Strategic Fit of IT Service Management
IBM Academy of Technology
Academy TechNotes
ATN Volume 2, Number 9, 2011
Strategic fit of IT Service Management iven the crucial role that IT (Information Technology) plays in businesses today, IT departments have a significant responsibility to ensure that its value is optimized. IT optimization can be obtained through the adoption of the IT Service Management proposition by IT operations.
G
Pietro Della Peruta
However, IT Service Management concepts and tools are complex changes to introduce to an organization. To achieve the right fit of such concepts and tools it is important that the introduction is congruent with the company’s operating mode. The Company Operating Mode concept was introduced in the seminal work of Nolan and McFarlan on the “IT Strategic Impact Grid” (Harvard Business Review, October 2005, Information Technology and the Board of DirecTurnaround mode is characStrategic Dependence: Current value of IT on tors). According to the IT terized by the business havbusiness Strategic Impact Grid, ing a low strategic dependHigh companies operate in Low ence on IT which has high four possible modes: strategic impact. Firms in Turnaround Strategic High support, turnaround, facturnaround mode expect a IT Governance Focus IT Governance tory, and strategic. These new system to change their on system s and Governance modes determine the on business business. New systems promapplications Strategic Im pact: services Scope of IT current value IT has for ise major process optimizaFuture value of IT on operations the business (i.e. strategic business tion and service transformaSupport Factory Managem ent dependency) and the tion as well as cost reducBusiness Applications Focus future value IT has for the tion. IT operations are charservice and system m anagem ent m anagem ent business (i.e. strategic acterized by a great attenLow impact). To optimize the tion to efficiency, and they Legenda IT Managem ent Mode value of IT, for each are mostly
Academy TechNotes
ATN Volume 2, Number 9, 2011
Strategic fit of IT Service Management iven the crucial role that IT (Information Technology) plays in businesses today, IT departments have a significant responsibility to ensure that its value is optimized. IT optimization can be obtained through the adoption of the IT Service Management proposition by IT operations.
G
Pietro Della Peruta
However, IT Service Management concepts and tools are complex changes to introduce to an organization. To achieve the right fit of such concepts and tools it is important that the introduction is congruent with the company’s operating mode. The Company Operating Mode concept was introduced in the seminal work of Nolan and McFarlan on the “IT Strategic Impact Grid” (Harvard Business Review, October 2005, Information Technology and the Board of DirecTurnaround mode is characStrategic Dependence: Current value of IT on tors). According to the IT terized by the business havbusiness Strategic Impact Grid, ing a low strategic dependHigh companies operate in Low ence on IT which has high four possible modes: strategic impact. Firms in Turnaround Strategic High support, turnaround, facturnaround mode expect a IT Governance Focus IT Governance tory, and strategic. These new system to change their on system s and Governance modes determine the on business business. New systems promapplications Strategic Im pact: services Scope of IT current value IT has for ise major process optimizaFuture value of IT on operations the business (i.e. strategic business tion and service transformaSupport Factory Managem ent dependency) and the tion as well as cost reducBusiness Applications Focus future value IT has for the tion. IT operations are charservice and system m anagem ent m anagem ent business (i.e. strategic acterized by a great attenLow impact). To optimize the tion to efficiency, and they Legenda IT Managem ent Mode value of IT, for each are mostly