Development is focused on delivering


competitive advantage to the business. Developing
cutting-edge concepts, processes, and
Demand Service Integration
solutions calls for competence and will
power. Today, such development
requires both internal and external
resources. Sourcing, therefore, needs to
be demand-driven and is preferably
based on a best-of-breed strategy.
Service Delivery (S, color: blue)
Service Delivery consumes 60-80% of the
IT budget. Not working properly, Service
Delivery may cause millions of Euros in

Business
Capability
Development

Tier 1

Tier 2

Service
Delivery
Management

Service
Development
Service Integration
Management

Picture 2. Scope of Service Integration

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